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INCOME TAX
 9 Months Ended
Sep. 30, 2025
INCOME TAX  
INCOME TAX

NOTE 3.    INCOME TAX

The following table summarizes tax provision (benefit) and the effective tax rate for our income (loss) from continuing operations:

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Three Months Ended September 30, 

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Nine Months Ended September 30, 

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2025

    

2024

    

2025

    

2024

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​

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(in millions)

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Income (loss) from continuing operations, before income tax

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$

52.3

​

$

(14.5)

​

$

111.5

​

$

11.9

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Income tax provision (benefit)

​

$

5.9

​

$

(0.4)

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$

14.7

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$

4.6

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Effective tax rate

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​

11.3

%

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2.8

%

​

13.2

%

​

38.7

%

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Our effective tax rates differ from the U.S. federal statutory rate of 21% primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, as well as tax credits, partially offset by net U.S. tax on foreign operations and the net effect of Pillar II top-up taxes. The effective tax rate for the three months ended September 30, 2025 was higher compared to the same period in 2024, primarily due to the absence of restructuring charges that were recorded in the prior-year period related to our Zhongshan, China factory closure resulting in an income tax benefit. The current quarter also included a net benefit from discrete tax items, consisting of a partial release of a valuation allowance, partially offset by the impact of tax law changes and other discrete adjustments.

For the nine months ended September 30, 2025, the effective tax rate was lower than the same period in 2024, primarily due to the absence of restructuring charges that impacted the prior-year results.

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As of September 30, 2025, certain countries in which the Company operates have implemented or are in the process of implementing the Pillar II minimum global effective tax rate regime as put forth by the Organization for Economic Cooperation and Development (“OECD”). As countries continue to make revisions to their legislation and release additional guidance with respect to the global minimum tax, we continue to determine any potential impact in the countries in which we operate. The impact of these changes may have a material impact on our cash tax expense and tax rate.

On July 4, 2025, the One Big Beautiful Bill (“OBBB”) Act, which includes a broad range of elective tax law items available in 2025 and prescribed tax law changes in 2026, was signed into law in the United States. The Company has reflected the impact of the OBBB’s elective tax law items in its financial statements for period ending September 30, 2025.