Quarterly report [Sections 13 or 15(d)]

Revenue

v3.26.1
Revenue
 6 Months Ended
Jul. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On July 4, 2026, we had $780.6 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $642.2 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, July 4, 2026
 $ 56,961  $ 27,282 
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. The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.
During the three and six months ended July 4, 2026, the Company recognized $12.7 million and $13.9 million, respectively, in revenues that were included in the contract liability balance at the beginning of the period. During the three and six months ended June 28, 2025, the Company recognized $9.9 million and $17.8 million, respectively, in such revenues.
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 $6.9 million and $6.0 million on July 4, 2026 and December 31, 2025, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $0.1 million and $0.2 million for the three and six months ended July 4, 2026, respectively, and $0.1 million and $3.4 million for the three and six months ended June 28, 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. 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. 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:
Six Months Ended Three Months Ended
(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025
Aerospace Segment
Commercial Transport
 $ 333,425  $ 283,115  $ 177,006  $ 145,573 
Military Aircraft
 64,133  60,696  30,631  27,433 
General Aviation
 49,052  33,613  27,603  18,370 
Other
 4,502  7,577  2,052  2,250 
Aerospace Total 451,112  385,001  237,292  193,626 
Test Systems Segment
Government & Defense
 39,464  25,613  22,665  11,052 
Test Systems Total 39,464  25,613  22,665  11,052 
Total $ 490,576  $ 410,614  $ 259,957  $ 204,678 
The following table presents our revenue disaggregated by Product Lines for the periods indicated:
Six Months Ended Three Months Ended
Recast Recast
(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025
Aerospace Segment
Inflight Entertainment & Connectivity $ 236,756  $ 209,012  $ 126,008  $ 105,902 
Lighting & Safety 111,977  108,057  59,170  56,100 
Flight Critical Electrical Power 48,423  37,146  23,660  15,832 
Seat Motion 42,065  16,889  22,186  10,217 
Other 11,891  13,897  6,268  5,575 
Aerospace Total 451,112  385,001  237,292  193,626 
Test Systems 39,464  25,613  22,665  11,052 
Total $ 490,576  $ 410,614  $ 259,957  $ 204,678 
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.
For the six months ended July 4, 2026, revenue in the Flight Critical Electrical Power product line includes $2.6 million related to performance obligations satisfied in prior periods due to a change in estimate of variable consideration.