Quarterly report [Sections 13 or 15(d)]

Revenues

v3.25.2
Revenues
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note O – Revenues
The table below presents revenue percentage by recognition method for the following periods:
Three Months Ended Six Months Ended
  June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Over time
 87.9% 98.4% 93.5% 98.5%
Point in time
 12.1 1.6 6.5 1.5
Total revenues
 100.0% 100.0% 100.0% 100.0%

The table below presents revenues by customer grouping for the following periods:
Three Months Ended Six Months Ended
  June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Civil space
 $ 15,600  $ 25,052  $ 33,735  $ 47,978 
National security
 14,821  16,247  34,289  30,169 
Commercial and other
 31,339  36,812  55,131  87,756 
Total revenues
 $ 61,760  $ 78,111  $ 123,155  $ 165,903 

The table below presents revenues based on the geographic location of the Company’s customers for the following periods:
Three Months Ended Six Months Ended
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
U.S.
 $ 32,038  $ 31,319  $ 69,025  $ 63,841 
Europe 29,016  46,783  53,317  101,991 
Other 706  9  813  71 
Total revenues
 $ 61,760  $ 78,111  $ 123,155  $ 165,903 

Customers comprising 10% or more of revenues are presented below for the following periods:
Three Months Ended Six Months Ended
  June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Customer A(1)
$ 6,488  $ —  $ —  $ — 
Customer B(1)
—  9,639  —  17,499 
Customer C(1)
6,711  —  —  — 
Customer D(1)
21,341  33,499  35,423  77,229 
(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:
June 30, 2025 December 31, 2024
Contract assets
 $ 51,044  $ 43,044 
 
Contract liabilities $ 65,343  $ 67,201 

The increase in contract assets was primarily driven by production incurred on related contracts resulting in revenue recognized and the timing of billable milestones occurring during the six months ended June 30, 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 six months ended June 30, 2025 as well as decreased bookings during 2025. Revenue recognized in the six months ended June 30, 2025 that was included in the contract liability balance as of December 31, 2024 was $55.6 million. Revenue recognized in the six months ended June 30, 2024 that was included in the contract liability balance as of December 31, 2023 was $46.0 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. 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 to the 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 Six Months Ended
  June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Net EAC adjustments, before income taxes $ (25,201) $ (3,096) $ (28,299) $ (7,027)
Net EAC adjustments, net of income taxes (18,850) (3,099) (21,309) (7,062)
Net EAC adjustments, net of income taxes, per diluted share (0.21) (0.05) (0.26) (0.11)

The net unfavorable EAC adjustments in 2025 were primarily due to a $14.7 million unfavorable adjustment, including a $7.2 million loss reserve related to a program in the Company’s RF systems offerings 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. The unfavorable adjustments were also 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 structures and mechanisms, avionics and sensors and power generation space infrastructure offerings.

Remaining Performance Obligations
As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $242.8 million. The Company expects to recognize approximately 78% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.