v3.26.1
Note 15 - Segments
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

15.

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. Prior‑period segment information has been recast to conform to the current period presentation. 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 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.

  

  

Three Months Ended June 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $110,457  $100,228  $210,685 

Cost of sales

  65,090   61,305   126,395 

Segment gross profit

  45,367   38,923   84,290 

Segment gross profit %

  41.1%  38.8%  40.0%

Corporate and other

          (323)

Total consolidated gross profit

          83,967 

Gross profit %

          39.9%

Research and development costs

          9,006 

Selling, general and administrative expenses

          36,285 

Restructuring charges

          24 

Earnout liability adjustment

          233 

Interest expense

          1,802 

Interest income

          (1,280)

Other income, net

          137 

Earnings before provision for income taxes

         $37,760 

 

 

  

Three Months Ended June 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total Assets

 $682,388  $263,848  $946,236  $317,946  $1,264,182 

Capital Expenditures

  1,501   710   2,211   36   2,247 

Depreciation and Amortization Expense

  4,871   1,912   6,783   128   6,911 

Interest Expense

  -   36   36   1,766   1,802 

 

  

Three Months Ended June 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $91,832  $76,467  $168,299 

Cost of sales

  53,842   48,471   102,313 

Segment gross profit

  37,990   27,996   65,986 

Segment gross profit %

  41.4%  36.6%  39.2%

Corporate and other

          (903)

Total consolidated gross profit

          65,083 

Gross profit %

          38.7%

Research and development costs

          8,104 

Selling, general and administrative expenses

          30,914 

Restructuring charges

          280 

Gain on sale of properties

          (4,075)

Interest expense

          3,993 

Interest income

          (264)

Other income, net

          (7,568)

Earnings before provision for income taxes

         $33,699 

        

 

  

Three Months Ended June 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total Assets

 $657,501  $235,476  $892,977  $57,603  $950,580 

Capital Expenditures

  1,974   1,950   3,924   4   3,928 

Depreciation and Amortization Expense

  4,870   1,588   6,458   142   6,600 

Interest Expense

  166   (78)  88   3,905   3,993 

 

 

  

Six Months Ended June 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $210,278  $178,898  $389,176 

Cost of sales

  123,533   111,208   234,741 

Segment gross profit

  86,745   67,690   154,435 

Segment gross profit %

  41.3%  37.8%  39.7%

Corporate and other

          (870)

Total consolidated gross profit

          153,565 

Gross profit %

          39.5%

Research and development costs

          17,513 

Selling, general and administrative expenses

          73,015 

Restructuring charges

          100 

Earnout liability adjustment

          852 

Interest expense

          4,332 

Interest income

          (1,430)

Other income, net

          3,631 

Earnings before provision for income taxes

         $55,552 

 

  

Six Months Ended June 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total Assets

 $682,388  $263,848  $946,236  $317,946  $1,264,182 

Capital Expenditures

  3,513   1,286   4,799   91   4,890 

Depreciation and Amortization Expense

  9,701   3,554   13,255   280   13,535 

Interest Expense

  -   51   51   4,281   4,332 

 

 

  

Six Months Ended June 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $174,954  $145,583  $320,537 

Cost of sales

  103,636   91,807   195,443 

Segment gross profit

  71,318   53,776   125,094 

Segment gross profit %

  40.8%  36.9%  39.0%

Corporate and other

          (1,192)

Total consolidated gross profit

          123,902 

Gross profit %

          38.7%

Research and development costs

          15,326 

Selling, general and administrative expenses

          60,421 

Restructuring charges

          (2,653)

Gain on sale of properties

          (4,075)

Interest expense

          8,145 

Interest income

          (539)

Other income, net

          (10,207)

Earnings before provision for income taxes

         $57,484 
             

 

 

  

Six Months Ended June 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total Assets

 $657,501  $235,476  $892,977  $57,603  $950,580 

Capital Expenditures

  3,147   3,562   6,709   9   6,718 

Depreciation and Amortization Expense

  9,880   3,123   13,003   281   13,284 

Interest Expense

  180   23   203   7,942   8,145