v3.25.4
Business Segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company determines its operating segments based on how the Company’s CODM, the Company’s President and Chief Executive Officer, manages the businesses, including resource allocation and operating decisions. The Company is organized into two operating segments, which represent the individual businesses that are run separately within this operational structure.

Operating segments are evaluated on their segment operating income contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on the nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions.

The Company has two reportable segments: Rail and Infrastructure. The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. The CODM uses segment operating income to determine resources to allocate to each segment (including personnel and financial resources) during the annual budgeting process. The CODM evaluates segment performance regularly by comparing the segment operating income to the budgeted measure.

The Company’s Rail reporting segment consists of the Rail Products, Global Friction Management, and Technology Services and Solutions business units, which was evaluated based on the factors outlined above. The Rail reporting segment engineers, manufactures, and assembles friction management products and railway wayside data collection, application systems, railroad condition monitoring systems and equipment, wheel impact load detection systems, management systems, and provides services for these products. The Rail segment also provides a full line of new and used rail, trackwork, and accessories to railroads, mines, and other customers in the rail industry as well as designs and produces insulated rail joints, power rail, track fasteners, coverboards, and special accessories for mass transit and other rail systems. In addition, the Rail segment provides controls, displays, and telecommunication contract management solutions for the transit, control room, and customer information and display sectors to enhance safety, operational efficiency, and customer experience.

During year ended December 31, 2025, the Company announced the discontinuation of its Automation and Materials Handling product line (“AMH Exit”) which was reported in the Technology Services and Solutions business unit within the Rail segment. The decision to exit was due to the Company's initiatives to scale back businesses in the United Kingdom. The Company completed all remaining customer obligations in 2025. This product line had net sales of $1,843 and $5,230 for the years ended December 31, 2025 and 2024, respectively. The Company has incurred a total of $1,351 in exit costs associated with the AMH Exit, which included $615 in inventory write-offs, $40 in fixed asset write-offs, $507 in personnel expenses, and $189 in other exit costs. Exit costs of $1,085
were recorded in “Cost of goods sold” and $266 were recorded in “Selling and administrative expenses” within our Rail segment. The Company does not expect to incur additional material exit costs.

The Company’s Infrastructure segment consists of the Precast Concrete Products and Steel Products business units. The Precast Concrete Products business unit produces precast concrete buildings and a variety of specialty precast concrete products for use in several infrastructure end markets, including transportation, energy, and general infrastructure. The precast concrete buildings are primarily used as restrooms, concession stands, and protective storage buildings in national, state, and municipal parks, while other precast products include sound walls, bridge beams and other wet/dry utilities concrete products. The Company leased a facility in Lake County, Florida in 2024, which produced precast concrete wall systems as operations commenced in 2025. The Steel Products business unit also produces threaded pipe products for industrial water well and irrigation markets as well as pipe coatings for oil and gas markets. In addition, the segment produces fabricated bridge forms.

On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (the “Bridge Exit”) which was reported in the Steel Products business unit within the Infrastructure segment. The decision to exit the bridge grid deck product line was a result of a weak bridge grid deck market condition and outlook due to customer adoption of newer technologies replacing the grid deck solution. The Company continues to operate its bridge forms product line which is a newer technology and not subject to the same challenging market conditions. The Bedford, PA based operations supporting the discontinued bridge grid deck product line completed substantially all customer obligations as of December 31, 2025. For the years ended December 31, 2025 and 2024, the product line had $1,637 and $3,700 in sales, respectively. During 2024, the Company incurred an immaterial amount of exit costs, all of which were personnel expenses.

Segment operating income includes reportable segment gross profit and direct expenses such as salaries, benefits, restructuring, research and development, professional and purchased services expenditures, amortization expense, bad debt expense, and other segment expenses. Additionally, segment operating income includes allocated corporate operating expenses associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions are allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies found in Note 1.

Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, insurance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team, and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, income taxes, and certain other items included in other expense - net, which are managed on a consolidated basis, are not allocated to the operating segments.

The operating results of the Company’s reportable segments were as follows as of and for the years ended December 31:
2025
Rail, Technologies, and Services
Infrastructure Solutions
Total
Net sales
$
305,726 
$
234,283 
$
540,009 
Less:
Cost of sales
(243,396)
(182,861)
(426,257)
Selling and administrative employment costs
(29,301)
(23,441)
(52,742)
Purchased services(1)
(6,679)
(5,632)
(12,311)
General administrative costs(2)
(8,628)
(5,381)
(14,009)
Amortization expense
(2,130)
(1,181)
(3,311)
Segment operating income
$
15,592 
$
15,787 
$
31,379 
Reconciliation of segment operating income
Total segment operating income
$
31,379 
Interest expense - net
(4,889)
Other income - net
420 
Public company costs
(4,395)
Corporate executive management costs
(2,130)
Corporate management stock-based compensation
(2,864)
Other corporate expenses
(105)
Income before income taxes
$
17,416 
(1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services.(2)General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and restructuring expenditures.

Included in the Rail segment operating income for the year ended December 31, 2025, was $2,184 in expenses related to restructuring in the UK business and $1,351 of AMH Exit costs.
2024
Rail, Technologies, and Services
Infrastructure Solutions
Total
Net sales
$
326,869 
$
203,896 
$
530,765 
Less:
Cost of sales
(254,400)
(158,303)
(412,703)
Selling and administrative employment costs
(32,002)
(23,868)
(55,870)
Purchased services(1)
(7,410)
(6,336)
(13,746)
General administrative costs(2)
(7,796)
(4,735)
(12,531)
Amortization expense
(3,349)
(1,279)
(4,628)
Segment operating income
$
21,912 
$
9,375 
$
31,287 
Reconciliation of segment operating income
Total segment operating income
$
31,287 
Gain on sales of former joint venture facility
3,477 
Interest expense - net
(4,992)
Other expense - net
(1,076)
Public company costs
(5,755)
Corporate executive management costs
(5,726)
Corporate management stock-based compensation
(2,065)
Other corporate expenses
(705)
Income before income taxes
$
14,445 
(1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services.(2)General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and restructuring expenditures.

Included in the Rail segment operating income for the year ended December 31, 2024, was a $1,134 expense related to restructuring.

Included in the Infrastructure segment operating income for the year ended December 31, 2024 was gain on the sale of ancillary property within the Steel Products business unit for total consideration of $1,300 generating an $815 gain on sale recorded in “Cost of goods sold” and a $113 expense related to restructuring.

During the year ended December 31, 2024, the Company sold a former joint venture facility located in Magnolia, Texas generating a $3,477 gain on sale recorded in “Gain on sale of former joint venture facility” which is included as a component of corporate operating income.
Reconciliations of reportable segment assets, depreciation and amortization, and expenditures for long-lived assets to the Company’s consolidated totals are as follows as of and for the years ended December 31:
2025
Segment Assets
Depreciation/Amortization
Expenditures for Long-Lived Assets
Rail, Technologies, and Services
$
155,552 
$
3,651 
$
1,962 
Infrastructure Solutions
128,489 
6,741 
6,665 
Reportable segment total
284,041 
10,392 
8,627 
Corporate
46,331 
2,062 
1,797 
Total
$
330,372 
$
12,454 
$
10,424 
2024
Segment Assets
Depreciation/Amortization
Expenditures for Long-Lived Assets
Rail, Technologies, and Services
$
158,859 
$
4,793 
$
2,032 
Infrastructure Solutions
123,755 
7,417 
6,366 
Reportable segments total
282,614 
12,210 
8,398 
Corporate
51,936 
1,870 
1,393 
Total
$
334,550 
$
14,080 
$
9,791 

For the year ended December 31, 2025, no single customer accounted for more than 10% of the Company's consolidated net sales. For the year ended December 31, 2024, net sales to one customer of the Rail segment represented approximately $71,800 of the Company's consolidated net sales. Sales between segments were immaterial and eliminated in consolidation.

The following table summarizes the Company’s sales by major geographic region in which the Company had operations for the years ended December 31:

2025
2024
United States
$
481,422 
$
454,694 
Canada
19,413 
22,088 
United Kingdom
32,429 
44,086 
Other
6,745 
9,897 
Total net sales
$
540,009 
$
530,765 
    
The following table summarizes the Company’s long-lived assets by geographic region as of December 31:

2025
2024
United States
$
74,179 
$
72,899 
Canada
498 
151 
United Kingdom
1,955 
1,765 
Other
551 
559 
Total property, plant, and equipment - net
$
77,183 
$
75,374 
The following table summarizes the Company’s sales by major product and service line for the years ended December 31:
December 31,
2025
2024
Rail Products
$
188,255 
$
207,696 
Global Friction Management
78,513 
65,984 
Technology Services and Solutions
38,958 
53,189 
Rail, Technologies, and Services
305,726 
326,869 
Precast Concrete Products
163,123 
136,043 
Steel Products
71,160 
67,853 
Infrastructure Solutions
234,283 
203,896 
Total net sales
$
540,009 
$
530,765