v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

4. Revenue Recognition

All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers.

Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services when control of the promised good or service is transferred to the customer. Substantially all of the Company’s revenue from contracts with customers is recognized at a point in time, which is generally upon shipment of goods to the customer.

The Company sells specialty aerospace components based on a customer purchase order, which generally includes a fixed price per unit. The Company satisfies the single performance obligation generally upon shipment of the goods, as this is when contractual control transfers to the customer and recognizes revenue at that point in time. Total revenues do not include taxes, such as sales tax or value-added tax, which are assessed by governmental authorities and collected by the Company.

Products are covered by a standard assurance warranty, that generally is for a period of 25 days to two years depending on the customer, which promises that delivered products conform to contract specifications. The Company does not offer refunds or accept returns, unless related to a defect or warranty related matter. The Company does not sell extended warranties and does not provide warranties outside of fixing defects that existed at the time of sale. As such, warranties are accounted for under ASC 460, Guarantees and not as a separate performance obligation.

Customers generally have payment terms between 30 and 90 days from the satisfaction of the performance obligations. As a practical expedient, the Company does not adjust the amount of consideration for a financing component, as the period between the transfer of goods or services and the customer’s payment is, at contract inception, expected to be one year or less.

Net sales by end market were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

Commercial Aerospace

 

$

19,440

 

 

$

34,836

 

 

$

54,276

 

 

$

14,299

 

 

$

26,894

 

 

$

41,193

 

Business Jet and General Aviation

 

 

17,895

 

 

 

12,267

 

 

 

30,162

 

 

 

17,438

 

 

 

9,725

 

 

 

27,163

 

Total Commercial

 

 

37,335

 

 

 

47,103

 

 

 

84,438

 

 

 

31,737

 

 

 

36,619

 

 

 

68,356

 

Defense

 

 

14,332

 

 

 

17,139

 

 

 

31,471

 

 

 

8,855

 

 

 

12,022

 

 

 

20,877

 

Non-Aerospace

 

 

2,655

 

 

 

4,559

 

 

 

7,214

 

 

 

3,451

 

 

 

4,331

 

 

 

7,782

 

Total

 

$

54,322

 

 

$

68,801

 

 

$

123,123

 

 

$

44,043

 

 

$

52,972

 

 

$

97,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

Commercial Aerospace

 

$

35,504

 

 

$

67,239

 

 

$

102,743

 

 

$

30,492

 

 

$

52,043

 

 

$

82,535

 

Business Jet and General Aviation

 

 

37,318

 

 

 

23,702

 

 

 

61,020

 

 

 

33,645

 

 

 

19,132

 

 

 

52,777

 

Total Commercial

 

 

72,822

 

 

 

90,941

 

 

 

163,763

 

 

 

64,137

 

 

 

71,175

 

 

 

135,312

 

Defense

 

 

26,058

 

 

 

34,195

 

 

 

60,253

 

 

 

16,641

 

 

 

20,871

 

 

 

37,512

 

Non-Aerospace

 

 

5,521

 

 

 

8,245

 

 

 

13,766

 

 

 

7,751

 

 

 

8,284

 

 

 

16,035

 

Total

 

$

104,401

 

 

$

133,381

 

 

$

237,782

 

 

$

88,529

 

 

$

100,330

 

 

$

188,859

 

 

Contract Liabilities

Contract liabilities, or deferred revenue, represents payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on established terms. The Company's contract liabilities consisted of the following (in thousands):

 

 

June 30, 2025

 

 

December 31, 2024

 

Contract liabilities, current (1)

 

$

3,879

 

 

$

4,159

 

Contract liabilities, long-term

 

 

—

 

 

 

—

 

Total

 

$

3,879

 

 

$

4,159

 

 

(1) Included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

 

During the three and six months ended June 30, 2025, the Company recognized approximately $0.9 million and $3.6 million, respectively, of revenue that was included in the contract liability balance at December 31, 2024. The Company had no material contract assets at June 30, 2025 and December 31, 2024.