| Segments |
5. Segments The Company has two reportable segments, Energy Equipment and Energy Products and Services, based on the products and services provided, customer base, and operating environment. These reportable segments are determined as those businesses for which results are reviewed regularly by our Chief Executive Officer, who is identified as the Chief Operating Decision Maker (“CODM”), in allocating resources and assessing performance. The following tables present financial data by business segment (in millions):
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Three Months Ended September 30, |
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2026 |
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2025 |
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Energy Equipment |
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Energy Products and Services |
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Energy Equipment |
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Energy Products and Services |
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Revenue from external customers |
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$ |
1,201 |
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$ |
1,025 |
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$ |
1,230 |
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$ |
946 |
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Intersegment revenue |
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19 |
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32 |
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17 |
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|
25 |
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Total revenue |
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1,220 |
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1,057 |
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1,247 |
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971 |
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Less significant segment expenses: |
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Cost of revenue |
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916 |
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|
778 |
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932 |
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|
709 |
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Selling, general, and administrative |
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117 |
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|
126 |
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|
135 |
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|
127 |
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Depreciation and amortization |
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29 |
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|
62 |
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30 |
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|
58 |
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(Gain) loss on fixed assets |
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22 |
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(4 |
) |
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(1 |
) |
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(2 |
) |
Total significant segment expenses |
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$ |
1,084 |
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$ |
962 |
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$ |
1,096 |
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$ |
892 |
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Other segment items (1) |
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14 |
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7 |
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21 |
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|
41 |
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Segment operating profit |
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$ |
122 |
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$ |
88 |
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$ |
130 |
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$ |
38 |
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Three Months Ended September 30, |
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2026 |
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2025 |
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Energy Equipment |
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Energy Products and Services |
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Elims. and corporate costs (2) |
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Total |
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Energy Equipment |
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Energy Products and Services |
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Elims. and corporate costs (2) |
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Total |
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Segment operating profit |
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$ |
122 |
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$ |
88 |
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$ |
— |
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$ |
210 |
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$ |
130 |
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$ |
38 |
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$ |
— |
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$ |
168 |
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Corporate and other unallocated (3) |
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— |
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— |
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(68 |
) |
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(68 |
) |
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— |
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— |
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(61 |
) |
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(61 |
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Interest and financial costs |
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— |
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— |
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(21 |
) |
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(21 |
) |
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— |
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— |
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(22 |
) |
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(22 |
) |
Interest income |
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— |
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— |
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9 |
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9 |
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— |
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— |
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11 |
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|
11 |
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Equity income (loss) in unconsolidated affiliates |
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1 |
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(8 |
) |
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— |
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(7 |
) |
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(1 |
) |
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(10 |
) |
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— |
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(11 |
) |
Other expenses, net |
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— |
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— |
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— |
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— |
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— |
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— |
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(12 |
) |
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(12 |
) |
Income before income taxes |
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$ |
123 |
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$ |
80 |
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$ |
(80 |
) |
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$ |
123 |
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$ |
129 |
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$ |
28 |
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$ |
(84 |
) |
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$ |
73 |
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Other segment information: |
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Capital expenditures |
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$ |
21 |
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$ |
65 |
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$ |
2 |
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$ |
88 |
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$ |
37 |
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$ |
66 |
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$ |
4 |
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$ |
107 |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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Energy Equipment |
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Energy Products and Services |
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Energy Equipment |
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Energy Products and Services |
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Revenue from external customers |
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$ |
3,578 |
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$ |
2,834 |
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$ |
3,552 |
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$ |
2,915 |
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Intersegment revenue |
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|
50 |
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|
94 |
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48 |
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|
73 |
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Total revenue |
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3,628 |
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2,928 |
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3,600 |
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2,988 |
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Less significant segment expenses: |
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Cost of revenue |
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2,719 |
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2,149 |
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2,711 |
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2,184 |
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Selling, general, and administrative |
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|
391 |
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|
386 |
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|
386 |
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|
378 |
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Depreciation and amortization |
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|
86 |
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|
186 |
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|
86 |
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|
174 |
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(Gain) loss on fixed assets |
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15 |
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(16 |
) |
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(2 |
) |
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(4 |
) |
Total significant segment expenses |
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$ |
3,211 |
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$ |
2,705 |
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$ |
3,181 |
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$ |
2,732 |
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Other segment items (1) |
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|
25 |
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24 |
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33 |
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52 |
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Segment operating profit |
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$ |
392 |
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$ |
199 |
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$ |
386 |
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$ |
204 |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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Energy Equipment |
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Energy Products and Services |
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Elims. and corporate costs (2) |
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Total |
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Energy Equipment |
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Energy Products and Services |
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Elims. and corporate costs (2) |
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Total |
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Segment operating profit |
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$ |
392 |
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$ |
199 |
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$ |
— |
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$ |
591 |
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$ |
386 |
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$ |
204 |
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$ |
— |
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$ |
590 |
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Corporate and other unallocated (3) |
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|
— |
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— |
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(209 |
) |
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(209 |
) |
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— |
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— |
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(188 |
) |
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(188 |
) |
Interest and financial costs |
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— |
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— |
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(64 |
) |
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(64 |
) |
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— |
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— |
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(66 |
) |
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(66 |
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Interest income |
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— |
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— |
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|
28 |
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|
28 |
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— |
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— |
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|
32 |
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|
32 |
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Equity income (loss) in unconsolidated affiliates |
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5 |
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(20 |
) |
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— |
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(15 |
) |
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2 |
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(12 |
) |
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— |
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(10 |
) |
Other expenses, net |
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— |
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— |
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(16 |
) |
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(16 |
) |
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— |
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— |
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(49 |
) |
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(49 |
) |
Income before income taxes |
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$ |
397 |
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$ |
179 |
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$ |
(261 |
) |
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$ |
315 |
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$ |
388 |
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$ |
192 |
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$ |
(271 |
) |
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$ |
309 |
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|
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Other segment information: |
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Capital expenditures |
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$ |
58 |
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$ |
171 |
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$ |
5 |
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$ |
234 |
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$ |
103 |
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$ |
163 |
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$ |
8 |
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$ |
274 |
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Investment in unconsolidated affiliates |
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$ |
8 |
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$ |
135 |
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$ |
10 |
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$ |
153 |
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$ |
6 |
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$ |
167 |
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$ |
— |
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$ |
173 |
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Goodwill |
|
$ |
781 |
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$ |
806 |
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$ |
— |
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$ |
1,587 |
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$ |
818 |
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$ |
805 |
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$ |
— |
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$ |
1,623 |
|
Intangibles, net |
|
$ |
122 |
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$ |
307 |
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$ |
— |
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$ |
429 |
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|
$ |
139 |
|
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$ |
327 |
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$ |
— |
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$ |
466 |
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Total assets |
|
$ |
5,057 |
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$ |
4,884 |
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$ |
1,283 |
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$ |
11,224 |
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$ |
5,082 |
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$ |
4,883 |
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$ |
1,373 |
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$ |
11,338 |
|
(1)Other segment items represent amounts necessary to reconcile segment revenue less significant expenses categories to segment operating profit and include items such as restructuring charges, other non-recurring items, and amounts not regularly reviewed by the CODM. (2)Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations and corporate costs include intercompany transactions conducted between the two reporting segments and with Corporate that are eliminated in consolidation, as well as corporate costs not allocated to the segments. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash, fixed assets, and right-of-use assets. (3)Includes certain corporate expenses not allocated to the segments, restructuring related to centrally managed initiatives and other non-recurring items.
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