Industry Segment and Geographic Data

Our business is organized into four operating segments, Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of three operating segments, Vehicle Control, Temperature Control and Nissens Automotive, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies.

The Vehicle Control operating segment includes sales from ignition emissions and fuel delivery, electrical and safety, and wire sets and other product categories to automotive aftermarket customers.

The Temperature Control operating segment includes sales from air conditioning system components and other thermal product categories to automotive aftermarket customers primarily in the United States, and is poised to benefit from the broader adoption of more complex air conditioning systems that will provide passenger comfort regardless of the vehicle's powertrain.

The Nissens Automotive operating segment includes sales of engine cooling, air conditioning system components and engine efficiency products to automotive aftermarket customers primarily in Europe.

The Engineered Solutions operating segment includes sales of custom-engineered solutions to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.

We identify our operating segments based on how our chief operating decision maker ("CODM"), our President and Chief Executive Officer, allocates resources, assesses performance and makes decisions. The CODM uses operating income (loss) to allocate resources (including employees, property, and financial or capital resources) for each segment during the annual budget and forecasting process. The CODM considers budget-to-actual and year-over-year variances on a monthly basis for the significant measure when making decisions about allocating capital and personnel to the segments. The CODM also uses segment gross profit for evaluating product pricing and operating income (loss) to assess the performance for each segment by comparing the results with one another. In addition to these measures, the CODM tracks expenses at a disaggregated level to understand the drivers of total operating expenses. These include selling, general and administrative expenses, distribution expenses, supply chain financing expenses, restructuring and integration expenses, and any other special expense items. In tracking these expenses separately, the CODM is able to identify opportunities for adjusting how the business uses funds to achieve greater profitability.

The accounting policies of each segment are the same as those described in Note 1, "Summary of Significant Accounting Policies".

The following tables contain financial information for each reportable operating segment (in thousands):


Year Ended December 31, 2025	Vehicle Control		Temperature Control		Nissens Automotive		Engineered Solutions		Intersegment sales		Total
Net sales	$	785,392	$	426,367	$	305,377	$	274,484	$	(462)	$	1,791,158
Cost of sales	538,287		281,546		184,947		227,432		(462)		1,231,750
Gross profit	247,105		144,821		120,430		47,052		—		559,408

Selling and marketing expenses	43,715		14,657		19,603		8,277		—		86,252
Distribution expenses	66,661		33,843		35,751		5,217		—		141,472
General and administration expenses	40,728		17,905		35,803		20,855		—		115,291
Supply chain financing expenses	27,934		16,741		577		—		—		45,252
Restructuring expenses	2,271		190		—		118		—		2,579
Other expenses	—		—		1,796		1,987		—		3,783
Total segment operating expenses	181,309		83,336		93,530		36,454		—		394,629

Segment operating income (loss)	$	65,796	$	61,485	$	26,900	$	10,598	$	—	$	164,779

Unallocated corporate expenses and other											28,272
Other non-operating income, net											5,355
Interest expense											31,339
Earnings from continuing operations before income taxes											$	110,523


Year Ended December 31, 2024	Vehicle Control		Temperature Control		Nissens Automotive		Engineered Solutions		Intersegment sales		Total
Net sales	$	762,560	$	380,088	$	35,745	$	285,456	$	—	$	1,463,849
Cost of sales	518,475		262,296		24,220		235,537		—		1,040,528
Gross profit	244,085		117,792		11,525		49,919		—		423,321

Selling and marketing expenses	45,878		15,938		1,536		8,060		—		71,412
Distribution expenses	57,627		32,858		7,097		5,290		—		102,872
General and administration expenses	36,935		16,763		5,560		20,906		—		80,164
Supply chain financing expenses	32,090		16,449		—		—		—		48,539
Restructuring expenses	4,249		847		—		843		—		5,939
Other expenses	—		—		100		—		—		100
Total segment operating expenses	176,779		82,855		14,293		35,099		—		309,026

Segment operating income (loss)	$	67,306	$	34,937	$	(2,768)	$	14,820	$	—	$	114,295

Unallocated corporate expenses and other											33,671
Other non-operating income, net											6,877
Interest expense											13,512
Earnings from continuing operations before income taxes											$	73,989


Year Ended December 31, 2023	Vehicle Control		Temperature Control		Nissens Automotive		Engineered Solutions		Intersegment sales		Total
Net sales	$	737,932	$	337,754	$	—	$	282,586	$	—	$	1,358,272
Cost of sales	499,717		241,927		—		227,802		—		969,446
Gross profit	238,215		95,827		—		54,784		—		388,826

Selling and marketing expenses	46,223		16,772		—		8,407		—		71,402
Distribution expenses	54,401		30,467		—		4,989		—		89,857
General and administration expenses	34,430		14,664		—		21,186		—		70,280
Supply chain financing expenses	30,558		15,473		—		—		—		46,031
Restructuring expenses	1,276		1,108		—		258		—		2,642
Total segment operating expenses	166,888		78,484		—		34,840		—		280,212

Segment operating income (loss)	$	71,327	$	17,343	$	—	$	19,944	$	—	$	108,614

Unallocated corporate expenses and other											15,937
Other non-operating income, net											2,326
Interest expense											13,287
Earnings from continuing operations before income taxes											$	81,716


	Year Ended December 31,
(in thousands)	2025		2024		2023
Depreciation and amortization
Vehicle Control	$	16,178	$	14,841	$	13,877
Temperature Control	3,285		3,307		3,424
Nissens Automotive	12,935		1,943		—
Engineered Solutions	10,088		9,608		9,966
Total operating segment depreciation and amortization	42,486		29,699		27,267
Corporate	1,362		1,714		1,755
Total depreciation and amortization	$	43,848	$	31,413	$	29,022
Capital expenditures
Vehicle Control	$	22,571	$	29,603	$	13,955
Temperature Control	4,076		2,621		1,899
Nissens Automotive	946		213		—
Engineered Solutions	9,553		9,721		12,095
Total operating segment capital expenditures	37,146		42,158		27,949
Corporate	1,578		1,860		684
Total capital expenditures	$	38,724	$	44,018	$	28,633


	December 31,
(in thousands)	2025		2024
Investment in unconsolidated affiliates
Vehicle Control	$	2,883	$	2,447
Temperature Control	20,402		20,396
Nissens Automotive	—		—
Engineered Solutions	3,025		1,999
Total operating segment investment in unconsolidated affiliates	26,310		24,842
Corporate	—		—
Total investment in unconsolidated affiliates	$	26,310	$	24,842
Total assets
Vehicle Control	$	741,732	$	659,607
Temperature Control	312,884		276,216
Nissens Automotive	531,606		482,773
Engineered Solutions	289,776		285,866
Total operating segment assets	1,875,998		1,704,462
Corporate	119,243		109,664
Total assets	$	1,995,241	$	1,814,126


	December 31,
(in thousands)	2025		2024
Long-lived assets ⁽ᵃ⁾
Denmark	$	383,393	$	347,629
United States	372,187		378,557
Asia	67,410		67,406
Europe, excluding Denmark	65,239		59,909
Mexico	27,098		21,173
Canada	4,080		4,329
Total long-lived assets	$	919,407	$	879,003

(a)Long-lived assets are attributed to countries based upon the location of the assets.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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