Strategic Inventory Rationalization and SKU Reduction Impact
The company conducted a thorough inventory rationalization, including legacy models, products no longer aligned with strategy, and Marlin-related items not in the future road map.
Nonrecurring charges of $17 million included inventory and asset write-offs ($5.7 million) and organizational realignment expenses ($3.7 million).
Approximately 70,000 units (roughly 20,000 each for three product lines) were moved out, impacting ASP by about $16 on average.
The rationalization aimed to optimize raw material use and streamline product offerings, not primarily cost savings.
Portfolio Transformation and Focus on High-Growth Infrastructure Vertical
The company has divested the Thermal Management business and acquired Trachte and EPG, reshaping its portfolio to focus on high-growth infrastructure verticals such as power utilities, data centers, and renewables.
Infrastructure now accounts for over 40% of sales, with data centers and power utilities each approximately 20%.
The transformation aims to balance short-cycle and long-cycle businesses, positioning the company for accelerated growth and value creation.
Dafinchi