Discontinued Operations

3 Months Ended

Mar. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

In June 2025, the Company committed to a plan to sell its Renewables business, which represents a strategic shift in operations. The decision was driven by a change in the Company's strategy to focus its asset portfolio and resources on its Residential, Agtech and Infrastructure segments. The Renewables business was classified as held for sale as of June 30, 2025, and met the criteria for discontinued operations. On February 20, 2026, the Company completed the sale of certain assets related to the Renewables business to a third-party, as described below. The remaining portion of the Renewables business is currently marketed as part of an active sale program and the Company expects to complete the disposition of the remaining business prior to June 2026. The Renewables business was previously reported under the Renewables segment in accordance with ASC Subtopic 280.

At March 31, 2026 and December 31, 2025, the Renewables business remained classified as held for sale and as a discontinued operation. Accordingly, the Company performed a fair value less cost to sell analysis at each reporting date and determined that its carrying amount exceeded fair value less costs to sell. For three months ended March 31, 2026, the Company recorded a remeasurement adjustment before income taxes of $47.4 million included in the loss before taxes from discontinued operations on the consolidated statements of operations. The fair value measurement is categorized within Level 3 of the fair value hierarchy based on significant unobservable inputs in accordance with ASC Topic 820.

The following table presents the carrying amounts and a reconciliation of the major classes of assets and liabilities included in discontinued operations related to the Renewables business, which have been segregated from the Company's continuing operations and are reported as assets and liabilities of discontinued operations held for sale, respectively, in the consolidated balance sheets at (in thousands):


	March 31, 2026		December 31, 2025
Assets of the discontinued operations:
Trade receivables, net	$	43,142	$	56,382
Costs in excess of billings, net	14,772		19,390
Inventories, net	26,164		30,954
Prepaid expenses and other current assets	5,884		4,540
Property, plant, and equipment, net	20,562		21,446
Operating lease assets	3,932		5,084
Goodwill	152,215		184,230
Acquired intangibles	46,026		46,303

Impairment and remeasurement adjustments	(223,414)		(175,967)
Total assets classified as discontinued operations (1)	$	89,283	$	192,362

Liabilities of the discontinued operations:
Accounts payable	$	23,574	$	28,320
Accrued expenses	51,397		27,135
Billings in excess of costs	34,462		34,202

Non-current operating lease liabilities	2,879		3,463
Total liabilities classified as discontinued operations (1)	$	112,312	$	93,120

(1) Total held for sale assets and liabilities of the discontinued operations are classified as current on the March 31, 2026 and December 31, 2025 consolidated balance sheets as it is probable that the sale will occur and proceeds will be collected within one year from the date the Company committed to the plan to sell.

At March 31, 2026, accrued expenses included within total liabilities classified as discontinued operations included amounts attributable to certain unresolved warranty claims related to the discontinued operation which had been disputed by the Company. The Company has reached an agreement to settle these warranty claims in the amount of $25.0 million. The Company expects the settlement to be paid during the second quarter of 2026.

The following table is the components of the loss before taxes from discontinued operations before tax (in thousands):


	Three Months Ended March 31,
	2026		2025
Net sales	$	49,386	$	43,658
Operating expenses	83,540		46,803
Remeasurement adjustment	47,447		—
Other (income) expenses, net	(21,730)		18
Loss before taxes from discontinued operations	$	(59,871)	$	(3,163)

During the three months ended March 31, 2026, the Company entered into the settlement agreement referred to above resulting in a charge included in loss before taxes from discontinued operations in the consolidated statements of operations.

Disposition

On February 20, 2026, the Company sold certain assets within its Renewables business pertaining to its electrical balance of systems products. The sale of these assets generated net proceeds of $74.9 million in cash, subject to working capital and other customary post-closing adjustments, and resulted in a pre-tax net gain of $21.8 million presented within loss before taxes from discontinued operations in the consolidated statements of operations.