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Business Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segments

Note 19 – Business Segments

The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products (“FEP”). Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls, which are produced in a variety of iron and steel qualities, are used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills. FEP principally are sold to customers in the steel distribution market, oil and gas industry and aluminum and plastic extrusion industries. The segment has operations in the United States, England, Sweden, and Slovenia and equity interests in three joint venture companies in China. Collectively, the segment primarily competes with European, Asian and North American and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil-fueled power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment utilizes an independent group of sales offices located throughout the United States and Canada.

Net sales by product line for the three and nine months ended September 30, 2025 and 2024 are outlined below.

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Forged and Cast Engineered Products

 

 

 

 

 

 

 

 

 

 

 

Forged and cast mill rolls

$

66,455

 

 

$

63,833

 

 

$

207,304

 

 

$

209,876

 

FEP

 

5,012

 

 

 

3,370

 

 

 

14,359

 

 

 

10,229

 

Forged and Cast Engineered Products

 

71,467

 

 

 

67,203

 

 

 

221,663

 

 

 

220,105

 

 

 

 

 

 

 

 

 

 

 

 

 

Air and Liquid Processing

 

 

 

 

 

 

 

 

 

 

 

Air handling systems

 

11,169

 

 

 

8,853

 

 

 

35,679

 

 

 

35,406

 

Heat exchange coils

 

12,483

 

 

 

10,824

 

 

 

35,307

 

 

 

33,626

 

Centrifugal pumps

 

12,890

 

 

 

9,286

 

 

 

32,729

 

 

 

28,232

 

Air and Liquid Processing

 

36,542

 

 

 

28,963

 

 

 

103,715

 

 

 

97,264

 

Total Reportable Segments

$

108,009

 

 

$

96,166

 

 

$

325,378

 

 

$

317,369

 

The accounting policies for each segment are the same as those described in Item 8, Financial Statements and Supplementary Data, in Part II of our Annual Report on Form 10-K for the year ended December 31, 2024. The Corporation's Chief Executive Officer is the Corporation’s CODM.

The Corporation measures each segment’s profitability based on (loss) income from operations, which excludes interest expense, other income and expense items and Corporate costs. Along with other measures, the CODM uses segment (loss) income from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews.

Summarized financial information for the Corporation’s reportable segments is shown in the following tables.

 

Three Months Ended September 30,

 

 

2025

 

 

2024

 

 

FCEP (5)

 

ALP

 

 

Total

 

 

FCEP

 

ALP

 

 

Total

 

Net sales

$

71,467

 

$

36,542

 

 

$

108,009

 

 

$

67,203

 

$

28,963

 

 

$

96,166

 

Less:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold (excluding depreciation and amortization)

 

58,295

 

 

28,361

 

 

 

 

 

 

53,902

 

 

22,487

 

 

 

 

Selling and administrative

 

6,365

 

 

3,737

 

 

 

 

 

 

6,516

 

 

3,096

 

 

 

 

Depreciation and amortization

 

6,807

 

 

284

 

 

 

 

 

 

4,340

 

 

246

 

 

 

 

Severance charge

 

165

 

 

—

 

 

 

 

 

 

—

 

 

—

 

 

 

 

Loss on disposal of assets

 

236

 

 

—

 

 

 

 

 

 

(11

)

 

—

 

 

 

 

Segment (loss) income from operations

$

(401

)

$

4,160

 

 

 

3,759

 

 

$

2,456

 

$

3,134

 

 

 

5,590

 

Reconciliation to loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate costs (3)

 

 

 

 

 

 

(2,636

)

 

 

 

 

 

 

 

(3,720

)

Interest expense

 

 

 

 

 

 

(3,001

)

 

 

 

 

 

 

 

(2,976

)

Other income - net (4)

 

 

 

 

 

 

748

 

 

 

 

 

 

 

 

288

 

Loss before income taxes

 

 

 

 

 

$

(1,130

)

 

 

 

 

 

 

$

(818

)

 

 

Nine Months Ended September 30,

 

 

2025

 

 

2024

 

 

FCEP (5)

 

ALP

 

 

Total

 

 

FCEP

 

ALP

 

 

Total

 

Net sales

$

221,663

 

$

103,715

 

 

$

325,378

 

 

$

220,105

 

$

97,264

 

 

$

317,369

 

Less:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold (excluding depreciation and amortization)(2)

 

180,345

 

 

80,396

 

 

 

 

 

 

178,884

 

 

77,679

 

 

 

 

Selling and administrative

 

19,236

 

 

10,907

 

 

 

 

 

 

18,602

 

 

10,565

 

 

 

 

Depreciation and amortization

 

16,259

 

 

836

 

 

 

 

 

 

13,224

 

 

730

 

 

 

 

Severance charge

 

6,019

 

 

—

 

 

 

 

 

 

—

 

 

—

 

 

 

 

Loss on disposal of assets

 

263

 

 

—

 

 

 

 

 

 

2

 

 

—

 

 

 

 

Segment (loss) income from operations

$

(459

)

$

11,576

 

 

 

11,117

 

 

$

9,393

 

$

8,290

 

 

 

17,683

 

Reconciliation to (loss) income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate costs (3)

 

 

 

 

 

 

(9,222

)

 

 

 

 

 

 

 

(10,688

)

Interest expense

 

 

 

 

 

 

(8,552

)

 

 

 

 

 

 

 

(8,750

)

Other income - net (4)

 

 

 

 

 

 

1,349

 

 

 

 

 

 

 

 

2,600

 

(Loss) income before income taxes

 

 

 

 

 

$

(5,308

)

 

 

 

 

 

 

$

845

 

 

(1)
The significant expense categories and amounts align with the segment-level information regularly provided to the CODM.
(2)
Cost of products sold (excluding depreciation and amortization) for the nine months ended September 30, 2025 includes employee-retention credits, which are refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic received from the Internal Revenue Service (the “Employee-Retention Credits”) of $735 for the FCEP ($456) and ALP ($279) segments.
(3)
Corporate costs represent the operating expenses of the corporate office and other costs not allocated to the segments.
(4)
Other income - net includes net pension and other postretirement income, gains and losses on foreign exchange transactions, unrealized gains and losses on Rabbi trust investments, and investment income.
(5)
FCEP segment loss from operations for the three and nine months ended September 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $3,069 and $9,819, respectively, associated with exiting UES-UK and closing AUP.

 

 

 

Capital Expenditures

 

 

Depreciation and
Amortization Expense

 

 

Identifiable Assets(2)

 

 

 

Nine Months Ended September 30,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

September 30,

 

December 31,

 

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

FCEP (1)

 

$

4,492

 

$

5,347

 

 

$

6,807

 

$

4,340

 

 

$

16,259

 

$

13,224

 

 

$

297,501

 

$

289,129

 

ALP

 

 

2,142

 

 

3,096

 

 

 

284

 

 

246

 

 

 

836

 

 

730

 

 

 

219,136

 

 

230,171

 

Corporate

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

7,776

 

 

11,596

 

Consolidated total

 

$

6,634

 

$

8,443

 

 

$

7,091

 

$

4,586

 

 

$

17,095

 

$

13,954

 

 

$

524,413

 

$

530,896

 

 

 

 

 

Long-lived Assets(3)

 

 

Net Sales by
Geographic Area(4)

 

 

(Loss) Income
Before Income Taxes

 

 

 

 

September 30,

 

December 31,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

Geographic Areas:

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

United States (5)

 

$

215,836

 

$

235,785

 

 

$

67,334

 

$

59,556

 

 

$

188,957

 

$

202,236

 

 

$

192

 

$

837

 

 

$

541

 

$

(181

)

 

Foreign (6)

 

 

56,171

 

 

55,473

 

 

 

40,675

 

 

36,610

 

 

 

136,421

 

 

115,133

 

 

 

(1,322

)

 

(1,655

)

 

 

(5,849

)

 

1,026

 

 

Consolidated total

 

$

272,007

 

$

291,258

 

 

$

108,009

 

$

96,166

 

 

$

325,378

 

$

317,369

 

 

$

(1,130

)

$

(818

)

 

$

(5,308

)

$

845

 

 
(1)
Depreciation and amortization expense for the three and nine months ended September 30, 2025 includes accelerated depreciation of $2,407 and $3,061, respectively, associated with exiting UES-UK and closing AUP.
(2)
Identifiable assets for the FCEP segment include investments in joint ventures of $2,175 at September 30, 2025 and December 31, 2024. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $124,947 and $139,295 at September 30, 2025 and December 31, 2024, respectively. Identifiable assets for Corporate represent cash and cash equivalents and other items not allocated to reportable segments.
(3)
Long-lived assets exclude deferred income tax assets. Long-lived assets in the U.S. include noncurrent asbestos-related insurance receivables of $109,947 and $124,295 at September 30, 2025 and December 31, 2024, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.
(4)
Net sales are attributed to the geographic areas based on the location of the customer. Sales to individual foreign countries were less than 10% of consolidated net sales for each of the periods. The majority of foreign net sales for each of the periods is attributable to the FCEP segment.
(5)
Loss before income taxes for the U.S. for the three and nine months ended September 30, 2025 includes severance, accelerated depreciation and other exit costs approximating $816 associated with closing AUP and for the nine months ended September 30, 2025 includes Employee-Retention Credits of $735.
(6)
Loss before income taxes for foreign for the three and nine months ended September 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $2,253 and $9,003, respectively, associated with exiting UES-UK.