Quarterly report [Sections 13 or 15(d)]

Revenue

v3.25.3
Revenue
 9 Months Ended
Sep. 27, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On September 27, 2025, we had $646.7 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $479.2 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, September 27, 2025
 $ 54,302  $ 27,802 
The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period, partially offset by $8.3 million in revisions of estimated costs to complete certain long-term mass transit Test contracts, which was recorded during the nine months ended September 27, 2025. The revisions resulted in reduced revenue recognized during the nine months ended September 27, 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 $9.1 million and $6.3 million during the three months ended and $19.1 million and $16.4 million during the nine months ended September 27, 2025 and September 28, 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 $5.9 million and $8.3 million on September 27, 2025 and December 31, 2024, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was insignificant for the three months and was $3.4 million and $3.1 million for the nine months ended September 27, 2025 and September 28, 2024, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Nine Months Ended Three Months Ended
(In thousands) September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024
Aerospace Segment
Commercial Transport
 $ 432,324  $ 383,679  $ 149,209  $ 133,850 
Military Aircraft
 88,250  63,545  27,554  21,685 
General Aviation
 47,532  56,643  13,919  18,077 
Other
 9,620  14,268  2,043  3,942 
Aerospace Total 577,726  518,135  192,725  177,554 
Test Systems Segment
Government & Defense
 44,335  68,751  18,722  26,144 
Test Systems Total 44,335  68,751  18,722  26,144 
Total $ 622,061  $ 586,886  $ 211,447  $ 203,698 
The following table presents our revenue disaggregated by Product Lines as follows:
Nine Months Ended Three Months Ended
(In thousands) September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024
Aerospace Segment
Electrical Power & Motion
 $ 296,541  $ 263,919  $ 101,295  $ 90,467 
Lighting & Safety
 154,324  135,162  51,654  46,921 
Avionics
 91,452  83,716  26,168  29,151 
Systems Certification
 15,842  12,272  7,938  4,460 
Structures
 9,947  8,798  3,627  2,613 
Other
 9,620  14,268  2,043  3,942 
Aerospace Total 577,726  518,135  192,725  177,554 
Test Systems 44,335  68,751  18,722  26,144 
Total $ 622,061  $ 586,886  $ 211,447  $ 203,698