v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

All revenue recognized in the condensed consolidated statements of income is considered to be revenue from contracts with customers.

Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services when control of the promised good or service is transferred to the customer. Substantially all of the Company’s revenue from contracts with customers is recognized at a point in time, which is generally upon shipment of goods to the customer.

The Company sells specialty aerospace components based on a customer purchase order, which generally includes a fixed price per unit. The Company satisfies the single performance obligation generally upon shipment of the goods, as this is when contractual control transfers to the customer and recognizes revenue at that point in time. Total revenues do not include taxes, such as sales tax or value-added tax, which are assessed by governmental authorities and collected by the Company.

Products are covered by a standard assurance warranty, generally extended for a period of 25 days to two years depending on the customer, which promises that delivered products conform to contract specifications. The Company does not offer refunds or accept returns, unless related to a defect or warranty related matter. The Company does not sell extended warranties and does not provide warranties outside of fixing defects that existed at the time of sale. As such, warranties are accounted for under ASC 460, Guarantees and not as a separate performance obligation.

Customers generally have payment terms between 30 and 90 days from the satisfaction of the performance obligations. As a practical expedient, the Company does not adjust the amount of consideration for a financing component, as the period between the transfer of goods or services and the customer’s payment is, at contract inception, expected to be one year or less.

Net sales by end market were as follows (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Commercial Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Commercial aerospace OEM

 

$

37,160

 

 

$

19,440

 

 

$

68,681

 

 

$

35,504

 

Commercial aerospace aftermarket

 

 

46,256

 

 

 

34,836

 

 

 

89,771

 

 

 

67,239

 

     Total commercial aerospace

 

 

83,416

 

 

 

54,276

 

 

 

158,452

 

 

 

102,743

 

Business jet & general aviation OEM

 

 

20,304

 

 

 

17,895

 

 

 

39,937

 

 

 

37,318

 

Business jet & general aviation aftermarket

 

 

13,099

 

 

 

12,267

 

 

 

24,165

 

 

 

23,702

 

     Total business jet & general aviation

 

 

33,403

 

 

 

30,162

 

 

 

64,102

 

 

 

61,020

 

Total commercial OEM

 

 

57,464

 

 

 

37,335

 

 

 

108,618

 

 

 

72,822

 

Total commercial aftermarket

 

 

59,355

 

 

 

47,103

 

 

 

113,936

 

 

 

90,941

 

Total commercial

 

 

116,819

 

 

 

84,438

 

 

 

222,554

 

 

 

163,763

 

Defense Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Total defense OEM

 

 

26,971

 

 

 

14,332

 

 

 

50,013

 

 

 

26,058

 

Total defense aftermarket

 

 

18,062

 

 

 

17,139

 

 

 

35,669

 

 

 

34,195

 

Total defense

 

 

45,033

 

 

 

31,471

 

 

 

85,682

 

 

 

60,253

 

Other Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Total other OEM

 

 

5,001

 

 

 

2,655

 

 

 

9,769

 

 

 

5,521

 

Total other aftermarket

 

 

4,726

 

 

 

4,559

 

 

 

9,662

 

 

 

8,245

 

Total other

 

 

9,727

 

 

 

7,214

 

 

 

19,431

 

 

 

13,766

 

Net Sales

 

$

171,579

 

 

$

123,123

 

 

 

327,667

 

 

$

237,782

 

 

Contract Liabilities

Contract liabilities, or deferred revenue, represent payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on established terms. The Company's contract liabilities consisted of the following (in thousands):

 

 

 

 

 

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Contract liabilities, current (1)

 

$

8,261

 

 

$

4,227

 

Contract liabilities, long-term

 

 

—

 

 

 

—

 

Total contract liabilities

 

$

8,261

 

 

$

4,227

 

 

(1) Included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.

 

During the three and six months ended June 30, 2026, the Company recognized revenue of approximately $1.4 million and $3.5 million, respectively, that was included in the contract liability balance at December 31, 2025. The Company had no material contract assets at June 30, 2026 and December 31, 2025.