v3.26.1
Note 14 - Segments
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting [Text Block]
14. SEGMENTS 

 

During the first quarter of 2026, the Company implemented a change in its internal organizational and reporting structure to better align management reporting with customer end markets. As a result, effective  March 31, 2026, the Company updated the reportable segment view used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources. The CODM has not changed.

 

Following this change, the Company has two reportable segments: (i) Aerospace, Defense & Rugged Solutions and (ii) Industrial Technology & Data Solutions. The segment information for the years ended December 31, 2025, 2024 and 2023 have been recast to conform to the change in presentation of the reportable segments that occurred during the quarter ended March 31, 2026. Accordingly, prior-year segment amounts have been recast for comparability to conform to the current period presentation. The Aerospace, Defense & Rugged Solutions segment primarily includes the Company’s legacy Connectivity Solutions business and Enercon operations. The Industrial Technology & Data Solutions segment primarily includes the Company’s legacy Power Solutions and Protection and Magnetic Solutions operations. These segment descriptions reflect how results are reviewed by the CODM.

 

There are no intercompany sales between segments.

 

On a quarterly basis, the Company’s CODM, the Chief Executive Officer, evaluates segment performance using gross profit (a U.S. GAAP measure), which the Company has determined to be its measure of segment profit or loss under ASC 280, as amended by ASU 2023-07. The CODM uses segment gross profit to make commercial and operational decisions and to evaluate capital deployment opportunities. The CODM’s quarterly reporting package also includes segment revenues and cost of sales to arrive at gross profit; cost of sales is a significant segment expense and is therefore included in the segment financial data tables below.

 

The following is a summary of key financial data for each of the three years ended December 31, 2025, 2024 and 2023

 

  

Year Ended December 31, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total

 
             

Net sales

 $368,862  $306,593  $675,455 

Cost of sales

  217,780   191,617   409,397 

Segment gross profit

  151,082   114,976   266,058 

Segment gross profit %

  41.0%  37.5%  39.4%

Corporate and other

          (1,640)

Total consolidated gross profit

          264,418 

Gross profit %

          39.1%

Research and development costs

          30,867 

Selling, general and administrative expenses

          125,828 

Restructuring credits

          (677)

Gain on sale of properties

          (5,701)

Earnout liability adjustment

          3,105 

Interest expense

          14,751 

Interest income

          (1,035)

Impairment of equity method investment and related party notes

          13,087 

Other income, net

          (10,857)

Earnings before provision for income taxes

         $95,050 

 

  

Year Ended December 31, 2024

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total

 
             

Net sales

 $241,188  $293,604  $534,792 

Cost of sales

  150,799   180,650   331,449 

Segment gross profit

  90,389   112,954   203,343 

Segment gross profit %

  37.5%  38.5%  38.0%

Corporate and other

          (985)

Total consolidated gross profit

          202,358 

Gross profit %

          37.8%

Research and development costs

          23,586 

Selling, general and administrative expenses

          110,616 

Impairment of CUI tradename

          400 

Restructuring charges

          3,459 

Interest expense

          4,078 

Interest income

          (4,754)

Other income, net

          3,165 

Earnings before provision for income taxes

         $61,808 

 

 

  

Year Ended December 31, 2023

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total

 
             

Net sales

 $210,572  $429,241  $639,813 

Cost of sales

  138,541   284,186   422,727 

Segment gross profit

  72,031   145,055   217,086 

Segment gross profit %

  34.2%  33.8%  33.9%

Corporate and other

          (1,237)

Total consolidated gross profit

          215,849 

Gross profit %

          33.7%

Research and development costs

          22,487 

Selling, general and administrative expenses

          99,091 

Restructuring charges

          10,114 

Gain on sale of properties

          (3,819)

Gain on sale of Czech Republic business

          (980)

Interest expense

          2,850 

Interest income

          (1,697)

Other income, net

          4,503 

Earnings before provision for income taxes

         $83,300 

 

  

Year Ended December 31, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable segment total

  

Corporate and other

  

Consolidated

 
                     

Total Assets

 $654,461  $216,733  $871,194  $64,006  $935,200 

Capital Expenditures

  7,321   4,556   11,877   125   12,002 

Depreciation and Amortization Expense

  19,692   6,324   26,016   576   26,592 

Interest Expense

  210   56   266   14,485   14,751 

 

 

  

Year Ended December 31, 2024

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable segment total

  

Corporate and other

  

Consolidated

 
                     

Total Assets

 $642,715  $240,274  $882,989  $66,800  $949,789 

Capital Expenditures

  7,744   5,891   13,635   473   14,108 

Depreciation and Amortization Expense

  9,099   6,857   15,956   501   16,457 

Interest Expense

  360   85   445   3,633   4,078 

 

 

  

Year Ended December 31, 2023

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable segment total

  

Corporate and other

  

Consolidated

 
                     

Total Assets

 $197,045  $269,968  $467,013  $104,618  $571,631 

Capital Expenditures

  7,384   4,723   12,107   19   12,126 

Depreciation and Amortization Expense

  6,152   6,375   12,526   786   13,312 

Interest Expense

  -   -   -   2,850   2,850 

 

Entity-Wide Information

 

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line. Such information attributes net sales based on markets where revenues are reported.

 

  

Years Ended December 31,

 
  

2025

  

2024

  

2023

 

Net Sales by Geographic Location:

            

United States

 $447,367  $362,118  $447,793 

People's Republic of China (PRC)

  52,323   23,394   43,109 

Macao

  -   25,130   35,026 

United Kingdom

  37,071   35,915   25,648 

Slovakia

  32,172   33,228   35,555 

Germany

  14,717   15,268   17,327 

India

  8,846   10,635   15,365 

Switzerland

  15,747   15,594   11,237 

Israel

  62,348   8,227   - 

All other foreign countries

  4,864   5,283   8,753 

Consolidated net sales

  675,455   534,792   639,813 
             

Net Sales by Major Product Line:

            
Aerospace, Defense & Rugged Solutions $368,862  $241,188  $210,572 
Industrial Technology & Data Solutions  306,593   293,604   429,241 

Consolidated net sales

 $675,455  $534,792  $639,813 

 

The following is a summary of long-lived assets by geographic area as of December 31, 2025 and 2024:

 

  

December 31,

 
  

2025

  

2024

 

Long-lived Assets by Geographic Location:

        

United States

 $50,836  $40,840 

People's Republic of China (PRC)

  13,701   23,942 

Slovakia

  6,666   6,553 

Israel

  3,687   4,125 

United Kingdom

  3,314   3,001 

All other foreign countries

  3,737   4,057 

Consolidated long-lived assets

 $81,941  $82,518 

 

Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area.

 

The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact the current status of these territories, along with evolving political landscape in the region, will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC (including risks arising out of any changes in governmental and economic policy, such as increased or new tariffs, and current or additional trade restrictions, and the potential for adverse developments arising out of any political or economic instability related to Hong Kong or Taiwan). A significant portion of the Company's manufacturing operations and approximately 32.0% of its identifiable assets are located in Asia.

 

Net Sales to Major Customers

 

The Company had no direct customers whose net sales represented in excess of ten percent of the Company's consolidated net sales in 2025, 2024 or 2023.