Business Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company determines its operating segments based on how the Company's Chief Operating Decision Maker, the Company's President and Chief Executive Officer, manages the businesses, including resource allocation and operating decisions. The Company is organized into two operating segments, which represent the individual businesses that are run separately within this operational structure.

Operating segments are evaluated on their segment operating income contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on the nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions.

The Company has two reportable segments: Rail, Technologies, and Services (“Rail”), and Infrastructure Solutions (“Infrastructure”). The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. The CODM uses segment operating income to determine resources to allocate to each segment (including personnel and financial resources) during the annual budgeting process. The CODM evaluates segment performance regularly by comparing the segment operating income to the budgeted measure.

Segment operating income includes reportable segment gross profit and direct expenses such as salaries, benefits, restructuring, research and development, professional and purchased services expenditures, amortization expense, bad debt expense, and other segment expenses. Additionally, segment operating income includes allocated corporate operating expenses associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions are allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources.

Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, insurance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team, and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, income taxes, and certain other items included in other income - net, which are managed on a consolidated basis, are not allocated to the operating segments.

The operating results of the Company’s reportable segments were as follows for the periods presented:

	Three Months Ended March 31, 2025
	Rail, Technologies, and Services		Infrastructure Solutions		Total
Net sales	$	54,015	$	43,777	$	97,792
Less:
Cost of sales	(41,986)		(35,655)		(77,641)
Selling and administrative employment costs	(7,399)		(5,564)		(12,963)
Purchased services(1)	(1,673)		(1,358)		(3,031)
General administrative costs(2)	(1,993)		(1,342)		(3,335)
Amortization expense	(820)		(302)		(1,122)
Segment operating income (loss)	$	144	$	(444)	$	(300)
Reconciliation of segment operating loss
Total segment operating loss					$	(300)
Interest expense - net					(1,143)
Other income - net					318
Public company costs					(1,154)
Corporate executive management costs					(220)
Corporate management stock-based compensation					(278)
Other corporate expenses - net					29
Loss before income taxes					$	(2,748)

(1) Purchased services costs include contractor services, insurance expenditures, rental expense, and legal services.

(2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, depreciation and restructuring expenditures.

	Three Months Ended March 31, 2024
	Rail, Technologies, and Services		Infrastructure Solutions		Total
Net sales	$	82,623	$	41,697	$	124,320
Less:
Cost of sales	(64,052)		(34,092)		(98,144)
Selling and administrative employment costs	(7,482)		(5,818)		(13,300)
Purchased services(1)	(1,939)		(1,578)		(3,517)
General administrative costs(2)	(1,501)		(1,251)		(2,752)
Amortization expense	(871)		(346)		(1,217)
Segment operating income (loss)	$	6,778	$	(1,388)	$	5,390
Reconciliation of segment operating income
Total segment operating income					$	5,390
Gain on sale of former joint venture facility					3,477
Interest expense - net					(1,125)
Other income - net					253
Public company costs					(1,219)
Corporate executive management costs					(1,407)
Corporate management stock-based compensation					(599)
Other corporate expenses					(76)
Income before income taxes					$	4,694

(1) Purchased services costs include contractor services, insurance expenditures, rental expense, and legal services.

(2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, depreciation and restructuring expenditures.

For the three months ended March 31, 2024, the Company sold a former joint venture facility located in Magnolia, Texas, generating a $3,477 gain on sale recorded in “Gain on sale of former joint venture facility” which is included as a component of corporate operating income.

Reconciliations of reportable depreciation and amortization and expenditures for long-lived assets to the Company’s consolidated totals are as follows for the periods ended March 31:

	Three Months Ended March 31, 2025
	Depreciation/Amortization		Expenditures for Long-Lived Assets
Rail, Technologies, and Services	$	1,168	$	427
Infrastructure Solutions	1,764		2,038
Reportable segments total	$	2,932	$	2,465
Corporate	495		110
Total	$	3,427	$	2,575

	Three Months Ended March 31, 2024
	Depreciation/Amortization		Expenditures for Long-Lived Assets
Rail, Technologies, and Services	$	1,221	$	536
Infrastructure Solutions	1,911		2,033
Reportable segments total	$	3,132	$	2,569
Corporate	459		143
Total	$	3,591	$	2,712

The following table summarizes the Company's total assets by reportable segment for the following periods:

	March 31, 2025		December 31, 2024
Rail, Technologies, and Services	$	149,333	$	158,859
Infrastructure Solutions	131,689		123,755
Reportable segments total	281,022		282,614
Corporate	61,804		51,936
Total	$	342,826	$	334,550

On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (“Bridge Exit”) which was reported in the Steel Products business unit within Infrastructure. The Bedford, PA based operations supporting the product line expect to complete any remaining customer obligations in 2025. For the three months ended March 31, 2025 and 2024, the product line had $501 and $810 in sales, respectively. The Company does not expect to incur additional material exit costs in 2025.