v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. As of June 30, 2026 and 2025, the Company had two operating segments, ESS and PCS. The Company has identified its reportable segments based on the nature of the products and services, markets served and pricing and go-to-market strategies.
•ESS is a supplier of drilling solutions and complete topside drilling packages and services to both onshore and offshore oil and gas customers. Key product offerings consist of overhaul, equipment installation and commissioning, services account management, 24/7 technical support, logistics, engineering upgrades, spare parts supply and training and condition-based maintenance. The ESS segment is derived from the acquisition of MHWirth AS.
•PCS is a supplier of integrated drilling products and services. Key product offerings consist of blowout preventer systems, controls and drilling riser equipment, spare parts supply for rig operations and maintenance programs, overhaul and recertification and reactivation of rigs and technical and operational rig support. The PCS segment is derived from the acquisition of Subsea Drilling Systems.
In addition to its reportable segments, the Company has corporate operations (Headquarters) which include general corporate expenses. Headquarters includes certain corporate stewardship items discussed below necessary to reconcile the reportable segments to the Company’s total amounts.
The CODM, who is the Company’s Chief Executive Officer, uses segment operating income as the primary financial measure to evaluate segment performance. Segment operating income is defined as income before taxes (excluding certain corporate stewardship costs which are not allocable to the segments, such as legal, certain corporate finance functions and centrally managed initiatives, other non-operating items, and depreciation and amortization related to certain long-lived assets, including the headquarters office space), net other operating expenses (income), net foreign currency gain (loss), net other non-operating income (loss), and net interest income (expense). Inter-segment pricing is determined on an arm’s length basis. The CODM uses segment operating income in the budget and forecasting process and to monitor budget versus actual results, which are used in assessing the performance of the segments and to allocate resources to the segments. Segment assets are not reported to, or used by, the CODM to allocate resources to or assess performance of the Company’s segments.
The following table presents the reconciliation of reportable segment revenues:
20262025
ESSPCSTotalESSPCSTotal
Three Months Ended June 30,
(in thousands)
Revenues from external customers$97,660 $73,162 $170,822 $125,547 $77,910 $203,457 
Intersegment revenue2,766 2,265 5,031 2,690 3,541 6,231 
Total segment revenue$100,426 $75,427 $175,853 $128,237 $81,451 $209,688 
Elimination of intersegment revenue(5,031)(6,231)
Total consolidated revenue$170,822 $203,457 
Six Months Ended June 30,
Revenues from external customers$198,350 $143,793 $342,143 $233,088 $168,799 $401,887 
Intersegment revenue8,015 5,884 13,899 4,808 6,773 11,581 
Total segment revenue$206,365 $149,677 $356,042 $237,896 $175,572 $413,468 
Elimination of intersegment revenue(13,899)(11,581)
Total consolidated revenue$342,143 $401,887 
The following table presents the reconciliation of segment performance:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
ESSPCSTotalESSPCSTotal
(in thousands)
Revenues from external customers(a)
$97,660 $73,162 $125,547 $77,910 
Cost of sales(64,585)(44,939)(94,696)(56,849)
Selling, general and administrative expenses(29,868)(27,536)(18,166)(8,656)
Research and development expenses(442)(329)(721)72 
Restructuring and other expenses(b)
(261)(4,743)(1,072)— 
Total segment operating income (loss)$2,504 $(4,385)$(1,881)$10,892 $12,477 $23,369 
Unallocated corporate costs(c)
(2,950)(2,619)
Foreign currency gain (loss)(591)2,948 
Other non-operating income (loss)(158)334 
Interest expense(3,945)(9,106)
Income (loss) before income taxes$(9,525)$14,926 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
ESSPCSTotalESSPCSTotal
(in thousands)
Revenues from external customers(a)
$198,350 $143,793 $233,088 $168,799 
Cost of sales(132,845)(93,312)(170,410)(123,018)
Selling, general and administrative expenses(45,376)(43,890)(38,064)(23,245)
Research and development expenses(685)(500)(1,235)(445)
Restructuring and other expenses(b)
(261)(4,743)(3,951)(392)
Total segment operating income (loss)$19,183 $1,348 $20,531 $19,428 $21,699 $41,127 
Unallocated corporate costs(c)
(6,199)(4,370)
Foreign currency gain (loss)(2,819)6,941 
Other non-operating income (loss)(413)647 
Interest expense(10,898)(18,285)
Income (loss) before income taxes$202 $26,060 
(a)As the CODM does not regularly review intersegment revenue, it is excluded from the determination of total segment operating income. The CODM uses revenue from external customers to assess performance and allocate resources.
(b) Restructuring and other expenses consist of severance costs primarily related to workforce reductions and impairment of right-of-use assets.
(c) Unallocated corporate costs include certain centralized corporate stewardship costs that are not allocable to the segments and are included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income.