| Business Segment Information |
17. Business Segment Information The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in two reportable segments. The results of the segments, specifically income from operations as adjusted for intercompany profits, are reviewed quarterly by the chief operating decision maker ("CODM"), which is the Company's Chief Executive Officer, for the purposes of allocating resources, including personnel, capital, and financial resources, and assessing performance, including the monitoring of budget versus actual results. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM. The Company’s reportable segments are organized as groups of similar products and services, as described as follows: Engineered Systems segment: The Company's Engineered Systems segment serves the power generation, hydrocarbon transport and processing, water/wastewater treatment, oily water separation and treatment, marine and naval, and natural gas and natural gas liquids infrastructure, treatment and transport sectors. The Company seeks to address the global demand for contaminant removal and environmental protection solutions with its highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints. Industrial Process Solutions segment: The Company's Industrial Process Solutions segment serves the broad industrial sector with solutions for contamination control, exhaust air treatment, VOC abatement, process filtration and fluid handling in applications such as aluminum beverage can production, vehicle production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum processing, engineered wood products manufacturing, chemical processing, general manufacturing and machining, coating and surface treatment, battery production and recycling, and wind and solar power components manufacturing end markets. The Company assists customers in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through its platforms including duct fabrication and installation, industrial air, and fluid handling. The financial segment information is as follows for the three and six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2025 |
|
(table only in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
Sales |
|
$ |
133,035 |
|
|
$ |
58,960 |
|
|
$ |
260,475 |
|
|
$ |
115,519 |
|
Income from operations |
|
|
25,194 |
|
|
|
15,110 |
|
|
|
43,934 |
|
|
|
84,761 |
|
A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the three months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
(table only in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
Sales from external customers |
|
$ |
128,460 |
|
|
$ |
56,931 |
|
|
$ |
185,391 |
|
Intra-segment sales |
|
|
4,484 |
|
|
|
2,029 |
|
|
|
6,513 |
|
Inter-segment sales |
|
|
91 |
|
|
|
— |
|
|
|
91 |
|
Total segment sales |
|
|
133,035 |
|
|
|
58,960 |
|
|
|
191,995 |
|
Reconciliation to sales |
|
|
|
|
|
|
|
|
|
Elimination of intra- and inter-segment sales |
|
|
|
|
|
|
|
|
6,604 |
|
Total consolidated sales |
|
|
|
|
|
|
|
|
185,391 |
|
Reconciliation to income before income taxes |
|
|
|
|
|
|
|
|
|
Direct cost of sales |
|
|
76,638 |
|
|
|
36,078 |
|
|
|
112,715 |
|
Shop burden |
|
|
3,338 |
|
|
|
2,230 |
|
|
|
5,568 |
|
Selling expense |
|
|
7,933 |
|
|
|
2,857 |
|
|
|
10,790 |
|
Project engineering expense |
|
|
4,729 |
|
|
|
2,803 |
|
|
|
7,531 |
|
General and administrative expense |
|
|
9,185 |
|
|
|
2,278 |
|
|
|
11,463 |
|
Other segment items(1) |
|
|
1,445 |
|
|
|
(4,424 |
) |
|
|
(2,979 |
) |
Income from operations |
|
|
29,769 |
|
|
|
17,139 |
|
|
|
46,908 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
2,878 |
|
Other corporate expenses(2) |
|
|
|
|
|
|
|
|
19,365 |
|
Elimination of intra- and inter-segment activity |
|
|
|
|
|
|
|
|
6,604 |
|
Interest expense |
|
|
|
|
|
|
|
|
4,898 |
|
Other income(3) |
|
|
|
|
|
|
|
|
(1,454 |
) |
Total consolidated income before income taxes |
|
|
|
|
|
|
|
|
14,617 |
|
(1) Includes amortization expenses, acquisition and integration expenses, and divestiture expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes gain on sale of business, foreign exchange (gain) loss and pension expense. A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
(table only in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
Sales from external customers |
|
$ |
248,894 |
|
|
$ |
113,195 |
|
|
$ |
362,088 |
|
Intra-segment sales |
|
|
11,393 |
|
|
|
2,324 |
|
|
|
13,717 |
|
Inter-segment sales |
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
Total segment sales |
|
|
260,475 |
|
|
|
115,519 |
|
|
|
375,993 |
|
Reconciliation to sales |
|
|
|
|
|
|
|
|
|
Elimination of intra- and inter-segment sales |
|
|
|
|
|
|
|
|
13,905 |
|
Total consolidated sales |
|
|
|
|
|
|
|
|
362,088 |
|
Reconciliation to income before income taxes |
|
|
|
|
|
|
|
|
|
Direct cost of sales |
|
|
149,703 |
|
|
|
71,717 |
|
|
|
221,420 |
|
Shop burden |
|
|
6,269 |
|
|
|
5,125 |
|
|
|
11,394 |
|
Selling expense |
|
|
15,765 |
|
|
|
6,587 |
|
|
|
22,353 |
|
Project engineering expense |
|
|
9,459 |
|
|
|
5,675 |
|
|
|
15,134 |
|
General and administrative expense |
|
|
18,225 |
|
|
|
6,547 |
|
|
|
24,772 |
|
Gain on sale of Global Pump Solutions business |
|
|
— |
|
|
|
(64,502 |
) |
|
|
(64,502 |
) |
Other segment items(1) |
|
|
5,538 |
|
|
|
(2,714 |
) |
|
|
2,824 |
|
Income from operations |
|
|
55,515 |
|
|
|
87,084 |
|
|
|
142,599 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
6,234 |
|
Other corporate expenses(2) |
|
|
|
|
|
|
|
|
42,530 |
|
Elimination of intra- and inter-segment activity |
|
|
|
|
|
|
|
|
13,905 |
|
Interest expense |
|
|
|
|
|
|
|
|
11,115 |
|
Other income(3) |
|
|
|
|
|
|
|
|
(861 |
) |
Total consolidated income before income taxes |
|
|
|
|
|
|
|
|
69,676 |
|
(1) Includes amortization expenses, acquisition and integration expenses, and divestiture expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes gain on sale of business, foreign exchange (gain) loss and pension expense. Other segment information is as follows for the three and six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2025 |
|
(table only in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
Property and equipment additions |
|
$ |
512 |
|
|
$ |
328 |
|
|
$ |
1,206 |
|
|
$ |
961 |
|
Depreciation and amortization(1) |
|
|
2,113 |
|
|
|
1,864 |
|
|
|
4,098 |
|
|
|
4,188 |
|
(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense. The financial segment information is as follows for the three and six months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2024 |
|
|
Six months ended June 30, 2024 |
|
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
Sales |
|
$ |
102,141 |
|
|
$ |
44,673 |
|
|
$ |
194,659 |
|
|
$ |
84,252 |
|
Income from operations |
|
|
19,330 |
|
|
|
5,669 |
|
|
|
35,607 |
|
|
|
12,769 |
|
A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the three months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
Sales from external customers |
|
$ |
97,392 |
|
|
$ |
40,130 |
|
|
$ |
137,522 |
|
Intra-segment sales |
|
|
4,553 |
|
|
|
4,440 |
|
|
|
8,993 |
|
Inter-segment sales |
|
|
196 |
|
|
|
103 |
|
|
|
299 |
|
Total segment sales |
|
|
102,141 |
|
|
|
44,673 |
|
|
|
146,814 |
|
Reconciliation to sales |
|
|
|
|
|
|
|
|
|
Elimination of intra- and inter-segment sales |
|
|
|
|
|
|
|
|
9,292 |
|
Total consolidated sales |
|
|
|
|
|
|
|
|
137,522 |
|
Reconciliation to income before income taxes |
|
|
|
|
|
|
|
|
|
Direct cost of sales |
|
|
59,483 |
|
|
|
24,081 |
|
|
|
83,563 |
|
Shop burden |
|
|
2,224 |
|
|
|
2,679 |
|
|
|
4,903 |
|
Selling expense |
|
|
5,865 |
|
|
|
2,794 |
|
|
|
8,659 |
|
Project engineering expense |
|
|
4,066 |
|
|
|
1,652 |
|
|
|
5,718 |
|
General and administrative expense |
|
|
4,716 |
|
|
|
2,502 |
|
|
|
7,218 |
|
Other segment items(1) |
|
|
1,707 |
|
|
|
754 |
|
|
|
2,461 |
|
Income from operations |
|
|
24,080 |
|
|
|
10,211 |
|
|
|
34,291 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
2,177 |
|
Other corporate expenses(2) |
|
|
|
|
|
|
|
|
13,565 |
|
Elimination of intra- and inter-segment activity |
|
|
|
|
|
|
|
|
9,292 |
|
Interest expense |
|
|
|
|
|
|
|
|
3,254 |
|
Other loss(3) |
|
|
|
|
|
|
|
|
679 |
|
Total consolidated income before income taxes |
|
|
|
|
|
|
|
|
5,324 |
|
(1) Includes amortization expenses, acquisition and integration expenses, and asbestos litigation expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes foreign exchange (gain) loss and pension expense. A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the six months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Total |
|
Sales from external customers |
|
$ |
186,741 |
|
|
$ |
77,113 |
|
|
$ |
263,854 |
|
Intra-segment sales |
|
|
7,635 |
|
|
|
6,975 |
|
|
|
14,610 |
|
Inter-segment sales |
|
|
283 |
|
|
|
164 |
|
|
|
447 |
|
Total segment sales |
|
|
194,659 |
|
|
|
84,252 |
|
|
|
278,911 |
|
Reconciliation to sales |
|
|
|
|
|
|
|
|
|
Elimination of intra- and inter-segment sales |
|
|
|
|
|
|
|
|
15,057 |
|
Total consolidated sales |
|
|
|
|
|
|
|
|
263,854 |
|
Reconciliation to income before income taxes |
|
|
|
|
|
|
|
|
|
Direct cost of sales |
|
|
116,578 |
|
|
|
44,305 |
|
|
|
160,883 |
|
Shop burden |
|
|
3,800 |
|
|
|
4,983 |
|
|
|
8,783 |
|
Selling expense |
|
|
11,405 |
|
|
|
5,693 |
|
|
|
17,098 |
|
Project engineering expense |
|
|
6,388 |
|
|
|
3,209 |
|
|
|
9,597 |
|
General and administrative expense |
|
|
9,537 |
|
|
|
4,740 |
|
|
|
14,277 |
|
Other segment items(1) |
|
|
3,425 |
|
|
|
1,415 |
|
|
|
4,840 |
|
Income from operations |
|
|
43,526 |
|
|
|
19,907 |
|
|
|
63,433 |
|
Stock-based compensation |
|
|
|
|
|
|
|
|
3,847 |
|
Other corporate expenses(2) |
|
|
|
|
|
|
|
|
27,586 |
|
Elimination of intra- and inter-segment activity |
|
|
|
|
|
|
|
|
15,057 |
|
Interest expense |
|
|
|
|
|
|
|
|
6,667 |
|
Other loss(3) |
|
|
|
|
|
|
|
|
2,192 |
|
Total consolidated income before income taxes |
|
|
|
|
|
|
|
|
8,084 |
|
(1) Includes amortization expenses, acquisition and integration expenses, and asbestos litigation expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes foreign exchange (gain) loss and pension expense. Other segment information is as follows for the three and six months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2024 |
|
|
Six months ended June 30, 2024 |
|
(in thousands) |
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
|
Engineered Systems |
|
|
Industrial Process Solutions |
|
Property and equipment additions |
|
$ |
890 |
|
|
$ |
429 |
|
|
$ |
2,027 |
|
|
$ |
1,035 |
|
Depreciation and amortization(1) |
|
|
1,814 |
|
|
|
1,131 |
|
|
|
3,599 |
|
|
|
2,250 |
|
(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense. Geographic Information Net sales by geographic area are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
United States |
|
$ |
120,204 |
|
|
$ |
90,450 |
|
|
$ |
230,875 |
|
|
$ |
168,238 |
|
United Kingdom |
|
|
12,470 |
|
|
|
14,353 |
|
|
|
32,027 |
|
|
|
26,555 |
|
Netherlands |
|
|
15,763 |
|
|
|
13,496 |
|
|
|
26,989 |
|
|
|
30,308 |
|
China |
|
|
13,563 |
|
|
|
8,883 |
|
|
|
28,357 |
|
|
|
13,213 |
|
Other |
|
|
23,391 |
|
|
|
10,340 |
|
|
|
43,840 |
|
|
|
25,540 |
|
Total net sales |
|
$ |
185,391 |
|
|
$ |
137,522 |
|
|
$ |
362,088 |
|
|
$ |
263,854 |
|
The geographical area data for net sales is based upon the country location of the Company's business unit generating such sales. Long-lived assets by geographic area are as follows:
|
|
|
|
|
|
|
|
|
(in thousands) |
|
June 30, 2025 |
|
|
December 31, 2024 |
|
United States |
|
$ |
372,714 |
|
|
$ |
332,162 |
|
United Kingdom |
|
|
28,300 |
|
|
|
27,003 |
|
China |
|
|
36,614 |
|
|
|
36,315 |
|
Other |
|
|
55,955 |
|
|
|
33,248 |
|
Total long-lived assets |
|
$ |
493,583 |
|
|
$ |
428,728 |
|
The geographical area data for long-lived assets is based upon physical location of such assets. |