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

NOTE 3: REVENUE RECOGNITION

Disaggregated revenue

The following table summarizes total revenue by the Company’s segments:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands)

 

 

(in thousands)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Engine Services

 

$

1,405,084

 

 

$

1,350,677

 

 

$

2,852,228

 

 

$

2,618,990

 

Component Repair Services

 

 

194,609

 

 

 

178,266

 

 

$

374,322

 

 

 

345,541

 

Total revenue

 

$

1,599,693

 

 

$

1,528,943

 

 

$

3,226,550

 

 

$

2,964,531

 

The following table presents revenues from customers that contributed to more than 10% of the Company's revenues:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Customer A

 

 

10.2

%

 

 

15.8

%

 

 

10.7

%

 

 

15.9

%

 

The following table presents revenues from external customers by end market:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands)

 

 

(in thousands)

 

Commercial Aerospace

 

$

953,600

 

 

$

901,912

 

 

$

1,903,871

 

 

$

1,754,948

 

Military & Helicopter

 

 

273,028

 

 

 

280,296

 

 

 

548,355

 

 

 

529,823

 

Business Aviation

 

 

316,383

 

 

 

299,685

 

 

 

655,278

 

 

 

582,978

 

Other

 

 

56,682

 

 

 

47,050

 

 

 

119,046

 

 

 

96,782

 

 

$

1,599,693

 

 

$

1,528,943

 

 

$

3,226,550

 

 

$

2,964,531

 

Contract assets and liabilities

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing or reimbursable costs related to a specific contract. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the Company’s contracts. The following table provides information about contract assets and contract liabilities from contracts with customers:

 

June 30, 2026

 

 

December 31, 2025

 

 

 

(in thousands)

 

 

 

 

Contract assets

 

$

1,202,955

 

 

$

1,072,222

 

Less: allowance for credit loss

 

 

(499

)

 

 

(519

)

Contract assets, net

 

$

1,202,456

 

 

$

1,071,703

 

Contract liabilities

 

$

312,270

 

 

$

411,321

 

Changes in contract assets and contract liabilities primarily result from the timing difference between the Company’s performance of services and payments from customers. The Company recognized revenue that was included in the beginning of period contract liability balance of approximately $377.2 and $411.3 million for the three and six months ended June 30, 2026, respectively, and $407.3 million and $400.0 million for the three and six months ended June 30, 2025, respectively.

Remaining performance obligations

As of June 30, 2026, the Company had approximately $438.3 million of remaining performance obligations, which primarily relate to the Company’s engine utilization contracts that are satisfied over multiple years. Of this amount, the Company expects approximately 49% to be satisfied over the next two years and the remainder thereafter. The expected timing of the satisfaction of performance obligations is dependent on the timing of the customer’s maintenance requirements and as such, the timing of the revenue recognition is subject to estimation uncertainty. The Company excludes from its remaining performance obligation balance the value of remaining performance obligations for its fixed price and time and material contracts, as the performance obligations for these contracts generally have an original expected duration of one year or less.

Rental Engine Revenue

Revenue from rental engines was $28.1 million and $47.4 million for the three and six months ended June 30, 2026, respectively. Revenue from rental engines was $20.8 million and $42.0 million for the three and six months ended June 30, 2025, respectively.