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SEGMENTS
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM, which is the Company’s Chief Executive Officer, allocates resources and assesses the performance of each operating segment based on historical and potential future product sales, gross margin associated with those sales, and operating income (loss) before interest, taxes, and corporate expenses. The Company has determined its reportable segments to be Aerospace and Test Systems based on the information used by the CODM.
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands)202520242023
Sales:
Aerospace$797,353 $706,746 $605,001 
Less Inter-segment Sales(34)(62)(171)
Total Aerospace Sales797,319 706,684 604,830 
Test Systems65,243 88,874 84,376 
Less Inter-segment Sales(434)(132)— 
Test Systems64,809 88,742 84,376 
Total Consolidated Sales$862,128 $795,426 $689,206 
Less1
Cost of Products Sold:
Aerospace$548,879 $502,558 $451,911 
68.8 %71.1 %74.7 %
Test Systems$55,091 $72,440 $62,763 
85.0 %81.6 %74.4 %
Other Segment Items2
Aerospace$135,236 $141,720 $128,290 
Test Systems$17,563 $24,779 $30,358 
(In thousands)202520242023
Operating Income (Loss) and Margins:
Aerospace$113,204 $62,406 $24,629 
14.2 %8.8 %4.1 %
Test Systems(7,845)(8,477)(8,745)
(12.1)%(9.6)%(10.4)%
Total Operating Income (Loss)$105,359 $53,929 $15,884 
12.2 %6.8 %2.3 %
Additions to (Deductions from) Operating Profit:
Net Gain on Sale of Businesses$— $— $3,427 
Loss on Settlement of Debt(32,644)(10,148)— 
Interest Expense, Net of Interest Income(12,561)(21,998)(23,328)
Corporate and Other Expenses, Net(28,209)(29,650)(22,294)
Income (Loss) before Income Taxes$31,945 $(7,867)$(26,311)
1 The significant expenses and amounts presented align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
2 Other segment items include Selling, General and Administrative Expenses, Research and Development Expenses, and sublease and rental income.
Depreciation and Amortization:
Aerospace$18,866 $19,458 $20,801 
Test Systems2,932 4,813 5,068 
Corporate40 195 235 
Total Depreciation and Amortization$21,838 $24,466 $26,104 
Assets:
Aerospace$570,294 $498,528 
Test Systems119,603 128,828 
Corporate16,781 21,408 
Total Assets$706,678 $648,764 
Capital Expenditures:
Aerospace$30,741 $7,346 $5,003 
Test Systems932 1,066 2,640 
Corporate— 16 — 
Total Capital Expenditures$31,673 $8,428 $7,643 
During the year ended December 31, 2024 and 2023, reserves associated with customer bankruptcies of $3.2 million and $11.1 million, respectively, negatively impacted Aerospace Operating Income.
During the year ended December 31, 2023, $5.8 million was recognized in sales related to the reversal of a deferred revenue liability assumed with an acquisition and associated with a customer program within our Test Systems Segment which is no longer expected to occur, which also benefits Test Systems’ operating loss for the year.
Corporate expenses and other for the year ended December 31, 2023, includes income of $1.8 million associated with the reversal of a liability related to an equity investment, as we are no longer required to make the associated payment. This amount is included in Other Income, Net. The higher level of Aerospace capital expenditures in 2025 is related to ongoing facility expansion activities and growth and maintenance expenditures that had been previously deferred during the pandemic.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
(In thousands)202520242023
United States$615,096 $593,943 $518,096 
North America (excluding United States)14,635 13,107 14,878 
Asia73,265 44,176 26,165 
Europe153,396 139,384 123,682 
South America2,117 1,445 2,071 
Other3,619 3,371 4,314 
Total$862,128 $795,426 $689,206 
The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
(In thousands)20252024
United States$97,325 $73,749 
France6,507 5,625 
Germany2,155 — 
India255 357 
Canada836 956 
Total$107,078 $80,687 
Sales recorded by the Company’s foreign operations were $90.1 million, $82.1 million and $69.3 million in 2025, 2024 and 2023, respectively. Net income from foreign operations was $8.2 million, $7.6 million and $5.3 million in 2025, 2024 and 2023, respectively. Net assets held outside of the U.S. total $67.8 million and $41.3 million at December 31, 2025 and 2024, respectively. The exchange gain (loss) included in determining net income was insignificant in 2025, 2024 and 2023. Cumulative translation adjustments amounted to $5.2 million and $8.2 million at December 31, 2025 and 2024, respectively.
The Company has a significant concentration of business with The Boeing Company (“Boeing”). Sales to Boeing are primarily in the Aerospace segment. The following is information relating to the activity with this customer:
202520242023
Percent of Consolidated Sales
Boeing10.4%10.2%11.0%
(In thousands)20252024
Accounts Receivable at December 31,
Boeing$19,679 $10,474