v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company determines its operating segments based on how the Company's Chief Operating Decision Maker (“CODM”), the Company's President and Chief Executive Officer, manages the businesses, including resource allocation and operating decisions. The Company is organized into two operating segments, which represent the individual businesses that are run separately within this operational structure.

The Company has two reportable segments: Rail, Technologies, and Services (“Rail”), and Infrastructure Solutions (“Infrastructure”). The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. The CODM uses segment operating income to determine resources to allocate to each segment (including personnel and financial resources) during the annual budgeting process. The CODM evaluates segment performance regularly by comparing the segment operating income to the budgeted measure.
Operating segments are evaluated on their segment operating income contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on the nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions.

Segment operating income includes reportable segment gross profit and direct expenses such as salaries, benefits, restructuring, research and development, professional and purchased services expenditures, amortization expense, bad debt expense, and other segment expenses. Additionally, segment operating income includes allocated corporate operating expenses associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions are allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources.

Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, insurance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team, and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, net and certain other items included in “Other income - net”, which are managed on a consolidated basis, are not allocated to the operating segments.

The operating results of the Company’s reportable segments were as follows for the periods presented:


Three Months Ended
June 30,
20262025
Rail, Technologies, and Services
Infrastructure SolutionsTotalRail, Technologies, and ServicesInfrastructure SolutionsTotal
Net sales$72,012 $66,538 $138,550 $75,973 $67,585 $143,558 
Less:
Cost of sales(57,201)(50,475)(107,676)(60,841)(51,817)(112,658)
Selling and administrative employment costs(7,963)(6,496)(14,459)(7,237)(5,902)(13,139)
Purchased services (1)
(1,729)(1,622)(3,351)(1,660)(1,273)(2,933)
General administrative costs (2)
(1,795)(1,091)(2,886)(1,949)(1,526)(3,475)
Amortization expense(335)(283)(618)(539)(301)(840)
Segment operating income$2,989 $6,571 $9,560 $3,747 $6,766 $10,513 
Reconciliation of segment operating income
Total segment operating income$9,560 $10,513 
Interest expense - net(891)(1,490)
Other income - net 191 95 
Public company costs(774)(1,346)
Corporate executive management costs(1,437)(728)
Corporate management stock-based compensation(906)(761)
Strategic initiatives costs(292)— 
Income before income taxes$5,451 $6,283 
(1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services.
(2)General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and any restructuring expenditures.
Six Months Ended
June 30,
20262025
Rail, Technologies, and ServicesInfrastructure SolutionsTotalRail, Technologies, and ServicesInfrastructure SolutionsTotal
Net sales$146,788 $112,906 $259,694 $129,988 $111,362 $241,350 
Less:
Cost of sales(115,835)(87,289)(203,124)(102,827)(87,472)(190,299)
Selling and administrative employment costs(15,530)(12,339)(27,869)(14,636)(11,466)(26,102)
Purchased services (1)
(3,502)(3,168)(6,670)(3,333)(2,631)(5,964)
General administrative costs (2)
(3,440)(2,446)(5,886)(3,942)(2,868)(6,810)
Amortization expense(672)(564)(1,236)(1,359)(603)(1,962)
Segment operating income$7,809 $7,100 $14,909 $3,891 $6,322 $10,213 
Reconciliation of segment operating income
Total segment operating income$14,909 $10,213 
Interest expense - net(1,742)(2,633)
Other income - net408 413 
Public company costs(1,879)(2,471)
Corporate executive management costs(2,227)(948)
Corporate management stock-based compensation(2,315)(1,039)
Strategic initiatives costs(292)— 
Income before income taxes$6,862 $3,535 
(1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services.
(2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and any restructuring expenditures.

On June 21, 2022, the Company acquired the stock of Skratch Enterprises Ltd. for $7,402, which was inclusive of deferred payments withheld by the Company of $1,228, to be paid over five years or utilized to satisfy post-closing working capital adjustments or indemnity claims under the purchase agreement. During the second quarters of 2026 and 2025, the Company made deferred acquisition payments of $403 and $782, respectively.

Restructuring charges included in segment results are discussed further in Note 13 to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q.

Reconciliations of reportable depreciation and amortization and expenditures for long-lived assets to the Company’s consolidated totals are as follows for the periods presented:

Three Months Ended
June 30,
20262025
Depreciation/AmortizationExpenditures for Long-Lived AssetsDepreciation/AmortizationExpenditures for Long-Lived Assets
Rail, Technologies, and Services$677 $412 $913 $628 
Infrastructure Solutions1,718 2,577 1,679 1,457 
  Reportable segments total
$2,395 $2,989 $2,592 $2,085 
Corporate
357 572 515 588 
Total
$2,752 $3,561 $3,107 $2,673 
Six Months Ended
June 30,
20262025
Depreciation/AmortizationExpenditures for Long-Lived AssetsDepreciation/AmortizationExpenditures for Long-Lived Assets
Rail, Technologies, and Services$1,370 $686 $2,081 $1,055 
Infrastructure Solutions3,397 4,536 3,443 3,495 
  Reportable segments total$4,767 $5,222 $5,524 $4,550 
Corporate880 1,299 1,010 698 
Total$5,647 $6,521 $6,534 $5,248 

The following table summarizes the Company's total assets by reportable segment for the following periods:

June 30,
2026		December 31,
2025
Rail, Technologies, and Services$145,631 $155,552 
Infrastructure Solutions139,784 128,489 
  Reportable segments total285,415 284,041 
Corporate48,740 46,331 
Total$334,155 $330,372