Quarterly report [Sections 13 or 15(d)]

Revenues

v3.26.1
Revenues
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenues
Note N – Revenues
The following table presents the disaggregation of revenue according to segment:

Three Months Ended March 31, 2026
Space
Defense Tech
Total
Revenue percentage by recognition method
Over time
 94  % 21  % 60  %
Point in time
 6  79  40 
Total revenues
 100  % 100  % 100  %
Revenues by customer grouping
Civil space
 $ 19,649  $ 455  $ 20,104 
National security
 8,515  37,459  45,974 
Commercial and other
 24,505  6,389  30,894 
Total revenues
 $ 52,669  $ 44,303  $ 96,972 
Revenues by customer’s geographic location
U.S.
 $ 26,734  $ 24,314  $ 51,048 
Europe 25,935  9,287  35,222 
Other —  10,702  10,702 
Total revenues
 $ 52,669  $ 44,303  $ 96,972 

Three Months Ended March 31, 2025
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
 $ 18,073  $ 62  $ 18,135 
National security
 12,315  7,153  19,468 
Commercial and other
 21,745  2,047  23,792 
Total revenues
 $ 52,133  $ 9,262  $ 61,395 
Revenues by customer’s geographic location
U.S.
 $ 27,815  $ 9,172  $ 36,987 
Europe 24,301  —  24,301 
Other 17  90  107 
Total revenues
 $ 52,133  $ 9,262  $ 61,395 

Customers comprising 10% or more of revenues are presented below for the following periods:
Three Months Ended
  March 31, 2026 March 31, 2025
Customer B(1)
$ —  $ 6,268 
Customer D(1)
17,033  14,082 
Customer E(1)
13,243  — 
(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 condensed consolidated balance sheets for the following periods:
March 31, 2026 December 31, 2025
Contract assets
 $ 61,440  $ 44,019 
 
Contract liabilities $ 79,847  $ 60,119 

The increase in contract assets during 2026 was primarily driven by production incurred on related contracts resulting in revenue recognized and the timing of billable milestones occurring during the three months ended March 31, 2026.

The increase in contract liabilities during 2026 was primarily driven by increased bookings with advanced payments during the three months ended March 31, 2026. Revenue recognized in the three months ended March 31, 2026 that was included in the contract liability balance as of December 31, 2025 was $31.4 million. Revenue recognized in the three months ended March 31, 2025 that was included in the contract liability balance as of December 31, 2024 was $30.4 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 condensed 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:
Three Months Ended
  March 31, 2026 March 31, 2025
Net EAC adjustments, before income taxes $ (1,102) $ (3,098)
Net EAC adjustments, net of income taxes (1,093) (2,918)
Net EAC adjustments, net of income taxes, per diluted share (0.01) (0.04)

The net unfavorable EAC adjustments in 2026 were primarily due to $6.8 million net unfavorable adjustments in the Space segment 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. This was partially offset by $5.6 million of net favorable adjustments in the Defense Tech segment, inclusive of the reversal of loss reserves in the amount of $3.6 million. The net unfavorable EAC adjustments in 2025 were primarily due to additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company’s Space segment.

Remaining Performance Obligations
As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $393.4 million. The Company expects to recognize approximately 68% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.