Annual report [Section 13 and 15(d), not S-K Item 405]

Goodwill

v3.25.4
Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Note H – Goodwill
The changes in the carrying amount of goodwill were as follows:
Gross Goodwill Accumulated Impairment Net Goodwill
Space
Defense Tech
Space
 Defense Tech
Space
Defense Tech
Total
Balance of goodwill as of December 31, 2023
 $ 88,321  $ 27,566  $ (50,130) $ —  $ 38,191  $ 27,566  $ 65,757 
Goodwill arising from acquisitions 6,629  —  —  —  6,629  —  6,629 
Impact of foreign currency (1,438) —  213  —  (1,225) —  (1,225)
Balance of goodwill as of December 31, 2024
 93,512  27,566  (49,917) —  43,595  27,566  71,161 
Goodwill arising from acquisitions —  721,324  —  —  —  721,324  721,324 
Goodwill reallocation
 11,901  (11,901) —  —  11,901  (11,901) — 
Impact of foreign currency 2,891  5,064  (428) —  2,463  5,064  7,527 
Impairment expense —  —  (20,898) —  (20,898) —  (20,898)
Balance of goodwill as of December 31, 2025
 $ 108,304  $ 742,053  $ (71,243) $ —  $ 37,061  $ 742,053  $ 779,114 
During the fourth quarter of 2025, the Company performed a quantitative assessment of goodwill for its annual goodwill impairment test as of October 1, 2025. As a result of the assessment, the Company concluded that the carrying value of the Space Europe reporting unit was in excess of its fair value and recognized a $20.9 million impairment charge for the year ended December 31, 2025, reducing the reporting unit’s goodwill balance to zero as of December 31, 2025. The Space Europe reporting unit is included in the Space segment. An impairment was also recognized on certain tangible and intangible assets for certain asset groups within the reporting unit. Refer to Note F – Property, Plant and Equipment, net and Note G – Intangible Assets, net for additional information.

Fair value estimates used in the Company’s quantitative impairment assessments result from a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions that have been deemed reasonable by management as of the measurement date. The fair values of the Company’s reporting units were determined using a combination and applied weighting of an income approach based on a discounted cash flow model as well as two market approaches based on (i) guideline public company revenues and earnings before interest, tax, depreciation and amortization multiples and (ii) guideline transactions, whereby consideration is given to prices paid in market comparable transactions.

There was no impairment recognized related to goodwill during 2024 and 2023.

Effective December 2025, in connection with the change in reportable operating segments, the Company reassessed its reporting units and identified six reporting units, Space Mission Solutions, Space US, Space Europe, Space Defense Tech, North America Defense Tech, and Europe Defense Tech. As a result, the Company allocated the goodwill balance to each reporting unit and respective reportable operating segments during December 2025. Space Mission Solutions, Space U.S. and Space Europe are within the Space segment and Space Defense Tech, North America Defense Tech, and Europe Defense Tech are within the Defense Tech segment.