Revenue from Contracts with Customers

3 Months Ended

Mar. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information regarding the Company’s overall revenues by global and geographical markets for the quarters and year-to-date periods ended March 30, 2025 and March 31, 2024 is included in the following tables.

(in millions)	Quarter ended
	March 30, 2025						March 31, 2024
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Global Markets:
Aerospace & Defense:
Jet Engines- Commercial	$	397.3	$	24.1	$	421.4	$	296.9	$	14.3	$	311.2
Airframes- Commercial	81.8		124.0		205.8		85.7		104.4		190.1
Defense	58.4		68.8		127.2		60.0		54.4		114.4
Total Aerospace & Defense	537.5		216.9		754.4		442.6		173.1		615.7
Specialty Energy	12.4		38.1		50.5		18.2		37.9		56.1
Medical	15.8		26.6		42.4		35.9		23.2		59.1
Electronics	—		39.6		39.6		1.0		51.9		52.9
Other Core Markets	28.2		104.3		132.5		55.1		113.0		168.1
Core End Markets	565.7		321.2		886.9		497.7		286.1		783.8
Conventional Energy	1.7		120.1		121.8		3.5		99.0		102.5
Automotive	1.4		59.2		60.6		5.0		51.0		56.0
Construction/Mining	7.1		25.8		32.9		6.7		20.5		27.2
Other	8.2		34.0		42.2		17.0		56.4		73.4
Industrial Markets	18.4		239.1		257.5		32.2		226.9		259.1
Total	$	584.1	$	560.3	$	1,144.4	$	529.9	$	513.0	$	1,042.9

(in millions)	Quarter ended
	March 30, 2025						March 31, 2024
	HPMC		AA&S		Total		HPMC		AA&S		Total
Primary Geographical Market:
United States	$	316.4	$	327.4	$	643.8	$	240.7	$	330.9	$	571.6
Europe	191.3		69.4		260.7		211.5		50.7		262.2
Asia	33.3		81.0		114.3		38.9		77.3		116.2
Canada	20.1		19.7		39.8		15.3		12.3		27.6
South America, Middle East and other	23.0		62.8		85.8		23.5		41.8		65.3
Total	$	584.1	$	560.3	$	1,144.4	$	529.9	$	513.0	$	1,042.9

Comparative information regarding the Company’s major products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation.

	Quarter ended
	March 30, 2025						March 31, 2024
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Products and Services:
Nickel-based alloys and specialty alloys	41	%	55	%	48	%	39	%	51	%	45	%
Precision forgings, castings and components	39	%	—	%	20	%	36	%	—	%	19	%
Titanium and titanium-based alloys	20	%	17	%	19	%	24	%	12	%	18	%
Zirconium and related alloys	—	%	17	%	8	%	—	%	20	%	10	%
Precision rolled strip products	—	%	11	%	5	%	1	%	17	%	8	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintained a backlog of confirmed orders totaling $4.0 billion and $3.9 billion at March 30, 2025 and March 31, 2024, respectively. Due to the structure of the Company’s long-term agreements, approximately 70% of this backlog at March 30, 2025 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration.

Contract balances

As of March 30, 2025 and December 29, 2024, accounts receivable from customers were $838.6 million and $724.2 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the year-to-date periods ended March 30, 2025 and March 31, 2024:

(in millions)
Accounts Receivable - Reserve for Doubtful Accounts	March 30, 2025		March 31, 2024
Balance as of beginning of year	$	15.0	$	3.2
Expense to increase the reserve	0.1		—
Write-offs and recoveries of uncollectible accounts	(3.5)		(0.1)
Balance as of period end	$	11.6	$	3.1

(in millions)
Contract Assets
Short-term	March 30, 2025		March 31, 2024
Balance as of beginning of year	$	75.6	$	59.1
Recognized in current year	35.2		28.0
Reclassified to accounts receivable	(24.9)		(21.8)
Balance as of period end	$	85.9	$	65.3

(in millions)
Contract Liabilities
Short-term	March 30, 2025		March 31, 2024
Balance as of beginning of year	$	169.4	$	163.6
Recognized in current year	53.4		38.1
Amounts in beginning balance reclassified to revenue	(48.5)		(36.7)
Current year amounts reclassified to revenue	(6.6)		(9.3)
Other	(0.3)		—
Reclassification to/from long-term	19.7		5.9
Balance as of period end	$	187.1	$	161.6
Long-term (a)	March 30, 2025		March 31, 2024
Balance as of beginning of year	$	45.3	$	39.4
Recognized in current year	1.7		0.6
Amounts in beginning balance reclassified to revenue	(0.4)		—
Other	(1.9)		—
Reclassification to/from short-term	(19.7)		(5.9)
Balance as of period end	$	25.0	$	34.1

(a) Long-term contract liabilities are included in other long-term liabilities on the consolidated balance sheets.

Contract costs for obtaining and fulfilling a contract were $13.8 million and $12.0 million as of March 30, 2025 and December 29, 2024, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the quarters ended March 30, 2025 and March 31, 2024 was $0.2 million and $0.3 million, respectively.