DISCONTINUED OPERATIONS

6 Months Ended

Jun. 27, 2025

Discontinued Operations and Disposal Groups [Abstract]

On October 31, 2024, the Company completed the sale of Electrochem, collecting cash proceeds of $48.7 million, which is net of transaction costs and adjustments set forth in the stock purchase agreement. The Electrochem business focused on non-medical applications for the energy, military and environmental sectors. Upon the signing of the stock purchase agreement on September 27, 2024, the Electrochem business qualified as a discontinued operation. In connection with the sale, the Company entered into a transition services agreement with the purchaser whereby the Company will perform certain support functions for a period of up to nine months from the date of the closing.

In connection with the closing of the transaction, the Company recognized a pre-tax gain on sale of discontinued operations of $0.9 million, of which $0.8 million was recorded during the year ended December 31, 2024. The Company is in the process of finalizing the net working capital adjustment with the purchaser as provided for in the stock purchase agreement. The final net working capital adjustment, as determined through the established process outlined in the stock purchase agreement, may be different from the Company’s estimates. The impact of any changes in the net working capital adjustment and associated income taxes will be recorded as an adjustment to the gain on sale from discontinued operations in the period such change occurs and may be materially different from the Company’s estimates.

Selected financial information of the Electrochem business included in discontinued operations is below.

Income (loss) from discontinued operations, net of tax, were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Sales	$	—	$	8,739	$	—	$	16,430
Cost of sales	—		6,723		68		12,847
Gross profit	—		2,016		(68)		3,583
Selling, general and administrative expenses	—		638		—		1,132
Research, development and engineering costs	—		490		—		969
Restructuring and other charges	—		196		—		214
Interest expense	—		706		—		1,386
Gain on sale of discontinued operations	—		—		(46)		—

Loss from discontinued operations before taxes	—		(14)		(22)		(118)
Income tax benefit	—		(53)		—		(74)
Income (loss) from discontinued operations, net of tax	$	—	$	39	$	(22)	$	(44)

Cash flow information from discontinued operations for the six months ended June 28, 2024 was as follows (in thousands):




Cash used in operating activities	$	551
Cash used in investing activities (all capital expenditures)	522

Depreciation and amortization	636