Revenue

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Note 9 – Revenue

The Company’s revenues are generated primarily from its manufacturing services, which entails the sale of manufactured products built to customer specifications. The Company also generates revenue from design, development and engineering services, in addition to the sale of other inventory.

Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a manufactured product to a customer. The Company’s contracts with customers are generally short-term in nature. Customers are generally billed when the product is shipped or as services are performed. Under the majority of the Company’s manufacturing contracts with customers, the customer controls all of the work-in-progress as products are being built. Revenues under these contracts are recognized progressively based on the cost-to-cost method. For other manufacturing contracts, the customer does not take control of the product until it is completed. Under these contracts, the Company recognizes revenue upon transfer of control of the product to the customer, which is generally when goods are shipped. Revenue from design, development and engineering services is recognized over time as the services are performed. The Company assumes no significant obligations after shipment as it typically warrants workmanship only. Therefore, the warranty provisions are generally not significant.

If the Company records revenue, but does not issue an invoice, a contract asset is recognized. The contract asset is transferred to trade accounts receivable when the entitlement to payment becomes unconditional.

Taxes assessed by governmental authorities that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of sales.

Disaggregation of Revenue

The following tables provide a summary of the Company's revenue disaggregated by market sector and a reconciliation of the disaggregated revenue to the Company's revenue by reportable operating segment:

	Year Ended December 31, 2024
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	212,466	$	389,630	$	121,139	$	723,235
Industrial		130,280		331,222		111,769		573,271
Medical		236,070		167,617		46,996		450,683
A&D		370,486		15,468		48,014		433,968
AC&C		328,400		146,478		70		474,948
External revenue		1,277,702		1,050,415		327,988		2,656,105
Elimination of intersegment sales		52,659		40,734		11,349		104,742
Segment revenue	$	1,330,361	$	1,091,149	$	339,337	$	2,760,847

	Year Ended December 31, 2023
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	262,117	$	283,870	$	100,305	$	646,292
Industrial		127,491		345,465		123,522		596,478
Medical		329,816		182,532		44,204		556,552
A&D		304,932		29,153		27,446		361,531
AC&C		509,631		168,436		56		678,123
External revenue		1,533,987		1,009,456		295,533		2,838,976
Elimination of intersegment sales		77,796		46,482		4,302		128,580
Segment revenue	$	1,611,783	$	1,055,938	$	299,835	$	2,967,556

	Year Ended December 31, 2022
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	286,322	$	357,634	$	78,146	$	722,102
Industrial		89,949		363,398		140,258		593,605
Medical		319,823		228,571		44,500		592,894
A&D		286,230		43,701		17,654		347,585
AC&C		428,630		201,073		442		630,145
External revenue		1,410,954		1,194,377		281,000		2,886,331
Elimination of intersegment sales		64,976		57,100		3,100		125,176
Segment revenue	$	1,475,930	$	1,251,477	$	284,100	$	3,011,507

The timing of revenue recognition, billings and cash collections result in billed accounts receivable, contract assets and advance payments from customers. During 2024, 2023 and 2022, 86.8%, 87.9% and 90.8%, respectively, of the Company’s revenue was recognized as products and services were transferred over time.

Contract assets primarily relate to the Company’s right to consideration for work completed but not billed to the customer as of period end. Contract asset balances are transferred to trade accounts receivable when the rights become unconditional.

A summary of activity related to the Company's contract assets follows:

	Year Ended December 31,
(in thousands)	2024			2023
Balance as of the beginning of the year	$	174,979		$	183,613
Revenue recognized		2,304,221			2,495,298
Amounts collected or invoiced		(2,311,622	)		(2,503,932	)
Balance as of the end of the period	$	167,578		$	174,979

As of December 31, 2024 and 2023, the Company had $143.6 million and $204.9 million, respectively, in advance payments from customers. Of those amounts $132.5 million and $191.6 million, respectively, were related to both customer deposits and prepayments of inventory and $11.1 million and $13.3 million, respectively, were related to the contractual timing of payments. The advance payments are not considered a significant financing component because they are used to meet working capital demands of a contract, offset inventory risks and protect the Company from the failure of other parties to fulfill obligations under a contract.