CTS CORP, 10-Q filed on 4/29/2026
Quarterly Report
v3.26.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2026
Apr. 22, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2026  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000026058  
Document Transition Report false  
Entity File Number 1-4639  
Entity Registrant Name CTS CORPORATION  
Entity Incorporation, State or Country Code IN  
Entity Tax Identification Number 35-0225010  
Entity Address, Address Line One 4925 Indiana Avenue  
Entity Address, City or Town Lisle  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60532  
City Area Code 630  
Local Phone Number 577-8800  
Title of Each Class Common stock, without par value  
Trading Symbol CTS  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   28,592,910
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Statement [Abstract]    
Net sales $ 139,230 $ 125,769
Cost of goods sold 84,244 79,220
Gross margin 54,986 46,549
Selling, general and administrative expenses 25,984 23,623
Research and development expenses 6,634 6,190
Restructuring charges 386 451
Operating earnings 21,982 16,285
Other (expense) income:    
Interest expense (708) (1,167)
Interest income 480 447
Other (expense) income, net (81) 557
Total other expense, net (309) (163)
Earnings before income taxes 21,673 16,122
Income tax expense 4,476 2,755
Net earnings $ 17,197 $ 13,367
Earnings per share:    
Basic $ 0.6 $ 0.45
Diluted $ 0.59 $ 0.44
Basic weighted – average common shares outstanding: 28,689 30,013
Effect of dilutive securities 313 313
Diluted weighted – average common shares outstanding: 29,002 30,326
Cash dividends declared per share $ 0.04 $ 0.04
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net earnings $ 17,197 $ 13,367
Other comprehensive (loss) earnings:    
Changes in fair market value of derivatives, net of tax 88 876
Changes in unrealized pension cost, net of tax 13 14
Cumulative translation adjustment, net of tax (1,930) 4,648
Other comprehensive earnings (loss) (1,829) 5,538
Comprehensive earnings $ 15,368 $ 18,905
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Current Assets    
Cash and cash equivalents $ 90,851 $ 82,295
Accounts receivable, net of allowance of $636 and $910, respectively 93,771 88,096
Inventories, net 57,270 52,854
Other current assets 24,123 29,461
Total current assets 266,015 252,706
Property, plant and equipment, net 89,404 89,741
Operating lease assets, net 29,726 22,542
Other Assets    
Goodwill 208,665 209,611
Other intangible assets, net 148,627 153,562
Deferred income taxes 24,314 25,110
Other 10,404 11,039
Total other assets 392,010 399,322
Total Assets 777,155 764,311
Current Liabilities    
Accounts payable 50,328 48,220
Operating lease obligations 4,098 3,453
Accrued payroll and benefits 14,722 20,732
Accrued expenses and other liabilities 36,261 37,283
Total current liabilities 105,409 109,688
Long-term debt 62,500 57,500
Long-term operating lease obligations 28,363 21,841
Long-term pension obligations 3,684 3,698
Deferred income taxes 12,631 12,800
Other long-term obligations 7,093 6,998
Total Liabilities 219,680 212,525
Commitments and Contingencies (Note 9)
Shareholders’ Equity    
Common stock 326,577 324,982
Additional contributed capital 41,791 43,303
Retained earnings 729,518 713,467
Accumulated other comprehensive income 11,919 13,748
Total shareholders’ equity before treasury stock 1,109,805 1,095,500
Treasury stock (552,330) (543,714)
Total shareholders’ equity 557,475 551,786
Total Liabilities and Shareholders’ Equity $ 777,155 $ 764,311
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]        
Accounts receivable, net of allowance $ 636 $ 910 $ 795 $ 730
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net earnings $ 17,197 $ 13,367
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Depreciation and amortization 8,810 8,494
Pension and other post-retirement plan expense 72 177
Stock-based compensation 2,012 1,647
Deferred income taxes 772 (491)
Change in fair value of contingent consideration liability 53 (162)
Loss on foreign currency hedges, net of cash 31 168
Changes in assets and liabilities, net of acquisitions:    
Accounts receivable (5,968) (3,040)
Inventories (4,692) (1,022)
Operating lease assets (7,184) 315
Other assets 3,129 73
Accounts payable 2,757 765
Accrued payroll and benefits (6,126) (3,352)
Operating lease liabilities 7,167 (340)
Accrued expenses and other liabilities (735) (1,041)
Pension and other post-retirement plans 0 (40)
Net cash provided by operating activities 17,295 15,518
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (4,997) (4,465)
Short-term investments 2,888 0
Net cash used in investing activities (2,109) (4,465)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments of long-term debt (170,700) (264,200)
Proceeds from borrowings of long-term debt 175,700 258,600
Purchases of treasury stock (8,558) (6,465)
Dividends paid (1,151) (1,201)
Taxes paid on behalf of equity award participants (1,732) (2,634)
Net cash used in financing activities (6,441) (15,900)
Effect of exchange rate changes on cash and cash equivalents (189) 801
Net increase (decrease) in cash and cash equivalents 8,556 (4,046)
Cash and cash equivalents at beginning of period 82,295 94,334
Cash and cash equivalents at end of period 90,851 90,288
Supplemental cash flow information:    
Cash paid for interest 638 1,060
Cash paid for income taxes, net 3,158 2,912
Capital expenditures incurred but not paid 1,169 1,049
Excise taxes on purchase of treasury stock incurred not paid $ 58 $ 6
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($)
$ in Thousands
Total
Common Stock
Additional Contributed Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Beginning Balance at Dec. 31, 2024 $ 528,208 $ 321,979 $ 44,662 $ 652,851 $ (4,266) $ (487,018)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 13,367     13,367    
Changes in fair market value of derivatives, net of tax 876       876  
Changes in unrealized pension cost, net of tax 14       14  
Cumulative translation adjustment, net of tax 4,648       4,648  
Cash dividends (1,201)     (1,201)    
Acquired shares for treasury stock (6,472)         (6,472)
Issued shares on vesting of restricted stock units (2,634) 2,656 (5,290)      
Stock compensation 1,432   1,432      
Ending Balance at Mar. 31, 2025 538,238 324,635 40,804 665,017 1,272 (493,490)
Beginning Balance at Dec. 31, 2025 551,786 324,982 43,303 713,467 13,748 (543,714)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 17,197     17,197    
Changes in fair market value of derivatives, net of tax 88       88  
Changes in unrealized pension cost, net of tax 13       13  
Cumulative translation adjustment, net of tax (1,930)       (1,930)  
Cash dividends (1,146)     (1,146)    
Acquired shares for treasury stock (8,616)         (8,616)
Issued shares on vesting of restricted stock units (1,732) 1,595 (3,327)      
Stock compensation 1,815   1,815      
Ending Balance at Mar. 31, 2026 $ 557,475 $ 326,577 $ 41,791 $ 729,518 $ 11,919 $ (552,330)
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Stockholders' Equity [Abstract]    
Cash dividends declared per share $ 0.04 $ 0.04
Treasury stock, shares, acquired 176,909 143,541
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ 17,197 $ 13,367
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

From time to time, our directors and officers may purchase or sell shares of our common stock in the market, including pursuant to plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended (“Rule 10b5-1 Plans”).

Kieran M. O’Sullivan, the Company’s President and Chief Executive Officer entered into a Rule 10b5-1 Plan on March 2, 2026 for the sale of up to 130,000 shares of our common stock. The plan is scheduled to terminate no later than February 25, 2028.

During the quarter ended March 31, 2026, no other director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (as each term is defined in Item 408 of Regulation S-K).
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Modified false
Non-Rule 10b5-1 Modified false
Kieran M. O Sullivan [Member]  
Trading Arrangements, by Individual  
Name Kieran M. O’Sullivan
Title President and Chief Executive Officer
Expiration Date February 25, 2028
Aggregate Available 130,000
v3.26.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Basis of Presentation

NOTE 1 — Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, “we”, “our”, “us” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.

During the three months ended March 31, 2026, the Company entered into a new agreement for the purchase of platinum used in the manufacturing process of certain products. The purchased platinum is presented in Property, plant and equipment, net on the Consolidated Balance Sheets. The platinum is not depreciated because it has very low physical loss and is repeatedly reclaimed and reused in our manufacturing process over a very long useful life. The physical loss of platinum in the manufacturing and reclamation process is treated as depletion and these losses are accounted for as a period expense based on actual units lost. Platinum is reviewed for impairment as part of our assessment of long-lived assets. This review considers all our platinum that is either in place in the production process; in reclamation, fabrication, or refinement in anticipation of re-use; or awaiting use to support increased capacity. Platinum is only acquired to support our operations and is not held for trading purposes.

There have been no other material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Accounting pronouncements recently adopted

ASU No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows for a practical expedient election to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset in the development of a reasonable and supportable forecast as part of estimating expected credit losses. The Company adopted ASU 2025-05 effective January 1, 2026 on a prospective basis and elected the practical expedient for the calculation of current expected credit losses. The adoption did not have a material effect on the Company’s consolidated financial statements.

Recently issued accounting pronouncements not yet adopted

ASU No. 2024-03, “Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses”

In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional information about certain expenses in the notes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The standard can be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting ASU 2024-03.

ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to improve the operability and application of guidance related to capitalized software development costs. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06.

v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

NOTE 2 – Revenue Recognition

CTS designs and manufactures sensors, actuators, and electronic components for original equipment manufacturers and the U.S. Government. For our customer contracts, we determine the transaction price based on the consideration expected to be received by the Company in exchange for performing its obligations under the applicable contract. We allocate the transaction price to each distinct performance obligation to deliver a good or service, or a collection of goods and/or services, based on the relative standalone selling prices. We usually expect payment from our customers within 30 to 90 days from the shipping date or invoicing date, depending on our terms with the customer. None of our contracts as of March 31, 2026 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable.

To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely value method based on an analysis of historical experience and current facts and circumstances, which may require significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

Our revenue reserves contain uncertainties because they require management to make assumptions and to apply judgment to estimate the value of future credits to customers for product returns, price adjustments, and stock rotation adjustments. We base these estimates on the most likely value method considering all reasonably available information, including our historical experience and current expectations, and are reflected in the transaction price when sales are recorded.

Approximately 97% of our revenue is derived from contracts for sales of commercial products, which generally contain a single performance obligation. We generally recognize revenue at a point in time on the delivery date based on the shipping terms stipulated in the contract.

We also design, manufacture, and test products for certain customers under contracts that allow the customers to unilaterally terminate the contract for convenience, take control of any work in process, and pay us for costs incurred plus a reasonable profit. Revenue from these contracts is generally recognized over time as the work progresses, either as products are produced or services are rendered, because we generally do not have an alternative use for the completed assets produced and we have an enforceable right to payment for performance completed to date. These contracts may contain a single or multiple performance obligations. The accounting for these contracts involves applying significant judgment with respect to estimating total revenues, costs and profit for each performance obligation. We generally estimate revenue for these contracts using the costs incurred by the Company as we have determined that this method is the most representative of the Company's cumulative efforts relative to the total expected efforts to satisfy the performance obligations. Approximately 3% of the Company’s revenue is recognized over time.

See Note 9, “Commitments and Contingencies” for information about our product warranties.

Contract Assets and Liabilities

Contract assets and liabilities included in our Condensed Consolidated Balance Sheets are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Contract Assets

 

 

 

 

 

 

 

 

 

Unbilled customer receivables included in Other current assets

 

$

5,388

 

 

$

6,688

 

 

$

4,104

 

Total Contract Assets

 

$

5,388

 

 

$

6,688

 

 

$

4,104

 

 

 

 

 

 

 

 

 

 

 

Contract Liabilities

 

 

 

 

 

 

 

 

 

Customer advance payments included in Accrued expenses and other liabilities

 

$

(1,041

)

 

$

(1,633

)

 

$

(910

)

Total Contract Liabilities

 

$

(1,041

)

 

$

(1,633

)

 

$

(910

)

The revenue recognized during the three months ended March 31, 2026 and 2025 that was included in contract liabilities at the beginning of the period amounted to $591 and $60, respectively.

Disaggregated Revenue

The following table presents revenues disaggregated by the major markets we serve:

 

 

 

Three months ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Transportation

 

$

60,158

 

 

$

58,489

 

Industrial

 

 

37,139

 

 

 

32,448

 

Medical

 

 

24,517

 

 

 

19,131

 

Aerospace & Defense

 

 

17,416

 

 

 

15,701

 

Total

 

$

139,230

 

 

$

125,769

 

 
v3.26.1
Accounts Receivable, Net
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Accounts Receivable, Net

NOTE 3 – Accounts Receivable, net

The components of accounts receivable, net are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Accounts receivable, gross

 

$

94,407

 

 

$

89,006

 

Less: Allowance for credit losses

 

 

(636

)

 

 

(910

)

Accounts receivable, net

 

$

93,771

 

 

$

88,096

 

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Accounts receivable, gross

 

$

82,235

 

 

$

78,379

 

Less: Allowance for credit losses

 

 

(795

)

 

 

(730

)

Accounts receivable, net

 

$

81,440

 

 

$

77,649

 
v3.26.1
Inventories, Net
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Inventories, Net

NOTE 4 – Inventories, net

Inventories, net consists of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Finished goods

 

$

10,705

 

 

$

11,390

 

Work-in-process

 

 

25,664

 

 

 

24,404

 

Raw materials

 

 

33,968

 

 

 

30,726

 

Less: Inventory reserves

 

 

(13,067

)

 

 

(13,666

)

Inventories, net

 

$

57,270

 

 

$

52,854

 
v3.26.1
Property, Plant and Equipment, Net
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net

NOTE 5 – Property, Plant and Equipment, net

Property, plant and equipment, net is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Land and land improvements

 

$

399

 

 

$

399

 

Buildings and improvements

 

 

73,746

 

 

 

73,248

 

Machinery and equipment(1)

 

 

280,028

 

 

 

276,416

 

Less: Accumulated depreciation

 

 

(264,769

)

 

 

(260,322

)

Property, plant and equipment, net

 

$

89,404

 

 

$

89,741

 
(1)
Includes $2,646 of platinum which is depleted based on actual usage. See Note 1, “Basis of Presentation,” for further discussion.

 

Depreciation expense for the three months ended March 31, 2026 and March 31, 2025 was $4,772 and $4,463, respectively.
v3.26.1
Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 6 – Goodwill and Other Intangible Assets

Goodwill

Changes in the net carrying amount of goodwill were as follows:

 

 

 

Total

 

Goodwill as of December 31, 2025

 

$

209,611

 

     Foreign exchange impact

 

 

(946

)

Goodwill as of March 31, 2026

 

$

208,665

 

 

Other Intangible Assets

Other intangible assets, net consist of the following components:

 

 

 

As of

 

 

 

March 31, 2026

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Amount

 

Customer lists/relationships

 

$

215,804

 

 

$

(89,439

)

 

$

126,365

 

Technology and other intangibles

 

 

62,025

 

 

 

(39,763

)

 

 

22,262

 

Other intangible assets, net

 

$

277,829

 

 

$

(129,202

)

 

$

148,627

 

 

 

 

 

As of

 

 

 

December 31, 2025

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Amount

 

Customer lists/relationships

 

$

216,927

 

 

$

(86,526

)

 

$

130,401

 

Technology and other intangibles

 

 

62,167

 

 

 

(39,006

)

 

 

23,161

 

Other intangible assets, net

 

$

279,094

 

 

$

(125,532

)

 

$

153,562

 

Amortization expense for the three months ended March 31, 2026 and March 31, 2025 was $4,038 and $4,031, respectively. The changes in the gross carrying amounts of intangible assets are due to foreign exchange impacts in the quarter.

Remaining amortization expense for other intangible assets as of March 31, 2026 is as follows:

 

 

 

Amortization
expense

 

Remaining 2026

 

$

12,043

 

2027

 

 

15,998

 

2028

 

 

15,963

 

2029

 

 

14,795

 

2030

 

 

14,621

 

Thereafter

 

 

75,207

 

Total amortization expense

 

$

148,627

 

 
v3.26.1
Costs Associated with Exit and Restructuring Activities
 3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Costs Associated with Exit and Restructuring Activities

NOTE 7 – Costs Associated with Exit and Restructuring Activities

Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statements of Earnings.

Total restructuring charges are as follows:

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Restructuring charges

 

$

386

 

 

$

451

 

 

During the quarter ended March 31, 2026, we incurred total restructuring charges of $386 related to workforce reduction costs. The workforce reduction charges incurred are for restructuring activities related to efficiency improvements.

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for the three months ended March 31, 2026:

 

Restructuring liability at December 31, 2025

 

$

192

 

Restructuring charges

 

 

386

 

Costs paid

 

 

(260

)

Restructuring liability at March 31, 2026

 

$

318

 
v3.26.1
Accrued Expenses and Other Liabilities
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities

NOTE 8 – Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Accrued product-related costs

 

$

2,041

 

 

$

1,789

 

Accrued income taxes

 

 

7,830

 

 

 

7,175

 

Accrued property and other taxes

 

 

1,354

 

 

 

1,071

 

Accrued professional fees

 

 

1,227

 

 

 

1,454

 

Accrued customer-related liabilities

 

 

1,769

 

 

 

2,602

 

Dividends payable

 

 

1,146

 

 

 

1,151

 

Remediation reserves

 

 

16,441

 

 

 

16,450

 

Derivative liabilities

 

 

647

 

 

 

786

 

Other accrued liabilities

 

 

3,806

 

 

 

4,805

 

Total accrued expenses and other liabilities

 

$

36,261

 

 

$

37,283

 
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Contingencies

NOTE 9 – Commitments and Contingencies

Certain processes in the manufacture of our current and past products may create by-products classified as hazardous waste. As a result, we have been notified by the U.S. Environmental Protection Agency (“EPA”), state environmental agencies and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently or formerly owned or operated by us. Currently, none of these costs and accruals relate to sites that provide revenue generating activities for the Company. Two of those sites, Asheville, North Carolina (the “Asheville Site”) and Mountain View, California, are designated National Priorities List sites under the EPA’s Superfund program. We accrue a liability for probable remediation activities, claims, and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis.

A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Balance at beginning of period

 

$

16,450

 

 

$

12,192

 

Remediation expense

 

 

248

 

 

 

5,465

 

Net remediation payments

 

 

(257

)

 

 

(1,213

)

Other activity(1)

 

 

-

 

 

 

6

 

Balance at end of the period

 

$

16,441

 

 

$

16,450

 

 

(1)
Other activity includes currency translation adjustments not recorded through remediation expense.

The Company operates under and in accordance with a federal consent decree, dated March 7, 2017, with the EPA for the Asheville Site. On February 8, 2023, the Company received a letter from the EPA (the “EPA Letter”) seeking reimbursement of its past response costs and interest thereon relating to any release or threatened release of hazardous substances at the Asheville Site in the aggregate amount of $9,955 from the three potentially responsible parties associated with the Asheville Site, including the Company. Subsequently, the Department of Justice (the "DOJ") re-evaluated the EPA's past response costs and interest thereon and adjusted the amount of the costs to $8,288. On October 3, 2025, the Company presented a settlement offer as part of pre-litigation mediation and on March 16, 2026, the Company, the other potentially responsible parties, and the EPA agreed in principle on a settlement agreement in the amount of $7,610 (plus additional interest accrued on the unpaid principal from the settlement date) subject to final approval by the EPA, including a notice and comment period. The Company has updated the estimate of its portion of the settlement agreement to be $6,668, which has been recorded as of March 31, 2026. As of December 31, 2025, the liability recorded for the Asheville Site was $6,575.

Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business.

We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been incurred and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated.

We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future.
v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt

NOTE 10 – Debt

Long-term debt is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Total credit facility

 

$

300,000

 

 

$

300,000

 

Balance outstanding

 

 

62,500

 

 

 

57,500

 

Standby letters of credit

 

 

1,640

 

 

 

1,640

 

Amount available, subject to covenant restrictions

 

$

235,860

 

 

$

240,860

 

Weighted-average interest rate

 

 

4.75

%

 

 

5.48

%

 

On November 24, 2025, we entered into a five-year revolving credit agreement (the “Revolving Credit Facility”) with a group of banks for a total credit facility availability of $300,000, which may be increased by at least $125,000 pursuant to the Revolving Credit Facility subject to administrative agent's approval. The Revolving Credit Facility is unsecured and replaced the prior $400,000 revolving credit facility, which would have expired on December 15, 2026. The Revolving Credit Facility matures on November 24, 2030 and modified the financial and non-financial covenants to provide the Company additional flexibility.

Borrowings in U.S. dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0%), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio. We use interest rate swaps to convert a portion of our revolving credit facility's outstanding balance from a variable rate of interest to a fixed rate. The contractual rate of these arrangements ranges from 2.45% to 3.36%. Refer to Note 11, “Derivative Financial Instruments,” for further discussion on the impact of interest rate swaps.

The Revolving Credit Facility includes a swing line sublimit of $20,000 and a letter of credit sublimit of $20,000 and an alternative currency sublimit of $150,000. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175% to 0.25% based on our net leverage ratio.

The Revolving Credit Facility requires, in addition to customary representations and warranties, that we comply with a maximum net leverage ratio and a minimum interest coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at March 31, 2026. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments.

We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt. Amortization expense for the three months ended March 31, 2026 and March 31, 2025 were $61 and $48, respectively. These costs are included in interest expense in our Consolidated Statements of Earnings.

v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 11 – Derivative Financial Instruments

Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts as well as interest rate and cross-currency swaps to manage our exposure to these risks.

The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly-rated financial institutions and by using netting agreements.

The effective portion of derivative gains and losses are recorded in accumulated other comprehensive income (loss) until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from accumulated other comprehensive income (loss) to other income (expense), net.

We assess hedge effectiveness qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statements of Earnings for the three months ended March 31, 2026.

Foreign Currency Hedges

We use forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value.

We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At March 31, 2026, we had a net unrealized gain of $4,821 in accumulated other comprehensive income (loss), $4,357 of which is expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $63,224 at March 31, 2026.

Interest Rate Swaps

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest to a fixed rate. As of March 31, 2026, we have agreements to fix interest rates on $50,000 of long-term debt until December 2030. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled.

These swaps are treated as cash flow hedges and, consequently, the changes in fair value are recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next twelve months is approximately $471.

Cross-Currency Swap

The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. In order to hedge the Krone-based purchase price for the acquisition of Ferroperm Piezoceramics, A.S. (“Ferroperm”), the Company entered into a cross currency interest rate swap agreement on June 27, 2022 that synthetically swapped $25,000 of variable rate debt to Krone-denominated variable rate debt. Upon completion of the Ferroperm acquisition on June 30, 2022, the transaction was designated as a net investment hedge for accounting purposes and will mature on June 30, 2027.

Accordingly, any gains or losses on this derivative instrument are included in the foreign currency translation component of other comprehensive (loss) income until the net investment is sold, diluted or liquidated. As of March 31, 2026, we had a net unrealized loss of $1,583 in accumulated other comprehensive income (loss). Interest payments received for the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense in the Condensed Consolidated Statements of Earnings. The assumptions used in measuring fair value of the cross-currency swap are considered level 2 inputs, which are based upon the Krone to U.S. Dollar exchange rate market.

The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of March 31, 2026, are shown in the following table:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Interest rate swaps reported in Other current assets

 

$

471

 

 

$

455

 

Interest rate swaps reported in Other assets

 

 

317

 

 

 

-

 

Cross-currency swap reported in Accrued expenses and other liabilities

 

 

(647

)

 

 

(786

)

Foreign currency hedges reported in Other current assets

 

 

4,515

 

 

 

4,767

 

 

The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were foreign currency derivative assets of $4,854 and $339 foreign currency derivative liabilities at March 31, 2026.

The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows:

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2026

 

 

2025

 

 

Foreign Exchange Contracts:

 

 

 

 

 

 

 

Amounts reclassified from AOCI to earnings:

 

 

 

 

 

 

 

Net sales

 

$

(267

)

 

$

(40

)

 

Cost of goods sold

 

 

1,610

 

 

 

(631

)

 

Total net gain (loss) reclassified from AOCI to earnings

 

 

1,343

 

 

 

(671

)

 

Total derivative gain (loss) on foreign exchange contracts recognized in earnings

 

$

1,343

 

 

$

(671

)

 

Interest Rate Swaps:

 

 

 

 

 

 

 

Income recorded in Interest expense

 

$

154

 

 

$

234

 

 

Cross-Currency Swap:

 

 

 

 

 

 

 

Income recorded in Interest expense

 

$

42

 

 

$

72

 

 

Total net gain (loss) on derivatives

 

$

1,539

 

 

$

(365

)

 
v3.26.1
Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

NOTE 12 – Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity includes certain items classified as accumulated other comprehensive income (loss) (“AOCI”) in the Condensed Consolidated Balance Sheets, including:

•
Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone-denominated variable rate debt. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 11, “Derivative Financial Instruments” and Note 15, “Fair Value Measurements.”
•
Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense).
•
Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income (loss).

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction (losses) gains for the three months ended March 31, 2026 and March 31, 2025 were $(80) and $513, respectively. The impact of these changes have been included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive income (loss) for the three months ended March 31, 2026, are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

March 31,

 

 

 

2025

 

 

in OCI

 

 

to Earnings

 

 

2026

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

5,492

 

 

$

1,612

 

 

$

(1,497

)

 

$

5,607

 

Income tax (expense) benefit

 

 

(1,300

)

 

 

(379

)

 

 

352

 

 

 

(1,327

)

Net

 

 

4,192

 

 

 

1,233

 

 

 

(1,145

)

 

 

4,280

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(301

)

 

 

—

 

 

 

12

 

 

 

(289

)

Income tax benefit

 

 

261

 

 

 

—

 

 

 

1

 

 

 

262

 

Net

 

 

(40

)

 

 

—

 

 

 

13

 

 

 

(27

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

9,596

 

 

 

(1,930

)

 

 

—

 

 

 

7,666

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

9,596

 

 

 

(1,930

)

 

 

—

 

 

 

7,666

 

Total accumulated other comprehensive income (loss)

 

$

13,748

 

 

$

(697

)

 

$

(1,132

)

 

$

11,919

 

 

The components of accumulated other comprehensive income (loss) for the three months ended March 31, 2025, are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

March 31,

 

 

 

2024

 

 

in OCI

 

 

to Earnings

 

 

2025

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(1,730

)

 

$

708

 

 

$

437

 

 

$

(585

)

Income tax benefit (expense)

 

 

397

 

 

 

(166

)

 

 

(103

)

 

 

128

 

Net

 

 

(1,333

)

 

 

542

 

 

 

334

 

 

 

(457

)

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(409

)

 

 

—

 

 

 

14

 

 

 

(395

)

Income tax benefit

 

 

300

 

 

 

—

 

 

 

—

 

 

 

300

 

Net

 

 

(109

)

 

 

—

 

 

 

14

 

 

 

(95

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,824

)

 

 

4,648

 

 

 

—

 

 

 

1,824

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,824

)

 

 

4,648

 

 

 

—

 

 

 

1,824

 

Total accumulated other comprehensive (loss) income

 

$

(4,266

)

 

$

5,190

 

 

$

348

 

 

$

1,272

 
v3.26.1
Shareholders' Equity
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Shareholders' Equity

NOTE 13 – Shareholders’ Equity

Share count and par value data related to shareholders’ equity are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Preferred Stock

 

 

 

 

 

 

Par value per share

 

No par value

 

 

No par value

 

Shares authorized

 

 

25,000,000

 

 

 

25,000,000

 

Shares outstanding

 

—

 

 

 

—

 

Common Stock

 

 

 

 

 

 

Par value per share

 

No par value

 

 

No par value

 

Shares authorized

 

 

75,000,000

 

 

 

75,000,000

 

Shares issued

 

 

57,671,728

 

 

 

57,628,332

 

Shares outstanding

 

 

28,624,587

 

 

 

28,758,100

 

Treasury stock

 

 

 

 

 

 

Shares held

 

 

29,047,141

 

 

 

28,870,232

 

 

In November 2025, our Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $100,000 of its common stock (“2025 Repurchase Program”). This program replaces the prior share repurchase program that was approved in February 2024. The 2025 Repurchase Program has no set expiration date and authorizes repurchases from time to time in the open market (including, without limitation, the use of Rule 10b5-1 plans), or through privately negotiated transactions, and repurchases will depend on various factors, including our evaluation of general market and economic conditions, our financial condition and the trading price of our common stock. The 2025 Repurchase Program may be extended, modified, suspended or discontinued at any time.

 

During the three months ended March 31, 2026, 176,909 shares of common stock were repurchased for $8,644 under the 2025 repurchase program. During the three months ended March 31, 2025, 143,541 shares of common stock were repurchased for $6,650. As of March 31, 2026, approximately $81,723 remains available for future purchases.

 

We are subject to a 1% excise tax on stock repurchases under the United States Inflation Reduction Act of 2022 which we include in the cost of stock repurchases as a reduction of shareholders’ equity. As of March 31, 2026 and December 31, 2025, we had $575 and $517, respectively, recorded in Accrued expenses and other liabilities in the Consolidated Balance Sheet.

 

A roll-forward of shares of common stock outstanding is as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Balance at the beginning of the year

 

 

28,758,100

 

 

 

30,026,045

 

Repurchases

 

 

(176,909

)

 

 

(143,541

)

Restricted share issuances

 

 

43,396

 

 

 

76,807

 

Balance at the end of the period

 

 

28,624,587

 

 

 

29,959,311

 

 

Certain potentially dilutive restricted stock units are excluded from diluted earnings per share because they are anti-dilutive. The number of outstanding awards that were anti-dilutive for the three months ended March 31, 2026 and March 31, 2025 were 6,793 and 165, respectively.

v3.26.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

NOTE 14 – Stock-Based Compensation

At March 31, 2026, we had five active stock-based compensation plans: the Non-Employee Directors’ Stock Retirement Plan (“Directors’ Plan”), the 2004 Omnibus Long-Term Incentive Plan (“2004 Plan”), the 2009 Omnibus Equity and Performance Incentive Plan (“2009 Plan”), the 2014 Performance and Incentive Compensation Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan (“2018 Plan”). Future grants can only be made under the 2018 Plan.

The 2018 Plan allows for grants of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock awards subject to the terms of the 2018 Plan.

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Service-based RSUs

 

$

1,003

 

 

$

947

 

Performance-based RSUs

 

 

812

 

 

 

485

 

Cash-settled RSUs

 

 

197

 

 

 

215

 

Total

 

$

2,012

 

 

$

1,647

 

Income tax benefit

 

 

473

 

 

 

387

 

Net expense

 

$

1,539

 

 

$

1,260

 

 

The following table summarizes the unrecognized compensation expense related to unvested RSUs by type and the weighted-average period in which the expense is to be recognized:

 

 

 

Unrecognized

 

 

 

 

 

 

Compensation

 

 

Weighted-

 

 

 

Expense at

 

 

Average

 

 

 

March 31, 2026

 

 

Period (years)

 

Service-based RSUs

 

$

4,897

 

 

 

1.58

 

Performance-based RSUs

 

 

6,172

 

 

 

2.27

 

Total

 

$

11,069

 

 

 

1.96

 

 

We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards.

The following table summarizes the status of these plans as of March 31, 2026:

 

 

 

2018 Plan

 

 

2014 Plan

 

 

2009 Plan

 

 

2004 Plan

 

 

Directors'
Plan

 

Awards originally available

 

 

2,500,000

 

 

 

1,500,000

 

 

 

3,400,000

 

 

 

6,500,000

 

 

N/A

 

Maximum potential awards outstanding

 

 

733,657

 

 

 

35,100

 

 

 

30,000

 

 

 

14,545

 

 

 

4,722

 

RSUs and cash-settled awards vested and released

 

 

869,782

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Awards available for grant

 

 

896,561

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Service-Based Restricted Stock Units

The following table summarizes the service-based RSU activity for the three months ended March 31, 2026:

 

 

 

Units

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2025

 

 

320,640

 

 

$

34.82

 

Granted

 

 

56,358

 

 

 

56.60

 

Vested and released

 

 

(50,703

)

 

 

44.49

 

Forfeited

 

 

(2,002

)

 

 

41.78

 

Outstanding at March 31, 2026

 

 

324,293

 

 

$

37.04

 

Releasable at March 31, 2026

 

 

169,267

 

 

$

26.42

 

 

Performance-Based Restricted Stock Units

The following table summarizes the performance-based RSU activity for the three months ended March 31, 2026:

 

 

 

Units

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2025

 

 

200,598

 

 

$

44.07

 

Granted

 

 

69,645

 

 

 

56.80

 

Attained by performance

 

 

5,400

 

 

 

43.80

 

Released

 

 

(24,466

)

 

 

43.80

 

Forfeited

 

 

(30,204

)

 

 

43.71

 

Outstanding at March 31, 2026

 

 

220,973

 

 

$

48.19

 

Releasable at March 31, 2026

 

 

—

 

 

$

—

 

 

Cash-Settled Restricted Stock Units

Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three-year period. Cash-Settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At March 31, 2026 and December 31, 2025, we had 37,830 and 39,661 Cash-Settled RSUs outstanding, respectively. At March 31, 2026 and December 31, 2025, liabilities of $432 and $594, respectively, were included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets.
v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 15 – Fair Value Measurements

The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2026:

 

 

 

Asset (Liability) Carrying
Value at
March 31,
2026

 

 

Quoted Prices
in Active
Markets for
Identical
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Interest rate swaps

 

$

788

 

 

$

—

 

 

$

788

 

 

$

—

 

Foreign currency hedges

 

$

4,515

 

 

$

—

 

 

$

4,515

 

 

$

—

 

Cross-currency swap

 

$

(647

)

 

$

—

 

 

$

(647

)

 

$

—

 

Qualified replacement plan assets

 

$

8,051

 

 

$

8,051

 

 

$

—

 

 

$

—

 

Contingent consideration

 

$

(3,506

)

 

$

—

 

 

$

—

 

 

$

(3,506

)

 

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2025:

 

 

 

Asset (Liability) Carrying
Value at
December 31,
2025

 

 

Quoted Prices
in Active
Markets for
Identical
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Interest rate swaps

 

$

455

 

 

$

—

 

 

$

455

 

 

$

—

 

Foreign currency hedges

 

$

4,767

 

 

$

—

 

 

$

4,767

 

 

$

—

 

Cross-currency swap

 

$

(786

)

 

$

—

 

 

$

(786

)

 

$

—

 

Qualified replacement plan assets

 

$

8,991

 

 

$

8,991

 

 

$

—

 

 

$

—

 

Contingent consideration

 

$

(3,453

)

 

$

—

 

 

$

—

 

 

$

(3,453

)

 

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. The Company entered into a cross-currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis. The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy.

The fair value of the contingent consideration requires significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place.

A roll-forward of the contingent consideration is as follows:

 

 

 

 

 

 

 

 

 

 

Contingent
Consideration

 

Balance at December 31, 2025

 

$

3,453

 

   Change in fair value

 

 

53

 

Balance at March 31, 2026

 

$

3,506

 

As of March 31, 2026, all contingent consideration was recorded in other long-term obligations on our Condensed Consolidated Balance Sheets.

Our long-term debt consists of the Revolving Credit Facility, which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates its carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility.

The qualified replacement plan assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. The investments are Level 1 marketable securities and are recorded in Other Assets on our Condensed Consolidated Balance Sheets.

v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 16 – Income Taxes

The effective tax rates for the three months ended March 31, 2026 and March 31, 2025 are as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Effective tax rate

 

 

20.7

%

 

 

17.1

%

 

The increase in the effective income tax rate is primarily attributed to a change in mix of earnings taxed at higher rates. The first quarter 2025 and 2026 effective income tax rates were lower than the U.S. statutory federal income tax rate primarily due to foreign earnings that are taxed at lower rates and tax benefits recorded upon vesting of RSUs.
v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

NOTE 17 – Segment Information

The Company designs, manufactures, and sells a broad line of sensors, connectivity components, and actuators across multiple end markets in North America, Asia, and Europe. Our Chief Operating Decision Maker (“CODM”), who is our Chair, President and Chief Executive Officer, analyzes the results of our business through one reportable segment. Our CODM evaluates the operating results and performance through Net earnings, which are reported on the Consolidated Statements of Earnings. These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and to monitor budget-to-actual variances on a monthly basis. To manage operations and make decisions regarding resources, our CODM is regularly provided and reviews expense information at a consolidated level for our Cost of goods sold, Selling, general, and administrative expenses and Research and Development expenses, which are reported on the Consolidated Statements of Earnings. As part of our strategic planning and annual operating plan, a focus is on sales growth, diversification, and profitability. The measure of segment assets is reported on the Consolidated Balance Sheet as Total Assets, but the CODM does not use discrete balance sheet information in assessing performance and allocating resources.
v3.26.1
Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, “we”, “our”, “us” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.

During the three months ended March 31, 2026, the Company entered into a new agreement for the purchase of platinum used in the manufacturing process of certain products. The purchased platinum is presented in Property, plant and equipment, net on the Consolidated Balance Sheets. The platinum is not depreciated because it has very low physical loss and is repeatedly reclaimed and reused in our manufacturing process over a very long useful life. The physical loss of platinum in the manufacturing and reclamation process is treated as depletion and these losses are accounted for as a period expense based on actual units lost. Platinum is reviewed for impairment as part of our assessment of long-lived assets. This review considers all our platinum that is either in place in the production process; in reclamation, fabrication, or refinement in anticipation of re-use; or awaiting use to support increased capacity. Platinum is only acquired to support our operations and is not held for trading purposes.

There have been no other material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Accounting pronouncements recently adopted

ASU No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows for a practical expedient election to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset in the development of a reasonable and supportable forecast as part of estimating expected credit losses. The Company adopted ASU 2025-05 effective January 1, 2026 on a prospective basis and elected the practical expedient for the calculation of current expected credit losses. The adoption did not have a material effect on the Company’s consolidated financial statements.

Accounting Pronouncements Recently Adopted

Recently issued accounting pronouncements not yet adopted

ASU No. 2024-03, “Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses”

In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional information about certain expenses in the notes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The standard can be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting ASU 2024-03.

ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to improve the operability and application of guidance related to capitalized software development costs. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06.

v3.26.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Assets and Liabilities

Contract assets and liabilities included in our Condensed Consolidated Balance Sheets are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Contract Assets

 

 

 

 

 

 

 

 

 

Unbilled customer receivables included in Other current assets

 

$

5,388

 

 

$

6,688

 

 

$

4,104

 

Total Contract Assets

 

$

5,388

 

 

$

6,688

 

 

$

4,104

 

 

 

 

 

 

 

 

 

 

 

Contract Liabilities

 

 

 

 

 

 

 

 

 

Customer advance payments included in Accrued expenses and other liabilities

 

$

(1,041

)

 

$

(1,633

)

 

$

(910

)

Total Contract Liabilities

 

$

(1,041

)

 

$

(1,633

)

 

$

(910

)
The revenue recognized during the
Summary of Disaggregated Revenues

The following table presents revenues disaggregated by the major markets we serve:

 

 

 

Three months ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Transportation

 

$

60,158

 

 

$

58,489

 

Industrial

 

 

37,139

 

 

 

32,448

 

Medical

 

 

24,517

 

 

 

19,131

 

Aerospace & Defense

 

 

17,416

 

 

 

15,701

 

Total

 

$

139,230

 

 

$

125,769

 

 
v3.26.1
Accounts Receivable, Net (Tables)
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Components of Accounts Receivable, Net

The components of accounts receivable, net are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Accounts receivable, gross

 

$

94,407

 

 

$

89,006

 

Less: Allowance for credit losses

 

 

(636

)

 

 

(910

)

Accounts receivable, net

 

$

93,771

 

 

$

88,096

 

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Accounts receivable, gross

 

$

82,235

 

 

$

78,379

 

Less: Allowance for credit losses

 

 

(795

)

 

 

(730

)

Accounts receivable, net

 

$

81,440

 

 

$

77,649

 
v3.26.1
Inventories, Net (Tables)
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Summary of Inventories, Net

Inventories, net consists of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Finished goods

 

$

10,705

 

 

$

11,390

 

Work-in-process

 

 

25,664

 

 

 

24,404

 

Raw materials

 

 

33,968

 

 

 

30,726

 

Less: Inventory reserves

 

 

(13,067

)

 

 

(13,666

)

Inventories, net

 

$

57,270

 

 

$

52,854

 
v3.26.1
Property, Plant and Equipment, Net (Tables)
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
Summary of Property, Plant and Equipment, Net

Property, plant and equipment, net is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Land and land improvements

 

$

399

 

 

$

399

 

Buildings and improvements

 

 

73,746

 

 

 

73,248

 

Machinery and equipment(1)

 

 

280,028

 

 

 

276,416

 

Less: Accumulated depreciation

 

 

(264,769

)

 

 

(260,322

)

Property, plant and equipment, net

 

$

89,404

 

 

$

89,741

 
(1)
Includes $2,646 of platinum which is depleted based on actual usage. See Note 1, “Basis of Presentation,” for further discussion.
v3.26.1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Changes in Net Carrying Amount of Goodwill

Changes in the net carrying amount of goodwill were as follows:

 

 

 

Total

 

Goodwill as of December 31, 2025

 

$

209,611

 

     Foreign exchange impact

 

 

(946

)

Goodwill as of March 31, 2026

 

$

208,665

 
Summary of Other Intangible Assets

Other intangible assets, net consist of the following components:

 

 

 

As of

 

 

 

March 31, 2026

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Amount

 

Customer lists/relationships

 

$

215,804

 

 

$

(89,439

)

 

$

126,365

 

Technology and other intangibles

 

 

62,025

 

 

 

(39,763

)

 

 

22,262

 

Other intangible assets, net

 

$

277,829

 

 

$

(129,202

)

 

$

148,627

 

 

 

 

 

As of

 

 

 

December 31, 2025

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Amount

 

Customer lists/relationships

 

$

216,927

 

 

$

(86,526

)

 

$

130,401

 

Technology and other intangibles

 

 

62,167

 

 

 

(39,006

)

 

 

23,161

 

Other intangible assets, net

 

$

279,094

 

 

$

(125,532

)

 

$

153,562

 
Summary of Remaining Amortization Expense for Other Intangible Assets

Remaining amortization expense for other intangible assets as of March 31, 2026 is as follows:

 

 

 

Amortization
expense

 

Remaining 2026

 

$

12,043

 

2027

 

 

15,998

 

2028

 

 

15,963

 

2029

 

 

14,795

 

2030

 

 

14,621

 

Thereafter

 

 

75,207

 

Total amortization expense

 

$

148,627

 
v3.26.1
Costs Associated with Exit and Restructuring Activities (Tables)
 3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Charges

Total restructuring charges are as follows:

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Restructuring charges

 

$

386

 

 

$

451

 

 
Schedule of Restructuring Liability Activity

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for the three months ended March 31, 2026:

 

Restructuring liability at December 31, 2025

 

$

192

 

Restructuring charges

 

 

386

 

Costs paid

 

 

(260

)

Restructuring liability at March 31, 2026

 

$

318

 
v3.26.1
Accrued Expenses and Other Liabilities (Tables)
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Components of Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Accrued product-related costs

 

$

2,041

 

 

$

1,789

 

Accrued income taxes

 

 

7,830

 

 

 

7,175

 

Accrued property and other taxes

 

 

1,354

 

 

 

1,071

 

Accrued professional fees

 

 

1,227

 

 

 

1,454

 

Accrued customer-related liabilities

 

 

1,769

 

 

 

2,602

 

Dividends payable

 

 

1,146

 

 

 

1,151

 

Remediation reserves

 

 

16,441

 

 

 

16,450

 

Derivative liabilities

 

 

647

 

 

 

786

 

Other accrued liabilities

 

 

3,806

 

 

 

4,805

 

Total accrued expenses and other liabilities

 

$

36,261

 

 

$

37,283

 
v3.26.1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities

A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Balance at beginning of period

 

$

16,450

 

 

$

12,192

 

Remediation expense

 

 

248

 

 

 

5,465

 

Net remediation payments

 

 

(257

)

 

 

(1,213

)

Other activity(1)

 

 

-

 

 

 

6

 

Balance at end of the period

 

$

16,441

 

 

$

16,450

 

 

(1)
Other activity includes currency translation adjustments not recorded through remediation expense.
v3.26.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Summary of Long-Term Debt

Long-term debt is comprised of the following:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Total credit facility

 

$

300,000

 

 

$

300,000

 

Balance outstanding

 

 

62,500

 

 

 

57,500

 

Standby letters of credit

 

 

1,640

 

 

 

1,640

 

Amount available, subject to covenant restrictions

 

$

235,860

 

 

$

240,860

 

Weighted-average interest rate

 

 

4.75

%

 

 

5.48

%
v3.26.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Location and Fair Values of Derivative Instruments

The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of March 31, 2026, are shown in the following table:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Interest rate swaps reported in Other current assets

 

$

471

 

 

$

455

 

Interest rate swaps reported in Other assets

 

 

317

 

 

 

-

 

Cross-currency swap reported in Accrued expenses and other liabilities

 

 

(647

)

 

 

(786

)

Foreign currency hedges reported in Other current assets

 

 

4,515

 

 

 

4,767

 
Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings

The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows:

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2026

 

 

2025

 

 

Foreign Exchange Contracts:

 

 

 

 

 

 

 

Amounts reclassified from AOCI to earnings:

 

 

 

 

 

 

 

Net sales

 

$

(267

)

 

$

(40

)

 

Cost of goods sold

 

 

1,610

 

 

 

(631

)

 

Total net gain (loss) reclassified from AOCI to earnings

 

 

1,343

 

 

 

(671

)

 

Total derivative gain (loss) on foreign exchange contracts recognized in earnings

 

$

1,343

 

 

$

(671

)

 

Interest Rate Swaps:

 

 

 

 

 

 

 

Income recorded in Interest expense

 

$

154

 

 

$

234

 

 

Cross-Currency Swap:

 

 

 

 

 

 

 

Income recorded in Interest expense

 

$

42

 

 

$

72

 

 

Total net gain (loss) on derivatives

 

$

1,539

 

 

$

(365

)

 
v3.26.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) for the three months ended March 31, 2026, are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

March 31,

 

 

 

2025

 

 

in OCI

 

 

to Earnings

 

 

2026

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

5,492

 

 

$

1,612

 

 

$

(1,497

)

 

$

5,607

 

Income tax (expense) benefit

 

 

(1,300

)

 

 

(379

)

 

 

352

 

 

 

(1,327

)

Net

 

 

4,192

 

 

 

1,233

 

 

 

(1,145

)

 

 

4,280

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(301

)

 

 

—

 

 

 

12

 

 

 

(289

)

Income tax benefit

 

 

261

 

 

 

—

 

 

 

1

 

 

 

262

 

Net

 

 

(40

)

 

 

—

 

 

 

13

 

 

 

(27

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

9,596

 

 

 

(1,930

)

 

 

—

 

 

 

7,666

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

9,596

 

 

 

(1,930

)

 

 

—

 

 

 

7,666

 

Total accumulated other comprehensive income (loss)

 

$

13,748

 

 

$

(697

)

 

$

(1,132

)

 

$

11,919

 

 

The components of accumulated other comprehensive income (loss) for the three months ended March 31, 2025, are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

March 31,

 

 

 

2024

 

 

in OCI

 

 

to Earnings

 

 

2025

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(1,730

)

 

$

708

 

 

$

437

 

 

$

(585

)

Income tax benefit (expense)

 

 

397

 

 

 

(166

)

 

 

(103

)

 

 

128

 

Net

 

 

(1,333

)

 

 

542

 

 

 

334

 

 

 

(457

)

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(409

)

 

 

—

 

 

 

14

 

 

 

(395

)

Income tax benefit

 

 

300

 

 

 

—

 

 

 

—

 

 

 

300

 

Net

 

 

(109

)

 

 

—

 

 

 

14

 

 

 

(95

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,824

)

 

 

4,648

 

 

 

—

 

 

 

1,824

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,824

)

 

 

4,648

 

 

 

—

 

 

 

1,824

 

Total accumulated other comprehensive (loss) income

 

$

(4,266

)

 

$

5,190

 

 

$

348

 

 

$

1,272

 
v3.26.1
Shareholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Summary of Share Count and Par Value Data Related to Shareholders' Equity

Share count and par value data related to shareholders’ equity are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Preferred Stock

 

 

 

 

 

 

Par value per share

 

No par value

 

 

No par value

 

Shares authorized

 

 

25,000,000

 

 

 

25,000,000

 

Shares outstanding

 

—

 

 

 

—

 

Common Stock

 

 

 

 

 

 

Par value per share

 

No par value

 

 

No par value

 

Shares authorized

 

 

75,000,000

 

 

 

75,000,000

 

Shares issued

 

 

57,671,728

 

 

 

57,628,332

 

Shares outstanding

 

 

28,624,587

 

 

 

28,758,100

 

Treasury stock

 

 

 

 

 

 

Shares held

 

 

29,047,141

 

 

 

28,870,232

 

 
Summary of Shares of Common Stock Outstanding

A roll-forward of shares of common stock outstanding is as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Balance at the beginning of the year

 

 

28,758,100

 

 

 

30,026,045

 

Repurchases

 

 

(176,909

)

 

 

(143,541

)

Restricted share issuances

 

 

43,396

 

 

 

76,807

 

Balance at the end of the period

 

 

28,624,587

 

 

 

29,959,311

 

 
v3.26.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Summary of Compensation Expense

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Service-based RSUs

 

$

1,003

 

 

$

947

 

Performance-based RSUs

 

 

812

 

 

 

485

 

Cash-settled RSUs

 

 

197

 

 

 

215

 

Total

 

$

2,012

 

 

$

1,647

 

Income tax benefit

 

 

473

 

 

 

387

 

Net expense

 

$

1,539

 

 

$

1,260

 
Summary of Unrecognized Compensation Expense related to Unvested RSUs

The following table summarizes the unrecognized compensation expense related to unvested RSUs by type and the weighted-average period in which the expense is to be recognized:

 

 

 

Unrecognized

 

 

 

 

 

 

Compensation

 

 

Weighted-

 

 

 

Expense at

 

 

Average

 

 

 

March 31, 2026

 

 

Period (years)

 

Service-based RSUs

 

$

4,897

 

 

 

1.58

 

Performance-based RSUs

 

 

6,172

 

 

 

2.27

 

Total

 

$

11,069

 

 

 

1.96

 
Summary of Status of Plans

The following table summarizes the status of these plans as of March 31, 2026:

 

 

 

2018 Plan

 

 

2014 Plan

 

 

2009 Plan

 

 

2004 Plan

 

 

Directors'
Plan

 

Awards originally available

 

 

2,500,000

 

 

 

1,500,000

 

 

 

3,400,000

 

 

 

6,500,000

 

 

N/A

 

Maximum potential awards outstanding

 

 

733,657

 

 

 

35,100

 

 

 

30,000

 

 

 

14,545

 

 

 

4,722

 

RSUs and cash-settled awards vested and released

 

 

869,782

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Awards available for grant

 

 

896,561

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 
Summary of Service-Based Restricted Stock Units

The following table summarizes the service-based RSU activity for the three months ended March 31, 2026:

 

 

 

Units

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2025

 

 

320,640

 

 

$

34.82

 

Granted

 

 

56,358

 

 

 

56.60

 

Vested and released

 

 

(50,703

)

 

 

44.49

 

Forfeited

 

 

(2,002

)

 

 

41.78

 

Outstanding at March 31, 2026

 

 

324,293

 

 

$

37.04

 

Releasable at March 31, 2026

 

 

169,267

 

 

$

26.42

 
Summary of Performance- Based RSUs

The following table summarizes the performance-based RSU activity for the three months ended March 31, 2026:

 

 

 

Units

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2025

 

 

200,598

 

 

$

44.07

 

Granted

 

 

69,645

 

 

 

56.80

 

Attained by performance

 

 

5,400

 

 

 

43.80

 

Released

 

 

(24,466

)

 

 

43.80

 

Forfeited

 

 

(30,204

)

 

 

43.71

 

Outstanding at March 31, 2026

 

 

220,973

 

 

$

48.19

 

Releasable at March 31, 2026

 

 

—

 

 

$

—

 
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2026:

 

 

 

Asset (Liability) Carrying
Value at
March 31,
2026

 

 

Quoted Prices
in Active
Markets for
Identical
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Interest rate swaps

 

$

788

 

 

$

—

 

 

$

788

 

 

$

—

 

Foreign currency hedges

 

$

4,515

 

 

$

—

 

 

$

4,515

 

 

$

—

 

Cross-currency swap

 

$

(647

)

 

$

—

 

 

$

(647

)

 

$

—

 

Qualified replacement plan assets

 

$

8,051

 

 

$

8,051

 

 

$

—

 

 

$

—

 

Contingent consideration

 

$

(3,506

)

 

$

—

 

 

$

—

 

 

$

(3,506

)

 

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2025:

 

 

 

Asset (Liability) Carrying
Value at
December 31,
2025

 

 

Quoted Prices
in Active
Markets for
Identical
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Interest rate swaps

 

$

455

 

 

$

—

 

 

$

455

 

 

$

—

 

Foreign currency hedges

 

$

4,767

 

 

$

—

 

 

$

4,767

 

 

$

—

 

Cross-currency swap

 

$

(786

)

 

$

—

 

 

$

(786

)

 

$

—

 

Qualified replacement plan assets

 

$

8,991

 

 

$

8,991

 

 

$

—

 

 

$

—

 

Contingent consideration

 

$

(3,453

)

 

$

—

 

 

$

—

 

 

$

(3,453

)
Roll-forward of the Contingent Consideration

A roll-forward of the contingent consideration is as follows:

 

 

 

 

 

 

 

 

 

 

Contingent
Consideration

 

Balance at December 31, 2025

 

$

3,453

 

   Change in fair value

 

 

53

 

Balance at March 31, 2026

 

$

3,506

 
v3.26.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Tax Rate

The effective tax rates for the three months ended March 31, 2026 and March 31, 2025 are as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

Effective tax rate

 

 

20.7

%

 

 

17.1

%
v3.26.1
Revenue Recognition - Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Contract Assets    
Unbilled customer receivables included in Other current assets $ 5,388 $ 6,688
Total Contract Assets 5,388 6,688
Contract Liabilities    
Customer advance payments included in Accrued expenses and other liabilities (1,041) (1,633)
Total Contract Liabilities $ (1,041) $ (1,633)
v3.26.1
Revenue Recognition - Additional Information (Details)
 3 Months Ended
Mar. 31, 2026
Recognized at Point in Time  
Disaggregation of Revenue [Line Items]  
Percentage of revenue 97.00%
Recognized over Time  
Disaggregation of Revenue [Line Items]  
Percentage of revenue 3.00%
v3.26.1
Revenue Recognition - Summary of Disaggregated Revenues (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation of Revenue [Line Items]    
Revenues $ 139,230 $ 125,769
Transportation    
Disaggregation of Revenue [Line Items]    
Revenues 60,158 58,489
Industrial    
Disaggregation of Revenue [Line Items]    
Revenues 37,139 32,448
Medical    
Disaggregation of Revenue [Line Items]    
Revenues 24,517 19,131
Aerospace and Defense    
Disaggregation of Revenue [Line Items]    
Revenues $ 17,416 $ 15,701
v3.26.1
Business Acquisitions - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Business Acquisition [Line Items]    
Increased (Reduced) in purchase price for final settlement $ 53 $ (162)
v3.26.1
Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Receivables [Abstract]        
Accounts receivable, gross $ 94,407 $ 89,006 $ 82,235 $ 78,379
Less: Allowance for credit losses (636) (910) (795) (730)
Accounts receivable, net $ 93,771 $ 88,096 $ 81,440 $ 77,649
v3.26.1
Inventories, Net - Summary of Inventories, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Inventory Disclosure [Abstract]    
Finished goods $ 10,705 $ 11,390
Work-in-process 25,664 24,404
Raw materials 33,968 30,726
Less: Inventory reserves (13,067) (13,666)
Inventories, net $ 57,270 $ 52,854
v3.26.1
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Property, Plant and Equipment [Line Items]    
Less: Accumulated depreciation $ (264,769) $ (260,322)
Property, plant and equipment, net 89,404 89,741
Land and Land Improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 399 399
Buildings and Improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 73,746 73,248
Machinery and Equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross [1] $ 280,028 $ 276,416
[1] Includes $2,646 of platinum which is depleted based on actual usage. See Note 1, “Basis of Presentation,” for further discussion.
v3.26.1
Property, Plant and Equipment, net - Summary of Property, Plant and Equipment, Net (Parenthetical) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Property, Plant and Equipment [Abstract]  
Platinum depleted $ 2,646
v3.26.1
Property, Plant and Equipment, Net - Additional Information - (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Property, Plant and Equipment [Abstract]    
Depreciation expense $ 4,772 $ 4,463
v3.26.1
Goodwill and Other Intangible Assets - Summary of Changes in Net Carrying Amount of Goodwill (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Goodwill Roll Forward  
Beginning balance $ 209,611
Foreign exchange impact (946)
Ending balance $ 208,665
v3.26.1
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 277,829 $ 279,094
Accumulated Amortization (129,202) (125,532)
Net Amount 148,627 153,562
Customer Lists/Relationships    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 215,804 216,927
Accumulated Amortization (89,439) (86,526)
Net Amount 126,365 130,401
Technology and Other Intangibles    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 62,025 62,167
Accumulated Amortization (39,763) (39,006)
Net Amount $ 22,262 $ 23,161
v3.26.1
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 4,038 $ 4,031
v3.26.1
Goodwill and Other Intangible Assets - Summary of Remaining Amortization Expense for Other Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule    
Remaining 2026 $ 12,043  
2027 15,998  
2028 15,963  
2029 14,795  
2030 14,621  
Thereafter 75,207  
Net Amount $ 148,627 $ 153,562
v3.26.1
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Restructuring and Related Activities [Abstract]    
Restructuring charges $ 386 $ 451
v3.26.1
Costs Associated with Exit and Restructuring Activities - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Restructuring Cost And Reserve [Line Items]    
Restructuring charges $ 386 $ 451
Exit and Disposal Activities, Building and Equipment Relocation and Workforce Reduction    
Restructuring Cost And Reserve [Line Items]    
Other restructuring costs and asset impairment charges $ 386  
v3.26.1
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Liability Activities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Restructuring and Related Activities [Abstract]    
Restructuring liability $ 192  
Restructuring charges 386 $ 451
Cost paid (260)  
Restructuring liability $ 318  
v3.26.1
Accrued Expenses and Other Liabilities - Components of Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]      
Accrued product-related costs $ 2,041 $ 1,789  
Accrued income taxes 7,830 7,175  
Accrued property and other taxes 1,354 1,071  
Accrued professional fees 1,227 1,454  
Accrued customer-related liabilities 1,769 2,602  
Dividends payable 1,146 1,151  
Remediation reserves 16,441 16,450 $ 12,192
Derivative liabilities 647 786  
Other accrued liabilities 3,806 4,805  
Total accrued expenses and other liabilities $ 36,261 $ 37,283  
v3.26.1
Commitments and Contingencies - Additional Information (Details)
$ in Thousands
 3 Months Ended
Feb. 08, 2023
USD ($)
Mar. 31, 2026
USD ($)
Site
Dec. 31, 2025
USD ($)
Oct. 03, 2025
USD ($)
Settlement Agreement        
Loss Contingencies [Line Items]        
Principal settlement agreement amount       $ 7,610
U.S. Environmental Protection Agency        
Loss Contingencies [Line Items]        
Number of sites under National Priorities List of Superfund program | Site   2    
Reimbursement costs and interest $ 9,955      
Costs and interest adjusted $ 8,288      
Commitment Liability     $ 6,575  
Reimbursement expect to potential exposure   $ 6,668    
v3.26.1
Commitments and Contingencies - Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]    
Balance at beginning of period $ 16,450 $ 12,192
Remediation expense 248 5,465
Net remediation payments (257) (1,213)
Other activity [1] 0 6
Balance at end of the period $ 16,441 $ 16,450
[1] Other activity includes currency translation adjustments not recorded through remediation expense.
v3.26.1
Debt - Summary of Long-Term Debt (Details) - USD ($)
Mar. 31, 2026
Dec. 31, 2025
Nov. 24, 2025
May 23, 2016
Long-term debt        
Total credit facility $ 300,000,000 $ 300,000,000    
Balance outstanding 62,500,000 57,500,000    
Standby letters of credit 1,640,000 1,640,000    
Amount available, subject to covenant restrictions 235,860,000 240,860,000    
Revolving Credit Facility Due 2024        
Long-term debt        
Total credit facility     $ 300,000,000 $ 400,000,000
Balance outstanding $ 62,500,000 $ 57,500,000    
Weighted-average interest rate 4.75% 5.48%    
v3.26.1
Debt - Additional Information (Details) - USD ($)
 3 Months Ended
Nov. 24, 2025
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
May 23, 2016
Line of Credit Facility          
Line of credit maximum borrowing amount   $ 300,000,000   $ 300,000,000  
Debt amortization expense   $ 61,000 $ 48,000    
Revolving Credit Facility Due 2024          
Line of Credit Facility          
Line of credit maximum borrowing amount $ 300,000,000       $ 400,000,000
Line of credit facility contingent increase to maximum borrowing capacity $ 125,000,000        
Maturity date Nov. 24, 2030        
Revolving Credit Facility Due 2024 | Minimum          
Line of Credit Facility          
Commitment fee percentage per annum 0.175%        
Revolving Credit Facility Due 2024 | Maximum          
Line of Credit Facility          
Commitment fee percentage per annum 0.25%        
Revolving Credit Facility | Minimum          
Line of Credit Facility          
Interest rate   0.00%      
Contractual rate   2.45%      
Revolving Credit Facility | Maximum          
Line of Credit Facility          
Contractual rate   3.36%      
Revolving Credit Facility | U S Dollar Denominated Debt | Minimum          
Line of Credit Facility          
Interest rate plus an applicable margin   1.00%      
Revolving Credit Facility | U S Dollar Denominated Debt | Maximum          
Line of Credit Facility          
Interest rate plus an applicable margin   1.75%      
Revolving Credit Facility | Foreign Currency Denominated Debt | Minimum          
Line of Credit Facility          
Interest rate plus an applicable margin   1.00%      
Revolving Credit Facility | Foreign Currency Denominated Debt | Maximum          
Line of Credit Facility          
Interest rate plus an applicable margin   1.75%      
Revolving Credit Facility Due 2024 Swingline Sublimit          
Line of Credit Facility          
Line of credit maximum borrowing amount $ 20,000,000        
Revolving Credit Facility Due 2024 Letter Of Credit Sublimit          
Line of Credit Facility          
Line of credit maximum borrowing amount 20,000,000        
Revolving Credit Facility Due 2024 Alternative Currency Sublimit          
Line of Credit Facility          
Line of credit maximum borrowing amount $ 150,000,000        
Line of Credit | Revolving Credit Facility Due 2024          
Line of Credit Facility          
Debt instrument, term 5 years        
v3.26.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Jun. 27, 2022
Derivative [Line Items]      
Derivative hedge, Ineffectiveness recognized $ 0    
Unrealized gain (loss) on foreign currency derivatives, net, before tax 4,821,000    
Derivative liabilities 647,000 $ 786,000  
Foreign Currency Derivatives      
Derivative [Line Items]      
Derivative liabilities 339,000    
Cross-Currency Swap      
Derivative [Line Items]      
Unrealized gain (loss) on foreign currency derivatives, net, before tax (1,583,000)    
Derivative liabilities 647,000 786,000  
Cross-Currency Swap | Krone      
Derivative [Line Items]      
Variable Rate debt     $ 25,000,000
Foreign Currency Forward Contracts      
Derivative [Line Items]      
Derivative asset 4,854,000    
Cash Flow Hedging | Foreign Currency Derivatives      
Derivative [Line Items]      
Derivative asset $ 4,515,000 $ 4,767,000  
Designated As Net Investment Hedge | Ferroperm Acquisition      
Derivative [Line Items]      
Derivative maturity date Jun. 30, 2027    
Designated As Hedging | Cash Flow Hedging | Interest Rate Swap      
Derivative [Line Items]      
Derivative, notional amount $ 50,000,000    
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months 471,000    
Designated As Hedging | Cash Flow Hedging | Foreign Currency Forward Contracts      
Derivative [Line Items]      
Foreign currency cash flow hedge gain (loss) to be reclassified during next 12 months 4,357,000    
Derivative, notional amount $ 63,224,000    
v3.26.1
Derivative Financial Instruments - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Derivatives Fair Value [Line Items]    
Derivative liabilities $ (647) $ (786)
Interest Rate Swap | Cash Flow Hedging | Other Current Assets    
Derivatives Fair Value [Line Items]    
Derivative asset $ 471 $ 455
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Current Other Assets, Current
Interest Rate Swap | Cash Flow Hedging | Other Assets    
Derivatives Fair Value [Line Items]    
Derivative asset $ 317 $ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent
Cross-Currency Swap    
Derivatives Fair Value [Line Items]    
Derivative liabilities $ (647) $ (786)
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Foreign Currency Hedges    
Derivatives Fair Value [Line Items]    
Derivative liabilities $ (339)  
Foreign Currency Hedges | Cash Flow Hedging    
Derivatives Fair Value [Line Items]    
Derivative asset $ 4,515 $ 4,767
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Current Other Assets, Current
v3.26.1
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, (Loss) Gain on Derivative, Net $ 1,539 $ (365)
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Total amount reclassified from AOCI to earnings 1,343 (671)
Derivative, (Loss) Gain on Derivative, Net 1,343 (671)
Foreign Exchange Contract [Member] | Sales [Member] | Designated as Hedging Instrument [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Total amount reclassified from AOCI to earnings (267) (40)
Foreign Exchange Contract [Member] | Cost of Sales [Member] | Designated as Hedging Instrument [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Total amount reclassified from AOCI to earnings 1,610 (631)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, (Loss) Gain on Derivative, Net $ 154 $ 234
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest Expense, Nonoperating Interest Expense, Nonoperating
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, (Loss) Gain on Derivative, Net $ 42 $ 72
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest Expense, Nonoperating Interest Expense, Nonoperating
v3.26.1
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Foreign currency transaction loss    
Foreign currency transaction losses $ 80 $ 513
v3.26.1
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Changes in AOCI, Net    
Total accumulated other comprehensive (loss) income, beginning of period $ 13,748  
Total accumulated other comprehensive (loss) income, end of period 11,919  
Changes in Fair Market Value of Derivatives    
Changes in AOCI, Gross    
Gross, beginning of the period 5,492 $ (1,730)
Gross, gain (loss) recognized in OCI 1,612 708
Gross, (gain) loss reclassified from AOCI to earnings (1,497) 437
Gross, ending balance 5,607 (585)
Changes in AOCI, Income tax benefit (expense)    
Income tax (expense) benefit, beginning of period (1,300) 397
Income tax (expense) benefit, gain (loss) recognized in OCI (379) (166)
Income tax (expense) benefit, (gain) loss reclassified from AOCI to earnings 352 (103)
Income tax (expense) benefit, ending of period (1,327) 128
Changes in AOCI, Net    
Total accumulated other comprehensive income (loss), beginning of period 4,192 (1,333)
Gain (loss) recognized in OCI, net 1,233 542
(Gain) Loss reclassified from AOCI to earnings, net (1,145) 334
Total accumulated other comprehensive income (loss), end of period 4,280 (457)
Changes in Unrealized Pension Cost    
Changes in AOCI, Gross    
Gross, beginning of the period (301) (409)
Gross, gain (loss) recognized in OCI 0 0
Gross, (gain) loss reclassified from AOCI to earnings 12 14
Gross, ending balance (289) (395)
Changes in AOCI, Income tax benefit (expense)    
Income tax (expense) benefit, beginning of period 261 300
Income tax (expense) benefit, gain (loss) recognized in OCI 0 0
Income tax (expense) benefit, (gain) loss reclassified from AOCI to earnings 1 0
Income tax (expense) benefit, ending of period 262 300
Changes in AOCI, Net    
Total accumulated other comprehensive income (loss), beginning of period (40) (109)
Gain (loss) recognized in OCI, net 0 0
(Gain) Loss reclassified from AOCI to earnings, net 13 14
Total accumulated other comprehensive income (loss), end of period (27) (95)
Cumulative Translation Adjustment    
Changes in AOCI, Gross    
Gross, beginning of the period 9,596 (2,824)
Gross, gain (loss) recognized in OCI (1,930) 4,648
Gross, (gain) loss reclassified from AOCI to earnings 0 0
Gross, ending balance 7,666 1,824
Changes in AOCI, Income tax benefit (expense)    
Income tax (expense) benefit, beginning of period 0 0
Income tax (expense) benefit, gain (loss) recognized in OCI 0 0
Income tax (expense) benefit, (gain) loss reclassified from AOCI to earnings 0 0
Income tax (expense) benefit, ending of period 0 0
Changes in AOCI, Net    
Total accumulated other comprehensive income (loss), beginning of period 9,596 (2,824)
Gain (loss) recognized in OCI, net (1,930) 4,648
(Gain) Loss reclassified from AOCI to earnings, net 0 0
Total accumulated other comprehensive income (loss), end of period 7,666 1,824
Accumulated Other Comprehensive (Loss) Income    
Changes in AOCI, Net    
Total accumulated other comprehensive income (loss), beginning of period 13,748 (4,266)
Gain (loss) recognized in OCI, net (697) 5,190
(Gain) Loss reclassified from AOCI to earnings, net (1,132) 348
Total accumulated other comprehensive income (loss), end of period $ 11,919 $ 1,272
v3.26.1
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Preferred Stock        
Preferred stock, par value per share    
Preferred stock, shares authorized 25,000,000 25,000,000    
Preferred stock, shares outstanding 0 0    
Common Stock        
Common stock, par value per share    
Common stock, shares authorized 75,000,000 75,000,000    
Common stock, shares issued 57,671,728 57,628,332    
Common stock, shares outstanding 28,624,587 28,758,100 29,959,311 30,026,045
Treasury stock        
Treasury stock, shares held 29,047,141 28,870,232    
v3.26.1
Shareholders' Equity - Additional Information (Details) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Nov. 30, 2025
Equity Class Of Treasury Stock [Line Items]        
Common stock repurchased, shares 176,909 143,541    
Common stock repurchased, value   $ 6,650,000    
Accrued repurchase $ 575,000   $ 517,000  
Shares available for future purchases $ 81,723,000      
Antidilutive securities excluded from computation of earnings per share (shares) 6,793 165    
2025 Repurchase Program        
Equity Class Of Treasury Stock [Line Items]        
Common stock repurchased, shares 176,909      
Common stock repurchased, value $ 8,644,000      
Maximum | 2025 Repurchase Program        
Equity Class Of Treasury Stock [Line Items]        
Treasury shares authorized to be purchased       $ 100,000,000
v3.26.1
Shareholders' Equity - Summary of Shares of Common Stock Outstanding (Details) - shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Roll forward of common shares outstanding    
Balance at the beginning of the year 28,758,100 30,026,045
Repurchases (176,909) (143,541)
Restricted share issuances 43,396 76,807
Balance at the end of the period 28,624,587 29,959,311
v3.26.1
Stock-Based Compensation - Additional Information (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Plan
shares
Dec. 31, 2025
USD ($)
shares
Share-based Compensation    
Number of equity based compensation plans | Plan 5  
Other accrued liabilities $ 3,806 $ 4,805
Cash Settled Awards    
Share-based Compensation    
Outstanding shares | shares 37,830 39,661
Other accrued liabilities $ 432 $ 594
v3.26.1
Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Stock-based compensation $ 2,012 $ 1,647
Service-Based RSUs    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Stock-based compensation 1,003 947
Performance-Based RSUs    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Stock-based compensation 812 485
Cash Settled Awards    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Stock-based compensation 197 215
RSUs    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Stock-based compensation 2,012 1,647
Income tax benefit 473 387
Net expense $ 1,539 $ 1,260
v3.26.1
Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Unvested RSUs (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Service-Based RSUs  
Share-based Compensation  
Unrecognized compensation expense $ 4,897
Weighted-average period (years) 1 year 6 months 29 days
Performance-Based RSUs  
Share-based Compensation  
Unrecognized compensation expense $ 6,172
Weighted-average period (years) 2 years 3 months 7 days
RSUs  
Share-based Compensation  
Unrecognized compensation expense $ 11,069
Weighted-average period (years) 1 year 11 months 15 days
v3.26.1
Stock-Based Compensation - Summary of Status of Plans (Details)
 3 Months Ended
Mar. 31, 2026
shares
2018 Plan  
Summary of Status of Equity-Based Compensation Plans  
Awards originally available 2,500,000
Maximum potential awards outstanding 733,657
RSUs and cash settled awards vested and released 869,782
Awards available for grant 896,561
2014 Plan  
Summary of Status of Equity-Based Compensation Plans  
Awards originally available 1,500,000
Maximum potential awards outstanding 35,100
2009 Plan  
Summary of Status of Equity-Based Compensation Plans  
Awards originally available 3,400,000
Maximum potential awards outstanding 30,000
2004 Plan  
Summary of Status of Equity-Based Compensation Plans  
Awards originally available 6,500,000
Maximum potential awards outstanding 14,545
Directors' Plan  
Summary of Status of Equity-Based Compensation Plans  
Maximum potential awards outstanding 4,722
v3.26.1
Stock-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Service-Based RSUs
 3 Months Ended
Mar. 31, 2026
$ / shares
shares
Units  
Outstanding at beginning of year - Units | shares 320,640
Granted - Units | shares 56,358
Vested and released - Units | shares (50,703)
Forfeited - Units | shares (2,002)
Outstanding at end of year - Units | shares 324,293
Releasable - Units | shares 169,267
Weighted Average Grant Date Fair Value  
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares $ 34.82
Granted - Weighted Average Grant Date Fair Value | $ / shares 56.6
Vested and released - Weighted Average Grant Date Fair Value | $ / shares 44.49
Forfeited - Weighted Average Grant Date Fair Value | $ / shares 41.78
End of year - Weighted Average Grant Date Fair Value | $ / shares 37.04
Releasable - Weighted Average Grant Date Fair Value | $ / shares $ 26.42
v3.26.1
Stock-Based Compensation - Schedule of Performance-Based RSUs (Details) - Performance-Based RSUs
 3 Months Ended
Mar. 31, 2026
$ / shares
shares
Units  
Outstanding at beginning of year - Units | shares 200,598
Granted - Units | shares 69,645
Attained by performance - Units | shares 5,400
Released, Units | shares (24,466)
Forfeited - Units | shares (30,204)
Outstanding at end of year - Units | shares 220,973
Releasable - Units | shares 0
Weighted Average Grant Date Fair Value  
Beginning of year, Weighted Average Grant Date Fair Value | $ / shares $ 44.07
Granted - Weighted Average Grant Date Fair Value | $ / shares 56.8
Attained by performance - Weighted Average Grant Date Fair Value | $ / shares 43.8
Vested and released - Weighted Average Grant Date Fair Value | $ / shares 43.8
Forfeited - Weighted Average Grant Date Fair Value | $ / shares 43.71
End of year, Weighted Average Grant Date Fair Value | $ / shares 48.19
Releasable - Weighted Average Grant Date Fair Value | $ / shares $ 0
v3.26.1
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Financial assets and liabilities, measured at fair value    
Derivative liabilities $ (647) $ (786)
Foreign Currency Forward Contracts    
Financial assets and liabilities, measured at fair value    
Derivative asset 4,854  
Recurring | Carrying Value | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Qualified replacement plan assets 8,051 8,991
Contingent consideration (3,506) (3,453)
Recurring | Interest Rate Swaps | Carrying Value | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative asset 788 455
Recurring | Foreign Currency Forward Contracts | Carrying Value | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative asset 4,515 4,767
Recurring | Cross-currency Swap | Carrying Value | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative liabilities (647) (786)
Recurring | Quoted Prices in Active Markets for Identical (Level 1) | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Qualified replacement plan assets 8,051 8,991
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative asset 788 455
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Currency Forward Contracts | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative asset 4,515 4,767
Recurring | Significant Other Observable Inputs (Level 2) | Cross-currency Swap | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Derivative liabilities (647) (786)
Recurring | Significant Unobservable Inputs (Level 3) | Designated As Hedging | Cash Flow Hedge    
Financial assets and liabilities, measured at fair value    
Contingent consideration $ (3,506) $ (3,453)
v3.26.1
Fair Value Measurements - Roll-forward of the Contingent Consideration (Details) - Contingent Consideration
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]  
Balance at December 31, 2025 $ 3,453
Change in fair value 53
Balance at March 31, 2026 $ 3,506
v3.26.1
Income Taxes - Schedule of Effective Tax Rate (Details)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Effective tax rate 20.70% 17.10%
v3.26.1
Segment Information - Additional Information (Details)
 3 Months Ended
Mar. 31, 2026
Segment
Segment Reporting [Abstract]  
Number of reportable segment 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] Chair President And Chief Executive Officer [Member]
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description Our CODM evaluates the operating results and performance through Net earnings, which are reported on the Consolidated Statements of Earnings. These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and to monitor budget-to-actual variances on a monthly basis. To manage operations and make decisions regarding resources, our CODM is regularly provided and reviews expense information at a consolidated level for our Cost of goods sold, Selling, general, and administrative expenses and Research and Development expenses, which are reported on the Consolidated Statements of Earnings. As part of our strategic planning and annual operating plan, a focus is on sales growth, diversification, and profitability. The measure of segment assets is reported on the Consolidated Balance Sheet as Total Assets, but the CODM does not use discrete balance sheet information in assessing performance and allocating resources.