v3.26.3
Segment Disclosure
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Disclosure Segment Disclosure
 
The Company’s three operating segments, which are also the Company's reportable segments, are:
 
•North America: This segment provides asset protection solutions predominantly in North America, with the largest concentration in the United States, followed by Canada, consisting primarily of NDT, inspection, mechanical and engineering services that are used to evaluate the safety, structural integrity and reliability of critical energy,
industrial and public infrastructure and commercial aerospace components. Software, digital and data services are included in this segment.
 
•International: This segment offers services, products and systems similar to those of the other segments to select markets within Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment.
 
•Products and Systems: This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States.
 
Costs incurred for general corporate services, including finance, legal, and certain other costs that are provided to the segments are reported within Corporate and eliminations. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the North America and International segments by the Products and Systems segment are reflected in the operating performance of each segment.

The chief operating decision maker ("CODM") reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. The Company's CODM is Natalia Shuman, our Chief Executive Officer, as she has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.

Segment income (loss) from operations is the primary performance measure used by the CODM to evaluate segment performance and allocate resources, including considering budget-to-actual variances and prior year-to-actual variances on a monthly basis in accordance with GAAP under ASC 280, Segment Reporting. Segment income (loss) from operations for each of the Company's reportable segments are comprised of revenue, selling, general & administrative expenses, and "other expenses." "Other expenses" include cost of revenue, reorganization and environmental costs, transaction-related expense, depreciation and amortization and research and engineering.

Corporate and other assets are comprised principally of cash, deposits, property, plant and equipment, domestic deferred taxes, deferred charges and other assets. Corporate loss from operations consists of administrative charges related to corporate personnel and other charges that cannot be readily identified for allocation to a particular segment. These items of our operating profit are managed centrally at the corporate level and are excluded from the measure of segment income reviewed by the CODM, as well as the measure of segment performance used for incentive compensation purposes.

The accounting policies of the reportable segments are the same as those described in Note 1 - Description of Business and Basis of Presentation.
 
Selected consolidated financial information by segment for the periods shown was as follows. Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations.
 
 
For the three months ended September 30, 2026
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$166,362 $39,994 $4,284 $210,640 $(6,019)$204,621 
Selling, general & administrative expenses21,525 8,276 971 30,772 7,721 38,493 
Other Expenses122,058 27,596 2,333 151,987 (908)151,079 
Income (loss) from operations$22,779 $4,122 $980 $27,881 $(12,832)$15,049 


For the three months ended September 30, 2025
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$160,609 $35,521 $4,036 $200,166 $(4,617)$195,549 
Selling, general & administrative expenses20,377 6,856 918 28,151 5,327 33,478 
Other Expenses117,479 24,827 2,067 144,373 (2,683)141,690 
Income (loss) from operations$22,753 $3,838 $1,051 $27,642 $(7,261)$20,381 










For the nine months ended September 30, 2026
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$458,312 $114,294 $10,855 $583,461 $(16,674)$566,787 
Selling, general & administrative expenses66,263 24,477 2,763 93,503 20,698 114,201 
Other Expenses341,098 81,200 6,448 428,746 (8,837)419,909 
Income (loss) from operations$50,951 $8,617 $1,644 $61,212 $(28,535)$32,677 
For the nine months ended September 30, 2025
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$437,503 $107,812 $9,867 $555,182 $(12,613)$542,569 
Selling, general & administrative expenses62,061 21,923 2,538 86,522 22,401 108,923 
Other Expenses329,416 76,966 5,615 411,997 (6,148)405,849 
Income (loss) from operations$46,026 $8,923 $1,714 $56,663 $(28,866)$27,797 
  
The tables above only reconcile to income (loss) from operations as our measure of segment profitability and the remainder of the reconciliation to net income can be seen on the Unaudited Condensed Consolidated Statement of Income. Products and Systems segment revenue was comprised of approximately $0.9 million and $0.6 million of sales to the International segment, which were eliminated upon consolidation, for the three months ended September 30, 2026 and 2025, respectively. Products and Systems segment revenue was comprised of approximately $2.0 million and $2.4 million of sales to the International segment, which were eliminated upon consolidation, for the nine months ended September 30, 2026 and 2025, respectively. Intersegment revenue related to sales between other segments was immaterial for each of the three and nine month periods ended September 30, 2026 and 2025.

Selected consolidated financial information by segment for the periods shown was as follows (with intercompany transactions eliminated in Corporate and eliminations):

September 30, 2026December 31, 2025
Intangible assets, net
North America$26,278 $28,245 
International1,079 1,110 
Products and Systems918 733 
Corporate and eliminations10,111 8,319 
   Total$38,386 $38,407 
 

September 30, 2026December 31, 2025
Total assets
North America$443,039 $426,146 
International110,625 150,741 
Products and Systems11,990 12,072 
Corporate and eliminations31,809 (10,178)
     Total$597,463 $578,781 
September 30, 2026December 31, 2025
Long-lived assets
North America$287,135 $278,419 
International27,875 27,900 
Products and Systems1,315 850 
Corporate and eliminations11,241 9,231 
    Total$327,566 $316,400 
 
Refer to Note 2 - Revenue, for revenue by geographic area for the three and nine months ended September 30, 2026 and 2025.