Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits (exclusive of interest and federal and state benefits) is as follows:


	Year Ended December 31,
	2025		2024
	(In thousands)
Balance at beginning of period (1)	$	21,148	$	—
Increases based on tax positions taken in the current year	1,920		2,121
Increases based on tax positions taken in prior years	—		19,027
Decreases based on tax positions taken in prior years	(8,005)		—
Decreases due to settlements with tax authorities	—		—
Decreases due to lapse of applicable statute of limitation	—		—
Other, net	—		—
Balance at end of period	$	15,063	$	21,148

Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:


	December 31,
	2025		2024
	(In thousands)
Deferred tax assets:
Pension liability	$	16,616	$	17,359
Accrued warranty expense	1,829		1,570
Capitalized Section 174 expenditures	57,870		64,775
Accrued vacation pay	2,721		2,434
Accrued liabilities for executive and employee incentive compensation	22,834		18,736
Environmental and products liabilities	21,220		20,945
Lease liabilities	5,136		5,055
Investments in joint ventures and affiliated companies	3,065		2,746
Convertible debt premium	34,275		—
U.S. federal tax credits and loss carryforward	3,399		3,071
U.S. state tax credits and loss carryforward	11,545		10,119
Foreign tax credit and loss carryforward	19,820		23,394
Other	1,145		1,692
Gross deferred tax assets	201,475		171,896
Valuation allowance for deferred tax assets	(14,939)		(17,039)
Total deferred tax assets	186,536		154,857
Deferred tax liabilities:
Property, plant and equipment	105,046		88,090
Long-term contracts	24,937		54,714
Right-of-use lease assets	10,947		10,590
Accrued liabilities for self-insurance (including postretirement health care benefits)	502		826
Intangibles	58,033		19,589
Total deferred tax liabilities	199,465		173,809
Net deferred tax liabilities	$	(12,929)	$	(18,952)

Income from Continuing Operations Before Provision for Income Taxes

The components of Income before Provision for Income Taxes were as follows:


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
U.S.	$	295,117	$	301,018	$	282,459
Other than U.S.	103,003		47,702		38,941
Income before Provision for Income Taxes	$	398,120	$	348,720	$	321,400

Components of Provision for Income Taxes

The components of Provision for Income Taxes were as follows:


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
Current:
U.S. – federal	$	40,026	$	36,553	$	69,254
U.S. – state and local	2,683		2,005		4,255
Other than U.S.	10,408		8,019		6,698
Total current	53,117		46,577		80,207
Deferred:
U.S. – federal	8,789		15,439		(8,968)
U.S. – state and local	(122)		2,648		(376)
Other than U.S.	6,475		1,758		4,216
Total deferred	15,142		19,845		(5,128)
Provision for Income Taxes	$	68,259	$	66,422	$	75,079

Reconciliation of Income Tax Provision Related to Continuing Operations from U.S. Statutory Federal Tax Rate

The following is a reconciliation of our income tax provision from the U.S. statutory federal tax rate to our consolidated effective tax rate for the year ended December 31, 2025, updated to reflect the adoption of ASU 2023-09:


	Year Ended December 31,
	2025
	(In thousands)
Income before provision for income taxes	$	398,120
U.S. federal statutory tax rate	83,605		21.0	%
State and local income taxes, net of Federal income tax effects (1)	2,561		0.6	%
Foreign tax effects
Canada - capital loss realization	(3,654)		(0.9)	%
Other	(943)		(0.2)	%

Effect of changes in tax laws or rates enacted in the current period	—		—	%
Effect of cross-border tax laws	2,574		0.6	%
Tax credits
U.S. research and development tax credit	(5,761)		(1.4)	%
Nontaxable or nondeductible items	(1,051)		(0.3)	%
Changes in unrecognized tax benefits	(7,934)		(2.0)	%
Other adjustments	(1,138)		(0.3)	%
Effective tax rate	$	68,259	17.1	%

(1)State taxes in Virginia, Tennessee, Ohio, California and New Mexico made up greater than 50% of the tax effect in this category.

The following is a reconciliation of our income tax provision from the U.S. statutory federal tax rate to our consolidated effective tax rate as previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09:


	Year Ended December 31,
	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
State and local income taxes	1.3	%	1.2	%
Research and development tax credit	(4.0)	%	—	%
Excess tax deductions on equity compensation	(0.5)	%	(0.3)	%
Other, net	1.2	%	1.5	%
Effective tax rate	19.0	%	23.4	%

Schedule of Cash Flow, Supplemental Disclosures

The amounts of cash taxes paid by the Company are as follows:


Year Ended December 31,	2025
U.S. – federal	$	30,359
U.S. – state	3,805
Canada	13,618
Other	110
Income taxes, net of amounts refunded	$	47,892

Valuation Allowance for Deferred Tax Assets

The following is an analysis of our valuation allowance for deferred tax assets:


	Beginning Balance		Charges To Costs and Expenses		Charged To Other Accounts		Ending Balance
	(In thousands)
Year Ended December 31, 2025	$	(17,039)	$	5,498	$	(3,398)	$	(14,939)
Year Ended December 31, 2024	$	(17,421)	$	382	$	—	$	(17,039)
Year Ended December 31, 2023	$	(13,022)	$	(4,399)	$	—	$	(17,421)