Quarterly report [Sections 13 or 15(d)]

Revenue

v3.26.1
Revenue
 3 Months Ended
Apr. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On April 4, 2026, we had $734.3 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $596.2 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, 2026
 $ 54,687  $ 26,962 
Ending Balance, April 4, 2026
 $ 65,147  $ 30,464 
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. For the three months ended April 4, 2026, the increase reflects a $2.8 million impact to revenue from a change in estimate due to updated variable consideration. The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.
The Company recognized $6.6 million and $11.6 million during the three months ended April 4, 2026 and March 29, 2025, 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 $6.3 million and $6.0 million on April 4, 2026 and December 31, 2025, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $0.1 million and $3.3 million for the three months ended April 4, 2026 and March 29, 2025, respectively.
Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Prior‑period disaggregated revenue information has been recast to conform to the current‑period presentation, including all prior years presented. There was no impact on total revenue as a result of this change. The Company’s disaggregation of revenue by market segments remains unchanged from the Company’s prior presentation.
The following table presents our revenue disaggregated by Market Segments for the periods indicated:
Three Months Ended
(In thousands) April 4, 2026 March 29, 2025
Aerospace Segment
Commercial Transport
 $ 156,419  $ 137,542 
Military Aircraft
 33,502  33,263 
General Aviation
 21,449  15,243 
Other
 2,450  5,327 
Aerospace Total 213,820  191,375 
Test Systems Segment
Government & Defense
 16,799  14,561 
Test Systems Total 16,799  14,561 
Total $ 230,619  $ 205,936 
The following table presents our revenue disaggregated by Product Lines for the periods indicated:
Three Months Ended
Recast
(In thousands) April 4, 2026 March 29, 2025
Aerospace Segment
Inflight Entertainment & Connectivity $ 110,748  $ 103,110 
Lighting & Safety 52,807  51,957 
Flight Critical Electrical Power 24,763  21,314 
Seat Motion 19,879  6,672 
Other 5,623  8,322 
Aerospace Total 213,820  191,375 
Test Systems 16,799  14,561 
Total $ 230,619  $ 205,936 
Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue.
The following table presents our revenue disaggregated by Product Lines for the fiscal years ended December 31, 2025 and 2024 as follows:
Recast Recast
(In thousands) 2025 2024
Aerospace Segment
Inflight Entertainment & Connectivity $ 434,239  $ 383,679 
Lighting & Safety 216,583  188,355 
Flight Critical Electrical Power 73,706  68,368 
Seat Motion 47,242  35,229 
Other 25,549  31,053 
Aerospace Total 797,319  706,684 
Test Systems 64,809  88,742 
Total $ 862,128  $ 795,426 
The Company’s updated disaggregation of revenue by product lines is consistent with the information used by the Chief Operating Decision Maker (“CODM”) to evaluate operating performance and allocate resources. The recast of prior‑period information does not affect the Company’s reportable segments or the measurement of segment profit or loss.