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Pension and Post-Employment Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension and Post-Employment Benefits

Note 10. Pension and Post-Employment Benefits

United Kingdom plan

The Company previously maintained a defined benefit pension plan covering certain current and former employees in the United Kingdom (the “UK Plan”).

In 2024, the Company completed a buy-out of the UK Plan. The buy-out meant that the Company was no longer responsible for the future obligation for retirement benefits payable to current and former employees. As a consequence, the Company recognized a one-off, non-cash settlement charge of $155.6 million in the income statement relating to the updated valuations at the time of the buy-out and the recycling of historical pension costs previously held in the statement of comprehensive income.

As of December 31, 2024, the remaining asset on the balance sheet was $2.5 million, relating to cash held to cover the remaining expenses of the scheme, being partly offset by the remaining Projected Benefit Obligation ("PBO") of $0.1 million, reflecting the UK Plan’s residual liabilities in respect of Guaranteed Minimum Pension equalization top-up payments due to former members of the UK Plan.

On July 29, 2025, the UK Plan was fully wound up. As of December 31, 2025, there were no remaining assets on the balance sheet (December 31, 2024 $2.4 million).

Following the UK Plan buy-out, the Company is no longer required to make future cash contributions to the UK Plan. In 2024, the Company contributed $0.0 million in cash to the UK Plan in accordance with an agreement with the trustees.

In September 2024, the Company received $8.4 million from the UK Plan as recovery of pension related costs previously incurred, which has been credited against the service cost in 2024, resulting in an associated income tax expense of $2.1 million.

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Service cost/(credit)

 

$

1.5

 

 

$

(4.9

)

 

$

3.4

 

Interest cost on PBO

 

 

—

 

 

 

18.6

 

 

 

19.6

 

Expected return on plan assets

 

 

—

 

 

 

(25.9

)

 

 

(25.2

)

Amortization of prior service cost

 

 

—

 

 

 

16.8

 

 

 

0.5

 

Amortization of actuarial net losses

 

 

—

 

 

 

—

 

 

 

(1.6

)

Recycling of residual reserves

 

 

—

 

 

 

138.8

 

 

 

—

 

Net periodic cost/(benefit)

 

$

1.5

 

 

$

143.4

 

 

$

(3.3

)

 

The income statement captions are shown here:

 

Selling, general and administrative

 

2025

 

 

2024

 

 

2023

 

     Service cost/(credit)

 

$

1.5

 

 

$

(4.9

)

 

$

3.4

 

 

 

 

 

 

 

 

 

 

 

Other expense/(income), net

 

2025

 

 

2024

 

 

2023

 

Interest cost on PBO

 

$

—

 

 

 

18.6

 

 

 

19.6

 

Expected return on plan assets

 

 

—

 

 

 

(25.9

)

 

 

(25.2

)

     Amortization of prior service cost

 

 

—

 

 

 

—

 

 

 

0.5

 

Amortization of actuarial net losses

 

 

—

 

 

 

—

 

 

 

(1.6

)

 

 

$

—

 

 

$

(7.3

)

 

$

(6.7

)

 

 

 

 

 

 

 

 

 

 

Pension scheme settlement charge

 

2025

 

 

2024

 

 

2023

 

     Amortization of prior service cost

 

$

—

 

 

 

16.8

 

 

 

—

 

     Recycling of residual reserves

 

 

—

 

 

 

138.8

 

 

 

—

 

 

 

 

—

 

 

 

155.6

 

 

 

—

 

     Tax relating to the amortization of prior service cost

 

 

—

 

 

 

(4.2

)

 

 

—

 

     Tax relating to the recycling of residual reserves

 

 

—

 

 

 

(34.7

)

 

 

—

 

 

 

$

—

 

 

$

116.7

 

 

$

—

 

 

 

The other financial statement captions relating to the buy-out settlement are shown here:

 

Recognized in Other Comprehensive Income

 

2025

 

 

2024

 

 

2023

 

     Recycling of residual reserves

 

$

—

 

 

 

138.8

 

 

 

—

 

     Release of historic cumulative translation adjustments

 

 

—

 

 

 

(0.7

)

 

 

—

 

 

 

 

—

 

 

 

138.1

 

 

 

—

 

     Tax relating to the recycling of residual reserves

 

 

—

 

 

 

(34.7

)

 

 

—

 

     Tax relating to historic cumulative translation adjustments

 

 

—

 

 

 

(11.0

)

 

 

—

 

 

 

$

—

 

 

$

92.4

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Recognized in Reclassifications out of Accumulated Other Comprehensive Loss

 

2025

 

 

2024

 

 

2023

 

     Recycling of residual reserves

 

$

—

 

 

 

138.8

 

 

 

—

 

     Release of historic cumulative translation adjustments

 

 

—

 

 

 

(0.7

)

 

 

—

 

 

 

 

—

 

 

 

138.1

 

 

 

—

 

     Tax relating to the recycling of residual reserves

 

 

—

 

 

 

(34.7

)

 

 

—

 

     Tax relating to historic cumulative translation adjustments

 

 

—

 

 

 

(11.0

)

 

 

—

 

 

 

$

—

 

 

$

92.4

 

 

$

—

 

 

 

Plan assumptions at December 31, (%):

 

2025

 

2024

 

 

2023

 

Discount rate

 

n/a

 

 

5.18

 

 

 

4.59

 

Inflation rate

 

n/a

 

 

2.85

 

 

 

2.70

 

Rate of return on plan assets – overall on bid-value

 

n/a

 

 

4.20

 

 

 

4.25

 

 

Plan asset allocation by category (%):

 

2025

 

2024

 

 

2023

 

Debt securities and insurance contracts

 

n/a

 

 

—

 

 

 

96

 

Cash

 

n/a

 

 

100

 

 

 

4

 

 

n/a

 

 

100

 

 

 

100

 

 

Following the buy-out, the UK Plan does not need to follow an investment strategy.

 

Movements in PBO and fair value of UK Plan assets are as follows:

 

(in millions)

 

2025

 

 

2024

 

Change in PBO:

 

 

 

 

 

 

Opening balance

 

$

0.1

 

 

$

424.1

 

Interest cost

 

 

—

 

 

 

18.6

 

Service cost/(credit)

 

 

1.5

 

 

 

(4.9

)

Benefits paid

 

 

—

 

 

 

(32.9

)

Plan amendments

 

 

—

 

 

 

8.4

 

Scheme closure expenses

 

 

(1.6

)

 

 

—

 

Actuarial losses/(gains)

 

 

—

 

 

 

3.7

 

Settlements

 

 

—

 

 

 

(419.2

)

Exchange effect

 

 

—

 

 

 

2.3

 

Closing balance

 

$

—

 

 

$

0.1

 

Fair value of plan assets:

 

 

 

 

 

 

Opening balance

 

$

2.5

 

 

$

459.2

 

Return of funds to cover historic expenses

 

 

(0.9

)

 

 

(8.4

)

Scheme closure expenses

 

 

(1.6

)

 

 

—

 

Benefits paid

 

 

—

 

 

 

(32.9

)

Actual return on assets

 

 

—

 

 

 

1.5

 

Settlements

 

 

—

 

 

 

(419.2

)

Exchange effect

 

 

—

 

 

 

2.3

 

Closing balance

 

$

—

 

 

$

2.5

 

Net pension asset

 

$

—

 

 

$

2.4

 

 

The fair values of pension assets by level of input were as follows:

 

(in millions)

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Total

 

At December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

2.5

 

 

 

 

 

 

 

 

 

2.5

 

Total plan assets

 

$

2.5

 

 

$

—

 

 

$

—

 

 

$

2.5

 

 

The reconciliation of the fair value of the UK Plan assets measured using significant unobservable inputs was as follows:

 

(in millions)

 

Other
Assets

 

Balance at December 31, 2023

 

$

438.7

 

Realized/unrealized gains/(losses):

 

 

 

Relating to assets still held at the reporting date

 

 

(2.2

)

Purchases, issuances and settlements

 

 

(438.8

)

Exchange effect

 

 

2.3

 

Balance at December 31, 2024

 

$

—

 

German plan

The Company also maintains an unfunded defined benefit pension plan covering certain current and former employees in Germany (the “German plan”), which is reported within our Fuel Specialties segment. The German plan is closed to new entrants and has no assets.

The service cost shown in the table below has been recognized in selling, general and administrative expenses within Corporate costs and the other items recognized within other income, net.

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Service cost

 

$

—

 

 

$

—

 

 

$

0.1

 

Interest cost on PBO

 

 

0.3

 

 

 

0.3

 

 

 

0.3

 

Amortization of actuarial net loss/(gain)

 

 

—

 

 

 

(0.2

)

 

 

(0.5

)

Net periodic cost/(benefit)

 

$

0.3

 

 

$

0.1

 

 

$

(0.1

)

 

Plan assumptions at December 31, (%):

 

Discount rate

 

 

3.80

 

 

 

3.20

 

 

 

3.70

 

Inflation rate

 

 

2.25

 

 

 

2.25

 

 

 

2.25

 

Rate of increase in compensation levels

 

 

2.75

 

 

 

2.75

 

 

 

2.75

 

 

Movements in PBO of the German plan are as follows:

 

(in millions)

 

2025

 

 

2024

 

Change in PBO:

 

 

 

 

 

 

Opening balance

 

$

9.0

 

 

$

9.1

 

Service cost

 

 

—

 

 

 

—

 

Interest cost

 

 

0.3

 

 

 

0.3

 

Benefits paid

 

 

(0.5

)

 

 

(0.4

)

Actuarial losses/(gains)

 

 

(0.6

)

 

 

0.5

 

Exchange effect

 

 

1.2

 

 

 

(0.5

)

Closing balance

 

$

9.4

 

 

$

9.0

 

 

Other plans

As at December 31, 2025, we have post-employment obligations in our Performance Chemicals European businesses with a liability of $3.8 million (December 31, 2024 – $4.1 million). For the year ended

December 31, 2025, we have recognized an actuarial gain of $0.1 million in other comprehensive loss in relation to the Performance Chemicals pension in France (December 31, 2024 – $0.2 million).

Company contributions to defined contribution schemes during 2025 were $15.3 million (2024 – $13.9 million), across all of our reporting segments.