v3.26.3
Note 16 - Segments
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

16.

SEGMENTS

 

During the first quarter of 2026, the Company implemented a change in its internal organizational and reporting structure to better align management reporting with customer end markets. As a result, effective  March 31, 2026, the Company updated the reportable segment view used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources. The CODM has not changed.

 

Following this change, the Company has two reportable segments: (i) Aerospace, Defense & Rugged Solutions and (ii) Industrial Technology & Data Solutions. Prior‑period segment information has been recast to conform to the current period presentation. The Aerospace, Defense & Rugged Solutions segment primarily includes the Company’s legacy Connectivity Solutions business and Enercon operations. The Industrial Technology & Data Solutions segment primarily includes the Company’s legacy Power Solutions and Protection and Magnetic Solutions operations. These segment descriptions reflect how results are reviewed by the CODM.

 

There are no intercompany sales between segments.

 

On a quarterly basis, the Company’s CODM evaluates segment performance using gross profit (a U.S. GAAP measure), which the Company has determined to be its measure of segment profit or loss under ASC 280, as amended by ASU 2023-07. The CODM uses segment gross profit to make commercial and operational decisions and to evaluate capital deployment opportunities. The CODM’s quarterly reporting package also includes segment revenues and cost of sales to arrive at gross profit; cost of sales is a significant segment expense and is therefore included in the segment financial data tables below.

  

  

Three Months Ended September 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $106,596  $113,914  $220,510 

Cost of sales

  64,410   65,291   129,701 

Segment gross profit

  42,186   48,623   90,809 

Segment gross profit %

  39.6%  42.7%  41.2%

Corporate and other

          (528)

Total consolidated gross profit

          90,281 

Gross profit %

          40.9%

Research and development costs

          8,795 

Selling, general and administrative expenses

          39,437 

Restructuring charges

          57 

Earnout liability adjustment

          2,439 

Interest expense

          71 

Interest income

          (2,740)

Other income, net

          (4,419)

Earnings before provision for income taxes

         $46,641 

 

  

Three Months Ended September 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total assets

 $689,984  $292,807  $982,791  $326,648  $1,309,439 

Capital expenditures

  4,605   1,455   6,060   86   6,146 

Depreciation and amortization expense

  5,287   1,854   7,141   130   7,271 

Interest expense

  58   8   66   5   71 

 

  

Three Months Ended September 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $96,298  $82,682  $178,980 

Cost of sales

  56,727   51,224   107,951 

Segment gross profit

  39,571   31,458   71,029 

Segment gross profit %

  41.1%  38.0%  39.7%

Corporate and other

          111 

Total consolidated gross profit

          71,140 

Gross profit %

          39.7%

Research and development costs

          7,549 

Selling, general and administrative expenses

          32,804 

Restructuring charges

          219 

Gain on sale of properties

          (1,626)

Earnout liability adjustment

          1,857 

Interest expense

          3,630 

Interest income

          (238)

Other income, net

          (1,058)

Earnings before provision for income taxes

         $28,003 

        

  

Three Months Ended September 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total assets

 $658,378  $234,380  $892,758  $60,046  $952,804 

Capital expenditures

  1,355   459   1,814   46   1,860 

Depreciation and amortization expense

  4,905   1,603   6,508   144   6,652 

Interest expense

  17   22   39   3,591   3,630 

 

  

Nine Months Ended September 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $316,874  $292,812  $609,686 

Cost of sales

  187,943   176,499   364,442 

Segment gross profit

  128,931   116,313   245,244 

Segment gross profit %

  40.7%  39.7%  40.2%

Corporate and other

          (1,398)

Total consolidated gross profit

          243,846 

Gross profit %

          40.0%

Research and development costs

          26,308 

Selling, general and administrative expenses

          112,452 

Restructuring charges

          157 

Earnout liability adjustment

          3,291 

Interest expense

          4,403 

Interest income

          (4,170)

Other income, net

          (788)

Earnings before provision for income taxes

         $102,193 

 

  

Nine Months Ended September 30, 2026

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total assets

 $689,984  $292,807  $982,791  $326,648  $1,309,439 

Capital expenditures

  8,118   2,741   10,859   177   11,036 

Depreciation and amortization expense

  14,988   5,408   20,396   410   20,806 

Interest expense

  58   59   117   4,286   4,403 

 

  

Nine Months Ended September 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Total Consolidated

 
             

Net sales

 $271,252  $228,265  $499,517 

Cost of sales

  160,363   143,031   303,394 

Segment gross profit

  110,889   85,234   196,123 

Segment gross profit %

  40.9%  37.3%  39.3%

Corporate and other

          (1,081)

Total consolidated gross profit

          195,042 

Gross profit %

          39.0%

Research and development costs

          22,875 

Selling, general and administrative expenses

          93,225 

Restructuring charges

          (2,434)

Gain on sale of properties

          (5,701)

Earnout liability adjustment

          1,857 

Interest expense

          11,775 

Interest income

          (777)

Other income, net

          (11,265)

Earnings before provision for income taxes

         $85,487 

 

  

Nine Months Ended September 30, 2025

 
  

Aerospace, Defense & Rugged Solutions

  

Industrial Technology & Data Solutions

  

Reportable Segment Total

  

Corporate and Other

  

Total Consolidated

 
                     

Total assets

 $658,378  $234,380  $892,758  $60,046  $952,804 

Capital expenditures

  4,502   4,021   8,523   55   8,578 

Depreciation and amortization expense

  14,785   4,726   19,511   425   19,936 

Interest expense

  197   45   242   11,533   11,775