Revenue

3 Months Ended

Apr. 04, 2026

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

On April 4, 2026, we had $734.3 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $596.2 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.

The Company’s contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively. The following table presents the beginning and ending balances of contract assets and contract liabilities:

(In thousands)	Contract Assets		Contract Liabilities
Beginning Balance, January 1, 2026	$	54,687	$	26,962
Ending Balance, April 4, 2026	$	65,147	$	30,464

The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period. For the three months ended April 4, 2026, the increase reflects a $2.8 million impact to revenue from a change in estimate due to updated variable consideration. The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.

The Company recognized $6.6 million and $11.6 million during the three months ended April 4, 2026 and March 29, 2025, respectively, in revenues that were included in the contract liability balance at the beginning of the period.

The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. Such costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods to which the asset relates. Start-up costs are expensed as incurred. Capitalized fulfillment costs are included in Inventories in the accompanying Consolidated Condensed Balance Sheets. Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off. The Company’s capitalized fulfillment costs amounted to $6.3 million and $6.0 million on April 4, 2026 and December 31, 2025, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $0.1 million and $3.3 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Prior‑period disaggregated revenue information has been recast to conform to the current‑period presentation, including all prior years presented. There was no impact on total revenue as a result of this change. The Company’s disaggregation of revenue by market segments remains unchanged from the Company’s prior presentation.

The following table presents our revenue disaggregated by Market Segments for the periods indicated:

	Three Months Ended
(In thousands)	April 4, 2026		March 29, 2025
Aerospace Segment
Commercial Transport	$	156,419	$	137,542
Military Aircraft	33,502		33,263
General Aviation	21,449		15,243
Other	2,450		5,327
Aerospace Total	213,820		191,375
Test Systems Segment
Government & Defense	16,799		14,561
Test Systems Total	16,799		14,561
Total	$	230,619	$	205,936

The following table presents our revenue disaggregated by Product Lines for the periods indicated:

	Three Months Ended
			Recast
(In thousands)	April 4, 2026		March 29, 2025
Aerospace Segment
Inflight Entertainment & Connectivity	$	110,748	$	103,110
Lighting & Safety	52,807		51,957
Flight Critical Electrical Power	24,763		21,314
Seat Motion	19,879		6,672
Other	5,623		8,322
Aerospace Total	213,820		191,375
Test Systems	16,799		14,561
Total	$	230,619	$	205,936

Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue.

The following table presents our revenue disaggregated by Product Lines for the fiscal years ended December 31, 2025 and 2024 as follows:

	Recast		Recast
(In thousands)	2025		2024
Aerospace Segment
Inflight Entertainment & Connectivity	$	434,239	$	383,679
Lighting & Safety	216,583		188,355
Flight Critical Electrical Power	73,706		68,368
Seat Motion	47,242		35,229
Other	25,549		31,053
Aerospace Total	797,319		706,684
Test Systems	64,809		88,742
Total	$	862,128	$	795,426

The Company’s updated disaggregation of revenue by product lines is consistent with the information used by the Chief Operating Decision Maker (“CODM”) to evaluate operating performance and allocate resources. The recast of prior‑period information does not affect the Company’s reportable segments or the measurement of segment profit or loss.