Revenue

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Note 10 – 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:

	Three Months Ended June 30, 2025
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	47,415	$	119,134	$	23,833	$	190,382
Industrial		28,181		84,789		28,659		141,629
A&D		105,031		5,044		16,180		126,255
Medical		60,743		35,936		12,891		109,570
AC&C		42,840		31,659		—		74,499
External revenue		284,210		276,562		81,563		642,335
Elimination of intersegment sales		11,007		10,504		1,836		23,347
Segment revenue	$	295,217	$	287,066	$	83,399	$	665,682

	Six Months Ended June 30, 2025
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	91,497	$	243,376	$	50,576	$	385,449
Industrial		56,068		164,040		58,268		278,376
A&D		208,539		8,672		30,900		248,111
Medical		115,229		72,255		25,723		213,207
AC&C		87,003		61,953		—		148,956
External revenue		558,336		550,296		165,467		1,274,099
Elimination of intersegment sales		21,159		20,809		4,211		46,179
Segment revenue	$	579,495	$	571,105	$	169,678	$	1,320,278

	Three Months Ended June 30, 2024
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	54,471	$	85,258	$	32,135	$	171,864
Industrial		35,671		79,276		26,756		141,703
A&D		94,262		2,680		11,898		108,840
Medical		56,014		42,952		12,585		111,551
AC&C		92,648		39,288		2		131,938
External revenue		333,066		249,454		83,376		665,896
Elimination of intersegment sales		10,075		8,216		2,480		20,771
Segment revenue	$	343,141	$	257,670	$	85,856	$	686,667

	Six Months Ended June 30, 2024
(in thousands)	Americas		Asia		Europe		Total
Market sector:
Semi-Cap	$	108,129	$	167,157	$	62,517	$	337,803
Industrial		65,321		163,487		53,927		282,735
A&D		181,125		11,802		21,747		214,674
Medical		117,877		85,178		23,223		226,278
AC&C		209,280		70,682		19		279,981
External revenue		681,732		498,306		161,433		1,341,471
Elimination of intersegment sales		33,738		17,180		4,919		55,837
Segment revenue	$	715,470	$	515,486	$	166,352	$	1,397,308

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets and advance payments from customers. During the six months ended June 30, 2025 and 2024, 87.3% and 86.0%, respectively, of the Company’s revenue was recognized as products and services that 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:

	Six Months Ended June 30,
(in thousands)	2025			2024
Balance as of the beginning of the year	$	167,578		$	174,979
Revenue recognized		1,112,985			1,153,907
Amounts collected or invoiced		(1,105,462	)		(1,146,796	)
Balance as of the end of the period	$	175,101		$	182,090

As of June 30, 2025 and December 31, 2024, the Company had $126.5 million and $143.6 million, respectively, in advance payments from customers. Of those amounts, $108.4 million and $132.5 million, respectively, were customer deposits and prepayments of inventory and $18.1 million and $11.1 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.