Note 16 - Segment Reporting

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Segment Reporting [Text Block]

NOTE 16— SEGMENT REPORTING 

The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker (“CODM”). The Company’s CODM has been identified as the Chief Executive Officer and President, who reviews operating income by segment in relation to total operating income to make decisions about allocating resources and assessing performance. 

The Company’s segments and their product and service offerings are summarized below: 

Heavy Fabrications

The Company provides large, complex and precision fabrications to customers; historically in a broad range of industrial markets. The Company’s most significant presence is within the U.S. wind energy industry where the Company provides steel towers and repowering adapters primarily to wind turbine manufacturers. The Company streamlined its operations within this segment during the year ended December 31, 2025, selling its industrial fabrication operations in Manitowoc, Wisconsin and consolidating its remaining segment operations to the Company’s production facility in Abilene, Texas. The Abilene facility has an annual wind tower production capacity of up to approximately 220 towers (660 tower sections), sufficient to support turbines generating more than 800 MW of power (assuming a 3 MW tower).  The Company’s Heavy Fabrications operations also manufacture a proprietary mobile, modular pressure reducing system (“PRS”) for the compressed natural gas virtual pipeline market. 

Gearing 

The Company provides gearing, gearboxes and precision machined components to a broad set of customers in diverse markets including: power generation, onshore and offshore oil and gas fracking and drilling, material handling, wind energy, surface and underground mining, steel, infrastructure, marine, defense, and other industrial markets. The Company  has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and Original Equipment Manufacturers (“OEM”) applications for a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in addition to gearbox repair in Cicero, Illinois, and heat treatment and gearbox repair in Neville Island, Pennsylvania.

Industrial Solutions 

The Company provides supply chain solutions, light fabrication, inventory management and kitting and assembly services, primarily serving the combined cycle natural gas turbine market. The Company also supports the U.S. wind repowering and solar power generation market via their manufacturing and kitting capabilities as OEMs domesticate their supply chain due to lead time and reliability issues. The Company leverages a global supply chain to provide instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, and electromechanical devices. The Company also provides packaging solutions and fabricates panels and sub-assemblies to reduce customers’ costs and improve manufacturing velocity and reliability.

Corporate

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results. 

The accounting policies of the reportable segments are the same as those referenced in Note 1, “Basis of Presentation” of these condensed consolidated financial statements. Summary financial information by reportable segment for the three months ended March 31, 2026 and 2025 is as follows:

	Heavy Fabrications			Gearing			Industrial Solutions		Corporate			Eliminations		Consolidated
For the Three Months Ended March 31, 2026
Revenues from external customers	$	16,367		$	8,454		$	9,236	$	—		$	—	$	34,057
Intersegment revenues		—			—			—		—			—		—
Net revenues		16,367			8,454			9,236		—			—		34,057
Direct materials		9,447			2,010			4,922		—			*		16,379
Direct labor		1,916			1,569			*		—			—		3,485
Indirect labor		2,053			1,259			698		—			—		4,010
Variable overhead		*			1,017			814		—			—		1,831
AMP credits		(2,571	)		—			—		—			—		(2,571	)
Salaries and benefits		*			*			*		679			—		679
Share-based compensation		*			*			*		127			—		127
Depreciation and amortization		837			530			96		16			—		1,479
All other expenses (1)		3,898			2,126			1,080		1,145			—		8,249
Operating income (loss)		787			(57	)		1,626		(1,967	)		—		389
Capital expenditures		1,792			946			24		16			—		2,778

	Heavy Fabrications			Gearing			Industrial Solutions		Corporate			Eliminations			Consolidated
For the Three Months Ended March 31, 2025
Revenues from external customers	$	25,248		$	5,966		$	5,624	$	—		$	—		$	36,838
Intersegment revenues		—			—			23		—			(23	)		—
Net revenues		25,248			5,966			5,647		—			(23	)		36,838
Direct materials		14,622			1,440			3,329		—			*			19,391
Direct labor		3,762			1,261			*		—			—			5,023
Indirect labor		2,811			1,129			547		—			—			4,487
Variable overhead		*			875			473		—			—			1,348
AMP credits		(2,564	)		—			—		—			—			(2,564	)
Salaries and benefits		*			*			*		398			—			398
Share-based compensation		*			*			*		146			—			146
Depreciation and amortization		1,021			549			114		18			—			1,702
All other expenses (1)		3,355			1,604			854		933			(23	)		6,723
Operating income (loss)		2,241			(892	)		330		(1,495	)		—			184
Capital expenditures		861			26			—		29			—			916

* Line item not deemed a significant expense for this segment (per analysis of Accounting Standards Update No. 2023-07).

⁽¹⁾ All other expenses for each reportable segment primarily consist of:

       Heavy Fabrications-variable overhead, salaries and benefits, and rent and utilities

       Gearing-salaries and benefits and rent 

       Industrial Solutions-direct labor, salaries and benefits, and rent and utilities

       Corporate-professional expenses

	Total Assets as of
	March 31,			December 31,
Segments:	2026			2025
Heavy Fabrications	$	29,124		$	33,393
Gearing		42,891			40,752
Industrial Solutions		23,128			20,222
Corporate		44,345			44,668
Eliminations		(21,520	)		(22,230	)
	$	117,968		$	116,805