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

Revenues

v3.25.4
Revenues
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note P – Revenues
The following table presents the disaggregation of revenue according to segment:

Year Ended December 31, 2025
Space
Defense Tech
Total
Revenue percentage by recognition method
Over time
 97  % 15  % 66  %
Point in time
 3  85  34 
Total revenues
 100  % 100  % 100  %
Revenues by customer grouping
Civil space
 $ 69,453  $ 3,096  $ 72,549 
National security
 51,869  105,370  157,239 
Commercial and other
 88,495  17,098  105,593 
Total revenues
 $ 209,817  $ 125,564  $ 335,381 
Revenues by customer’s geographic location
U.S.
 $ 105,228  $ 90,716  $ 195,944 
Europe 104,574  20,742  125,316 
Other 15  14,106  14,121 
Total revenues
 $ 209,817  $ 125,564  $ 335,381 
Year Ended December 31, 2024
Space Defense Tech Total
Revenues percentage by recognition method
Over time
 98  % 100  % 98  %
Point in time 2  —  2 
Total revenues
 100  % 100  % 100  %
Revenues by customer grouping
Civil space
 $ 84,923  $ 3,891  $ 88,814 
National security
 36,420  40,411  76,831 
Commercial and other
 133,993  4,463  138,456 
Total revenues
 $ 255,336  $ 48,765  $ 304,101 
Revenues by customer’s geographic location
U.S.
 $ 101,504  $ 48,627  $ 150,131 
Europe 153,747  12  153,759 
Other 85  126  211 
Total revenues
 $ 255,336  $ 48,765  $ 304,101 

Year Ended December 31, 2023
Space Defense Tech Total
Revenues percentage by recognition method
Over time
 94  % 98  % 95  %
Point in time 6  2  5 
Total revenues
 100  % 100  % 100  %
Revenues by customer grouping
Civil space
 $ 94,200  $ 8,394  $ 102,594 
National security
 26,456  32,597  59,053 
Commercial and other
 73,344  8,809  82,153 
Total revenues
 $ 194,000  $ 49,800  $ 243,800 
Revenues by customer’s geographic location
U.S.
 $ 124,846  $ 48,057  $ 172,903 
Europe 69,071  1,743  70,814 
Other 83  —  83 
Total revenues
 $ 194,000  $ 49,800  $ 243,800 

Customers comprising 10% or more of revenues are presented below for the following periods:
Year Ended
  December 31, 2025 December 31, 2024 December 31, 2023
Customer A(1)
$ —  $ 31,055  $ 39,314 
Customer B(1)
—  —  33,621 
Customer D(1)
66,261  107,605  — 
Customer E(1)
62,829  —  — 
(1) While revenue may have been generated during each of the periods presented, amounts are only disclosed for the periods in which revenues represented 10% or more of total revenue.
Contract Balances
The table below presents the contract assets and contract liabilities included on the consolidated balance sheets for the following periods:
December 31, 2025 December 31, 2024
Contract assets
 $ 44,019  $ 43,044 
 
Contract liabilities $ 60,119  $ 67,201 

The increase in contract assets during 2025 was primarily driven by production incurred on related contracts resulting in revenue recognized and the timing of billable milestones occurring during the year ended December 31, 2025.

The decrease in contract liabilities during 2025 was primarily driven by the timing of large billable milestones occurring during the last quarter of 2024 compared to the year ended December 31, 2025, as well as decreased bookings during 2025. Revenue recognized in the year ended December 31, 2025 that was included in the contract liability balance as of December 31, 2024 was $61.5 million. Revenue recognized in the year ended December 31, 2024 that was included in the contract liability balance as of December 31, 2023 was $49.4 million.

For revenue recognized over time, the Company evaluates the contract value and cost estimates at completion (“EAC”) for performance obligations at least quarterly and more frequently when circumstances significantly change. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimate of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract-by-contract basis. As part of this process, management reviews information including, but not limited to, labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, volume assumptions, inflationary trends, and schedule and performance delays.

When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately by recording a loss reserve which is included in other current liabilities on the consolidated balance sheets. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment in the consolidated statement of operations and comprehensive income (loss). Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.

Net EAC adjustments can have a significant effect on reported revenues and gross profit. The below table summarizes the favorable (unfavorable) impact on gross profit from the net EAC adjustments for the following periods:
Year Ended
  December 31, 2025 December 31, 2024 December 31, 2023
Net EAC adjustments, before income taxes $ (54,453) $ (17,696) $ (3,522)
Net EAC adjustments, net of income taxes (49,062) (17,395) (3,459)
Net EAC adjustments, net of income taxes, per diluted share (0.41) (0.26) (0.05)

The net unfavorable EAC adjustments in 2025 were primarily due to a $25.2 million unfavorable adjustment, including a $12.9 million loss reserve related to a program in the Company’s Defense Tech segment and $14.1 million unfavorable adjustments related to programs in the Space Europe reporting unit as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. In addition, the Space segment also had further unfavorable adjustments due to production delays, additional unplanned labor and increased production costs as it relates to the development of advanced technologies required to meet customer specifications in multiple space offerings. The net unfavorable EAC adjustments in 2024 were primarily due to additional unplanned labor and test cycles required to meet customer requirements in the Company’s Space segment.
Remaining Performance Obligations
As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $330.3 million. The Company expects to recognize approximately 54% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.