Quarterly report [Sections 13 or 15(d)]

Revenue

v3.25.2
Revenue
 6 Months Ended
Jun. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On June 28, 2025, we had $645.4 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $481.3 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.
The Company’s contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively. The following table presents the beginning and ending balances of contract assets and contract liabilities:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2025
 $ 54,171  $ 28,171 
Ending Balance, June 28, 2025
 $ 50,213  $ 27,823 
The decrease in contract assets reflects $8.3 million in revisions of estimated costs to complete certain long-term mass transit Test contracts, which was recorded during the six months ended June 28, 2025, partially offset by the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period. The revisions resulted in reduced revenue recognized during the six months ended June 28, 2025 due to lower estimates of the percentage of work completed on the programs. The decrease in contract liabilities reflects the net impact of revenue recognized in excess of new customer advances or deferred revenues recorded.
The Company recognized $9.9 million and $9.0 million during the three months ended and $17.8 million and $15.2 million during the six months ended June 28, 2025 and June 29, 2024, respectively, in revenues that were included in the contract liability balance at the beginning of the period.
The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. Such costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods to which the asset relates. Start-up costs are expensed as incurred. Capitalized fulfillment costs are included in Inventories in the accompanying Consolidated Condensed Balance Sheets. Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off. The Company’s capitalized fulfillment costs amounted to $5.7 million and $8.3 million on June 28, 2025 and December 31, 2024, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $0.1 million and $2.7 million for the three months and $3.4 million and $3.0 million for the six months ended June 28, 2025 and June 29, 2024, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Six Months Ended Three Months Ended
(In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Aerospace Segment
Commercial Transport
 $ 283,115  $ 249,829  $ 145,573  $ 128,399 
Military Aircraft
 60,696  41,860  27,433  24,781 
General Aviation
 33,613  38,566  18,370  19,015 
Other
 7,577  10,326  2,250  4,748 
Aerospace Total 385,001  340,581  193,626  176,943 
Test Systems Segment
Government & Defense
 25,613  42,607  11,052  21,171 
Test Systems Total 25,613  42,607  11,052  21,171 
Total $ 410,614  $ 383,188  $ 204,678  $ 198,114 
The following table presents our revenue disaggregated by Product Lines as follows:
Six Months Ended Three Months Ended
(In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Aerospace Segment
Electrical Power & Motion
 $ 195,246  $ 173,452  $ 95,166  $ 90,328 
Lighting & Safety
 102,670  88,241  52,999  46,454 
Avionics
 65,284  54,565  37,050  28,971 
Systems Certification
 7,904  7,812  2,836  3,364 
Structures
 6,320  6,185  3,325  3,078 
Other
 7,577  10,326  2,250  4,748 
Aerospace Total 385,001  340,581  193,626  176,943 
Test Systems 25,613  42,607  11,052  21,171 
Total $ 410,614  $ 383,188  $ 204,678  $ 198,114