v3.26.3
Business Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Business Segment Information

16. Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in three reportable segments. Segment profit is reviewed quarterly by the chief operating decision maker ("CODM"), which is the Company's Chief Executive Officer, for the purposes of allocating resources, including personnel, capital, and financial resources, and assessing performance, including the monitoring of budget versus actual results. During the fourth quarter of 2025, management updated the definition of the segment profit measure used by the CODM. The presentation of prior period segment information has been recast to conform to this updated measure. During the second quarter of 2026, the Thermal Solutions segment was created following the acquisition of Thermon. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

Engineered Systems: The Company's Engineered Systems segment serves the power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil and gas sectors. The Company seeks to address the global demand for environmental and equipment protection solutions with its highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints.

Industrial Process Solutions: The Company's Industrial Process Solutions segment serves the broad industrial sector with solutions for air pollution and contamination control, fluid handling, and process filtration in applications such as aluminum beverage can production, automobile production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum mill processing, wood manufacturing, desalination, and aquaculture markets. The Company assists customers in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through its platforms including duct fabrication and installation, industrial air, and fluid handling.

Thermal Solutions: The Company's Thermal Solutions segment serves the general industrial, chemical and petrochemical, oil, gas, power generation, commercial, food and beverage processing, and rail and transit sectors. The Company, through this segment, offers a full suite of products including heating units, electrode and gas-fired boilers, heating cables, industrial heating blankets and related products, temporary power solutions and tubing bundles, engineering, installation and maintenance services, and software design optimization and wireless and network control systems.

A reconciliation of total segment sales to total consolidated sales, as well as total segment profit from operations to total consolidated net loss before taxes is as follows for the three months ended September 30, 2026:

(in thousands)

 

Thermal Solutions

 

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Net sales

 

$

148,463

 

 

$

194,257

 

 

$

61,708

 

 

$

404,428

 

Direct cost of sales

 

 

106,868

 

 

 

117,102

 

 

 

43,442

 

 

 

 

Shop burden

 

 

(229

)

 

 

4,904

 

 

 

2,241

 

 

 

 

Selling expense

 

 

11,317

 

 

 

8,194

 

 

 

2,795

 

 

 

 

Project engineering expense

 

 

2,506

 

 

 

4,650

 

 

 

2,489

 

 

 

 

General and administrative expense

 

 

20,864

 

 

 

9,361

 

 

 

1,355

 

 

 

 

Segment profit

 

 

7,137

 

 

 

50,046

 

 

 

9,386

 

 

 

66,569

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

6,397

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

15,316

 

Other corporate expenses(1)

 

 

 

 

 

 

 

 

 

 

 

34,329

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

11,060

 

Other profit or loss(2)

 

 

 

 

 

 

 

 

 

 

 

2,402

 

Total consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(2,935

)

(1) Includes acquisition and integration expense, corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(2) Includes foreign exchange (gain) loss.

A reconciliation of total segment sales to total consolidated sales, as well as total segment profit from operations to total consolidated net loss before taxes is as follows for the nine months ended September 30, 2026:

(in thousands)

 

Thermal Solutions

 

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Net sales

 

$

198,069

 

 

$

518,466

 

 

$

178,773

 

 

$

895,308

 

Direct cost of sales

 

 

144,956

 

 

 

323,066

 

 

 

124,128

 

 

 

 

Shop burden

 

 

370

 

 

 

13,899

 

 

 

8,401

 

 

 

 

Selling expense

 

 

15,079

 

 

 

24,780

 

 

 

8,802

 

 

 

 

Project engineering expense

 

 

3,356

 

 

 

12,960

 

 

 

7,192

 

 

 

 

General and administrative expense

 

 

25,659

 

 

 

27,893

 

 

 

5,507

 

 

 

 

Segment profit

 

 

8,649

 

 

 

115,868

 

 

 

24,743

 

 

 

149,260

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

19,245

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

27,108

 

Other corporate expenses(1)

 

 

 

 

 

 

 

 

 

 

 

123,693

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

24,392

 

Other profit or loss(2)

 

 

 

 

 

 

 

 

 

 

 

6,082

 

Total consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(51,260

)

(1) Includes acquisition and integration expense, corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(2) Includes foreign exchange (gain) loss.

Other segment information is as follows for the three and nine months ended September 30, 2026:

 

 

Three months ended September 30, 2026

 

 

(in thousands)

 

Thermal Solutions

 

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Property and equipment additions

 

$

2,563

 

 

$

1,090

 

 

$

389

 

 

Depreciation and amortization(1)

 

 

16,460

 

 

 

3,310

 

 

 

2,302

 

 

 

 

 

Nine months ended September 30, 2026

 

 

(in thousands)

 

Thermal Solutions

 

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Property and equipment additions

 

$

4,319

 

 

$

2,915

 

 

$

703

 

 

Depreciation and amortization(1)

 

 

20,788

 

 

 

10,060

 

 

 

6,734

 

 

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within other segment expense captions, such as shop burden or general and administrative expense.

A reconciliation of total segment sales to total consolidated sales, as well as total segment profit to total consolidated net income before taxes is as follows for the three months ended September 30, 2025:

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Net sales

 

$

143,692

 

 

$

53,907

 

 

$

197,599

 

Direct cost of sales

 

 

90,352

 

 

 

35,698

 

 

 

 

Shop burden

 

 

4,003

 

 

 

2,957

 

 

 

 

Selling expense

 

 

7,813

 

 

 

3,080

 

 

 

 

Project engineering expense

 

 

4,183

 

 

 

2,843

 

 

 

 

General and administrative expense

 

 

7,513

 

 

 

2,428

 

 

 

 

Loss (gain) on sale of Global Pump Solutions business

 

 

—

 

 

 

801

 

 

 

 

Segment profit

 

 

29,828

 

 

 

6,101

 

 

 

35,929

 

Share-based compensation

 

 

 

 

 

 

 

 

3,273

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

6,144

 

Other corporate expenses(1)

 

 

 

 

 

 

 

 

17,112

 

Interest expense

 

 

 

 

 

 

 

 

5,054

 

Other profit or loss(2)

 

 

 

 

 

 

 

 

2,056

 

Total consolidated income before income taxes

 

 

 

 

 

 

 

$

2,290

 

(1) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(2) Includes foreign exchange (gain) loss.

A reconciliation of total segment sales to total consolidated sales, as well as total segment profit to total consolidated net income before taxes is as follows for the nine months ended September 30, 2025:

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Net sales

 

$

392,586

 

 

$

167,102

 

 

$

559,687

 

Direct cost of sales

 

 

240,056

 

 

 

107,414

 

 

 

 

Shop burden

 

 

10,272

 

 

 

8,081

 

 

 

 

Selling expense

 

 

23,578

 

 

 

9,667

 

 

 

 

Project engineering expense

 

 

13,641

 

 

 

8,518

 

 

 

 

General and administrative expense

 

 

25,738

 

 

 

8,975

 

 

 

 

Gain on sale of Global Pump Solutions business

 

 

—

 

 

 

(63,701

)

 

 

 

Segment profit

 

 

79,300

 

 

 

88,147

 

 

 

167,447

 

Share-based compensation

 

 

 

 

 

 

 

 

9,507

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

12,177

 

Other corporate expenses(1)

 

 

 

 

 

 

 

 

56,432

 

Interest expense

 

 

 

 

 

 

 

 

16,169

 

Other profit or loss(2)

 

 

 

 

 

 

 

 

1,196

 

Total consolidated income before income taxes

 

 

 

 

 

 

 

$

71,966

 

(1) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(2) Includes foreign exchange (gain) loss and pension expense.

Other segment information is as follows for the three and nine months ended September 30, 2025:

 

 

Three months ended September 30, 2025

 

 

Nine months ended September 30, 2025

 

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Engineered Systems

 

 

Industrial Process Solutions

 

Property and equipment additions

 

$

1,649

 

 

$

429

 

 

$

2,855

 

 

$

1,390

 

Depreciation and amortization(1)

 

 

5,333

 

 

 

1,814

 

 

 

9,432

 

 

 

6,002

 

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within other segment expense captions, such as shop burden or general and administrative expense.

Geographic Information

Net sales by geographic area are as follows:

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

United States

 

$

242,251

 

 

$

137,119

 

 

$

559,416

 

 

$

367,993

 

Netherlands

 

 

35,813

 

 

 

17,773

 

 

 

79,587

 

 

 

44,762

 

Canada

 

 

54,734

 

 

 

4,828

 

 

 

77,814

 

 

 

15,575

 

China

 

 

24,756

 

 

 

9,011

 

 

 

58,125

 

 

 

37,368

 

United Kingdom

 

 

13,328

 

 

 

11,843

 

 

 

38,006

 

 

 

43,870

 

Other

 

 

33,546

 

 

 

17,025

 

 

 

82,360

 

 

 

50,119

 

Total net sales

 

$

404,428

 

 

$

197,599

 

 

$

895,308

 

 

$

559,687

 

The geographical area data for net sales is based upon the country location of the Company's business unit generating such sales.

Non-current assets by geographic area are as follows:

(in thousands)

 

September 30, 2026

 

 

December 31, 2025

 

United States

 

$

2,545,457

 

 

$

359,584

 

China

 

 

42,336

 

 

 

39,205

 

United Kingdom

 

 

24,734

 

 

 

27,761

 

Canada

 

 

64,256

 

 

 

8,492

 

Other

 

 

66,177

 

 

 

48,545

 

Total long-lived assets

 

$

2,742,960

 

 

$

483,587