Contract Assets and Liabilities

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

Contract Assets and Liabilities

Contract Assets and Liabilities

Contract assets and Contract liabilities (included in Accrued liabilities) are reported in the Consolidated Balance Sheets in a net position, on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities are summarized as follows:

(in thousands)	December 31, 2025		December 31, 2024
Contract assets	$	87,573	$	167,397
Allowance for expected credit losses	(471)		(840)
Contract assets, net	$	87,102	$	166,557
Contract liabilities	$	33,397	$	6,085

Contract assets, net decreased $79.5 million during the year ended December 31, 2025 primarily due to a decrease in unbilled revenue related to commercial and defense programs. There were no impairment losses related to our Contract assets during the year ended December 31, 2025 and 2024.

The following tables present the (increases)/ decreases in the allowance for credit losses for Contract assets:

(in thousands)	December 31, 2024		(Charge)/ benefit		Currency translation		Other		December 31, 2025
Contract assets expected credit losses	$	(840)	$	76	$	(17)	$	310	$	(471)

(in thousands)	December 31, 2023		(Charge)/ benefit		Currency translation		Other		December 31, 2024
Contract assets expected credit losses	$	(908)	$	52	$	16	$	—	$	(840)

Contract liabilities increased $27.3 million during the year ended December 31, 2025, primarily due to amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognition from satisfied performance obligations. Revenue recognized for the years ended December 31, 2025 and 2024 that was included in the Contract liability balance at the beginning of the year was $5.6 million and $4.3 million, respectively.