v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue Recognition [Abstract]  
Revenue Recognition

2. Revenue Recognition

The Company’s revenue by major market is as follows:

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Industrial

 

$

66,295

 

 

$

65,311

 

 

$

127,563

 

 

$

128,228

 

Infrastructure

 

 

48,589

 

 

 

32,018

 

 

 

86,189

 

 

 

61,781

 

Vehicle

 

 

20,505

 

 

 

25,423

 

 

 

43,842

 

 

 

52,457

 

Consumer

 

 

22,504

 

 

 

26,121

 

 

 

46,251

 

 

 

46,944

 

Food and beverage

 

 

21,309

 

 

 

14,359

 

 

 

39,937

 

 

 

35,489

 

Total net sales

 

$

179,202

 

 

$

163,232

 

 

$

343,782

 

 

$

324,899

 

Total sales from foreign business units were approximately $18.6 million and $13.7 million for the quarters ended June 30, 2026 and 2025, respectively, and $30.6 million and $23.1 million for the six months ended June 30, 2026 and 2025, respectively.

Revenue is recognized when obligations under the terms of a contract with customers are satisfied which generally occurs with the transfer of control of the Company's products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

 

 

 

June 30,

 

 

December 31,

 

 

Statement of Financial
Position

 

 

2026

 

 

2025

 

 

Classification

Returns, discounts and other allowances

 

$

(372

)

 

$

(418

)

 

Trade accounts receivable

Right of return asset

 

$

11

 

 

$

136

 

 

Inventories, net

Customer deposits

 

$

(2,036

)

 

$

(2,514

)

 

Other current liabilities

Accrued rebates

 

$

(3,439

)

 

$

(2,420

)

 

Other current liabilities

 

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer. Third party costs for shipments to customers are classified as Cost of sales. The Company incurred costs for shipments to customers of $4.4 million and $2.8 million for the quarters ended June 30, 2026 and 2025, respectively, and $7.2 million and $5.6 million for the six months ended June 30, 2026 and 2025, respectively. Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.