v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue Recognition [Abstract]  
Revenue Recognition

2. Revenue Recognition

The Company’s revenue by major market is as follows:

 

 

For the Quarter Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Industrial

 

$

68,412

 

 

$

68,637

 

 

$

195,975

 

 

$

196,865

 

Infrastructure

 

 

40,810

 

 

 

29,648

 

 

 

126,999

 

 

 

91,429

 

Vehicle

 

 

22,687

 

 

 

22,714

 

 

 

66,529

 

 

 

75,171

 

Consumer

 

 

20,133

 

 

 

20,174

 

 

 

66,384

 

 

 

67,118

 

Food and beverage

 

 

19,298

 

 

 

17,301

 

 

 

59,235

 

 

 

52,790

 

Total net sales

 

$

171,340

 

 

$

158,474

 

 

$

515,122

 

 

$

483,373

 

Total sales from foreign business units were approximately $10.3 million and $13.1 million for the quarters ended September 30, 2026 and 2025, respectively, and $40.9 million and $36.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Revenue is recognized when obligations under the terms of a contract with customers are satisfied which generally occurs with the transfer of control of the Company's products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

 

 

 

September 30,

 

 

December 31,

 

 

Statement of Financial
Position

 

 

2026

 

 

2025

 

 

Classification

Returns, discounts and other allowances

 

$

(197

)

 

$

(418

)

 

Trade accounts receivable

Right of return asset

 

$

11

 

 

$

136

 

 

Inventories, net

Customer deposits

 

$

(2,323

)

 

$

(2,514

)

 

Other current liabilities

Accrued rebates

 

$

(3,731

)

 

$

(2,420

)

 

Other current liabilities

 

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer. Third party costs for shipments to customers are classified as Cost of sales. The Company incurred costs for shipments to customers of $4.8 million and $2.5 million for the quarters ended September 30, 2026 and 2025, respectively, and $12.0 million and $8.1 million for the nine months ended September 30, 2026 and 2025, respectively. Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.