KARMAN HOLDINGS INC., 10-K filed on 4/3/2026
Annual Report
v3.26.1
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Mar. 20, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Entity File Number 001-42520    
Entity Registrant Name KARMAN HOLDINGS INC.    
Entity Central Index Key 0002040127    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 85-2660232    
Entity Address, Address Line One 5351 Argosy Avenue    
Entity Address, City or Town Huntington Beach    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92649    
City Area Code 714    
Local Phone Number 898-9951    
Title of 12(b) Security Common Stock, $0.001 Par Value    
Trading Symbol KRMN    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status No    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
ICFR Auditor Attestation Flag false    
Document Annual Report true    
Document Transition Report false    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 2.6
Entity Common Stock, Shares Outstanding   132,526,299  
Auditor Firm ID 23    
Auditor Name Baker Tilly, LLP    
Auditor Location Irvine, California    
Auditor Opinion

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Karman Holdings Inc. (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024 , and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

    
Documents Incorporated by Reference

Part III incorporates by reference certain information from the registrant’s definitive proxy statement (the “Proxy Statement”) for the 2026 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days after the end of the 2025 fiscal year. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part hereof.

    
v3.26.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 33,959 $ 11,530
Accounts receivable, net 78,716 55,220
Contract assets 156,298 107,222
Inventory 10,662 9,883
Prepaid and other current assets 11,768 17,856
Total current assets 291,403 201,711
Property, plant and equipment 134,793 87,832
Less accumulated depreciation (39,384) (26,952)
Net property, plant and equipment 95,409 60,880
Goodwill 352,513 225,146
Intangible assets, net 285,888 208,952
Operating lease right-of-use assets 6,021 6,071
Finance lease right-of-use assets 66,193 70,013
Other assets 6,669 1,187
Total other assets 717,284 511,369
Total assets 1,104,096 773,960
Current liabilities    
Accounts payable 31,632 28,296
Accrued payroll and related expenses 13,776 11,249
Contract Liabilities 22,814 29,868
Current portion of operating lease liabilities 1,815 1,533
Current portion of finance lease liabilities 4,401 3,980
Short term notes payable, net of debt issuance costs 3,836 7,140
Income taxes payable 5,299 20,054
Other current liabilities 5,094 12,487
Total current liabilities 88,667 114,607
Long-term liabilities    
Revolving line of credit 0 25,000
Long-term notes payable, net of current portion and net of debt issuance costs 495,312 326,920
Noncurrent operating lease liabilities, net of current portion 4,949 5,338
Noncurrent finance lease liabilities, net of current portion 76,995 77,957
Other liabilities 7,650 2,772
Deferred tax liabilities 47,832 25,370
Total long-term liabilities 632,738 463,357
Total liabilities 721,405 577,964
Commitments and contingencies (Note 14)
Equity:    
Preferred stock, $0.001 par value; authorized - 100,000,000 shares; issued and outstanding - none 0 0
Common stock; $0.001 par value; authorized - 1,000,000,000 shares; issued and outstanding - 132,322,435 and none, respectively 132 0
Additional paid in capital 373,455 204,258
Accumulated other comprehensive income 75 75
Retained earnings (accumulated deficit) 9,029 (8,337)
Stockholders' equity and members' equity, respectively 382,691 195,996
Total liabilities and equity $ 1,104,096 $ 773,960
v3.26.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par or stated value per share $ 0.001 $ 0.001
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par or stated value per share $ 0.001 $ 0.001
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 132,322,435 0
Common stock, shares outstanding 132,322,435 0
v3.26.1
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 471,500 $ 345,251 $ 280,705
Cost of goods sold 281,474 213,140 175,156
Gross profit 190,026 132,111 105,549
Operating expenses      
General and administrative expenses 85,656 44,421 36,623
Depreciation and amortization expense 31,428 24,130 20,432
Operating expenses 117,084 68,551 57,055
Net operating income 72,942 63,560 48,494
Interest expense, net (44,567) (50,733) (47,867)
Other income 4,147 1,502 563
Income before (provision for) benefit from income taxes 32,522 14,329 1,190
(Provision for) benefit from income taxes (15,156) (1,628) 3,169
Net income 17,366 12,701 4,359
Other comprehensive (loss) income 0 (1) 1
Comprehensive income (loss) $ 17,366 $ 12,700 $ 4,360
Net income per common share or unit, basic $ 0.13 $ 0.08 $ 0.03
Net income per common share or unit, diluted $ 0.13 $ 0.08 $ 0.03
Weighted-average common share and units outstanding, basic 132,322 166,737 166,776
Weighted-average common share and units outstanding, diluted 132,322 166,737 166,776
v3.26.1
Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Members' Equity
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Income
Beginning Balance at Dec. 31, 2022 $ 177,596     $ 202,918 $ (25,397) $ 75
Distributions (788)     (788)    
Share-based compensation 1,291     1,291    
Net income 4,359       4,359  
Other comprehensive income (loss) 1         1
Ending Balance at Dec. 31, 2023 182,459     203,421 (21,038) 76
Distributions (156)     (156)    
Share-based compensation 993     993    
Net income 12,701       12,701  
Other comprehensive income (loss) (1)         (1)
Ending Balance at Dec. 31, 2024 195,996     204,258 (8,337) 75
Contributions 1,474     1,474    
Conversion of member's equity into common stock in initial public offering   $ 124 $ 207,018 (207,142)    
Conversion of member's equity into common stock in initial public offering, shares   123,754        
Issuance of common stock in initial public offering, net 154,836 $ 8 154,828      
Issuance of common stock in initial public offering, net, shares   8,421        
Issuance of common stock upon acquisition of Industrial Solid Propulsion 5,752   5,752      
Issuance of common stock upon acquisition of Industrial Solid Propulsion, shares   147        
Stock consideration issued for acquisition of Five Axis 5,857   5,857      
Stock consideration issued for acquisition of Five Axis, shares   69        
Share-based compensation 1,410     $ 1,410    
Net income 17,366       17,366  
Other comprehensive income (loss) 0          
Ending Balance at Dec. 31, 2025 $ 382,691 $ 132 $ 373,455   $ 9,029 $ 75
Ending balance, shares at Dec. 31, 2025   132,391        
v3.26.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 17,366 $ 12,701 $ 4,359
Adjustments to reconcile net income to net cash provided by (used in) operating activities      
Depreciation and amortization 42,737 32,796 27,179
Amortization of debt issuance costs 1,327 2,301 1,985
Non-cash interest expense and other non-cash adjustments (2,190) (678) 785
Deferred income taxes 10,516 (11,510) (10,707)
Share-based compensation expenses 1,410 993 1,291
Changes in operating assets and liabilities, net of effects of acquisitions      
Change in accounts receivable (18,358) (2,310) (3,003)
Change in contract assets (49,076) (18,037) (27,865)
Change in inventory 2,858 (44) 7,571
Change in prepaids and other assets 6,872 (14,850) (15,701)
Change in contract liabilities (7,148) (6,207) 20,006
Change in accounts payable, accruals and income taxes payable (16,882) 31,782 14,228
Change in acquisition related accrued expenses (11,651)    
Net change in ROU assets and lease liabilities 100 (292) 199
Net cash provided by (used in) operating activities (22,119) 26,645 20,327
Cash flows from investing activities      
Proceeds from sale of property and equipment   306  
Proceeds from sale of marketable securities     563
Purchases of property and equipment (20,336) (15,252) (16,775)
Investment in convertible note (6,000)    
Acquisitions of businesses, net of cash acquired (211,935) (31,290)  
Net cash flows used in investing activities (238,271) (46,236) (16,212)
Cash flows from financing activities      
Net proceeds from issuance of common stock in initial public offering 154,836    
Proceeds from equipment financing     8,035
Finance lease payments (3,899) (2,869) (1,532)
Proceeds from notes payable 505,000 35,000  
Repayments of notes payable (339,315) (9,547) (8,250)
Payments of debt issuance costs (8,359) (962)  
Payment of ISP SBA loan assumed (1,919)    
Proceeds from revolving line of credit 30,000 41,500 33,500
Repayments of revolving line of credit (55,000) (36,500) (30,000)
Cash paid for contingent consideration   (800) (6,250)
Cash contributed from (distribution to) equityholders 1,475 (156) (789)
Net cash provided by (used in) financing activities 282,819 25,666 (5,286)
Net increase (decrease) in cash and cash equivalents 22,429 6,075 (1,171)
Cash and cash equivalents, beginning 11,530 5,455 6,626
Cash and cash equivalents, ending 33,959 11,530 5,455
Supplemental Disclosures      
Cash paid during the period for interest 44,823 47,869 45,896
Cash paid during the period for income taxes, net of refund 16,920 (678) 3,100
Supplemental Non-Cash Investing and Financing Activities      
Noncash acquisition of right-of-use assets under finance leases 3,588 7,078 7,712
Noncash acquisition of right-of-use assets under operating leases 1,454 885 2,802
Common stock issued in acquisition of business 11,609    
Acquisitions of property and equipment included in liabilities $ 6,521 869  
Payment-in-kind interest expense   $ 718 $ 785
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 17,366 $ 12,701 $ 4,359
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

We recognize the critical importance of maintaining the safety and security of our systems and data and we take a holistic approach to the oversight and management of cybersecurity and related risks. This approach is supported by our Board of Directors and management who are actively involved in the oversight of our risk management program.

Like all companies that utilize technology, we face significant cybersecurity threats that include, among other things, attempts to gain unauthorized access to sensitive student and employee information; attempts to compromise the integrity, confidentiality and/or availability of our systems, hardware and networks, and the information on them; insider threats; malware; ransomware; threats to the safety of our directors, officers and employees; and threats to our facilities, infrastructure and service. As cybersecurity threats may arise, the cybersecurity team focuses on responding to and containing the threat and minimizing any business impact, as appropriate. In the event of a perceived threat or possible cybersecurity incident, the cybersecurity team is trained to assess, among other factors, student safety impact, data and personal information impact, the possibility of business operations disruption, projected cost, if any, and potential for reputational harm, with support from external technical, legal and law enforcement support, as appropriate.

Management of the Company is responsible for overseeing our enterprise risk management (ERM). Our Chief Information Officer leads this process as it relates to information security and reports to the CEO and our Board of Directors. Our Board of Directors, in coordination with the Audit Committee, shall review and discuss with management the Company’s risks related to information security, including cybersecurity.

While we have experienced minor cybersecurity threats in the past, such as spear phishing or smishing (SMS phishing), to date no such threats have materially affected the Company or our financial position, results of operations and/or cash flows.

We continue to invest in the cybersecurity and resiliency of our networks and to enhance our internal controls and processes, which are designed to help protect our systems and infrastructure, and the information contained therein. We engage third-party cybersecurity experts to conduct security assessment. Any cyber incidents are systematically monitored, assessed and reported for potential operational and financial impact.

We maintain cybersecurity insurance coverage in amounts that we believe are adequate to address any incidents such as data destruction, extortion, theft, hacking, denial of service attacks and other such incidents. See Item 1A. “Risk Factors” for a discussion of cybersecurity risks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

We recognize the critical importance of maintaining the safety and security of our systems and data and we take a holistic approach to the oversight and management of cybersecurity and related risks. This approach is supported by our Board of Directors and management who are actively involved in the oversight of our risk management program.

Like all companies that utilize technology, we face significant cybersecurity threats that include, among other things, attempts to gain unauthorized access to sensitive student and employee information; attempts to compromise the integrity, confidentiality and/or availability of our systems, hardware and networks, and the information on them; insider threats; malware; ransomware; threats to the safety of our directors, officers and employees; and threats to our facilities, infrastructure and service. As cybersecurity threats may arise, the cybersecurity team focuses on responding to and containing the threat and minimizing any business impact, as appropriate. In the event of a perceived threat or possible cybersecurity incident, the cybersecurity team is trained to assess, among other factors, student safety impact, data and personal information impact, the possibility of business operations disruption, projected cost, if any, and potential for reputational harm, with support from external technical, legal and law enforcement support, as appropriate.

Management of the Company is responsible for overseeing our enterprise risk management (ERM). Our Chief Information Officer leads this process as it relates to information security and reports to the CEO and our Board of Directors. Our Board of Directors, in coordination with the Audit Committee, shall review and discuss with management the Company’s risks related to information security, including cybersecurity.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

Management of the Company is responsible for overseeing our enterprise risk management (ERM). Our Chief Information Officer leads this process as it relates to information security and reports to the CEO and our Board of Directors. Our Board of Directors, in coordination with the Audit Committee, shall review and discuss with management the Company’s risks related to information security, including cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Management of the Company is responsible for overseeing our enterprise risk management (ERM).
v3.26.1
Formation and Nature of Business Operations
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Formation and Nature of Business Operations
1.
Formation and Nature of Business Operations

Karman Holdings Inc. (the “Company”) conducts business as Karman Space and Defense (“Karman”). Karman’s predecessor, TCFIII Spaceco Holdings LLC, was formed in August 2020 and, in connection with the Company’s initial public offering, converted into a Delaware corporation as Karman Holdings Inc. Karman is headquartered in Huntington Beach, California. It currently operates eight subsidiaries in Brea, California, El Monte, California, Huntington Beach, California, Mukilteo, Washington, Wilsonville Oregon, Albany, Oregon, Ogden, Utah and Cedar City, Utah.

Karman specializes in the rapid design, development and production of critical, next-generation system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and Unmanned Aircraft Systems (“UAS”) customers. Karman’s integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of War (“DoW”) and space sector initiatives.

As of December 31, 2025, Karman’s wholly-owned subsidiaries are:

1.
Aerospace Engineering, LLC (“AEC”), a limited liability company, purchased August 28, 2020
2.
AMRO Fabricating Corporation (“AMRO”), a C-corporation, purchased October 28, 2020
3.
American Automated Engineering, Inc. (“AAE”), a C-corporation, purchased December 21, 2020
4.
Systima Technologies, Inc. (“Systima”), a C-corporation, purchased September 14, 2021
5.
Rapid Machine Solutions – Wolcott Design Services, LLC (“RMS”), a limited liability company, purchased February 16, 2024
6.
Metal Technology Inc. (“MTI”), a limited liability company, purchased April 2, 2025.
7.
Industrial Solid Propulsion (“ISP”), an S-corporation, purchased May 28, 2025.
8.
Five Axis Industries, Inc. (“Five Axis”), a C-corporation, purchased October 28, 2025.

Initial Public Offering

On February 12, 2025, the Company’s Registration Statement on Form S-1 for its initial public offering (the “IPO”) was declared effective. Prior to the effectiveness of the IPO, the Company was a Delaware limited liability company named TCFIII Spaceco Holdings LLC. On February 12, 2025, the Company converted into a Delaware corporation and changed its name to Karman Holdings Inc. Pursuant to the conversion, all outstanding equity interests and all outstanding P Units were converted into an aggregate of 123.8 million shares of common stock of Karman Holdings Inc. (the “Corporate Conversion”).

On February 14, 2025, the Company completed the IPO of 26.5 million shares of its common stock at a public offering price of $22.00 per share, of which, 8.4 million shares were sold by the Company. The aggregate net proceeds from the offering, after deducting underwriting discounts and commissions, payments to Phantom Unit holders and other offering expenses, were approximately $147.3 million. See Note 9 and Note 10 for details.
v3.26.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2.
Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Certain line items on the consolidated balance sheets, consolidated statements of operations and comprehensive income (loss) and the consolidated statements of cash flows are reclassified in the prior period to conform to current period presentation.

Principles of Consolidation

The consolidated financial statements include the operations of AEC, AMRO, AAE, Systima, RMS, MTI, ISP, Five Axis and Corporate. Corporate consists of centralized general and administrative functions, including executive management, finance, legal,

human resources, information technology, facilities, fixed overhead expenses, taxes, and other corporate-level activities that support the Company’s operations. Intercompany accounts and transactions have been eliminated in consolidation.

Segment Reporting

Operating segments are identified as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses, for which discrete financial information is available, and whose results are regularly reviewed by the chief operating decision maker to allocate resources and assess performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one reportable segment, the space and defense industry.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Management periodically evaluates estimates used in the preparation of the financial statements for continued reasonableness. Appropriate adjustments, if any, to estimates are made prospectively based upon such periodic evaluations. It is reasonably possible that changes may occur in the near term that would affect managements’ estimates with respect to revenue recognition, estimates of cost to complete contracts, allowance for credit losses, share-based payments, accrued expenses, inventory, deferred taxes, property and equipment and valuation of net assets acquired in business combinations, and the impairment assessment of goodwill and intangible assets.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits, and short-term cash investments that are highly liquid in nature and have original maturities of three months or less.

The Company maintains cash deposits with major banking institutions, in which the deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times the Company had deposits in excess of the FDIC maximum. The Company has not experienced any losses in such accounts.

The estimated fair value of cash and cash equivalents approximates the carrying value due to their short maturities.

Business Combinations

The Company accounts for acquisitions by applying the acquisition method of accounting when the transaction or event is considered a business combination which requires that the assets acquired and liabilities assumed constitute a business. A defined business is generally an acquired group of assets with inputs and processes that make it capable of generating a return or economic benefit for the acquirer. The acquisition method of accounting requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at their fair values as of the closing date of the acquisition, with the excess cost recorded to goodwill. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates of fair value are inherently uncertain and subject to refinement. Preliminary estimated fair values of the assets acquired and liabilities assumed are determined once a business is acquired, with the final determination of the estimated fair values being completed no later than one year from the date of acquisition.

Revenue and Costs Recognition

The Company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good to a customer. In most cases, goods provided under the Company’s contracts are accounted for as a single performance obligation due to the complex and integrated nature of its products. These contracts generally require significant integration of a group of goods to deliver a combined output. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not considered to be a separate performance obligation. Assets recognized from costs to obtain or fulfill a contract are not material. Payment terms are typically forty-five days, but may vary.

In evaluating the timing of revenue recognition, the Company assesses whether performance obligations are satisfied over time or at a point in time. Substantially all of the Company’s revenue is recognized over time as the customer simultaneously receives and consumes the benefits of our performance or because our performance does not create an asset with an alternative use and we have an enforceable right to payment for work performed to date.

Accounting for the majority of the Company’s long-term contracts requires the use of various techniques to estimate the total transaction price and the costs to complete. For long-term contracts, the Company uses the estimated transaction price, total estimated cost at completion, and costs incurred to date to measure progress toward completion and recognize revenue. Unforeseen events and circumstances may alter management’s estimate of costs and the potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, may be impacted by factors, such as changes in productivity, scheduling, labor costs, subcontracts, materials and equipment. The Company applies a portfolio approach in recognizing revenue for groups of contracts with similar characteristics when management reasonably expects that the results of applying ASC 606 to the portfolio would not differ materially from applying the standard to individual contracts. This approach includes using historical margins, pattern of performance, and grouped estimated costs at completion (EAC) methodologies for similar types of contracts.

The Company generates revenue under a range of contract types including fixed-price, time and material and cost-plus fixed fee contracts. Substantially all revenue is recognized as control is transferred to the customer over time based on an input measure of progress based on costs incurred compared to estimated total costs at completion. In general, the Company’s contracts contain termination clauses that entitle the Company to payment for work performed to-date for goods that do not have an alternative use. Amounts recoverable in the event of terminations include reasonable profit margins. Control is effectively transferred as the Company performs its contractual obligations. The Company generally recognizes revenues over time using the input method, measured by the percentage of total costs incurred to-date to estimated total anticipated costs for each contract. This method is used because the Company considers total costs to be the best available measure of satisfaction of its performance obligations. Use of the input method requires the Company to make reasonable estimates regarding the revenue and costs associated with the design, manufacture, and delivery of its products. The Company estimates profit on these contracts as the difference between total estimated revenues and total EAC and recognizes profit as costs are incurred. Significant judgment is used to estimate total costs at completion. EAC’s are estimated using historical actual margins as a percentage of revenue, applied to open jobs. Unforeseen events and circumstances can alter the estimate of the costs and potential benefits associated with a particular contract.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as payroll taxes, employee benefits, equipment rental, indirect labor, rent, workers’ compensation insurance, utilities, and shop supplies. General operating, selling, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined.

As of December 31, 2025, the Company had $550.6 million of remaining performance obligations under its existing contracts at such time. The Company expects to recognize approximately 73.5% of the remaining performance obligations as revenue in 2026, 17.0% in 2027, and 9.5% thereafter.

The timing of Company billings is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when products are provided. Billing can occur prior to revenue recognition, resulting in deferred revenue or subsequent to revenue recognition, resulting in unbilled revenue. The asset, “contract assets” represents revenues recognized in excess of amounts billed. These contract assets are not considered a significant financing component of the Company’s contracts as the payment terms are intended to protect the customer in the event the Company does not fulfill its obligations under the contract. The liability, “contract liabilities” represents amounts billed in excess of revenues recognized. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements.

The following table summarizes our contract assets and liabilities:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable

 

$

78,716

 

 

$

55,220

 

Contract assets

 

$

156,298

 

 

$

107,222

 

Contract liabilities

 

$

22,814

 

 

$

29,868

 

 

Changes in contract asset and contract liabilities are primarily due to the timing of payments from customers and the Company satisfying performance obligations during the normal course of business. The amount of revenue recognized from changes in the

transaction price associated with performance obligations satisfied in prior year during the years ended December 31, 2025, 2024 and 2023 was not material. Changes in contract assets and contract liabilities were as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract assets, beginning of period

 

$

107,222

 

 

$

89,184

 

Contract assets recorded during the period

 

 

145,571

 

 

 

96,433

 

Reclassified to accounts receivable during the period

 

 

(96,495

)

 

 

(78,395

)

Contract assets, end of period

 

$

156,298

 

 

$

107,222

 

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract liabilities, beginning of period

 

$

29,868

 

 

$

36,074

 

Customer advances received or billed

 

 

22,896

 

 

 

19,914

 

Recognition of unearned revenue

 

 

(29,950

)

 

 

(26,120

)

Contract liabilities, end of period

 

$

22,814

 

 

$

29,868

 

 

The Company’s contracts with customers relate to the design, manufacturing and delivery of its products in the following markets:

•
Hypersonics and Strategic Missile Defense – Hypersonic missiles, large diameter missile deterrent technologies and intercontinental strategic missile defense systems
•
Space and Launch – Traditional and new space launch rocket systems, space capsules, vehicles and payloads
•
Tactical Missiles and Integrated Defense Systems – Precision guided missiles, small diameter rocket and missile technologies and integrated defense systems

Substantially all of the Company’s customers are government or commercial enterprises based in the United States.

The following table presents our revenue disaggregated into markets as of December 31, 2025, 2024 and 2023:

 

 

 

2025

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

 

31.8

%

Space & Launch

 

 

149,825

 

 

 

31.8

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

36.4

%

Total Revenue

 

$

471,500

 

 

 

100.0

%

 

 

 

2024

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

 

33.2

%

Space & Launch

 

 

115,036

 

 

 

33.3

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

33.5

%

Total Revenue

 

$

345,251

 

 

 

100.0

%

 

 

 

2023

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

100,093

 

 

 

35.7

%

Space & Launch

 

 

94,642

 

 

 

33.7

%

Tactical Missiles & Integrated Defense Systems

 

 

85,970

 

 

 

30.6

%

Total Revenue

 

$

280,705

 

 

 

100.0

%

 

Revenue growth by market is presented in the tables below:

 

 

 

2025

 

 

2024

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

$

114,594

 

 

 

30.9

%

Space & Launch

 

 

149,825

 

 

 

115,036

 

 

 

30.2

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

115,621

 

 

 

48.5

%

Total Revenue

 

$

471,500

 

 

$

345,251

 

 

 

36.6

%

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

$

100,093

 

 

 

14.5

%

Space & Launch

 

 

115,036

 

 

 

94,642

 

 

 

21.5

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

85,970

 

 

 

34.5

%

Total Revenue

 

$

345,251

 

 

$

280,705

 

 

 

23.0

%

 

Contract Estimates and Modifications

The Company recognizes changes in contract estimates on a cumulative “catch-up” basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the consolidated statements of operations in the period in which it is identified.

A contract modification exists when the parties to a contract agree to a change in the scope and/or price of a contract. Contracts are often modified for changes in contract specifications or requirements. Most of the Company’s contract modifications are for goods that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative catch-up adjustment.

Inventory

The Company determines the cost basis for inventory using the lower of cost or net realizable value. Cost is determined by using the weighted average method. The Company recognizes raw materials within inventory.

The following table summarizes our inventory:

 

 

As of December 31,

 

 

2025

 

 

2024

 

Raw materials

$

7,644

 

 

$

9,485

 

Work in progress

 

1,974

 

 

 

398

 

Finished goods

 

1,044

 

 

 

—

 

Inventory

$

10,662

 

 

$

9,883

 

Prepaid and other current assets

Within prepaid and other current assets, the Company recognizes prepaid expenses for prepayments for goods that are expected to be consumed within 12 months.

The following table summarizes our prepaid and other current assets:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Deferred offering costs

 

$

—

 

 

$

12,202

 

Other prepaid and current assets

 

 

11,768

 

 

 

5,654

 

Prepaid and other current assets

 

$

11,768

 

 

$

17,856

 

 

Accounts Receivable and Credit Loss Reserves

Accounts receivable are comprised of unsecured amounts due from customers and are presented net of an allowance for credit losses. Management recognizes estimated credit losses when receivables are originated, using a methodology under which all account balances 180 days past their contractual due date are reserved at 50% and all balances one year past their contractual due date are reserved at 100%. For contract assets, a reserve is recorded when a job exceeds a defined period of inactivity unless there is persuasive evidence that the balance remains recoverable. Management also evaluates specific receivables and contract asset balances and records additional allowances when facts and circumstances indicate potential impairment. Expected credit losses are written off in the period in which the financial asset is deemed uncollectible, and total write‑offs are immaterial to the consolidated financial statements.

The following table summarizes our accounts receivable and allowance for credit losses:

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable, gross

 

$

79,599

 

 

$

55,932

 

Allowance for credit losses

 

 

(883

)

 

 

(712

)

Accounts receivable, net of allowance for credit losses

 

$

78,716

 

 

$

55,220

 

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Allowance for credit losses, beginning balance

 

$

(712

)

 

$

(1,039

)

Credit loss recoveries (expenses)

 

 

(1,014

)

 

 

(268

)

Write-offs

 

 

843

 

 

 

595

 

Allowance for credit losses, ending balance

 

$

(883

)

 

$

(712

)

 

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight- line method over the assets’ estimated useful lives which range from 3 to 15 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the respective asset. Expenditures for repairs are expensed as incurred and major additions, renewals, and betterments are capitalized in the consolidated balance sheets. The costs and accumulated depreciation of assets retired or disposed are removed from the assets and related accumulated depreciation accounts, and gains or losses associated with the retirement or disposal are included in other income in the Company’s statements of operations.

Lease Obligations

Under the provisions of ASC 842, the Company has both finance and operating leases. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right-of-use (ROU) assets represent the right to use an underlying asset over the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. The Company has recorded both a right-of-use asset for each applicable lease and an associated liability for the right to use the asset and the obligation for future lease payments. Separate ROU assets and liabilities have been recorded for finance and operating leases. ROUs for both lease categories are included in ROU asset on the financial statements. The Company has elected not to recognize an ROU asset and lease liability for leases with terms of 12 months or less.

Liabilities for both finance and operating leases are included in their respective short-term lease liabilities for amounts due within one year and in noncurrent lease liabilities, net of current portion for remaining amounts due. ROU calculations include management’s assessment of the probability of exercise of lease extensions ranging from 1 to 18 years. No leases include variable lease payments.

The Company evaluates leases at their inception to determine if they are to be accounted for as an operating lease or a finance lease. A lease is accounted for as a finance lease if it meets one of the following five criteria: (i) the lease has a purchase option that is reasonably certain of being exercised, (ii) the present value of the future cash flows is substantially all of the fair market value of the underlying asset, (iii) the lease term is for a significant portion of the remaining economic life of the underlying asset, (iv) the title to the underlying asset transfers at the end of the lease term, or (v) if the underlying asset is of such a specialized nature that it is expected to have no alternative uses to the lessor at the end of the term. Leases that do not meet the finance lease criteria are accounted for as an operating lease. Operating lease ROU assets and liabilities were recognized based on the present value of the remaining lease

payments over the lease term. When the Company's lease did not provide an implicit rate, the Company used its incremental borrowing rate in determining the present value of lease payments. The Company used the implicit rate when readily determinable. The operating lease ROU asset excludes lease incentives. When the Company is reasonable certain that it will exercise the options to extend or terminate a lease, the extended or shortened periods is factored into the recognized lease terms. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. When applicable, lease payments are allocated between lease and non-lease components. For all types of leases, non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred.

Other current liabilities

Within other current liabilities, the Company recognizes certain accrued expenses and liabilities due within 12 months. The following table summarizes our other current liabilities:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accrued offering costs

 

$

—

 

 

$

11,720

 

Other accrued expenses and current liabilities

 

 

5,094

 

 

 

767

 

Other current liabilities

 

$

5,094

 

 

$

12,487

 

Goodwill

Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. Goodwill is allocated to the Company’s single reporting unit and tested for impairment annually. In evaluating goodwill for impairment, the Company may first assess the qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test.

Alternatively, the Company may bypass the qualitative assessment and apply the quantitative impairment test to determine whether the carrying value of the reporting unit exceeds the fair value of the reporting unit.

Quantitative assessments of fair value rely upon various valuation methods, including market-based valuation methods or income-based valuation methods. These assessments require significant assumptions including projected growth rates, profitability margins and discount rates, which are subject to variability year over year and are impacted by market and industry conditions.

Intangible Assets

Intangible assets consist of customer relationships, customer production backlog, patents and know-how. Useful lives of amortized intangible assets are estimated based on the nature of the asset and the pattern in which the economic benefits of the assets are consumed. If a pattern of economic benefit cannot be reliably determined or if a straight-line amortization approximates the pattern of economic benefit, straight line amortization is used. Intangible assets are amortized to cost of sales or depreciation and amortization expense within operating expenses on a straight-line basis over the applicable useful lives.

Intangible assets deemed to have indefinite lives are not amortized, but are subject to impairment testing annually, or more frequently if events or changes in circumstances indicate the asset might be impaired. The impairment test compares carrying values of the reporting unit and indefinite-lived intangible assets to their estimated fair values. If the carrying value exceeds the fair value, then the carrying value is reduced to fair value. In testing our reporting unit and indefinite-lived intangible assets for impairment, we may perform both qualitative and quantitative assessments. For the quantitative assessments of indefinite-lived intangible assets, fair value is primarily based on the relief from royalty method. These quantitative assessments incorporate significant assumptions that include sales growth rates, projected operating profit, terminal growth rates, discount rates, royalty rates, and comparable multiples from publicly traded companies in our industry. Such assumptions are subject to variability from year to year and are directly impacted by, among other things, global market conditions.

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including amortized intangible assets, whenever changes in circumstances indicate that the carrying value of such assets may not be recoverable. Management also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. The Company evaluates the recoverability of its long-lived assets based on estimated undiscounted future cash flow. If the expected undiscounted future cash flows are less than the carrying value, a write-down would be recorded to reduce the carrying value to its estimated fair value. There was no impairment of long-lived assets during the years ended December 31, 2025, 2024 and 2023.

Impairment assessment inherently involves management judgments as to assumptions about expected future cash flows and the impact of market conditions on those assumptions. Accordingly, due to the many variables inherent in developing the estimates used in our impairment analyses, differences in assumptions may have a material effect on the results of those impairment analyses.

Income Taxes

The Company files a consolidated federal and state income tax return with its wholly owned subsidiaries for the year ended December 31, 2025. Prior to February 12, 2025, the Company was not subject to federal or state income taxes, except for its AMRO, AAE, and Systima subsidiaries. These subsidiaries previously filed consolidated federal and state income tax returns and were subject to income taxes on their respective results of operations.

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and deferred tax liabilities (DTLs) for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date.

The Company recognizes DTAs to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. If it is determined that the Company would be able to realize its DTAs in the future in excess of their net recorded amount, an adjustment to the DTA valuation allowance would be necessary, which would reduce the provision for income taxes.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it’s determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses, and the revolving line of credit. Carrying amounts approximate their fair values due to their short-term nature. The Company’s financial instruments also include notes payable. The fair value of the notes payable is estimated based on current rates offered for notes of similar terms, risks, and maturities and approximates the carrying value.

Concentration of Credit Risk

Revenue from a few customers will typically represent a significant portion of the Company’s total revenue in any given fiscal year.

For the year ended December 31, 2025, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 28.5% , 12.8% and 10.2% of the Company’s total revenues during the year.

For the year ended December 31, 2024, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 27.8%, 11.9% and 11.1% of the Company’s total revenues during the year.

For the year ended December 31, 2023, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 23.5%, 16.4% and 15.3% of the Company’s total revenues during the year.

Two customers accounted for approximately 40.7% of accounts receivable as of December 31, 2025. Three customers accounted for approximately 51.0% of accounts receivable as of December 31, 2024.

One supplier accounted approximately 23.8% of accounts payable as of December 31, 2025. One supplier accounted for approximately 19.6% of accounts payable as of December 31, 2024.

Advertising

Advertising costs are charged to expense as incurred. Advertising costs are insignificant for the years ended December 31, 2025, 2024 and 2023, respectively.

Share-Based Compensation

The Company accounts for share-based compensation under the fair value recognition provisions of ASC 718, Compensation - Stock Compensation. Under the fair value provisions, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite vesting period.

Net Income Per Common Share or Common Unit

The Company historically used the two-class method in calculating earnings per unit for periods prior to the IPO when it issued securities other than common units that contractually entitled the holder to participate in distributions and earnings of the Company. The Company issued Profit Interest Units (PIUs) in the form of Class P LLC Membership Units (“P Units”) that, once vested, participated in its distributions and earnings after the common units receive their return of capital plus a specified threshold amount. As neither the Company’s undistributed or distributed earnings have exceeded the P Units’ thresholds for any periods presented, no earnings were allocated to the P Units in the computation of basic and diluted earnings per unit.

The Company presents both basic and diluted earnings per share for period subsequent to the IPO and earnings per unit for period prior to the IPO. Basic earnings per share is computed by dividing the net income attributable to common stockholders (or common unit holders for period prior to the IPO) by the weighted-average number of shares outstanding during the period.

Diluted earnings per share (or per common unit for periods prior to the IPO) represents net income divided by the weighted-average number of shares or units outstanding, inclusive of the effect of dilutive units and contingently issuable shares. For the years ended December 31, 2025, 2024 and 2023, the Company had no potentially dilutive shares or units.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements Adopted

In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update clarifies the scope of “Profit Interest” and similar awards and adds an illustrative example to the existing ASC 718 standard that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted for interim and annual financial statements not yet issued or made available for issuance. The amendments in this ASU should be applied either (1) retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or (2) modified on or after the date at which the entity first applies the amendments. On January 1, 2025, the Company retrospectively adopted ASU 2024-01. The standard did not have any material impact on the Company’s financial position, results of operations or cash flows.

On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 amends ASC 740, Income Taxes to expand income tax disclosures and requires that the Company disclose (i) the

income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025, on a prospective basis. See Note 13, Provision for Income Taxes for additional information.

In March 2024, the FASB issued ASU 2024-02 “Codification Improvements-Amendments to Remove References to the Concepts Statements”, which removes various references to concepts statements from the FASB Accounting Standards Codification. This ASU is effective for the Company beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company has adopted this ASU. The standard did not have any material impact on the Company’s financial position, results of operations or cash flows.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which addresses a wide range of topics in the FASB Accounting Standards Codification. The ASU contains numerous amendments, technical corrections, and clarifications to enhance the clarity and consistency of existing U.S. GAAP. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years, with early adoption permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

In October 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which provides guidance on the accounting for grants received from a government by a business entity. This update requires entities to apply a model that is similar to the one used for contributions received by not-for-profit entities and aims to increase transparency by requiring new disclosures about government grants. The standard is effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years. Early adoption is permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which simplifies the application of the current expected credit loss model for current accounts receivable and current contract assets under ASC 606. The update is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which enacts significant changes to U.S. tax and related laws. Some of the provisions of the new tax law affecting corporations include but are not limited to expensing of domestic research expenses, increasing the limit of the deduction of interest expense deduction to thirty percent of EBITDA, and one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. The net effect of OBBBA did not have a material impact on the Company’s effective tax rate for the period as the tax law changes impacted the timing of deductibility. However, the Company’s income tax liability decreased as a result of accelerated deductions, primarily related to the immediate expensing of domestic specified research or experimental expenditures and the one hundred percent bonus depreciation.

In November 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220): Disaggregation of Income Statement Expenses” which requires additional disclosures of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. ASU 2024-03 (as further clarified through ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40)) is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.

Investments and Fair Value Measurements

The Company applies the provisions under ASC 820, Fair Value Measurements, for financial assets and liabilities that are remeasured and reported at fair value each reporting period, and for nonfinancial assets and liabilities that are remeasured and reported at fair value on a nonrecurring basis. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Where quoted market prices for identical assets and liabilities are available in active markets, securities are classified in Level 1 of the valuation hierarchy. Level 1 securities include exchange traded securities and mutual funds for which there are quoted prices in active markets. If quoted market prices are not available for the specific security, but are based on other observable inputs, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows and would generally be classified within Level 2 of the valuation hierarchy. Level 3 securities are securities where the inputs to the valuation

methodology are unobservable inputs based on best estimates of inputs market participants that would be used in pricing the asset or liability as of the measurement date, including assumptions about risk. There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2025, 2024 or 2023.

Level 3 fair value methodologies were used in the calculation of contingent consideration. The Company’s contingent consideration liability is primarily determined based on the achievement of certain negotiated financial performance targets considered to be Level 3 inputs. As of December 31, 2023, the Company had contingent consideration of $750,000 related to earn-outs attributable to the 2020 AEC acquisition included in other long-term liabilities. The fair value of the contingent consideration liability related to the AEC acquisition was determined using a Monte-Carlo simulation model. An additional $1,000,000 in liabilities related to the 2023 purchase of patents from Cornerstone Research Group is included in accrued expenses as of December 31, 2023.

As of December 31, 2024 contingent consideration related to the AEC acquisition was reduced to $0 and liabilities related to the purchase of patents was also reduced to $0 due to payments made during the current year. There were no other changes to the fair value of these liabilities during the year ended December 31, 2024.

On February 27, 2025, the Company invested $6.0 million in an unrelated party (the “Issuer”) in the form of a convertible promissory note (the “Note”). The Note will mature on the fifth anniversary of the Note’s issuance, bears no interest and is convertible into the Issuer’s shares prior to the maturity date at the Company’s discretion or upon the occurrence of certain future events. The Note was accounted for as available-for-sale debt instrument measured at fair value and recorded in Other assets. The fair value of this Note is classified within level 3 of the fair value hierarchy. As of December 31, 2025, the fair value of the Note approximates its carrying amount.

Available-for-sale securities, other than the Note, are immaterial to the consolidated financial statements.
v3.26.1
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
3.
Property and Equipment

Property and equipment consisted of the following as of December 31, 2025 and 2024:

 

 

 

December 31,
2025

 

 

December 31,
2024

 

 

 

(in thousands)

 

Land and buildings

 

$

6,611

 

 

$

—

 

Machinery and equipment (7-10 year assets)

 

 

85,729

 

 

 

59,669

 

Vehicles (5 year assets)

 

 

265

 

 

 

48

 

Office furniture and equipment (5-7 year assets)

 

 

1,435

 

 

 

1,253

 

Computer systems (3 year assets)

 

 

2,941

 

 

 

2,532

 

Leasehold improvements (life tied to lease duration)

 

 

18,840

 

 

 

14,201

 

Construction in process

 

 

18,972

 

 

 

10,129

 

Total property and equipment

 

 

134,793

 

 

 

87,832

 

Less accumulated depreciation

 

 

(39,384

)

 

 

(26,952

)

Property and equipment, net

 

$

95,409

 

 

$

60,880

 

 

Depreciation expense for the years ended December 31, 2025, 2024 and 2023 was $12.4 million, $9.6 million and $7.8 million, respectively, of which, $11.3 million , $8.8 million and $6.7 million was recorded in cost of goods sold, respectively, and the remainder in operating expenses in the accompanying consolidated statements of income.
v3.26.1
Business Combinations
 12 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Business Combinations
4.
Business Combinations

On February 16, 2024 (the “RMS Acquisition Date”), the Company acquired 100% of the equity interests of Rapid Machining Solutions - Wolcott Design Services (“RMS”) pursuant to the terms of a Securities Purchase Agreement (the “RMS Agreement”) in exchange for cash consideration (the “RMS Acquisition”). The primary purpose of the business combination was to create synergies based on RMS’s expertise in Aviation and Aerospace industry and expand the Company’s design and manufacturing capabilities.

The RMS Acquisition was accounted for as a business combination under ASC 805 using the acquisition method of accounting. The assets and liabilities acquired, affected for adjustments to reflect fair values assigned to assets purchased and liabilities assumed, and results of operations, are included in the Company’s consolidated financial statements from the RMS Acquisition Date. The Company recorded the acquired tangible and identifiable intangible assets and assumed liabilities based on their estimated fair values at the acquisition date as required under ASC 805. As of February 15, 2025, the valuation of the acquired assets and assumed liabilities has been completed.

To fund the RMS Acquisition, the Company increased its TCW Term Note by $35.0 million. The fair value of the total purchase consideration transferred was $31.3 million in cash. The RMS Acquisition does not have any contingent consideration arrangements.

The Company also incurred $1.6 million of direct acquisition-related expenses, recognized as general, and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

The following table sets forth the estimated fair values of the assets acquired, and liabilities assumed in connection with the Acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

44

 

Accounts receivable

 

 

2,312

 

Prepaid expenses

 

 

5

 

Inventory

 

 

828

 

Property plant and equipment

 

 

2,987

 

Customer backlogs

 

 

5,300

 

Customer relationships

 

 

13,000

 

Right of use lease assets

 

 

348

 

Total assets acquired

 

$

24,824

 

 

 

 

 

Accounts payable

 

 

857

 

Accrued liabilities

 

 

157

 

Lease liabilities, current

 

 

12

 

Lease liabilities, non-current

 

 

336

 

Total liabilities assumed

 

$

1,362

 

 

 

 

 

Goodwill

 

$

7,872

 

Fair Value of Consideration

 

$

31,334

 

 

The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets was recorded as goodwill and is fully deductible for tax purposes. The components of goodwill do not qualify as a separately recognized intangible asset.

Below is a summary of the intangible assets acquired in the Acquisition:

 

 

 

Acquisition Date
Fair Value

 

 

Estimated Life

 

Intangible Asset

 

(in thousands)

 

 

(in years)

 

Customer Backlog

 

$

5,300

 

 

 

2.5

 

Customer Relationships

 

 

13,000

 

 

 

16.0

 

Total Intangible Assets Acquired

 

$

18,300

 

 

 

 

 

The fair value for both the customer backlog and the customer relationships were determined using the multi-period excess earnings method (“MPEEM”). This method reflects the present value of the operating cash flows generated by the intangible assets after considering the cost to realize the revenue, and an appropriate discount rate to reflect the time value and risk associated with the invested capital. In total, the intangible assets acquired subject to amortization have a weighted average life of 12.1 years.

MTI Acquisition

On April 2, 2025 (the “MTI Acquisition Date”), the Company, through its indirect wholly-owned subsidiary Karman Parent LLC (“Karman Parent”), acquired all the issued and outstanding membership interests and other equity interests of Metal Technology Inc. (“MTI”), pursuant to the terms of a Securities Purchase Agreement (the “MTI Agreement”) in exchange for cash consideration (the “ MTI Acquisition”). The acquisition of MTI expands the Company’s capabilities in advanced materials and is expected to strengthen its position in the strategic missile defense market through enhanced product offerings and customer relationships.

The MTI Acquisition met the requirements to be considered a business combination under ASC 805. The assets and liabilities acquired, affected for adjustments to reflect fair values assigned to assets purchased and liabilities assumed, and results of operations, are included in the Company’s consolidated financial statements from the MTI Acquisition Date. The Company recorded the acquired tangible and identifiable intangible assets and assumed liabilities based on their estimated fair values at the acquisition date as required under ASC 805.

The MTI Acquisition was funded by the Company’s new Citi credit facilities and was accounted for using the acquisition method of accounting. The fair value of the total purchase consideration transferred was $82.3 million. The MTI Acquisition does not have any contingent consideration arrangements.

The Company also incurred $1.4 million of direct acquisition-related expenses, recognized as general, and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

The following table sets forth the allocation, as of December 31, 2025, of the fair value of the assets acquired and liabilities assumed in connection with the MTI Acquisition:

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

2,230

 

Accounts receivable

 

 

2,734

 

Inventory

 

 

2,435

 

Prepaid and other current assets

 

 

173

 

Property, plant and equipment

 

 

10,672

 

Intangible assets

 

 

30,700

 

Right of use lease assets

 

 

715

 

Total assets acquired

 

$

49,659

 

 

 

 

 

Accounts payable

 

 

374

 

Accrued payroll and related expenses

 

 

10,815

 

Lease liabilities, current

 

 

113

 

Lease liabilities, non-current

 

 

602

 

Other current liabilities

 

 

461

 

Total liabilities assumed

 

$

12,365

 

 

 

 

 

Goodwill

 

$

45,019

 

Fair Value of Consideration

 

$

82,313

 

The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets was recorded as goodwill and is fully deductible for tax purposes. The components of goodwill do not qualify as a separately recognized intangible asset.

Below is a summary of the intangible assets acquired in the MTI Acquisition:

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

19,700

 

 

 

14.0

 

Backlog

 

 

3,600

 

 

 

2.7

 

Know-How

 

 

7,400

 

 

 

7.0

 

Total Intangible Assets Acquired

 

$

30,700

 

 

 

 

The fair value for know-how was determined using the relief from royalty method and the fair values of customer relationships and backlog was determined using the multi-period excess earnings method. In total, the intangible assets acquired subject to amortization have a weighted average useful life of 11.0 years.

Net revenue and net income from this acquisition has been included in the consolidated statements of operations and comprehensive income (loss) from the MTI Acquisition Date through the end of the year ended December 31, 2025, and the impact of the acquisition to the ongoing operations on the Company’s net revenue and net income was not significant. Supplemental pro forma results of operations have not been presented because they were not material to the consolidated results of operations.

ISP Acquisition

On May 28, 2025 (the “ISP Acquisition Date”), the Company completed its acquisition of Industrial Solid Propulsion (“ISP”) pursuant to a Securities Purchase Agreement (the “ISP Agreement”), under which the Company purchased all issued and outstanding equity interests in ISP and related real estate of ISP, for $52.9 million in cash and 147,842 shares of common stock, subject to satisfaction or waiver of certain customary closing adjustments. The ISP Agreement contains customary representations, warranties and covenants of the parties. The acquisition of ISP expands the Company’s capabilities in small-diameter solid propellant and energetic propulsion systems, strengthening its position in the UAS and missile defense markets through proprietary technologies and integrated manufacturing expertise.

The ISP Acquisition met the requirements to be considered a business combination under ASC 805. The assets and liabilities acquired, affected for adjustments to reflect fair values assigned to assets purchased and liabilities assumed, and results of operations, are included in the Company’s consolidated financial statements from the ISP Acquisition Date. The Company recorded the acquired tangible and identifiable intangible assets and assumed liabilities based on their estimated fair values at the acquisition date as required under ASC 805.

The ISP Acquisition was funded by increasing the Citi’s term note and was accounted for using the acquisition method of accounting. The fair value of the total purchase consideration transferred was $58.6 million, of which $49.0 million was paid in cash, $3.9 million represents the fair value of the earnout, and $5.7 million represents the fair value of the equity consideration. The earnout was recorded in other current liabilities on the consolidated balance sheet as of the ISP Acquisition Date. The earnout liability was estimated using a Monte Carlo simulation under a risk-neutral framework, based on the average present value of the simulated earnout payments.

The Earnout provides for a cash payment equal to $5.0 million to the seller of ISP, contingent upon the achievement of specified Adjusted EBITDA threshold for the twelve months ended December 31, 2025, as defined in the ISP Agreement. As of December 31, 2025, the Company determined that the Adjusted EBITDA target was not achieved. Accordingly, the Earnout no longer has any value, and the related contingent consideration liability was reduced to zero, with the change in fair value recognized as other income on the consolidated statement of operations and comprehensive income (loss).

The Company also incurred $1.2 million of direct acquisition-related expenses, recognized as general, and administrative expenses on the consolidated statements of operation and comprehensive income (loss) for the year ended December 31, 2025.

The following table sets forth the allocation, as of December 31, 2025, of the fair value of the assets acquired and liabilities assumed in connection with the ISP Acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

2,791

 

Accounts receivable

 

 

597

 

Inventory

 

 

1,202

 

Prepaid and other current assets

 

 

39

 

Property, plant and equipment

 

 

4,239

 

Intangible assets

 

 

21,400

 

Deferred tax assets

 

 

941

 

Total assets acquired

 

$

31,209

 

 

 

 

 

Accounts payable

 

 

279

 

Accrued payroll and related expenses

 

 

2,122

 

Contract liabilities

 

 

95

 

Long-term notes payable

 

 

1,919

 

Total liabilities assumed

 

$

4,415

 

 

 

 

 

Goodwill

 

$

31,843

 

Fair Value of Consideration

 

$

58,637

 

The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets was recorded as goodwill and is fully deductible for tax purposes. The components of goodwill do not qualify as a separately recognized intangible asset.

Below is a summary of the intangible assets acquired in the ISP Acquisition:

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

13,500

 

 

 

10.0

 

Backlog

 

 

1,900

 

 

 

1.6

 

Know-How

 

 

6,000

 

 

 

15.0

 

Total Intangible Assets Acquired

 

$

21,400

 

 

 

 

The fair value for know-how was determined using the relief from royalty method and the fair values of customer relationships and backlog was determined using the multi-period excess earnings method. In total, the intangible assets acquired subject to amortization have a weighted average useful life of 10.7 years.

Net revenue and net income from this acquisition has been included in the consolidated statements of operations and comprehensive income (loss) from the acquisition date through the end of the year ended December 31, 2025, and the impact of the acquisition to the ongoing operations on the Company’s net revenue and net income was not significant. Supplemental pro forma results of operations have not been presented because they were not material to the consolidated results of operations.

Five Axis Acquisition

On October 28, 2025 (the “Five Axis Acquisition Date”), the Company, through its wholly owned subsidiary, Karman Space & Defense LLC, completed the acquisition of all of the issued and outstanding capital stock of Five Axis Industries, Inc. (“Five Axis”) pursuant to a Securities Purchase Agreement (the “Five Axis Agreement”), under which the Company purchased all issued and outstanding equity interests in Five Axis, for approximately $90.7 million in cash and 68,625 shares of common stock (the “Five Axis Acquisition”). Five Axis designs and manufactures specialized nozzle and fuel systems for launch vehicle engines. Its products support the performance and operation of both current and next-generation propulsion systems. The acquisition of Five Axis strengthens the Company’s core competency in the engineering and manufacturing of mission critical subsystems for the space and launch end market.

The Five Axis Acquisition met the requirements to be accounted for as a business combination under ASC 805. Five Axis’ assets and liabilities have been adjusted for preliminary estimates of fair value, and its results of operations have been included in the

Company’s consolidated financial statements from the Five Axis Acquisition Date. The purchase price was allocated to tangible and identifiable intangible assets based on their estimated fair values at the Five Axis Acquisition Date.

The Five Axis Acquisition was funded by increasing the Citi’s term note and was accounted for using the acquisition method of accounting.

The Company also incurred $2.5 million of direct acquisition-related expenses, recognized as general, and administrative expenses on the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2025.

The following table sets forth the acquisition date fair value of the assets acquired, and liabilities assumed in connection with the acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

5,055

 

Accounts receivable

 

 

1,807

 

Property, plant and equipment

 

 

4,466

 

Intangible assets

 

 

48,000

 

Total assets acquired

 

$

59,328

 

Accounts payable

 

 

156

 

Accrued payroll and related expenses

 

 

70

 

Other current liabilities

 

 

153

 

Deferred tax liabilities

 

 

12,886

 

Total liabilities assumed

 

$

13,265

 

 

 

 

 

Goodwill

 

$

50,505

 

Fair Value of Consideration

 

$

96,568

 

The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets was recorded as goodwill, which is not deductible for tax purposes. Goodwill reflects expected synergies from the combined operations, specialized processes and procedures, and the assembled workforce. The components of goodwill do not qualify as a separately recognized intangible asset.

Below is a summary of the intangible assets acquired in the Five Axis Acquisition:

 

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

44,500

 

 

 

14.0

 

Backlog

 

 

3,500

 

 

 

0.8

 

Total Intangible Assets Acquired

 

$

48,000

 

 

 

 

The fair value for the customer relationships and backlog was determined using the multi-period excess earnings method. In total, the intangible assets acquired subject to amortization have a weighted average useful life of 13.0 years.

Net revenue and net income from this acquisition has been included in the consolidated statements of operations and comprehensive income (loss) from the acquisition date through the end of the year ended December 31, 2025, and the impact of the acquisition to the ongoing operations on the Company’s net revenue and net income was not significant. Supplemental pro forma results of operations have not been presented because they were not material to the consolidated results of operations.
v3.26.1
Goodwill and Intangibles
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles
5.
Goodwill and Intangibles

The Company completed the annual goodwill impairment testing in the fourth quarter of 2025 and 2024 and determined that no adjustments to the carrying value of goodwill were necessary. The Company performs its goodwill impairment test at the reporting unit level, which is the same as or one level below the operating segment level. The Company has one operating and reportable segment, and for the years ended December 31, 2025, 2024 and 2023, the Company had one reporting unit for goodwill impairment testing purposes. For the impairment testing in the fourth quarter of 2025, the Company assessed the reporting unit using qualitative factors to determine whether it was more likely than not that the reporting unit’s fair value is less than its carrying value (step 0) and

determined that no further testing was required. For the impairment testing in the fourth quarter of 2024, the Company elected to bypass the qualitative assessment and performed a quantitative goodwill impairment test (Step 1), as permitted under ASC 350, which also indicated that the fair value of the reporting unit exceeded its carrying amount, and no impairment charge was recognized.

The Company continuously monitors and evaluates relevant events and circumstances that could unfavorably impact our significant assumptions used in testing goodwill, including changes to U.S. treasury rates and equity risk premiums, tax rates, recent market valuations from transactions by comparable companies, volatility in the Company’s market capitalization, and general industry, market, and macro-economic conditions. It is possible that future changes in such circumstances, or in the inputs and assumptions used in estimating the fair value of our reporting units, could require the Company to record a non-cash impairment charge. The Company recorded no impairment losses during the years ended December 31, 2025, 2024 and 2023.

The table below summarizes the changes in the Company’s goodwill balances:

 

 

 

Total Goodwill

 

 

 

(in thousands)

 

Balance at January 1, 2024

 

$

217,274

 

Acquisitions

 

 

7,872

 

Impairments

 

 

—

 

Balance at December 31, 2024

 

 

225,146

 

Acquisitions

 

 

127,367

 

Impairments

 

 

—

 

Balance at December 31, 2025

 

$

352,513

 

 

The table below summarizes the carrying amounts of the Company’s identifiable intangible assets:

 

 

 

 

 

As of December 31,

 

 

 

 

 

2025

 

 

2024

 

 

Weighted Average Amortization Period

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

(in years)

 

 

(in thousands)

 

 

(in thousands)

 

Patents (9 years)

 

9.0

 

 

$

2,722

 

 

$

(1,076

)

 

$

1,646

 

 

$

2,722

 

 

$

(774

)

 

$

1,948

 

Know-How (7.0 - 15.0 years)

 

10.5

 

 

 

15,686

 

 

 

(1,841

)

 

 

13,845

 

 

 

2,286

 

 

 

(585

)

 

 

1,701

 

Customer Backlogs (0.8 - 7.5 years)

 

2.3

 

 

 

47,750

 

 

 

(39,782

)

 

 

7,968

 

 

 

38,750

 

 

 

(35,302

)

 

 

3,448

 

Customer Relationships (10 - 19 years)

 

16.6

 

 

 

333,300

 

 

 

(70,871

)

 

 

262,429

 

 

 

255,600

 

 

 

(53,745

)

 

 

201,855

 

Total Intangible Assets

 

 

 

$

399,458

 

 

$

(113,570

)

 

$

285,888

 

 

$

299,358

 

 

$

(90,406

)

 

$

208,952

 

 

Amortization expense amounted to $23.2 million, $16.9 million, and $14.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. In total, the intangible assets acquired subject to amortization have a weighted average useful life of 14.6 years. The table below summarizes the annual amortization expense of the Company for the next five years:

 

2026

$

29,303

 

2027

 

23,896

 

2028

 

22,618

 

2029

 

22,609

 

2030

 

22,609

 

Thereafter

 

164,853

 

Total

$

285,888

 

 
v3.26.1
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt
6.
Debt

The Company’s Notes Payable consisted of the following as of December 31, 2025 and 2024:

 

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Term Note

$

502,800

 

 

$

326,662

 

Other notes payable

 

3,967

 

 

 

10,452

 

Total notes payable

 

506,767

 

 

 

337,114

 

Issuance costs

 

(7,619

)

 

 

(3,054

)

Subtotal

 

499,148

 

 

 

334,060

 

Less: current portion of notes payable

 

(3,836

)

 

 

(7,140

)

Long-term notes payable

 

495,312

 

 

 

326,920

 

Term Note

On April 1, 2025, the Company entered into a new Credit Agreement (the “Citi Credit Agreement”) by and among Karman, the lenders from time to time party thereto and Citibank, N.A. (“Citi”), as the administrative agent for the lenders, and, substantially contemporaneously therewith,certain direct and indirect subsidiaries of Karman terminated all outstanding commitments and repaid all outstanding obligations under the previous TCW Credit Agreement. This transaction resulted in the extinguishments of the previous TCW Term Note and facilities under the TCW Credit Agreement and the issuance of a new $300.0 million term loan and $50.0 million revolving line of credit. The new term loan will mature on April 1, 2032 and the new revolving line of credit will mature on April 1, 2030.

 

On May 27, 2025, the Company increased its Citi Term Note by $75.0 million to fund the acquisition of ISP. All other terms and conditions of the Citi Credit Agreement remain unchanged.

 

On October 24, 2025, the Company increased its Citi Term Note by $130.0 million to fund the acquisition of Five Axis and repay outstanding balance of the revolving line of credit facility. All other terms and conditions of the Citi Credit Agreement remain unchanged.

The Citi Term Note carries variable interest payments based on specified benchmark reference rates. Interest rates were 7.50% and 11.01% as of December 31, 2025 and 2024, respectively.

The Citi Credit Agreement contains a springing financial covenant that is tested on the last day of any testing fiscal quarter if and when the outstanding principal amount of revolving credit loans exceeds an applicable threshold. If the financial covenant is then in effect, the Company is required to maintain a Consolidated First Lien Net Leverage Ratio of less than or equal to 6.50 to 1.00. The financial covenant is also conditioned upon the Company’s requirement to deliver quarterly financial statements to the lender under the Citi Credit Agreement, which obligation commences with the fiscal quarter ending September 30, 2025. As there was no amount of revolving credit outstanding as of December 31, 2025, the springing financial covenant was not required. The Company was in compliance with its other debt covenant as of December 31, 2025.

Other Notes Payable

As of December 31, 2025, a wholly-owned subsidiary of the Company held a note payable to its landlord for cost incurred on the construction of a building that is under the control of the subsidiary. The note bears an interest of 6.68% per annum and matures in ten years following the completion of the construction. This note payable represents a financing arrangement and is accounted for as debt under ASC 470, with interest capitalized under ASC 835. The arrangement does not impact the accounting for the underlying lease under ASC 842 because the note is separate from lease payments and does not represent lease consideration or a lease incentive. During the year ended December 31, 2025, the interest expense capitalized related to the note is immaterial.

The Company held a note payable to one of the sellers (the “Seller Note”) from a prior acquisition for $6.6 million in 2024. The note bears interest at 7.5% and is capitalized annually on the anniversary date of the acquisition. The Seller Note plus all capitalized interest amounts is due and payable March 22, 2026. In April 2025, the Company repaid outstanding principal and interest balance of $10.6 million. No principal and interest balance was outstanding as of December 31, 2025. The outstanding principal and interest balance as of December 31, 2024 was $10.5 million.

Principal repayment requirements on the notes payable as of December 31, 2025 consisted of the following:

Years Ending December 31,

Amount

 

2026

$

5,050

 

2027

 

5,050

 

2028

 

5,050

 

2029

 

5,050

 

2030

 

5,050

 

Thereafter

 

481,517

 

Total

 

506,767

 

Debt issuance costs

 

(7,619

)

Notes payable net of debt issuance costs

$

499,148

 

Revolving Line of Credit

The Company has a $50 million revolving line of credit under the Citi Credit Agreement to provide for working capital needs. On April 2,2025, the Company drew $30.0 million from this revolving line of credit to fund the acquisition of MTI. There were no amount outstanding as of December 31, 2025. As of December 31, 2024, the Company had $25.0 million outstanding under the $25.0 million revolving line of credit pursuant to the TCW Credit Agreement. The TCW Credit Agreement was subsequently extinguished upon entering into the Citi Credit Agreement.

The Company’s revolving line of credit carries variable interest payments based on specified benchmark reference rates. Borrowings under the line of credit bear interest based on the Secured Overnight Financing Rate (SOFR) and the Company’s leverage ratio. Interest rates were 6.48% and 11.01% as of December 31, 2025 and 2024, respectively.

Total interest expense related to the revolving line of credit, finance leases (Note 8) and notes payable amounted to $45.2 million, $50.9 million, and $48.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Through December 31, 2025, debt origination fees related to the Term Note were $7.6 million, which are being amortized over the life of the loan using the straight-line method, as the difference between use of the effective interest and straight-line method is not material. Amortization of debt origination fees, related to the Term Note, of $1.3 million, $2.3 million, and $2.0 million were recorded as part of interest expense for the years ended December 31, 2025, 2024 and 2023, respectively.

No accrued interest was recorded under the Citi Credit Agreement or the TCW Credit Agreement as of December 31, 2025 and 2024.
v3.26.1
Lease Obligations
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Lease Obligations
7.
Lease Obligations

The Company has certain property leases, with former owners and members for facilities of the Company’s subsidiaries. Most of these leases are accounted for as finance leases except for facilities leased by AEC and a plane hangar leased by Systima, which are accounted for as operating leases. Total lease payments amounted to $12.8 million, $11.3 million and $6.2 million for the years ended December 31, 2025, 2024 and 2023. The Company has month-to-month rentals and other short-term leases, which are expensed as incurred. Expenses associated with short term leases were $0.9 million, $0.6 million and $0.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Consolidated Lease Summary

On a consolidated basis, lease activity for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Finance lease expense

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

6,963

 

 

$

6,246

 

 

$

4,764

 

Interest on lease liabilities

 

 

6,805

 

 

 

6,729

 

 

 

5,470

 

Operating lease expense

 

 

2,194

 

 

 

1,772

 

 

 

1,677

 

Total

 

$

15,962

 

 

$

14,747

 

 

$

11,911

 

 

Amortization of ROU assets are included in the depreciation and amortization expense line of the Consolidated Statements of Operations.

On a consolidated basis, supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Cash paid for amounts included in the measurement of lease liabilities

 

(in thousands except percent and year)

 

Operating cash flows from finance leases

 

$

6,644

 

 

$

6,610

 

 

$

5,387

 

Financing cash flows from finance leases

 

$

3,899

 

 

$

2,869

 

 

$

1,532

 

Operating cash flows from operating leases

 

$

2,250

 

 

$

1,804

 

 

$

1,455

 

ROU assets obtained in exchange for new finance lease liabilities

 

$

3,588

 

 

$

7,078

 

 

$

7,712

 

ROU assets obtained in exchange for new operating lease liabilities

 

$

1,454

 

 

$

885

 

 

$

2,802

 

Weighted-average remaining lease term in years for finance leases

 

 

13.52

 

 

 

13.75

 

 

 

15.00

 

Weighted-average remaining lease term in years for operating leases

 

 

5.36

 

 

 

6.16

 

 

 

6.94

 

Weighted-average discount rate for finance leases

 

 

8.21

%

 

 

8.42

%

 

 

7.88

%

Weighted-average discount rate for operating leases

 

 

9.49

%

 

 

9.52

%

 

 

8.97

%

On a consolidated basis, maturities of lease liabilities are as follows:

Year ending December 31,

 

Finance Lease

 

 

Operating Lease

 

 

Total

 

2026

 

$

10,826

 

 

$

2,371

 

 

$

13,197

 

2027

 

 

11,048

 

 

 

2,291

 

 

 

13,339

 

2028

 

 

11,082

 

 

 

1,548

 

 

 

12,630

 

2029

 

 

9,497

 

 

 

593

 

 

 

10,090

 

2030

 

 

8,745

 

 

 

163

 

 

 

8,908

 

Thereafter

 

 

87,068

 

 

 

1,662

 

 

 

88,730

 

Total undiscounted cash flows

 

 

138,266

 

 

 

8,628

 

 

 

146,894

 

Less: present value discount

 

 

(56,870

)

 

 

(1,864

)

 

 

(58,734

)

Total lease liabilities

 

$

81,396

 

 

$

6,764

 

 

$

88,160

 
v3.26.1
Retirement Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Retirement Plans
8.
Retirement Plans

Employee Benefit Plan

The Company maintains 401(k) Plans for all employees who have completed three months of service and have reached age 18. Qualified employees may contribute up to 90% of their pre-tax annual compensation to this plan, not to exceed the dollar limit set by law. The Company may make discretionary matching contributions and discretionary non-elective contributions to this plan. The Company made contributions of $3.9 million, $2.6 million, and $1.6 million made to the plans during the years ended December 31, 2025, 2024 and 2023, respectively. Retirement plan contribution expense is included within either Cost of Goods Sold or General and Administrative expenses on the consolidated statement of operations and comprehensive income (loss), depending on the nature of the employee’s work.

Nonqualified Deferred Compensation Plan

The Company implemented a nonqualified deferred compensation plan (the “Deferred Plan”) under which a select group of management may make voluntary contributions that defer a portion of their compensation up to the maximum dollar amount under Section 409A of the Internal Revenue Code (IRC). The assets of the plan are the legal assets of the Company until they are distributed to the participants, and, therefore, the plan assets and a corresponding liability are reported on the accompanying consolidated balance sheets. Amounts owed to plan participants are unsecured obligations of the Company. The Company has established a rabbi trust in which it will make contributions to fund its obligations under the Deferred Plan. Pursuant to the terms of the trust, the Company will be required to make contributions each year to fully match its obligations under the Deferred Plan. The trust’s funds are invested in corporate owned life insurance (COLI) and the Company plans to hold the policies until the death of the insured.

The Company’s investments in COLI policies totaled $0.9 million as of December 31, 2024. There are no significant actuarial assumptions that affect the values of the Deferred Plan and given the limited number of participants, the impacts of the Deferred Plan are not material to the Company’s financial statements. This Deferred Plan was terminated during the first quarter of 2025.
v3.26.1
Stockholders' Equity and Membership Units
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity and Membership Units

Prior to the IPO, the Company issued membership units both in conjunction with purchases of subsidiaries and to reflect further investment in the Company’s operations. The Company issued Class A, Class B, and Class C units with substantially identical rights, privileges and liquidation preferences. No member shall be liable for the debts, liabilities or obligations of the Company beyond the member’s contributions. Pursuant to the Third Amended and Restated Limited Liability Company Agreement of TCFIII Spaceco Holdings LLC, such membership units entitled unitholders to share in the proceeds from capital transactions, including a sale of the Company, and granted them voting rights on matters requiring the consent of the members. As of December 31, 2024, a total of 166,737,325 shares of membership units were outstanding. In connection with the IPO in February 2025, all of the outstanding membership units were converted on a 0.68-for-1 basis into 112,566,039 shares of common stock of the Company.

On July 23, 2025, the Company priced the underwritten public offering (the “Secondary Offering”) of its common stock, par value $0.001 per share (the“Common Stock”), at a public offering price of $49.00 per share (the “Secondary Offering Price”), pursuant to the Company’s registration statement on Form S-1 (File No. 333-288809), as amended (the “Registration Statement”). On July 23, 2025, in connection with the pricing of the Secondary Offering, certain of the Company’s existing stockholders (the “Selling Stockholders”) agreed to sell 21,000,000 shares of their Common Stock, in each case at the Secondary Offering Price, less underwriting discounts and commissions. The Underwriters were granted a 30-day option to purchase up to an additional 3,150,000 shares of Common Stock from a certain Selling Stockholder, which was fully exercised on July 24, 2025. The Secondary Offering and the shares were delivered on July 25, 2025. No shares were sold by the Company in the Secondary Offering and the Company did not receive any proceeds from the Secondary Offering.
v3.26.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
10.
Share-Based Compensation

The Company historically, through Spaceco Management Equity LLC (the “Management Company”) under the Spaceco Management Equity LLC Equity Incentive Plan (the “Equity Incentive Plan”), granted P Units to certain employees of the Company and its subsidiaries, in exchange for their services to the Company. Management Company has an economic interest in the Company, but no other interests or business operations other than issuing P Units directly to management employees on behalf of the Company.

The accounting for grants of P Units by the Company to Management Company and Management Company’s contemporaneous issuance of P Units to individual Company employees represents a distribution from the Company immediately followed by a contribution from Management Company, which together would have no financial statement impact. As a result, the Company refers to P Units issued to Management Company as though the Company had issued P Units directly to the employee.

The P Units entitled the holder to receive cash distributions from the Company, including, but not limited to upon a sale or change in control of the Company, provided that the proceeds received exceed the defined threshold value in the individual award agreements. Vesting was dependent on service-based and performance-based vesting conditions, as discussed in further detail below.

The P Units were subject to time-based vesting conditions (Time-Based Units). The Time-Based Units generally vested over 5 years with 20% vesting at each annual vesting date. In some cases, the Company recognized expense as of the grant date for the portion of an award that was legally vested on the grant date as a result of years of service performed prior to the grant date. Time-Based Units were also subject to an accelerated vesting upon a change of control event, which included an initial public offering. A corporate conversion would cause all P units to be converted into new shares of the Company based upon the fair market value of the P Units immediately prior to such conversion.

The Company recorded compensation cost for Time-Based Units over the requisite service period using the straight-line method.

The P Units are equity-classified and the Company has made a policy election to account for forfeitures as they occur. The Company estimates the grant date fair value using a Black-Scholes Option Pricing Model. The following assumptions were used for the determination of grant date fair value for the P Units granted during the year ended December 31, 2023. There were no grants of P Units during the years ended December 31, 2025 or 2024.

 

 

For the Year Ended December 31,

 

 

2023

 

Risk-free interest rate

 

 

4.5

%

Expected volatility

 

 

40.0

%

Expected term (in years)

 

 

2.9

 

Threshold value

 

$

470,186,054

 

 

 

Because the Company was not publicly traded in 2023, expected volatility was calculated using the historical volatilities of similar, publicly traded companies.

A summary of the Company’s vested and nonvested P Units for the years ended December 31, 2025 and 2024 is presented below:

 

 

P Units

 

 

Weighted
Average Grant-
Date Fair Value

 

Nonvested units at January 1, 2024

 

 

8,892,655

 

 

$

0.31

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

(3,797,905

)

 

$

0.28

 

Forfeited

 

 

—

 

 

 

—

 

Nonvested units at December 31, 2024

 

 

5,094,750

 

 

$

0.32

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

(5,094,750

)

 

$

0.32

 

Forfeited

 

 

—

 

 

 

—

 

Nonvested units at December 31, 2025

 

 

—

 

 

 

—

 

 

In February 2025, in connection with the IPO, all 18,063,207 P Units outstanding were converted into 11,187,501 shares of the Company’s common stock on a 0.62-for-1 basis. All unvested P Units vested immediately. The Company recognized share-based compensation expense of $1.4 million and $1.0 million for the years ended December 31, 2025 and 2024, respectively. These expenses were included in general and administrative expenses in all periods presented in the consolidated statement of income. As of December 31, 2025, there are no P Units outstanding.

Phantom Plan

On September 23, 2024 the Company adopted a Transaction Bonuses plan (the “Phantom Plan”), pursuant to which the Company granted Phantom Units through Management Company to select employees providing services to the Company and/or its subsidiaries.

The Phantom Units were subject to service and performance-based vesting conditions. The Phantom Units were entitled to payment if the recipient was employed in the period in which a distribution event to P Unit holders, such as a change in control, initial public offering or liquidation event was consummated. The Phantom Units were not entitled to any payments until a distribution to the Company’s unitholders in excess of the $470.2 million threshold value occurred. The Company does not recognize any compensation cost for Phantom Units as these events are not considered probable, until the event actually occurs.

The Company estimates grant date fair value using a Black-Scholes Option Pricing Model and probability weighted expected returns for various exit scenarios. The following assumptions were used for the determination of grant date fair value for the Phantom Units granted during the year ended December 31, 2024. There were no grants of Phantom Units during the year ended December 31, 2025.

 

 

For the Year Ended December 31,

 

 

2024

 

Risk-free interest rate

 

 

3.5

%

Expected volatility

 

30.0%-32.5%

 

Expected term (in years)

 

0.5 to 2.7

 

Threshold value

 

$

470,186,054

 

 

A summary of the Phantom Unit activity during the years ended December 31, 2025 and 2024 is shown below (fair value is a weighted average per unit).

 

Phantom Units

 

Weighted Average Grant-Date Fair Value

 

Nonvested units as of January 1, 2024

 

—

 

 

—

 

Granted

 

463,162

 

$

3.04

 

Vested

 

—

 

 

—

 

Forfeited

 

—

 

 

—

 

Nonvested units at December 31, 2024

 

463,162

 

$

3.04

 

Granted

 

—

 

 

—

 

Vested

 

(463,162

)

$

3.04

 

Forfeited

 

—

 

 

—

 

Nonvested units at December 31, 2025

 

—

 

$

—

 

In connection with the IPO in February 2025, the Phantom Units were settled for $6.6 million in cash, which was recognized as share-based compensation expense in general and administrative expenses in the consolidated statements of income.

2025 Stock Incentive Plan

The 2025 Stock Incentive Plan (the “2025 Plan”) was adopted by our Board on February 12, 2025 and approved by our shareholders on February 12, 2025. The 2025 Plan provides for the grant of stock options (including incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, restricted stock units, performance-based awards, other stock-based awards, or any combination thereof. Employees, directors or consultants or any of our subsidiaries or affiliates are eligible to receive an award under the 2025 Plan, to the extent that an offer of such award is permitted by applicable law, stock market or exchange rules, and regulations or accounting or tax rules and regulations. Each award will be set forth in a separate grant notice or agreement and will indicate the type and terms and conditions of the award.

As of December 31, 2025, no awards were granted under the 2025 Plan. The total number of shares of the Company’s common stock that was authorized for awards under the 2025 Plan was 11.5 million shares.

v3.26.1
Net Income Per Common Share and Common Unit
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income per Common Share and Common Unit
11.
Net Income Per Common Share and Common Unit

Net income per common share and common unit was computed as follows:

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands except per share data)

 

Net income

$

17,366

 

 

$

12,701

 

 

$

4,359

 

Weighted average common share or unit outstanding - basic, respectively

 

132,322

 

 

 

166,737

 

 

 

166,776

 

Effect of dilutive common shares or unit, respectively

 

—

 

 

 

—

 

 

 

—

 

Weighted average common share or unit outstanding - diluted, respectively

 

132,322

 

 

 

166,737

 

 

 

166,776

 

Net income per common share or unit - basic, respectively

$

0.13

 

 

$

0.08

 

 

$

0.03

 

Net income per common share or unit - diluted, respectively

$

0.13

 

 

$

0.08

 

 

$

0.03

 

 

The Company had no potentially dilutive securities in any period presented.

v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
12.
Segment Reporting

ASC Subtopic 280-10, Segment Reporting, establishes standards for reporting information about operating segments, which are defined as components of an enterprise for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) to allocate resources and assess performance. The Company’s Chief Executive Officer serves as the CODM and reviews financial information at a consolidated level. The Company operates as a single operating segment, and the accounting policies of the segment are consistent with those described in the summary of significant accounting policies. The CODM evaluates performance and allocates resources based on consolidated net income, and segment assets are reported as total consolidated assets on the balance sheet.

The following table summarizes the Company’s revenues, net income and significant expenses:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Revenue

 

$

471,500

 

 

$

345,251

 

 

$

280,705

 

Expenses and other items:

 

 

 

 

 

 

 

 

 

Cost of goods sold:

 

 

 

 

 

 

 

 

 

Labor

 

 

(115,060

)

 

 

(95,404

)

 

 

(80,684

)

Materials

 

 

(133,518

)

 

 

(91,808

)

 

 

(75,469

)

Overhead

 

 

(21,587

)

 

 

(17,100

)

 

 

(12,256

)

Depreciation and amortization

 

 

(11,309

)

 

 

(8,828

)

 

 

(6,747

)

Total cost of goods sold

 

 

(281,474

)

 

 

(213,140

)

 

 

(175,156

)

General and administrative expenses

 

 

(85,656

)

 

 

(44,421

)

 

 

(36,623

)

Depreciation and amortization not included in cost of goods sold

 

 

(31,428

)

 

 

(24,130

)

 

 

(20,432

)

Other income

 

 

4,147

 

 

 

1,502

 

 

 

563

 

Interest expense, net

 

 

(44,567

)

 

 

(50,733

)

 

 

(47,867

)

Income tax provision

 

 

(15,156

)

 

 

(1,628

)

 

 

3,169

 

Net income

 

$

17,366

 

 

$

12,701

 

 

$

4,359

 

General and administrative expenses include share-based compensation of $8.1 million, $1.0 million and $1.3 million and for the years ended December 31, 2025, 2024 and 2023, respectively.

Other income for the years ended December 31, 2025, 2024 and 2023, was $4.1 million, $1.5 million and $0.6 million, respectively. The increase was primarily attributable to the settlement of a shareholder loan in 2024 and the write-off of a contingent consideration liability in 2025.

Capital expenditures, which include purchases of property, plant, and equipment, are assessed and managed at the enterprise level. Refer to “Investing Activities” in the Consolidated Statement of Cash Flows for the amount of cash paid for capital expenditures.

Interest income during the periods presented is insignificant.
v3.26.1
Provision for (Benefit from) Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Provision for (Benefit from) Income Taxes
13.
Provision for (Benefit from) Income Taxes

Income Before Taxes

The following are the pre-tax book income for the years ended December 31, 2025, 2024 and 2023:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Pre-tax book income:

 

 

 

 

 

 

 

 

Domestic

$

32,522

 

 

$

14,329

 

 

$

1,190

 

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total

$

32,522

 

 

$

14,329

 

 

$

1,190

 

 

Income Tax Expense (Benefit)

The provision for (benefit from) income taxes for the years ended December 31, 2025, 2024 and 2023 consists of the following:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Current income taxes:

 

 

 

 

 

 

 

 

Federal

$

673

 

 

$

10,977

 

 

$

7,752

 

State

 

3,967

 

 

 

2,161

 

 

 

(214

)

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total current

$

4,640

 

 

$

13,138

 

 

$

7,538

 

Deferred income taxes:

 

 

 

 

 

 

 

 

Federal

 

9,707

 

 

 

(10,087

)

 

 

(9,724

)

State

 

809

 

 

 

(1,423

)

 

 

(983

)

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total deferred

$

10,516

 

 

$

(11,510

)

 

$

(10,707

)

Provision for (benefit from) income taxes

$

15,156

 

 

$

1,628

 

 

$

(3,169

)

Effective Tax Rate

A reconciliation of the Company’s effective tax rate and federal statutory tax rate after the adoption of ASU 2023-09 is summarized as follows. See Note 2. Summary Significant Accounting Policies - Recently Issued Accounting Pronouncements Adopted for additional details on the adoption of ASU 2023-09.

 

 

Year Ended December 31, 2025

 

 

(in thousands, except percent)

 

Income taxes (benefit) at statutory federal rate

$

6,830

 

 

 

21.0

%

State and local taxes, net of federal income tax effect1

 

2,983

 

 

 

9.2

%

Tax credits

 

 

 

 

 

R&D credit

 

(792

)

 

 

(2.4

%)

Changes in valuation allowance

 

—

 

 

 

0.0

%

Nontaxable or nondeductible items

 

 

 

 

 

Other

 

279

 

 

 

0.9

%

Section 162(m) officer's compensation

 

1,052

 

 

 

3.2

%

Transaction costs

 

793

 

 

 

2.4

%

Penalties and Interest

 

1,464

 

 

 

4.5

%

Changes in unrecognized tax benefits

 

809

 

 

 

2.5

%

Other

 

 

 

 

 

Change in the tax status of an entity

 

1,401

 

 

 

4.3

%

Other

 

337

 

 

 

1.0

%

Total effective rate

$

15,156

 

 

 

46.5

%
1.
The state that contributes to the majority (greater than 50%) of the tax effect in this category is California for the years ended December 31, 2025.

The amounts of cash taxes paid by the Company for the year ended December 31, 2025 are as follows:

 

 

Year Ended December 31,

 

 

2025

 

 

(in thousands)

 

Federal income taxes paid, net of refunds received

$

15,954

 

State income taxes paid, net of refunds received

 

 

California

 

900

 

Other

 

66

 

Foreign income taxes paid, net of refunds received

 

—

 

Total income taxes paid, net of refunds received

$

16,920

 

 

A reconciliation of the Company’s effective tax rate and federal statutory tax rate as previously disclosed for the year ended December 31, 2024 and 2023 is summarized as follows:

 

Years Ended December 31,

 

 

2024

 

 

2023

 

 

(in thousands, except percent)

 

Federal income taxes

 

21.0

%

 

 

21.0

%

State income taxes, net of federal benefit

 

0.7

%

 

 

(3.0

%)

Rate differential

 

(3.4

%)

 

 

(2.3

%)

Permanent and other differences

 

1.0

%

 

 

9.0

%

Profits Interest

 

1.3

%

 

 

20.1

%

Research and development tax credits

 

(5.5

%)

 

 

(79.2

%)

Uncertain tax positions

 

9.8

%

 

 

11.2

%

Income from passthrough entities

 

(15.9

%)

 

 

(87.9

%)

Return to provision2

 

(1.8

%)

 

 

(155.0

%)

Interest and penalties

 

4.3

%

 

 

0.0

%

Other

 

0.0

%

 

 

0.0

%

Effective Tax Rate

 

11.5

%

 

 

(266.1

%)
2.
The return to provision line item included in the rate reconciliation relates to changes in estimates related to transfer pricing, net costs in excess of billings, research and development tax credits, other deferred tax and income tax payable true-ups

Deferred Taxes

Deferred tax assets and liabilities reflect the net tax effects of tax credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for tax purposes. Significant components of the Company’s deferred tax assets and liabilities are summarized as follows:

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

Accrued Compensation

$

694

 

 

$

673

 

State income tax

 

1,136

 

 

 

475

 

Interest expense limitation

 

13,208

 

 

 

13,441

 

Capitalized Research

 

100

 

 

 

8,209

 

Lease Liability

 

22,673

 

 

 

20,703

 

Other

 

759

 

 

 

648

 

Total deferred tax assets

$

38,570

 

 

$

44,149

 

Less: Valuation allowance

 

—

 

 

 

—

 

Total deferred tax assets, net of valuation allowance

$

38,570

 

 

$

44,149

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

ROU Asset

$

(18,571

)

 

$

(17,647

)

Percentage of Completion Contracts

 

(915

)

 

 

(148

)

Fixed Assets

 

(14,540

)

 

 

(8,343

)

Intangibles

 

(52,375

)

 

 

(43,381

)

Total deferred tax liabilities

$

(86,401

)

 

$

(69,519

)

Net deferred tax liabilities

$

(47,831

)

 

$

(25,370

)

Our deferred tax liabilities increased by $22.5 million of which $11.9 million was recorded to goodwill as a result of our acquisitions (See Note 4, Business Combinations).

The Company determines its valuation allowance on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Because of the Company’s history of net taxable income, the Company believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently likely to be realized and, accordingly, has not provided a valuation allowance on its deferred tax assets.

Utilization of the interest expense carryforwards may be subject to annual limitations due to ownership changes that have occurred or that could occur in the future, as required by Sections 382 of the Internal Revenue Code of 1986, as amended (the "Code"), as well as similar state provisions. These ownership changes may limit the amount of interest expense that can be utilized annually to offset future taxable income. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of outstanding stock of a company by certain stockholders.

Tax Carryforwards

Tax credit carryforwards as of December 31, 2025 are as follows:

 

 

Amount

 

 

Expiration Years

 

(in thousands)

 

 

 

Research and development tax credits, federal

 

176

 

 

2045

Research and development tax credits, state

 

8

 

 

Indefinite

Uncertain Tax Provisions

A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits is as follows:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Beginning balance of unrecognized tax benefits

$

2,015

 

 

$

579

 

 

$

466

 

Gross increases (decreases) based on tax positions related to current year

 

1,845

 

 

 

801

 

 

 

283

 

Gross increases (decreases) based on tax positions related to prior years

 

157

 

 

 

635

 

 

 

(170

)

Expiration of statute of limitations

 

(60

)

 

 

—

 

 

 

—

 

Ending balance of unrecognized tax benefits

$

3,957

 

 

$

2,015

 

 

$

579

 

Included in the balance of unrecognized tax benefits as of December 31, 2025, 2024 and 2023 are $3.5 million, $1.7 million and $0.6 million respectively, of unrecognized tax benefits that would affect the ETR.

The Company recognized interest expense related to uncertain tax positions as tax expense of $0.4 million and $0.3 million for the years ended December 31, 2025 and 2024 respectively. The total accrued interest liability was $0.7 million and $0.4 million for the years ended December 31, 2025 and 2024 respectively. Interest expense related to uncertain tax positions and accrued interest liability for the year ended December 31, 2023 was immaterial.

The Company files income tax returns in the United States, California, Alabama, and Texas. The Company is subject to income tax examination by federal and state tax authorities for years beginning in 2022 and 2021, respectively.
v3.26.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
14.
Commitments and Contingencies

In the course of doing business, the Company enters into various agreements. These agreements typically include commitments and indemnifications, which could create a liability for the Company in the event of damages or injuries related to providing these services. Management believes the Company is adequately insured. However, future claims related to these agreements could significantly affect the Company’s financial results if a loss is incurred as a result of these agreements.

The Company accrues a liability for legal contingencies when it is both probable that a liability has been incurred and the amount of loss is reasonably estimable. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and our views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in our accrued liabilities would be recorded in the period in which such determination is made. For certain matters, the liability is not probable, or the amount cannot be reasonably estimated, and therefore, accruals have not been made. In addition, in accordance with the relevant authoritative guidance, for any matters in which the likelihood of a material loss is at least reasonably possible, the Company will provide disclosure of the possible loss or range of loss. If a reasonable estimate cannot be made, however, the Company will provide disclosure to that effect. As of December 31, 2025and 2024, the Company has no material reserves for legal contingencies and does not believe it is subject to material litigation risk. Legal fees are expensed as incurred.
v3.26.1
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events
15.
Subsequent Events

On December 31, 2025, the Company entered into a Securities Purchase Agreement (the “Agreement”) under which a wholly-owned subsidiary of the Company agreed to purchase Seemann Composites, LLC and Materials Sciences LLC (together, the “Company Group”), for (i) $210.0 million in cash and (ii) shares of common stock of the Company with an aggregate value equal to $10.0 million, subject to certain customary purchase price adjustments (the “ Seemann Acquisition”). This acquisition was completed on February 3, 2026, pursuant to the Agreement, and the Company indirectly acquired all of the outstanding capital stock of the Company Group in exchange for the consideration described above. The Agreement contains customary representations, warranties and covenants of the parties. The Seemann Acquisition expands and enhances the Company’s capabilities in the maritime defense end market, strengthening its portfolio of advanced composite and materials solutions for high-priority naval programs. This acquisition is expected to be accounted for as a business combination and the Company is in the process of preparing its preliminary purchase price allocation.

On February 2, 2026, the Company entered into a Third Amendment to its Credit Agreement (the “Third Amendment”), which amends the Credit Agreement, dated as of April 1, 2025 (as amended by the First Amendment to Credit Agreement, dated as of May 27, 2025 and Second Amendment to Credit Agreement, dated as of October 24, 2025) by and among the Company, Citibank, N.A., as Administrative Agent and Collateral Agent (“Citibank”), and the other parties thereto (as amended from time to time, the “Credit Agreement”).

Under the terms of the Third Amendment, the Company (i) refinanced its existing term loans in an aggregate principal amount of $502.8 million to reduce the interest rate applicable thereto by 75 basis points to SOFR plus 2.75% and (ii) reduced the interest rate applicable to its revolving credit facility by 75 basis points for each level of its leverage-based pricing grid, the highest of such levels being set at SOFR plus 2.50%. In addition, following the refinancing of the existing term loans, the Company increased the principal amount of its term loans by $265.0 million, for a total principal amount of $767.8 million. The Company used the proceeds from the increase in the term loans to fund the acquisition of the Company Group, as well as to provide additional working capital and liquidity to the Company and to pay related fees, commissions and expenses associated with the Third Amendment.

On March 9, 2026, the Company entered into a Fourth Amendment to its Credit Agreement. Under the terms of the Fourth Amendment, the Company (i) increased the revolving credit commitments by $100.0 million such that the total revolving credit commitments are now $150.0 million and (ii) removed the cap on incremental revolving credit commitments, which was previously $50.0 million.
v3.26.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Certain line items on the consolidated balance sheets, consolidated statements of operations and comprehensive income (loss) and the consolidated statements of cash flows are reclassified in the prior period to conform to current period presentation.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the operations of AEC, AMRO, AAE, Systima, RMS, MTI, ISP, Five Axis and Corporate. Corporate consists of centralized general and administrative functions, including executive management, finance, legal,

human resources, information technology, facilities, fixed overhead expenses, taxes, and other corporate-level activities that support the Company’s operations. Intercompany accounts and transactions have been eliminated in consolidation.

Segment Reporting

Segment Reporting

Operating segments are identified as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses, for which discrete financial information is available, and whose results are regularly reviewed by the chief operating decision maker to allocate resources and assess performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one reportable segment, the space and defense industry.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Management periodically evaluates estimates used in the preparation of the financial statements for continued reasonableness. Appropriate adjustments, if any, to estimates are made prospectively based upon such periodic evaluations. It is reasonably possible that changes may occur in the near term that would affect managements’ estimates with respect to revenue recognition, estimates of cost to complete contracts, allowance for credit losses, share-based payments, accrued expenses, inventory, deferred taxes, property and equipment and valuation of net assets acquired in business combinations, and the impairment assessment of goodwill and intangible assets.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits, and short-term cash investments that are highly liquid in nature and have original maturities of three months or less.

The Company maintains cash deposits with major banking institutions, in which the deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times the Company had deposits in excess of the FDIC maximum. The Company has not experienced any losses in such accounts.

The estimated fair value of cash and cash equivalents approximates the carrying value due to their short maturities.

Business Combinations

Business Combinations

The Company accounts for acquisitions by applying the acquisition method of accounting when the transaction or event is considered a business combination which requires that the assets acquired and liabilities assumed constitute a business. A defined business is generally an acquired group of assets with inputs and processes that make it capable of generating a return or economic benefit for the acquirer. The acquisition method of accounting requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at their fair values as of the closing date of the acquisition, with the excess cost recorded to goodwill. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates of fair value are inherently uncertain and subject to refinement. Preliminary estimated fair values of the assets acquired and liabilities assumed are determined once a business is acquired, with the final determination of the estimated fair values being completed no later than one year from the date of acquisition.

Revenue and Costs Recognition

Revenue and Costs Recognition

The Company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good to a customer. In most cases, goods provided under the Company’s contracts are accounted for as a single performance obligation due to the complex and integrated nature of its products. These contracts generally require significant integration of a group of goods to deliver a combined output. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not considered to be a separate performance obligation. Assets recognized from costs to obtain or fulfill a contract are not material. Payment terms are typically forty-five days, but may vary.

In evaluating the timing of revenue recognition, the Company assesses whether performance obligations are satisfied over time or at a point in time. Substantially all of the Company’s revenue is recognized over time as the customer simultaneously receives and consumes the benefits of our performance or because our performance does not create an asset with an alternative use and we have an enforceable right to payment for work performed to date.

Accounting for the majority of the Company’s long-term contracts requires the use of various techniques to estimate the total transaction price and the costs to complete. For long-term contracts, the Company uses the estimated transaction price, total estimated cost at completion, and costs incurred to date to measure progress toward completion and recognize revenue. Unforeseen events and circumstances may alter management’s estimate of costs and the potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, may be impacted by factors, such as changes in productivity, scheduling, labor costs, subcontracts, materials and equipment. The Company applies a portfolio approach in recognizing revenue for groups of contracts with similar characteristics when management reasonably expects that the results of applying ASC 606 to the portfolio would not differ materially from applying the standard to individual contracts. This approach includes using historical margins, pattern of performance, and grouped estimated costs at completion (EAC) methodologies for similar types of contracts.

The Company generates revenue under a range of contract types including fixed-price, time and material and cost-plus fixed fee contracts. Substantially all revenue is recognized as control is transferred to the customer over time based on an input measure of progress based on costs incurred compared to estimated total costs at completion. In general, the Company’s contracts contain termination clauses that entitle the Company to payment for work performed to-date for goods that do not have an alternative use. Amounts recoverable in the event of terminations include reasonable profit margins. Control is effectively transferred as the Company performs its contractual obligations. The Company generally recognizes revenues over time using the input method, measured by the percentage of total costs incurred to-date to estimated total anticipated costs for each contract. This method is used because the Company considers total costs to be the best available measure of satisfaction of its performance obligations. Use of the input method requires the Company to make reasonable estimates regarding the revenue and costs associated with the design, manufacture, and delivery of its products. The Company estimates profit on these contracts as the difference between total estimated revenues and total EAC and recognizes profit as costs are incurred. Significant judgment is used to estimate total costs at completion. EAC’s are estimated using historical actual margins as a percentage of revenue, applied to open jobs. Unforeseen events and circumstances can alter the estimate of the costs and potential benefits associated with a particular contract.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as payroll taxes, employee benefits, equipment rental, indirect labor, rent, workers’ compensation insurance, utilities, and shop supplies. General operating, selling, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined.

As of December 31, 2025, the Company had $550.6 million of remaining performance obligations under its existing contracts at such time. The Company expects to recognize approximately 73.5% of the remaining performance obligations as revenue in 2026, 17.0% in 2027, and 9.5% thereafter.

The timing of Company billings is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when products are provided. Billing can occur prior to revenue recognition, resulting in deferred revenue or subsequent to revenue recognition, resulting in unbilled revenue. The asset, “contract assets” represents revenues recognized in excess of amounts billed. These contract assets are not considered a significant financing component of the Company’s contracts as the payment terms are intended to protect the customer in the event the Company does not fulfill its obligations under the contract. The liability, “contract liabilities” represents amounts billed in excess of revenues recognized. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements.

The following table summarizes our contract assets and liabilities:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable

 

$

78,716

 

 

$

55,220

 

Contract assets

 

$

156,298

 

 

$

107,222

 

Contract liabilities

 

$

22,814

 

 

$

29,868

 

 

Changes in contract asset and contract liabilities are primarily due to the timing of payments from customers and the Company satisfying performance obligations during the normal course of business. The amount of revenue recognized from changes in the

transaction price associated with performance obligations satisfied in prior year during the years ended December 31, 2025, 2024 and 2023 was not material. Changes in contract assets and contract liabilities were as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract assets, beginning of period

 

$

107,222

 

 

$

89,184

 

Contract assets recorded during the period

 

 

145,571

 

 

 

96,433

 

Reclassified to accounts receivable during the period

 

 

(96,495

)

 

 

(78,395

)

Contract assets, end of period

 

$

156,298

 

 

$

107,222

 

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract liabilities, beginning of period

 

$

29,868

 

 

$

36,074

 

Customer advances received or billed

 

 

22,896

 

 

 

19,914

 

Recognition of unearned revenue

 

 

(29,950

)

 

 

(26,120

)

Contract liabilities, end of period

 

$

22,814

 

 

$

29,868

 

 

The Company’s contracts with customers relate to the design, manufacturing and delivery of its products in the following markets:

•
Hypersonics and Strategic Missile Defense – Hypersonic missiles, large diameter missile deterrent technologies and intercontinental strategic missile defense systems
•
Space and Launch – Traditional and new space launch rocket systems, space capsules, vehicles and payloads
•
Tactical Missiles and Integrated Defense Systems – Precision guided missiles, small diameter rocket and missile technologies and integrated defense systems

Substantially all of the Company’s customers are government or commercial enterprises based in the United States.

The following table presents our revenue disaggregated into markets as of December 31, 2025, 2024 and 2023:

 

 

 

2025

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

 

31.8

%

Space & Launch

 

 

149,825

 

 

 

31.8

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

36.4

%

Total Revenue

 

$

471,500

 

 

 

100.0

%

 

 

 

2024

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

 

33.2

%

Space & Launch

 

 

115,036

 

 

 

33.3

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

33.5

%

Total Revenue

 

$

345,251

 

 

 

100.0

%

 

 

 

2023

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

100,093

 

 

 

35.7

%

Space & Launch

 

 

94,642

 

 

 

33.7

%

Tactical Missiles & Integrated Defense Systems

 

 

85,970

 

 

 

30.6

%

Total Revenue

 

$

280,705

 

 

 

100.0

%

 

Revenue growth by market is presented in the tables below:

 

 

 

2025

 

 

2024

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

$

114,594

 

 

 

30.9

%

Space & Launch

 

 

149,825

 

 

 

115,036

 

 

 

30.2

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

115,621

 

 

 

48.5

%

Total Revenue

 

$

471,500

 

 

$

345,251

 

 

 

36.6

%

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

$

100,093

 

 

 

14.5

%

Space & Launch

 

 

115,036

 

 

 

94,642

 

 

 

21.5

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

85,970

 

 

 

34.5

%

Total Revenue

 

$

345,251

 

 

$

280,705

 

 

 

23.0

%

 
Contract Estimates and Modifications

Contract Estimates and Modifications

The Company recognizes changes in contract estimates on a cumulative “catch-up” basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the consolidated statements of operations in the period in which it is identified.

A contract modification exists when the parties to a contract agree to a change in the scope and/or price of a contract. Contracts are often modified for changes in contract specifications or requirements. Most of the Company’s contract modifications are for goods that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative catch-up adjustment.

Inventory

Inventory

The Company determines the cost basis for inventory using the lower of cost or net realizable value. Cost is determined by using the weighted average method. The Company recognizes raw materials within inventory.

The following table summarizes our inventory:

 

 

As of December 31,

 

 

2025

 

 

2024

 

Raw materials

$

7,644

 

 

$

9,485

 

Work in progress

 

1,974

 

 

 

398

 

Finished goods

 

1,044

 

 

 

—

 

Inventory

$

10,662

 

 

$

9,883

 
Prepaid and other current assets

Prepaid and other current assets

Within prepaid and other current assets, the Company recognizes prepaid expenses for prepayments for goods that are expected to be consumed within 12 months.

The following table summarizes our prepaid and other current assets:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Deferred offering costs

 

$

—

 

 

$

12,202

 

Other prepaid and current assets

 

 

11,768

 

 

 

5,654

 

Prepaid and other current assets

 

$

11,768

 

 

$

17,856

 

 
Accounts Receivable and Credit Loss Reserves

Accounts Receivable and Credit Loss Reserves

Accounts receivable are comprised of unsecured amounts due from customers and are presented net of an allowance for credit losses. Management recognizes estimated credit losses when receivables are originated, using a methodology under which all account balances 180 days past their contractual due date are reserved at 50% and all balances one year past their contractual due date are reserved at 100%. For contract assets, a reserve is recorded when a job exceeds a defined period of inactivity unless there is persuasive evidence that the balance remains recoverable. Management also evaluates specific receivables and contract asset balances and records additional allowances when facts and circumstances indicate potential impairment. Expected credit losses are written off in the period in which the financial asset is deemed uncollectible, and total write‑offs are immaterial to the consolidated financial statements.

The following table summarizes our accounts receivable and allowance for credit losses:

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable, gross

 

$

79,599

 

 

$

55,932

 

Allowance for credit losses

 

 

(883

)

 

 

(712

)

Accounts receivable, net of allowance for credit losses

 

$

78,716

 

 

$

55,220

 

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Allowance for credit losses, beginning balance

 

$

(712

)

 

$

(1,039

)

Credit loss recoveries (expenses)

 

 

(1,014

)

 

 

(268

)

Write-offs

 

 

843

 

 

 

595

 

Allowance for credit losses, ending balance

 

$

(883

)

 

$

(712

)
Property and Equipment

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight- line method over the assets’ estimated useful lives which range from 3 to 15 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the respective asset. Expenditures for repairs are expensed as incurred and major additions, renewals, and betterments are capitalized in the consolidated balance sheets. The costs and accumulated depreciation of assets retired or disposed are removed from the assets and related accumulated depreciation accounts, and gains or losses associated with the retirement or disposal are included in other income in the Company’s statements of operations.
Lease Obligations

Lease Obligations

Under the provisions of ASC 842, the Company has both finance and operating leases. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right-of-use (ROU) assets represent the right to use an underlying asset over the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. The Company has recorded both a right-of-use asset for each applicable lease and an associated liability for the right to use the asset and the obligation for future lease payments. Separate ROU assets and liabilities have been recorded for finance and operating leases. ROUs for both lease categories are included in ROU asset on the financial statements. The Company has elected not to recognize an ROU asset and lease liability for leases with terms of 12 months or less.

Liabilities for both finance and operating leases are included in their respective short-term lease liabilities for amounts due within one year and in noncurrent lease liabilities, net of current portion for remaining amounts due. ROU calculations include management’s assessment of the probability of exercise of lease extensions ranging from 1 to 18 years. No leases include variable lease payments.

The Company evaluates leases at their inception to determine if they are to be accounted for as an operating lease or a finance lease. A lease is accounted for as a finance lease if it meets one of the following five criteria: (i) the lease has a purchase option that is reasonably certain of being exercised, (ii) the present value of the future cash flows is substantially all of the fair market value of the underlying asset, (iii) the lease term is for a significant portion of the remaining economic life of the underlying asset, (iv) the title to the underlying asset transfers at the end of the lease term, or (v) if the underlying asset is of such a specialized nature that it is expected to have no alternative uses to the lessor at the end of the term. Leases that do not meet the finance lease criteria are accounted for as an operating lease. Operating lease ROU assets and liabilities were recognized based on the present value of the remaining lease

payments over the lease term. When the Company's lease did not provide an implicit rate, the Company used its incremental borrowing rate in determining the present value of lease payments. The Company used the implicit rate when readily determinable. The operating lease ROU asset excludes lease incentives. When the Company is reasonable certain that it will exercise the options to extend or terminate a lease, the extended or shortened periods is factored into the recognized lease terms. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. When applicable, lease payments are allocated between lease and non-lease components. For all types of leases, non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred
Other Current Liabilities

Other current liabilities

Within other current liabilities, the Company recognizes certain accrued expenses and liabilities due within 12 months. The following table summarizes our other current liabilities:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accrued offering costs

 

$

—

 

 

$

11,720

 

Other accrued expenses and current liabilities

 

 

5,094

 

 

 

767

 

Other current liabilities

 

$

5,094

 

 

$

12,487

 
Goodwill

Goodwill

Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. Goodwill is allocated to the Company’s single reporting unit and tested for impairment annually. In evaluating goodwill for impairment, the Company may first assess the qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test.

Alternatively, the Company may bypass the qualitative assessment and apply the quantitative impairment test to determine whether the carrying value of the reporting unit exceeds the fair value of the reporting unit.

Quantitative assessments of fair value rely upon various valuation methods, including market-based valuation methods or income-based valuation methods. These assessments require significant assumptions including projected growth rates, profitability margins and discount rates, which are subject to variability year over year and are impacted by market and industry conditions.
Intangible Assets

Intangible Assets

Intangible assets consist of customer relationships, customer production backlog, patents and know-how. Useful lives of amortized intangible assets are estimated based on the nature of the asset and the pattern in which the economic benefits of the assets are consumed. If a pattern of economic benefit cannot be reliably determined or if a straight-line amortization approximates the pattern of economic benefit, straight line amortization is used. Intangible assets are amortized to cost of sales or depreciation and amortization expense within operating expenses on a straight-line basis over the applicable useful lives.

Intangible assets deemed to have indefinite lives are not amortized, but are subject to impairment testing annually, or more frequently if events or changes in circumstances indicate the asset might be impaired. The impairment test compares carrying values of the reporting unit and indefinite-lived intangible assets to their estimated fair values. If the carrying value exceeds the fair value, then the carrying value is reduced to fair value. In testing our reporting unit and indefinite-lived intangible assets for impairment, we may perform both qualitative and quantitative assessments. For the quantitative assessments of indefinite-lived intangible assets, fair value is primarily based on the relief from royalty method. These quantitative assessments incorporate significant assumptions that include sales growth rates, projected operating profit, terminal growth rates, discount rates, royalty rates, and comparable multiples from publicly traded companies in our industry. Such assumptions are subject to variability from year to year and are directly impacted by, among other things, global market conditions.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including amortized intangible assets, whenever changes in circumstances indicate that the carrying value of such assets may not be recoverable. Management also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. The Company evaluates the recoverability of its long-lived assets based on estimated undiscounted future cash flow. If the expected undiscounted future cash flows are less than the carrying value, a write-down would be recorded to reduce the carrying value to its estimated fair value. There was no impairment of long-lived assets during the years ended December 31, 2025, 2024 and 2023.

Impairment assessment inherently involves management judgments as to assumptions about expected future cash flows and the impact of market conditions on those assumptions. Accordingly, due to the many variables inherent in developing the estimates used in our impairment analyses, differences in assumptions may have a material effect on the results of those impairment analyses.

Income Taxes

Income Taxes

The Company files a consolidated federal and state income tax return with its wholly owned subsidiaries for the year ended December 31, 2025. Prior to February 12, 2025, the Company was not subject to federal or state income taxes, except for its AMRO, AAE, and Systima subsidiaries. These subsidiaries previously filed consolidated federal and state income tax returns and were subject to income taxes on their respective results of operations.

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and deferred tax liabilities (DTLs) for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date.

The Company recognizes DTAs to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. If it is determined that the Company would be able to realize its DTAs in the future in excess of their net recorded amount, an adjustment to the DTA valuation allowance would be necessary, which would reduce the provision for income taxes.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it’s determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses, and the revolving line of credit. Carrying amounts approximate their fair values due to their short-term nature. The Company’s financial instruments also include notes payable. The fair value of the notes payable is estimated based on current rates offered for notes of similar terms, risks, and maturities and approximates the carrying value.

Concentration of Credit Risk

Concentration of Credit Risk

Revenue from a few customers will typically represent a significant portion of the Company’s total revenue in any given fiscal year.

For the year ended December 31, 2025, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 28.5% , 12.8% and 10.2% of the Company’s total revenues during the year.

For the year ended December 31, 2024, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 27.8%, 11.9% and 11.1% of the Company’s total revenues during the year.

For the year ended December 31, 2023, the Company had three customers with greater than 10% of the Company’s revenues, these customers comprised 23.5%, 16.4% and 15.3% of the Company’s total revenues during the year.

Two customers accounted for approximately 40.7% of accounts receivable as of December 31, 2025. Three customers accounted for approximately 51.0% of accounts receivable as of December 31, 2024.

One supplier accounted approximately 23.8% of accounts payable as of December 31, 2025. One supplier accounted for approximately 19.6% of accounts payable as of December 31, 2024.

Advertising

Advertising

Advertising costs are charged to expense as incurred. Advertising costs are insignificant for the years ended December 31, 2025, 2024 and 2023, respectively.

Share-Based Compensation

Share-Based Compensation

The Company accounts for share-based compensation under the fair value recognition provisions of ASC 718, Compensation - Stock Compensation. Under the fair value provisions, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite vesting period.

Net Income Per Common Share or Common Unit

Net Income Per Common Share or Common Unit

The Company historically used the two-class method in calculating earnings per unit for periods prior to the IPO when it issued securities other than common units that contractually entitled the holder to participate in distributions and earnings of the Company. The Company issued Profit Interest Units (PIUs) in the form of Class P LLC Membership Units (“P Units”) that, once vested, participated in its distributions and earnings after the common units receive their return of capital plus a specified threshold amount. As neither the Company’s undistributed or distributed earnings have exceeded the P Units’ thresholds for any periods presented, no earnings were allocated to the P Units in the computation of basic and diluted earnings per unit.

The Company presents both basic and diluted earnings per share for period subsequent to the IPO and earnings per unit for period prior to the IPO. Basic earnings per share is computed by dividing the net income attributable to common stockholders (or common unit holders for period prior to the IPO) by the weighted-average number of shares outstanding during the period.

Diluted earnings per share (or per common unit for periods prior to the IPO) represents net income divided by the weighted-average number of shares or units outstanding, inclusive of the effect of dilutive units and contingently issuable shares. For the years ended December 31, 2025, 2024 and 2023, the Company had no potentially dilutive shares or units.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements Adopted

In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update clarifies the scope of “Profit Interest” and similar awards and adds an illustrative example to the existing ASC 718 standard that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted for interim and annual financial statements not yet issued or made available for issuance. The amendments in this ASU should be applied either (1) retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or (2) modified on or after the date at which the entity first applies the amendments. On January 1, 2025, the Company retrospectively adopted ASU 2024-01. The standard did not have any material impact on the Company’s financial position, results of operations or cash flows.

On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 amends ASC 740, Income Taxes to expand income tax disclosures and requires that the Company disclose (i) the

income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025, on a prospective basis. See Note 13, Provision for Income Taxes for additional information.

In March 2024, the FASB issued ASU 2024-02 “Codification Improvements-Amendments to Remove References to the Concepts Statements”, which removes various references to concepts statements from the FASB Accounting Standards Codification. This ASU is effective for the Company beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company has adopted this ASU. The standard did not have any material impact on the Company’s financial position, results of operations or cash flows.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which addresses a wide range of topics in the FASB Accounting Standards Codification. The ASU contains numerous amendments, technical corrections, and clarifications to enhance the clarity and consistency of existing U.S. GAAP. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years, with early adoption permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

In October 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which provides guidance on the accounting for grants received from a government by a business entity. This update requires entities to apply a model that is similar to the one used for contributions received by not-for-profit entities and aims to increase transparency by requiring new disclosures about government grants. The standard is effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years. Early adoption is permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which simplifies the application of the current expected credit loss model for current accounts receivable and current contract assets under ASC 606. The update is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is assessing the effect of this update on our consolidated financial statements and related disclosures.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which enacts significant changes to U.S. tax and related laws. Some of the provisions of the new tax law affecting corporations include but are not limited to expensing of domestic research expenses, increasing the limit of the deduction of interest expense deduction to thirty percent of EBITDA, and one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. The net effect of OBBBA did not have a material impact on the Company’s effective tax rate for the period as the tax law changes impacted the timing of deductibility. However, the Company’s income tax liability decreased as a result of accelerated deductions, primarily related to the immediate expensing of domestic specified research or experimental expenditures and the one hundred percent bonus depreciation.

In November 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220): Disaggregation of Income Statement Expenses” which requires additional disclosures of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. ASU 2024-03 (as further clarified through ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40)) is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.
Investments and Fair Value Measurements

Investments and Fair Value Measurements

The Company applies the provisions under ASC 820, Fair Value Measurements, for financial assets and liabilities that are remeasured and reported at fair value each reporting period, and for nonfinancial assets and liabilities that are remeasured and reported at fair value on a nonrecurring basis. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Where quoted market prices for identical assets and liabilities are available in active markets, securities are classified in Level 1 of the valuation hierarchy. Level 1 securities include exchange traded securities and mutual funds for which there are quoted prices in active markets. If quoted market prices are not available for the specific security, but are based on other observable inputs, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows and would generally be classified within Level 2 of the valuation hierarchy. Level 3 securities are securities where the inputs to the valuation

methodology are unobservable inputs based on best estimates of inputs market participants that would be used in pricing the asset or liability as of the measurement date, including assumptions about risk. There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2025, 2024 or 2023.

Level 3 fair value methodologies were used in the calculation of contingent consideration. The Company’s contingent consideration liability is primarily determined based on the achievement of certain negotiated financial performance targets considered to be Level 3 inputs. As of December 31, 2023, the Company had contingent consideration of $750,000 related to earn-outs attributable to the 2020 AEC acquisition included in other long-term liabilities. The fair value of the contingent consideration liability related to the AEC acquisition was determined using a Monte-Carlo simulation model. An additional $1,000,000 in liabilities related to the 2023 purchase of patents from Cornerstone Research Group is included in accrued expenses as of December 31, 2023.

As of December 31, 2024 contingent consideration related to the AEC acquisition was reduced to $0 and liabilities related to the purchase of patents was also reduced to $0 due to payments made during the current year. There were no other changes to the fair value of these liabilities during the year ended December 31, 2024.

On February 27, 2025, the Company invested $6.0 million in an unrelated party (the “Issuer”) in the form of a convertible promissory note (the “Note”). The Note will mature on the fifth anniversary of the Note’s issuance, bears no interest and is convertible into the Issuer’s shares prior to the maturity date at the Company’s discretion or upon the occurrence of certain future events. The Note was accounted for as available-for-sale debt instrument measured at fair value and recorded in Other assets. The fair value of this Note is classified within level 3 of the fair value hierarchy. As of December 31, 2025, the fair value of the Note approximates its carrying amount.

Available-for-sale securities, other than the Note, are immaterial to the consolidated financial statements.
v3.26.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Contract Assets And Liabilities

The following table summarizes our contract assets and liabilities:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable

 

$

78,716

 

 

$

55,220

 

Contract assets

 

$

156,298

 

 

$

107,222

 

Contract liabilities

 

$

22,814

 

 

$

29,868

 

 

Changes in contract asset and contract liabilities are primarily due to the timing of payments from customers and the Company satisfying performance obligations during the normal course of business. The amount of revenue recognized from changes in the

transaction price associated with performance obligations satisfied in prior year during the years ended December 31, 2025, 2024 and 2023 was not material. Changes in contract assets and contract liabilities were as follows:

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract assets, beginning of period

 

$

107,222

 

 

$

89,184

 

Contract assets recorded during the period

 

 

145,571

 

 

 

96,433

 

Reclassified to accounts receivable during the period

 

 

(96,495

)

 

 

(78,395

)

Contract assets, end of period

 

$

156,298

 

 

$

107,222

 

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Contract liabilities, beginning of period

 

$

29,868

 

 

$

36,074

 

Customer advances received or billed

 

 

22,896

 

 

 

19,914

 

Recognition of unearned revenue

 

 

(29,950

)

 

 

(26,120

)

Contract liabilities, end of period

 

$

22,814

 

 

$

29,868

 
Summary of Revenue Disaggregated Into Markets

The following table presents our revenue disaggregated into markets as of December 31, 2025, 2024 and 2023:

 

 

 

2025

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

 

31.8

%

Space & Launch

 

 

149,825

 

 

 

31.8

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

36.4

%

Total Revenue

 

$

471,500

 

 

 

100.0

%

 

 

 

2024

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

 

33.2

%

Space & Launch

 

 

115,036

 

 

 

33.3

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

33.5

%

Total Revenue

 

$

345,251

 

 

 

100.0

%

 

 

 

2023

 

 

% of Revenue

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

100,093

 

 

 

35.7

%

Space & Launch

 

 

94,642

 

 

 

33.7

%

Tactical Missiles & Integrated Defense Systems

 

 

85,970

 

 

 

30.6

%

Total Revenue

 

$

280,705

 

 

 

100.0

%

 

Revenue growth by market is presented in the tables below:

 

 

 

2025

 

 

2024

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

149,987

 

 

$

114,594

 

 

 

30.9

%

Space & Launch

 

 

149,825

 

 

 

115,036

 

 

 

30.2

%

Tactical Missiles & Integrated Defense Systems

 

 

171,688

 

 

 

115,621

 

 

 

48.5

%

Total Revenue

 

$

471,500

 

 

$

345,251

 

 

 

36.6

%

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(in thousands, except percent)

 

Hypersonics & Strategic Missile Defense

 

$

114,594

 

 

$

100,093

 

 

 

14.5

%

Space & Launch

 

 

115,036

 

 

 

94,642

 

 

 

21.5

%

Tactical Missiles & Integrated Defense Systems

 

 

115,621

 

 

 

85,970

 

 

 

34.5

%

Total Revenue

 

$

345,251

 

 

$

280,705

 

 

 

23.0

%

 
Schedule of Inventory

The following table summarizes our inventory:

 

 

As of December 31,

 

 

2025

 

 

2024

 

Raw materials

$

7,644

 

 

$

9,485

 

Work in progress

 

1,974

 

 

 

398

 

Finished goods

 

1,044

 

 

 

—

 

Inventory

$

10,662

 

 

$

9,883

 
Summary of Prepaid and Other Current Assets

The following table summarizes our prepaid and other current assets:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Deferred offering costs

 

$

—

 

 

$

12,202

 

Other prepaid and current assets

 

 

11,768

 

 

 

5,654

 

Prepaid and other current assets

 

$

11,768

 

 

$

17,856

 

 
Summary of Accounts Receivable and Allowance For Credit Losses

The following table summarizes our accounts receivable and allowance for credit losses:

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accounts receivable, gross

 

$

79,599

 

 

$

55,932

 

Allowance for credit losses

 

 

(883

)

 

 

(712

)

Accounts receivable, net of allowance for credit losses

 

$

78,716

 

 

$

55,220

 

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Allowance for credit losses, beginning balance

 

$

(712

)

 

$

(1,039

)

Credit loss recoveries (expenses)

 

 

(1,014

)

 

 

(268

)

Write-offs

 

 

843

 

 

 

595

 

Allowance for credit losses, ending balance

 

$

(883

)

 

$

(712

)
Summary of Other Current Liabilities The following table summarizes our other current liabilities:

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Accrued offering costs

 

$

—

 

 

$

11,720

 

Other accrued expenses and current liabilities

 

 

5,094

 

 

 

767

 

Other current liabilities

 

$

5,094

 

 

$

12,487

 
v3.26.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment consisted of the following as of December 31, 2025 and 2024:

 

 

 

December 31,
2025

 

 

December 31,
2024

 

 

 

(in thousands)

 

Land and buildings

 

$

6,611

 

 

$

—

 

Machinery and equipment (7-10 year assets)

 

 

85,729

 

 

 

59,669

 

Vehicles (5 year assets)

 

 

265

 

 

 

48

 

Office furniture and equipment (5-7 year assets)

 

 

1,435

 

 

 

1,253

 

Computer systems (3 year assets)

 

 

2,941

 

 

 

2,532

 

Leasehold improvements (life tied to lease duration)

 

 

18,840

 

 

 

14,201

 

Construction in process

 

 

18,972

 

 

 

10,129

 

Total property and equipment

 

 

134,793

 

 

 

87,832

 

Less accumulated depreciation

 

 

(39,384

)

 

 

(26,952

)

Property and equipment, net

 

$

95,409

 

 

$

60,880

 
v3.26.1
Business Combination (Tables)
 12 Months Ended
Dec. 31, 2025
Rapid Machining Solutions  
Business Combination [Line Items]  
Schedule of Estimated Fair Values of Assets Acquired, and Liabilities Assumed in Connection with Acquisition

The following table sets forth the estimated fair values of the assets acquired, and liabilities assumed in connection with the Acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

44

 

Accounts receivable

 

 

2,312

 

Prepaid expenses

 

 

5

 

Inventory

 

 

828

 

Property plant and equipment

 

 

2,987

 

Customer backlogs

 

 

5,300

 

Customer relationships

 

 

13,000

 

Right of use lease assets

 

 

348

 

Total assets acquired

 

$

24,824

 

 

 

 

 

Accounts payable

 

 

857

 

Accrued liabilities

 

 

157

 

Lease liabilities, current

 

 

12

 

Lease liabilities, non-current

 

 

336

 

Total liabilities assumed

 

$

1,362

 

 

 

 

 

Goodwill

 

$

7,872

 

Fair Value of Consideration

 

$

31,334

 
Schedule of Intangible Assets Acquired in Acquisition

Below is a summary of the intangible assets acquired in the Acquisition:

 

 

 

Acquisition Date
Fair Value

 

 

Estimated Life

 

Intangible Asset

 

(in thousands)

 

 

(in years)

 

Customer Backlog

 

$

5,300

 

 

 

2.5

 

Customer Relationships

 

 

13,000

 

 

 

16.0

 

Total Intangible Assets Acquired

 

$

18,300

 

 

 

 
Metal Technology Inc  
Business Combination [Line Items]  
Schedule of Estimated Fair Values of Assets Acquired, and Liabilities Assumed in Connection with Acquisition

The following table sets forth the allocation, as of December 31, 2025, of the fair value of the assets acquired and liabilities assumed in connection with the MTI Acquisition:

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

2,230

 

Accounts receivable

 

 

2,734

 

Inventory

 

 

2,435

 

Prepaid and other current assets

 

 

173

 

Property, plant and equipment

 

 

10,672

 

Intangible assets

 

 

30,700

 

Right of use lease assets

 

 

715

 

Total assets acquired

 

$

49,659

 

 

 

 

 

Accounts payable

 

 

374

 

Accrued payroll and related expenses

 

 

10,815

 

Lease liabilities, current

 

 

113

 

Lease liabilities, non-current

 

 

602

 

Other current liabilities

 

 

461

 

Total liabilities assumed

 

$

12,365

 

 

 

 

 

Goodwill

 

$

45,019

 

Fair Value of Consideration

 

$

82,313

 
Schedule of Intangible Assets Acquired in Acquisition

Below is a summary of the intangible assets acquired in the MTI Acquisition:

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

19,700

 

 

 

14.0

 

Backlog

 

 

3,600

 

 

 

2.7

 

Know-How

 

 

7,400

 

 

 

7.0

 

Total Intangible Assets Acquired

 

$

30,700

 

 

 

 
Industrial Solid Propulsion  
Business Combination [Line Items]  
Schedule of Estimated Fair Values of Assets Acquired, and Liabilities Assumed in Connection with Acquisition

The following table sets forth the allocation, as of December 31, 2025, of the fair value of the assets acquired and liabilities assumed in connection with the ISP Acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

2,791

 

Accounts receivable

 

 

597

 

Inventory

 

 

1,202

 

Prepaid and other current assets

 

 

39

 

Property, plant and equipment

 

 

4,239

 

Intangible assets

 

 

21,400

 

Deferred tax assets

 

 

941

 

Total assets acquired

 

$

31,209

 

 

 

 

 

Accounts payable

 

 

279

 

Accrued payroll and related expenses

 

 

2,122

 

Contract liabilities

 

 

95

 

Long-term notes payable

 

 

1,919

 

Total liabilities assumed

 

$

4,415

 

 

 

 

 

Goodwill

 

$

31,843

 

Fair Value of Consideration

 

$

58,637

 
Schedule of Intangible Assets Acquired in Acquisition

Below is a summary of the intangible assets acquired in the ISP Acquisition:

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

13,500

 

 

 

10.0

 

Backlog

 

 

1,900

 

 

 

1.6

 

Know-How

 

 

6,000

 

 

 

15.0

 

Total Intangible Assets Acquired

 

$

21,400

 

 

 

 
Five Axis Industries, Inc  
Business Combination [Line Items]  
Schedule of Estimated Fair Values of Assets Acquired, and Liabilities Assumed in Connection with Acquisition

The following table sets forth the acquisition date fair value of the assets acquired, and liabilities assumed in connection with the acquisition:

 

 

 

Total Amount

 

Assets Acquired

 

(in thousands)

 

Cash and cash equivalents

 

$

5,055

 

Accounts receivable

 

 

1,807

 

Property, plant and equipment

 

 

4,466

 

Intangible assets

 

 

48,000

 

Total assets acquired

 

$

59,328

 

Accounts payable

 

 

156

 

Accrued payroll and related expenses

 

 

70

 

Other current liabilities

 

 

153

 

Deferred tax liabilities

 

 

12,886

 

Total liabilities assumed

 

$

13,265

 

 

 

 

 

Goodwill

 

$

50,505

 

Fair Value of Consideration

 

$

96,568

 
Schedule of Intangible Assets Acquired in Acquisition

Below is a summary of the intangible assets acquired in the Five Axis Acquisition:

 

Intangible Asset

 

Acquisition
Date Fair Value
(in thousands)

 

 

Estimated Life
(Years)

 

Customer Relationships

 

$

44,500

 

 

 

14.0

 

Backlog

 

 

3,500

 

 

 

0.8

 

Total Intangible Assets Acquired

 

$

48,000

 

 

 

 
v3.26.1
Goodwill and Intangibles (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

The table below summarizes the changes in the Company’s goodwill balances:

 

 

 

Total Goodwill

 

 

 

(in thousands)

 

Balance at January 1, 2024

 

$

217,274

 

Acquisitions

 

 

7,872

 

Impairments

 

 

—

 

Balance at December 31, 2024

 

 

225,146

 

Acquisitions

 

 

127,367

 

Impairments

 

 

—

 

Balance at December 31, 2025

 

$

352,513

 
Schedule of Carrying Amount Identifiable Intangible Assets

The table below summarizes the carrying amounts of the Company’s identifiable intangible assets:

 

 

 

 

 

As of December 31,

 

 

 

 

 

2025

 

 

2024

 

 

Weighted Average Amortization Period

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

(in years)

 

 

(in thousands)

 

 

(in thousands)

 

Patents (9 years)

 

9.0

 

 

$

2,722

 

 

$

(1,076

)

 

$

1,646

 

 

$

2,722

 

 

$

(774

)

 

$

1,948

 

Know-How (7.0 - 15.0 years)

 

10.5

 

 

 

15,686

 

 

 

(1,841

)

 

 

13,845

 

 

 

2,286

 

 

 

(585

)

 

 

1,701

 

Customer Backlogs (0.8 - 7.5 years)

 

2.3

 

 

 

47,750

 

 

 

(39,782

)

 

 

7,968

 

 

 

38,750

 

 

 

(35,302

)

 

 

3,448

 

Customer Relationships (10 - 19 years)

 

16.6

 

 

 

333,300

 

 

 

(70,871

)

 

 

262,429

 

 

 

255,600

 

 

 

(53,745

)

 

 

201,855

 

Total Intangible Assets

 

 

 

$

399,458

 

 

$

(113,570

)

 

$

285,888

 

 

$

299,358

 

 

$

(90,406

)

 

$

208,952

 
Schedule of Amortization Expense The table below summarizes the annual amortization expense of the Company for the next five years:

 

2026

$

29,303

 

2027

 

23,896

 

2028

 

22,618

 

2029

 

22,609

 

2030

 

22,609

 

Thereafter

 

164,853

 

Total

$

285,888

 

 
v3.26.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Notes Payable

The Company’s Notes Payable consisted of the following as of December 31, 2025 and 2024:

 

 

 

 

As of December 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Term Note

$

502,800

 

 

$

326,662

 

Other notes payable

 

3,967

 

 

 

10,452

 

Total notes payable

 

506,767

 

 

 

337,114

 

Issuance costs

 

(7,619

)

 

 

(3,054

)

Subtotal

 

499,148

 

 

 

334,060

 

Less: current portion of notes payable

 

(3,836

)

 

 

(7,140

)

Long-term notes payable

 

495,312

 

 

 

326,920

 
Schedule of Principal Repayment Requirements on the Notes Payable

Principal repayment requirements on the notes payable as of December 31, 2025 consisted of the following:

Years Ending December 31,

Amount

 

2026

$

5,050

 

2027

 

5,050

 

2028

 

5,050

 

2029

 

5,050

 

2030

 

5,050

 

Thereafter

 

481,517

 

Total

 

506,767

 

Debt issuance costs

 

(7,619

)

Notes payable net of debt issuance costs

$

499,148

 
v3.26.1
Lease Obligations (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Activity

On a consolidated basis, lease activity for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Finance lease expense

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

6,963

 

 

$

6,246

 

 

$

4,764

 

Interest on lease liabilities

 

 

6,805

 

 

 

6,729

 

 

 

5,470

 

Operating lease expense

 

 

2,194

 

 

 

1,772

 

 

 

1,677

 

Total

 

$

15,962

 

 

$

14,747

 

 

$

11,911

 

 
Schedule of Supplemental Cash Flow Information

On a consolidated basis, supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Cash paid for amounts included in the measurement of lease liabilities

 

(in thousands except percent and year)

 

Operating cash flows from finance leases

 

$

6,644

 

 

$

6,610

 

 

$

5,387

 

Financing cash flows from finance leases

 

$

3,899

 

 

$

2,869

 

 

$

1,532

 

Operating cash flows from operating leases

 

$

2,250

 

 

$

1,804

 

 

$

1,455

 

ROU assets obtained in exchange for new finance lease liabilities

 

$

3,588

 

 

$

7,078

 

 

$

7,712

 

ROU assets obtained in exchange for new operating lease liabilities

 

$

1,454

 

 

$

885

 

 

$

2,802

 

Weighted-average remaining lease term in years for finance leases

 

 

13.52

 

 

 

13.75

 

 

 

15.00

 

Weighted-average remaining lease term in years for operating leases

 

 

5.36

 

 

 

6.16

 

 

 

6.94

 

Weighted-average discount rate for finance leases

 

 

8.21

%

 

 

8.42

%

 

 

7.88

%

Weighted-average discount rate for operating leases

 

 

9.49

%

 

 

9.52

%

 

 

8.97

%
Schedule of Maturities of Lease Liabilities

On a consolidated basis, maturities of lease liabilities are as follows:

Year ending December 31,

 

Finance Lease

 

 

Operating Lease

 

 

Total

 

2026

 

$

10,826

 

 

$

2,371

 

 

$

13,197

 

2027

 

 

11,048

 

 

 

2,291

 

 

 

13,339

 

2028

 

 

11,082

 

 

 

1,548

 

 

 

12,630

 

2029

 

 

9,497

 

 

 

593

 

 

 

10,090

 

2030

 

 

8,745

 

 

 

163

 

 

 

8,908

 

Thereafter

 

 

87,068

 

 

 

1,662

 

 

 

88,730

 

Total undiscounted cash flows

 

 

138,266

 

 

 

8,628

 

 

 

146,894

 

Less: present value discount

 

 

(56,870

)

 

 

(1,864

)

 

 

(58,734

)

Total lease liabilities

 

$

81,396

 

 

$

6,764

 

 

$

88,160

 
v3.26.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
P Units  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Assumptions for Estimated Fair value of Share-Based Compensation at Grant Date The following assumptions were used for the determination of grant date fair value for the P Units granted during the year ended December 31, 2023. There were no grants of P Units during the years ended December 31, 2025 or 2024.

 

 

For the Year Ended December 31,

 

 

2023

 

Risk-free interest rate

 

 

4.5

%

Expected volatility

 

 

40.0

%

Expected term (in years)

 

 

2.9

 

Threshold value

 

$

470,186,054

 

 
Summary of Vested and Nonvested Incentive Units

A summary of the Company’s vested and nonvested P Units for the years ended December 31, 2025 and 2024 is presented below:

 

 

P Units

 

 

Weighted
Average Grant-
Date Fair Value

 

Nonvested units at January 1, 2024

 

 

8,892,655

 

 

$

0.31

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

(3,797,905

)

 

$

0.28

 

Forfeited

 

 

—

 

 

 

—

 

Nonvested units at December 31, 2024

 

 

5,094,750

 

 

$

0.32

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

(5,094,750

)

 

$

0.32

 

Forfeited

 

 

—

 

 

 

—

 

Nonvested units at December 31, 2025

 

 

—

 

 

 

—

 
Phantom Units  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Assumptions for Estimated Fair value of Share-Based Compensation at Grant Date The following assumptions were used for the determination of grant date fair value for the Phantom Units granted during the year ended December 31, 2024. There were no grants of Phantom Units during the year ended December 31, 2025.

 

 

For the Year Ended December 31,

 

 

2024

 

Risk-free interest rate

 

 

3.5

%

Expected volatility

 

30.0%-32.5%

 

Expected term (in years)

 

0.5 to 2.7

 

Threshold value

 

$

470,186,054

 
Summary of Vested and Nonvested Incentive Units

A summary of the Phantom Unit activity during the years ended December 31, 2025 and 2024 is shown below (fair value is a weighted average per unit).

 

Phantom Units

 

Weighted Average Grant-Date Fair Value

 

Nonvested units as of January 1, 2024

 

—

 

 

—

 

Granted

 

463,162

 

$

3.04

 

Vested

 

—

 

 

—

 

Forfeited

 

—

 

 

—

 

Nonvested units at December 31, 2024

 

463,162

 

$

3.04

 

Granted

 

—

 

 

—

 

Vested

 

(463,162

)

$

3.04

 

Forfeited

 

—

 

 

—

 

Nonvested units at December 31, 2025

 

—

 

$

—

 
v3.26.1
Net Income Per Common Share and Common Unit (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Net Income per Common Share or Unit

Net income per common share and common unit was computed as follows:

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands except per share data)

 

Net income

$

17,366

 

 

$

12,701

 

 

$

4,359

 

Weighted average common share or unit outstanding - basic, respectively

 

132,322

 

 

 

166,737

 

 

 

166,776

 

Effect of dilutive common shares or unit, respectively

 

—

 

 

 

—

 

 

 

—

 

Weighted average common share or unit outstanding - diluted, respectively

 

132,322

 

 

 

166,737

 

 

 

166,776

 

Net income per common share or unit - basic, respectively

$

0.13

 

 

$

0.08

 

 

$

0.03

 

Net income per common share or unit - diluted, respectively

$

0.13

 

 

$

0.08

 

 

$

0.03

 
v3.26.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Summary of Revenues, Net Income and Significant Expenses

The following table summarizes the Company’s revenues, net income and significant expenses:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Revenue

 

$

471,500

 

 

$

345,251

 

 

$

280,705

 

Expenses and other items:

 

 

 

 

 

 

 

 

 

Cost of goods sold:

 

 

 

 

 

 

 

 

 

Labor

 

 

(115,060

)

 

 

(95,404

)

 

 

(80,684

)

Materials

 

 

(133,518

)

 

 

(91,808

)

 

 

(75,469

)

Overhead

 

 

(21,587

)

 

 

(17,100

)

 

 

(12,256

)

Depreciation and amortization

 

 

(11,309

)

 

 

(8,828

)

 

 

(6,747

)

Total cost of goods sold

 

 

(281,474

)

 

 

(213,140

)

 

 

(175,156

)

General and administrative expenses

 

 

(85,656

)

 

 

(44,421

)

 

 

(36,623

)

Depreciation and amortization not included in cost of goods sold

 

 

(31,428

)

 

 

(24,130

)

 

 

(20,432

)

Other income

 

 

4,147

 

 

 

1,502

 

 

 

563

 

Interest expense, net

 

 

(44,567

)

 

 

(50,733

)

 

 

(47,867

)

Income tax provision

 

 

(15,156

)

 

 

(1,628

)

 

 

3,169

 

Net income

 

$

17,366

 

 

$

12,701

 

 

$

4,359

 
v3.26.1
Provision for (Benefit from) Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule Of Pre-tax Book Income

The following are the pre-tax book income for the years ended December 31, 2025, 2024 and 2023:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Pre-tax book income:

 

 

 

 

 

 

 

 

Domestic

$

32,522

 

 

$

14,329

 

 

$

1,190

 

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total

$

32,522

 

 

$

14,329

 

 

$

1,190

 

 
Schedule of Provision for Income Taxes

The provision for (benefit from) income taxes for the years ended December 31, 2025, 2024 and 2023 consists of the following:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Current income taxes:

 

 

 

 

 

 

 

 

Federal

$

673

 

 

$

10,977

 

 

$

7,752

 

State

 

3,967

 

 

 

2,161

 

 

 

(214

)

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total current

$

4,640

 

 

$

13,138

 

 

$

7,538

 

Deferred income taxes:

 

 

 

 

 

 

 

 

Federal

 

9,707

 

 

 

(10,087

)

 

 

(9,724

)

State

 

809

 

 

 

(1,423

)

 

 

(983

)

Foreign

 

—

 

 

 

—

 

 

 

—

 

Total deferred

$

10,516

 

 

$

(11,510

)

 

$

(10,707

)

Provision for (benefit from) income taxes

$

15,156

 

 

$

1,628

 

 

$

(3,169

)
Schedule of Reconciliation of Effective Tax Rate and Federal Statutory Tax Rate After the Adoption of ASU 2023-09

A reconciliation of the Company’s effective tax rate and federal statutory tax rate after the adoption of ASU 2023-09 is summarized as follows. See Note 2. Summary Significant Accounting Policies - Recently Issued Accounting Pronouncements Adopted for additional details on the adoption of ASU 2023-09.

 

 

Year Ended December 31, 2025

 

 

(in thousands, except percent)

 

Income taxes (benefit) at statutory federal rate

$

6,830

 

 

 

21.0

%

State and local taxes, net of federal income tax effect1

 

2,983

 

 

 

9.2

%

Tax credits

 

 

 

 

 

R&D credit

 

(792

)

 

 

(2.4

%)

Changes in valuation allowance

 

—

 

 

 

0.0

%

Nontaxable or nondeductible items

 

 

 

 

 

Other

 

279

 

 

 

0.9

%

Section 162(m) officer's compensation

 

1,052

 

 

 

3.2

%

Transaction costs

 

793

 

 

 

2.4

%

Penalties and Interest

 

1,464

 

 

 

4.5

%

Changes in unrecognized tax benefits

 

809

 

 

 

2.5

%

Other

 

 

 

 

 

Change in the tax status of an entity

 

1,401

 

 

 

4.3

%

Other

 

337

 

 

 

1.0

%

Total effective rate

$

15,156

 

 

 

46.5

%
1.
The state that contributes to the majority (greater than 50%) of the tax effect in this category is California for the years ended December 31, 2025.

A reconciliation of the Company’s effective tax rate and federal statutory tax rate as previously disclosed for the year ended December 31, 2024 and 2023 is summarized as follows:

 

Years Ended December 31,

 

 

2024

 

 

2023

 

 

(in thousands, except percent)

 

Federal income taxes

 

21.0

%

 

 

21.0

%

State income taxes, net of federal benefit

 

0.7

%

 

 

(3.0

%)

Rate differential

 

(3.4

%)

 

 

(2.3

%)

Permanent and other differences

 

1.0

%

 

 

9.0

%

Profits Interest

 

1.3

%

 

 

20.1

%

Research and development tax credits

 

(5.5

%)

 

 

(79.2

%)

Uncertain tax positions

 

9.8

%

 

 

11.2

%

Income from passthrough entities

 

(15.9

%)

 

 

(87.9

%)

Return to provision2

 

(1.8

%)

 

 

(155.0

%)

Interest and penalties

 

4.3

%

 

 

0.0

%

Other

 

0.0

%

 

 

0.0

%

Effective Tax Rate

 

11.5

%

 

 

(266.1

%)
2.
The return to provision line item included in the rate reconciliation relates to changes in estimates related to transfer pricing, net costs in excess of billings, research and development tax credits, other deferred tax and income tax payable true-ups
Schedule of Cash Income Taxes Paid

The amounts of cash taxes paid by the Company for the year ended December 31, 2025 are as follows:

 

 

Year Ended December 31,

 

 

2025

 

 

(in thousands)

 

Federal income taxes paid, net of refunds received

$

15,954

 

State income taxes paid, net of refunds received

 

 

California

 

900

 

Other

 

66

 

Foreign income taxes paid, net of refunds received

 

—

 

Total income taxes paid, net of refunds received

$

16,920

 

 
Summary of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities are summarized as follows:

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

Accrued Compensation

$

694

 

 

$

673

 

State income tax

 

1,136

 

 

 

475

 

Interest expense limitation

 

13,208

 

 

 

13,441

 

Capitalized Research

 

100

 

 

 

8,209

 

Lease Liability

 

22,673

 

 

 

20,703

 

Other

 

759

 

 

 

648

 

Total deferred tax assets

$

38,570

 

 

$

44,149

 

Less: Valuation allowance

 

—

 

 

 

—

 

Total deferred tax assets, net of valuation allowance

$

38,570

 

 

$

44,149

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

ROU Asset

$

(18,571

)

 

$

(17,647

)

Percentage of Completion Contracts

 

(915

)

 

 

(148

)

Fixed Assets

 

(14,540

)

 

 

(8,343

)

Intangibles

 

(52,375

)

 

 

(43,381

)

Total deferred tax liabilities

$

(86,401

)

 

$

(69,519

)

Net deferred tax liabilities

$

(47,831

)

 

$

(25,370

)
Summary of Tax Credit Carryforwards

Tax credit carryforwards as of December 31, 2025 are as follows:

 

 

Amount

 

 

Expiration Years

 

(in thousands)

 

 

 

Research and development tax credits, federal

 

176

 

 

2045

Research and development tax credits, state

 

8

 

 

Indefinite
Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits is as follows:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Beginning balance of unrecognized tax benefits

$

2,015

 

 

$

579

 

 

$

466

 

Gross increases (decreases) based on tax positions related to current year

 

1,845

 

 

 

801

 

 

 

283

 

Gross increases (decreases) based on tax positions related to prior years

 

157

 

 

 

635

 

 

 

(170

)

Expiration of statute of limitations

 

(60

)

 

 

—

 

 

 

—

 

Ending balance of unrecognized tax benefits

$

3,957

 

 

$

2,015

 

 

$

579

 
v3.26.1
Formation and Nature of Business Operations - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Oct. 28, 2025
May 28, 2025
Apr. 02, 2025
Feb. 14, 2025
Feb. 12, 2025
Dec. 31, 2025
Common Stock            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Shares issued in exchange of units         123,800,000 123,754,000
Stock issued and sold           8,421,000
Common Stock | IPO            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Shares issued in offering       26,500,000    
Offering price       $ 22    
Stock issued and sold       8,400,000    
Net proceeds after deducting other offering expenses       $ 147.3    
Aerospace Engineering, LLC            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date           Aug. 28, 2020
AMRO Fabricating Corporation            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date           Oct. 28, 2020
American Automated Engineering, Inc.            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date           Dec. 21, 2020
Systima Technologies, Inc            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date           Sep. 14, 2021
RMS            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date           Feb. 16, 2024
Metal Technology Inc            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date     Apr. 02, 2025     Apr. 02, 2025
Industrial Solid Propulsion            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date   May 28, 2025       May 28, 2025
Five Axis Industries, Inc            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Business combination, acquisition date Oct. 28, 2025         Oct. 28, 2025
v3.26.1
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Feb. 27, 2025
USD ($)
Dec. 31, 2025
USD ($)
Segment
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Segment
Summary of Significant Accounting Policies [Line Items]        
Cash deposits by FDIC   $ 250,000    
Number of reportable segments | Segment   1 1 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration]   srt:ChiefExecutiveOfficerMember    
Remaining performance obligation   $ 550,600,000    
Accounts receivable contractual due date   180 days    
Percentage of customers within contractual due date   50.00%    
Right-of-use asset and lease liability for leases with terms   12 months    
Impairment of long-lived assets   $ 0 $ 0 $ 0
Largest amount of tax benefit that is more than 50 percent   50.00%    
Potentially dilutive securities   $ 0 0 0
Contingent consideration     0  
Contingent consideration non current     $ 0  
Contingent consideration, other long-term liabilities       750,000
Contingent consideration accrued expenses       $ 1,000,000
Convertible Promissory Note        
Summary of Significant Accounting Policies [Line Items]        
Debt instrument, maturity date, description On February 27, 2025, the Company invested $6.0 million in an unrelated party (the “Issuer”) in the form of a convertible promissory note (the “Note”). The Note will mature on the fifth anniversary of the Note’s issuance, bears no interest and is convertible into the Issuer’s shares prior to the maturity date at the Company’s discretion or upon the occurrence of certain future events. The Note was accounted for as available-for-sale debt instrument measured at fair value and recorded in Other assets. The fair value of this Note is classified within level 3 of the fair value hierarchy. As of December 31, 2025, the fair value of the Note approximates its carrying amount.      
Debt conversion, description is convertible into the Issuer’s shares prior to the maturity date at the Company’s discretion or upon the occurrence of certain future events.      
Interest rate 0.00%      
Convertible Promissory Note | Issuer        
Summary of Significant Accounting Policies [Line Items]        
Convertible promissory note $ 6,000,000      
ASU 2024-01        
Summary of Significant Accounting Policies [Line Items]        
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]   true    
Change in Accounting Principle, Accounting Standards Update, Adoption Date   Jan. 01, 2025    
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]   true    
ASU 2023-09        
Summary of Significant Accounting Policies [Line Items]        
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]   true    
ASU 2024-02        
Summary of Significant Accounting Policies [Line Items]        
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]   true    
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]   true    
Customer One | Customer Concentration Risk | Sales Revenue Net        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   28.50% 27.80% 23.50%
Customer Two | Customer Concentration Risk | Sales Revenue Net        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   12.80% 11.90% 16.40%
Customer Three | Customer Concentration Risk | Sales Revenue Net        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   10.20% 11.10% 15.30%
Two Customers | Customer Concentration Risk | Accounts Receivable        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   40.70%    
Three Customers | Customer Concentration Risk | Sales Revenue Net        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   10.00% 10.00% 10.00%
Three Customers | Customer Concentration Risk | Accounts Receivable        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk     51.00%  
One Supplier | Customer Concentration Risk | Accounts Payable        
Summary of Significant Accounting Policies [Line Items]        
Concentration of Credit Risk   23.80% 19.60%  
Maximum        
Summary of Significant Accounting Policies [Line Items]        
Property and equipment estimated useful lives   15 years    
Probability of exercise of lease extensions   18 years    
Minimum        
Summary of Significant Accounting Policies [Line Items]        
Property and equipment estimated useful lives   3 years    
Probability of exercise of lease extensions   1 year    
Financing Receivables Beyond One Year Past Due        
Summary of Significant Accounting Policies [Line Items]        
Percentage of customers within contractual due date   100.00%    
v3.26.1
Summary of Significant Accounting Policies - Additional Information (Details1)
$ in Millions
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 550.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Percentage 73.50%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Percentage 17.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Percentage 9.50%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period
v3.26.1
Summary of Significant Accounting Policies - Summary of Contract Assets And Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Accounts receivable $ 78,716 $ 55,220  
Contract assets 156,298 107,222 $ 89,184
Contract liabilities $ 22,814 $ 29,868 $ 36,074
v3.26.1
Summary of Significant Accounting Policies - Summary of Changes In Contract Assets And Contract Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in Contract with Customer, Asset [Abstract]    
Contract assets, beginning of period $ 107,222 $ 89,184
Contract assets recorded during the period 145,571 96,433
Reclassified to accounts receivable during the period (96,495) (78,395)
Contract assets, end of period 156,298 107,222
Change in Contract with Customer, Liability [Abstract]    
Contract liabilities, beginning of period 29,868 36,074
Customer advances received or billed 22,896 19,914
Recognition of unearned revenue (29,950) (26,120)
Contract liabilities, end of period $ 22,814 $ 29,868
v3.26.1
Summary of Significant Accounting Policies - Summary of Revenue Disaggregated Into Markets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total Revenue $ 471,500 $ 345,251 $ 280,705
Percentage of total revenue 100.00% 100.00% 100.00%
Hypersonic & Strategic Missile Defense      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 149,987 $ 114,594 $ 100,093
Percentage of total revenue 31.80% 33.20% 35.70%
Space & Launch      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 149,825 $ 115,036 $ 94,642
Percentage of total revenue 31.80% 33.30% 33.70%
Tactical Missiles & Integrated Defense Systems      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 171,688 $ 115,621 $ 85,970
Percentage of total revenue 36.40% 33.50% 30.60%
v3.26.1
Summary of Significant Accounting Policies - Summary of Revenue Growth by Market (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total Revenue $ 471,500 $ 345,251 $ 280,705
Percentage of change of revenue 36.60% 23.00%  
Hypersonic & Strategic Missile Defense      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 149,987 $ 114,594 100,093
Percentage of change of revenue 30.90% 14.50%  
Space & Launch      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 149,825 $ 115,036 94,642
Percentage of change of revenue 30.20% 21.50%  
Tactical Missiles & Integrated Defense Systems      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 171,688 $ 115,621 $ 85,970
Percentage of change of revenue 48.50% 34.50%  
v3.26.1
Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventory, Net [Abstract]    
Raw materials $ 7,644 $ 9,485
Work in progress 1,974 398
Finished goods 1,044 0
Inventory $ 10,662 $ 9,883
v3.26.1
Summary of Significant Accounting Policies - Summary of Prepaid and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deferred offering costs $ 0 $ 12,202
Other prepaid and current assets 11,768 5,654
Prepaid and other current assets $ 11,768 $ 17,856
v3.26.1
Summary of Significant Accounting Policies - Summary of Accounts Receivable and Allowance For Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Allowance for Credit Loss [Abstract]    
Accounts receivable, gross $ 79,599 $ 55,932
Allowance for credit losses (883) (712)
Accounts receivable, net of allowance for credit losses 78,716 55,220
Allowance for credit losses, beginning balance (712) (1,039)
Credit loss recoveries (expenses) (1,014) (268)
Write-offs 843 595
Allowance for credit losses, ending balance $ (883) $ (712)
v3.26.1
Summary of Significant Accounting Policies - Summary of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities, Current [Abstract]    
Accrued offering costs $ 0 $ 11,720
Other accrued expenses and current liabilities 5,094 767
Other current liabilities $ 5,094 $ 12,487
v3.26.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment $ 134,793 $ 87,832
Less accumulated depreciation (39,384) (26,952)
Net property, plant and equipment 95,409 60,880
Land and buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment 6,611 0
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 85,729 59,669
Vehicles    
Property, Plant and Equipment [Line Items]    
Property and equipment 265 48
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 1,435 1,253
Computer systems    
Property, Plant and Equipment [Line Items]    
Property and equipment 2,941 2,532
Leasehold Improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 18,840 14,201
Construction in Process    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 18,972 $ 10,129
v3.26.1
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Details)
Dec. 31, 2025
Dec. 31, 2024
Minimum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 3 years  
Maximum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 15 years  
Machinery and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 7 years 7 years
Machinery and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 10 years 10 years
Vehicles    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 5 years 5 years
Office furniture and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 5 years 5 years
Office furniture and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 7 years 7 years
Computer systems    
Property, Plant and Equipment [Line Items]    
Property and equipment estimated useful lives 3 years 3 years
v3.26.1
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation expense associated with property and equipment $ 12.4 $ 9.6 $ 7.8
Cost of Goods Sold      
Property, Plant and Equipment [Line Items]      
Depreciation expense associated with property and equipment $ 11.3 $ 8.8 $ 6.7
v3.26.1
Asset Acquisitions - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Asset Acquisition [Line Items]      
Amortization on intangibles $ 23.2 $ 16.9 $ 14.4
v3.26.1
Asset Acquisitions - Summary of Intangible Assets Acquired (Details)
Dec. 31, 2025
Patents  
Asset Acquisition [Line Items]  
Intangible Asset, Estimated Life (Years) 9 years
v3.26.1
Business Combinations - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 28, 2025
May 28, 2025
Apr. 02, 2025
Feb. 16, 2024
Dec. 31, 2025
Dec. 31, 2024
Business Combination [Line Items]            
Contingent consideration liability           $ 0
Weighted average useful life         14 years 7 months 6 days  
Rapid Machining Solutions            
Business Combination [Line Items]            
Business combination, acquisition date       Feb. 16, 2024    
Business combination, equity interests       100.00%    
Term loan       $ 35,000    
Business combination, fair Value of consideration       31,334    
Business combination, direct acquisition-related expenses       $ 1,600    
Cost, Product and Service [Extensible Enumeration]       General and Administrative Expense [Member]    
Weighted average useful life       12 years 1 month 6 days    
Metal Technology Inc            
Business Combination [Line Items]            
Business combination, acquisition date     Apr. 02, 2025   Apr. 02, 2025  
Business combination, fair Value of consideration     $ 82,313      
Business combination, direct acquisition-related expenses     $ 1,400      
Cost, Product and Service [Extensible Enumeration]     General and Administrative Expense [Member]      
Weighted average useful life     11 years      
Industrial Solid Propulsion            
Business Combination [Line Items]            
Business combination, acquisition date   May 28, 2025     May 28, 2025  
Payment to acquire business in cash   $ 49,000        
Business combination, fair Value of consideration   58,637        
Fair value of equity consideration   5,700        
Business combination fair value of the Earnout   3,900        
Business combination, earnout for cash payment   $ 5,000        
Business combination, direct acquisition-related expenses         $ 1,200  
Contingent consideration liability         $ 0  
Cost, Product and Service [Extensible Enumeration]         General and Administrative Expense [Member]  
Weighted average useful life   10 years 8 months 12 days        
Industrial Solid Propulsion | Real Estate of Industrial Solid Propulsion            
Business Combination [Line Items]            
Payment to acquire business in cash   $ 52,900        
Business combination common stock issued   147,842        
Five Axis Industries, Inc            
Business Combination [Line Items]            
Business combination, acquisition date Oct. 28, 2025       Oct. 28, 2025  
Payment to acquire business in cash $ 90,700          
Business combination common stock issued 68,625          
Business combination, fair Value of consideration $ 96,568          
Business combination, direct acquisition-related expenses         $ 2,500  
Cost, Product and Service [Extensible Enumeration]         General and Administrative Expense [Member]  
Weighted average useful life 13 years          
v3.26.1
Business Combinations - Schedule of Estimated Fair Values of Assets Acquired, and Liabilities Assumed in Connection with Acquisition (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Oct. 28, 2025
May 28, 2025
Apr. 02, 2025
Dec. 31, 2024
Feb. 16, 2024
Dec. 31, 2023
Assets Acquired              
Goodwill $ 352,513       $ 225,146   $ 217,274
Rapid Machining Solutions              
Assets Acquired              
Cash and cash equivalents           $ 44  
Accounts receivable           2,312  
Prepaid and other current assets           5  
Inventory           828  
Property plant and equipment           2,987  
Right of use lease assets           348  
Total assets acquired           24,824  
Accounts payable           857  
Accrued liabilities           157  
Lease liabilities, current           12  
Lease liabilities, non-current           336  
Total liabilities assumed           1,362  
Goodwill           7,872  
Fair Value of Consideration           31,334  
Rapid Machining Solutions | Customer Relationships              
Assets Acquired              
Intangible assets           13,000  
Rapid Machining Solutions | Customer Backlogs              
Assets Acquired              
Intangible assets           $ 5,300  
Metal Technology Inc              
Assets Acquired              
Cash and cash equivalents       $ 2,230      
Accounts receivable       2,734      
Prepaid and other current assets       173      
Inventory       2,435      
Property plant and equipment       10,672      
Intangible assets       30,700      
Right of use lease assets       715      
Total assets acquired       49,659      
Accounts payable       374      
Accrued payroll and related expenses       10,815      
Lease liabilities, current       113      
Lease liabilities, non-current       602      
Other current liabilities       461      
Total liabilities assumed       12,365      
Goodwill       45,019      
Fair Value of Consideration       $ 82,313      
Industrial Solid Propulsion              
Assets Acquired              
Cash and cash equivalents     $ 2,791        
Accounts receivable     597        
Prepaid and other current assets     39        
Inventory     1,202        
Property plant and equipment     4,239        
Intangible assets     21,400        
Deferred tax assets     941        
Total assets acquired     31,209        
Accounts payable     279        
Accrued payroll and related expenses     2,122        
Contract liabilities     95        
Long-term notes payable     1,919        
Total liabilities assumed     4,415        
Goodwill     31,843        
Fair Value of Consideration     $ 58,637        
Five Axis Industries, Inc              
Assets Acquired              
Cash and cash equivalents   $ 5,055          
Accounts receivable   1,807          
Property plant and equipment   4,466          
Intangible assets   48,000          
Total assets acquired   59,328          
Accounts payable   156          
Accrued payroll and related expenses   70          
Other current liabilities   153          
Deferred tax liabilities   12,886          
Total liabilities assumed   13,265          
Goodwill   50,505          
Fair Value of Consideration   $ 96,568          
v3.26.1
Business Combinations - Schedule of Intangible Assets Acquired in Acquisition (Details) - USD ($)
$ in Thousands
Oct. 28, 2025
May 28, 2025
Apr. 02, 2025
Feb. 16, 2024
Rapid Machining Solutions        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value       $ 18,300
Metal Technology Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value     $ 30,700  
Industrial Solid Propulsion        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value   $ 21,400    
Five Axis Industries, Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value $ 48,000      
Customer Relationships | Rapid Machining Solutions        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value       $ 13,000
Intangible Asset, Estimated Life (Years)       16 years
Customer Relationships | Metal Technology Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value     $ 19,700  
Intangible Asset, Estimated Life (Years)     14 years  
Customer Relationships | Industrial Solid Propulsion        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value   $ 13,500    
Intangible Asset, Estimated Life (Years)   10 years    
Customer Relationships | Five Axis Industries, Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value $ 44,500      
Intangible Asset, Estimated Life (Years) 14 years      
Customer Backlogs | Rapid Machining Solutions        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value       $ 5,300
Intangible Asset, Estimated Life (Years)       2 years 6 months
Customer Backlogs | Metal Technology Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value     $ 3,600  
Intangible Asset, Estimated Life (Years)     2 years 8 months 12 days  
Customer Backlogs | Industrial Solid Propulsion        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value   $ 1,900    
Intangible Asset, Estimated Life (Years)   1 year 7 months 6 days    
Customer Backlogs | Five Axis Industries, Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value $ 3,500      
Intangible Asset, Estimated Life (Years) 9 months 18 days      
Developed Technology | Metal Technology Inc        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value     $ 7,400  
Intangible Asset, Estimated Life (Years)     7 years  
Developed Technology | Industrial Solid Propulsion        
Intangible Asset, Acquired, Finite-Lived [Line Items]        
Intangible Asset, Acquisition Date Fair Value   $ 6,000    
Intangible Asset, Estimated Life (Years)   15 years    
v3.26.1
Goodwill and Intangibles - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Segment
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense | $ $ 23,200,000 $ 16,900,000 $ 14,400,000
Weighted Average Amortization Period 14 years 7 months 6 days    
Impairment losses | $ $ 0 $ 0 $ 0
Number of operating segment 1 1 1
Number of reportable segments 1 1 1
Number of reporting unit 1 1 1
v3.26.1
Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill, Beginning Balance $ 225,146,000 $ 217,274,000  
Acquisitions 127,367,000 7,872,000  
Impairments 0 0 $ 0
Goodwill, Ending Balance $ 352,513,000 $ 225,146,000 $ 217,274,000
v3.26.1
Goodwill and Intangibles - Schedule Of Carrying Amount Identifiable Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Amortization Period 14 years 7 months 6 days  
Gross Carrying Amount $ 399,458 $ 299,358
Accumulated Amortization (113,570) (90,406)
Total Intangible Assets, Net $ 285,888 208,952
Patents    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Amortization Period 9 years  
Gross Carrying Amount $ 2,722 2,722
Accumulated Amortization (1,076) (774)
Total Intangible Assets, Net $ 1,646 1,948
Estimated Useful lives 9 years  
Know-How    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Amortization Period 10 years 6 months  
Gross Carrying Amount $ 15,686 2,286
Accumulated Amortization (1,841) (585)
Total Intangible Assets, Net $ 13,845 1,701
Know-How | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 7 years  
Know-How | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 15 years  
Customer Backlogs    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Amortization Period 2 years 3 months 18 days  
Gross Carrying Amount $ 47,750 38,750
Accumulated Amortization (39,782) (35,302)
Total Intangible Assets, Net $ 7,968 3,448
Customer Backlogs | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 9 months 18 days  
Customer Backlogs | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 7 years 6 months  
Customer Relationships    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Amortization Period 16 years 7 months 6 days  
Gross Carrying Amount $ 333,300 255,600
Accumulated Amortization (70,871) (53,745)
Total Intangible Assets, Net $ 262,429 $ 201,855
Customer Relationships | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 10 years  
Customer Relationships | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Estimated Useful lives 19 years  
v3.26.1
Goodwill and Intangibles - Schedule Of Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2026 $ 29,303  
2027 23,896  
2028 22,618  
2029 22,609  
2030 22,609  
Thereafter 164,853  
Total Intangible Assets, Net $ 285,888 $ 208,952
v3.26.1
Debt - Schedule of Notes Payable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Notes Payable $ 506,767 $ 337,114
Issuance costs (7,619) (3,054)
Notes payable net of debt issuance costs 499,148 334,060
Less: current portion of notes payable (3,836) (7,140)
Long-term notes payable 495,312 326,920
Term Note    
Debt Instrument [Line Items]    
Notes Payable 502,800 326,662
Other Notes Payable    
Debt Instrument [Line Items]    
Notes Payable $ 3,967 $ 10,452
v3.26.1
Debt - Schedule of Principal Repayment Requirements on the Notes Payable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2026 $ 5,050  
2027 5,050  
2028 5,050  
2029 5,050  
2030 5,050  
Thereafter 481,517  
Total 506,767 $ 337,114
Debt issuance costs (7,619) (3,054)
Notes payable net of debt issuance costs $ 499,148 $ 334,060
v3.26.1
Debt - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Apr. 01, 2025
Apr. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Mar. 09, 2026
Feb. 02, 2026
Oct. 24, 2025
May 27, 2025
Apr. 02, 2025
Line of Credit Facility [Line Items]                    
Notes payable     $ 499,148,000 $ 334,060,000            
Revolving line of credit     0 25,000,000            
Interest expense     45,200,000 50,900,000 $ 48,100,000          
Amortization of debt origination fees     1,327,000 2,301,000 1,985,000          
Accrued interest     $ 0 0            
Seller Note | Prior Acquisition                    
Line of Credit Facility [Line Items]                    
Notes payable       6,600,000            
Seller Note | Acquisition                    
Line of Credit Facility [Line Items]                    
Interest rate percentage     7.50%              
Repayment of outstanding principal and interest balance   $ 10,600,000                
Notes payable     $ 0 $ 10,500,000            
Other Notes Payable                    
Line of Credit Facility [Line Items]                    
Interest rate percentage     6.68%              
Citi Term Note                    
Line of Credit Facility [Line Items]                    
Interest rate     7.50% 11.01%            
Citi Term Note | ISP                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount                 $ 75,000,000  
Term Note                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount     $ 502,800,000              
Debt origination fees     7,600,000              
Amortization of debt origination fees     1,300,000 $ 2,300,000 $ 2,000,000          
Term Note | Subsequent Event                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount             $ 767,800,000      
Revolving Line of Credit                    
Line of Credit Facility [Line Items]                    
Revolving line of credit     $ 0 $ 25,000,000            
Interest rate     6.48% 11.01%            
Revolving Line of Credit | Subsequent Event                    
Line of Credit Facility [Line Items]                    
Maximum borrowing limit of revolving line of credit           $ 100,000,000        
Additional borrowing           150,000,000        
Debt instrument face amount           $ 50,000,000        
Revolving Line of Credit | Citi Credit Agreement                    
Line of Credit Facility [Line Items]                    
First lien net leverage ratio maximum     6.5              
Maximum borrowing limit of revolving line of credit     $ 50,000,000              
Revolving Line of Credit | TCW Asset Management Company                    
Line of Credit Facility [Line Items]                    
Revolving line of credit       $ 25,000,000            
Revolving Line of Credit | TCW Asset Management Company | Citi Credit Agreement                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount $ 50,000,000                  
Maturity date Apr. 01, 2030                  
Revolving Line of Credit | MTI                    
Line of Credit Facility [Line Items]                    
Revolving line of credit                   $ 30,000,000
Revolving Line of Credit | Citi Term Note | Five Axis Industries, Inc                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount               $ 130,000,000    
Term Loan | TCW Asset Management Company | Citi Credit Agreement                    
Line of Credit Facility [Line Items]                    
Debt instrument face amount $ 300,000,000                  
Maturity date Apr. 01, 2032                  
v3.26.1
Lease Obligations - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Total lease payments $ 12.8 $ 11.3 $ 6.2
Short term lease expenses $ 0.9 $ 0.6 $ 0.4
v3.26.1
Lease Obligations - Schedule of Lease Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finance lease expense      
Amortization of ROU assets $ 6,963 $ 6,246 $ 4,764
Interest on lease liabilities 6,805 6,729 5,470
Operating lease expense 2,194 1,772 1,677
Total $ 15,962 $ 14,747 $ 11,911
v3.26.1
Lease Obligations - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from finance leases $ 6,644 $ 6,610 $ 5,387
Financing cash flows from finance leases 3,899 2,869 1,532
Operating cash flows from operating leases 2,250 1,804 1,455
ROU assets obtained in exchange for new finance lease liabilities 3,588 7,078 7,712
ROU assets obtained in exchange for new operating lease liabilities $ 1,454 $ 885 $ 2,802
Weighted-average remaining lease term in years for finance leases 13 years 6 months 7 days 13 years 9 months 15 years
Weighted-average remaining lease term in years for operating leases 5 years 4 months 9 days 6 years 1 month 28 days 6 years 11 months 8 days
Weighted-average discount rate for finance leases 8.21% 8.42% 7.88%
Weighted-average discount rate for operating leases 9.49% 9.52% 8.97%
v3.26.1
Lease Obligations - Schedule of Maturities of Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Finance Lease  
2026 $ 10,826
2027 11,048
2028 11,082
2029 9,497
2030 8,745
Thereafter 87,068
Total undiscounted cash flows 138,266
Less: present value discount (56,870)
Total lease liabilities 81,396
Operating Lease  
2026 2,371
2027 2,291
2028 1,548
2029 593
2030 163
Thereafter 1,662
Total undiscounted cash flows 8,628
Less: present value discount (1,864)
Total lease liabilities 6,764
Total  
2026 13,197
2027 13,339
2028 12,630
2029 10,090
2030 8,908
Thereafter 88,730
Total undiscounted cash flows 146,894
Less: present value discount (58,734)
Total lease liabilities $ 88,160
v3.26.1
Retirement Plans - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Contribution Plan Disclosure [Line Items]      
Defined contribution plan, description The Company maintains 401(k) Plans for all employees who have completed three months of service and have reached age 18. Qualified employees may contribute up to 90% of their pre-tax annual compensation to this plan, not to exceed the dollar limit set by law.    
Defined contribution plan, employer contribution amount $ 3.9 $ 2.6 $ 1.6
COLI investment policies amount   $ 0.9  
Maximum [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Defined contribution plan, maximum annual contributions per employee, percent 90.00%    
v3.26.1
Stockholders' Equity and Membership Units - Additional Information (Details)
 12 Months Ended
Jul. 23, 2025
USD ($)
$ / shares
shares
Feb. 14, 2025
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
$ / shares
shares
Subsidiary, Sale of Stock [Line Items]        
Membership units outstanding       166,737,325
Common stock par or stated value per share | $ / shares     $ 0.001 $ 0.001
Net proceeds from issuance of common stock in initial public offering | $     $ 154,836,000  
Secondary Offering        
Subsidiary, Sale of Stock [Line Items]        
Stock issued and sold 0      
Net proceeds from issuance of common stock in initial public offering | $ $ 0      
Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Stock issued and sold     8,421,000  
Common Stock | IPO        
Subsidiary, Sale of Stock [Line Items]        
Membership unit conversion ratio   0.68    
Membership units converted common stock   112,566,039    
Offering price | $ / shares   $ 22    
Common stock agreed to sell at the offering   26,500,000    
Stock issued and sold   8,400,000    
Common Stock | Secondary Offering        
Subsidiary, Sale of Stock [Line Items]        
Common stock par or stated value per share | $ / shares $ 0.001      
Offering price | $ / shares $ 49      
Common stock agreed to sell at the offering 21,000,000      
Common Stock | Underwriters        
Subsidiary, Sale of Stock [Line Items]        
Numbers of days were granted 30 days      
Additional shares of common stock exercised date Jul. 24, 2025      
Common Stock | Underwriters | Maximum        
Subsidiary, Sale of Stock [Line Items]        
Purchase of additional shares of common stock 3,150,000      
v3.26.1
Share-Based Compensation - Additional Information (Details)
 12 Months Ended
Feb. 14, 2025
USD ($)
shares
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Compensation cost | $   $ 8,100,000 $ 1,000,000 $ 1,300,000
2025 Stock Incentive Plan        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-Based Compensation, grants in period   0    
Number of shares authorized   11,500,000    
P Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share - Based Compensation, shares outstanding 18,063,207      
Shares issued in exchange of units 11,187,501      
Membership unit conversion ratio 0.62      
Share-Based Compensation, vesting years   5 years    
Share-based compensation, vesting percentage   20.00%    
Share-Based Compensation, grants in period   0 0  
Number of units outstanding   0 5,094,750 8,892,655
Threshold value | $       $ 470,186,054
P Units | General and Administrative Expenses        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Compensation cost | $   $ 1,400,000 $ 1,000,000  
Phantom Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-Based Compensation, grants in period   0 463,162  
Number of units outstanding   0 463,162 0
Threshold value | $   $ 470,186,054    
Phantom Units | General and Administrative Expenses        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Cash used to settle awards | $ $ 6,600,000      
v3.26.1
Share-Based Compensation - Summary of Assumptions for Estimated Fair value of Share-Based Compensation at Grant Date (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2023
P Units    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free interest rate   4.50%
Expected volatility   40.00%
Expected term (in years)   2 years 10 months 24 days
Threshold value   $ 470,186,054
Phantom Units    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free interest rate 3.50%  
Threshold value $ 470,186,054  
Phantom Units | Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected volatility 30.00%  
Expected term (in years) 6 months  
Phantom Units | Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected volatility 32.50%  
Expected term (in years) 2 years 8 months 12 days  
v3.26.1
Share-Based Compensation - Summary of Vested and Nonvested Incentive Units (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
P Units    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Beginning Balance 5,094,750 8,892,655
Granted 0 0
Vested (5,094,750) (3,797,905)
Forfeited 0 0
Ending Balance 0 5,094,750
Weighted Average Grant - Date Fair Value    
Beginning Balance $ 0.32 $ 0.31
Granted 0 0
Vested 0.32 0.28
Forfeited 0 0
Ending Balance $ 0 $ 0.32
Phantom Units    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Beginning Balance 463,162 0
Granted 0 463,162
Vested (463,162) 0
Forfeited 0 0
Ending Balance 0 463,162
Weighted Average Grant - Date Fair Value    
Beginning Balance $ 3.04 $ 0
Granted 0 3.04
Vested 3.04 0
Forfeited 0 0
Ending Balance $ 0 $ 3.04
v3.26.1
Net Income Per Common Share and Common Unit - Schedule of Net Income per Common Share or Unit (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 17,366 $ 12,701 $ 4,359
Weighted average common share or unit outstanding - basic, respectively 132,322 166,737 166,776
Effect of dilutive common shares or unit, respectively 0 0 0
Weighted average common share or unit outstanding - diluted, respectively 132,322 166,737 166,776
Net income per common share or unit - basic, respectively $ 0.13 $ 0.08 $ 0.03
Net income per common share or unit - diluted, respectively $ 0.13 $ 0.08 $ 0.03
v3.26.1
Net Income Per Common Share and Common Unit - Additional Information (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Potentially dilutive securities 0 0 0
v3.26.1
Segment Reporting - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Segment
Segment Reporting [Abstract]      
Segment reporting, CODM, individual title and position or group name srt:ChiefExecutiveOfficerMember    
Number of operating segment | Segment 1 1 1
Segment reporting, CODM, profit (loss) measure, how used, description The CODM evaluates performance and allocates resources based on consolidated net income, and segment assets are reported as total consolidated assets on the balance sheet.    
Share-based compensation $ 8,100 $ 1,000 $ 1,300
Other income $ 4,147 $ 1,502 $ 563
v3.26.1
Segment Reporting - Summary of Revenues, Net Income and Significant Expenses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 471,500 $ 345,251 $ 280,705
Cost of goods sold:      
Labor (115,060) (95,404) (80,684)
Materials (133,518) (91,808) (75,469)
Overhead (21,587) (17,100) (12,256)
Depreciation and amortization (11,309) (8,828) (6,747)
Total cost of goods sold (281,474) (213,140) (175,156)
General and administrative expenses (85,656) (44,421) (36,623)
Depreciation and amortization not included in cost of goods sold (31,428) (24,130) (20,432)
Other income 4,147 1,502 563
Interest expense, net (44,567) (50,733) (47,867)
Income tax provision (15,156) (1,628) 3,169
Net income $ 17,366 $ 12,701 $ 4,359
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule Of Pre-tax Book Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest [Abstract]      
Domestic $ 32,522 $ 14,329 $ 1,190
Foreign 0 0 0
Income before (provision for) benefit from income taxes $ 32,522 $ 14,329 $ 1,190
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Current income taxes, Federal $ 673 $ 10,977 $ 7,752
Current income taxes, State 3,967 2,161 (214)
Total current 4,640 13,138 7,538
Deferred income taxes, Federal 9,707 (10,087) (9,724)
Deferred income taxes, State 809 (1,423) (983)
Total deferred 10,516 (11,510) (10,707)
Provision for (benefit from) income taxes $ 15,156 $ 1,628 $ (3,169)
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule of Reconciliation of Effective Tax Rate and Federal Statutory Tax Rate After the Adoption of ASU 2023-09 (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Income taxes (benefit) at statutory federal rate $ 6,830    
State and local taxes, net of federal income tax effect [1] $ 2,983    
Effective Income Tax Rate Reconciliation, State and Local Jurisdiction, Contribution Greater than 50 Percent, Tax Effect [Extensible Enumeration] CALIFORNIA    
R&D credit $ (792)    
Changes in valuation allowance 0    
Other 279    
Section 162(m) officer's compensation 1,052    
Transaction costs 793    
Penalties and Interest 1,464    
Changes in unrecognized tax benefits 809    
Change in the tax status of an entity 1,401    
Other 337    
Provision for (benefit from) income taxes $ 15,156 $ 1,628 $ (3,169)
Percent      
Income taxes (benefit) at statutory federal rate 21.00% 21.00% 21.00%
State and local taxes, net of federal income tax effect 9.20% [1] 0.70% (3.00%)
Rate differential   3.40% 2.30%
R&D credit (2.40%)    
Changes in valuation allowance 0.00%    
Other 0.90%    
Section 162(m) officer's compensation 3.20%    
Transaction costs 2.40%    
Penalties and Interest 4.50% 4.30% 0.00%
Changes in unrecognized tax benefits 2.50%    
Other   0.00% 0.00%
Change in the tax status of an entity 4.30%    
Other 1.00%    
Effective Tax Rate 46.50% 11.50% (266.10%)
[1] The state that contributes to the majority (greater than 50%) of the tax effect in this category is California for the years ended December 31, 2025.
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule of Cash Income Taxes Paid (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal income taxes paid, net of refunds received $ 15,954    
Foreign income taxes paid, net of refunds received 0    
Total income taxes paid, net of refunds received 16,920 $ (678) $ 3,100
California      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State income taxes paid, net of refunds received 900    
Other      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State income taxes paid, net of refunds received $ 66    
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule of Reconciliation of Effective Tax Rate and Federal Statutory Tax Rate Previously Disclosed (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Federal income taxes 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 9.20% [1] 0.70% (3.00%)
Rate differential   (3.40%) (2.30%)
Permanent differences and other   1.00% 9.00%
Profits interest   1.30% 20.10%
Research and development tax credits   (5.50%) (79.20%)
Uncertain tax positions   9.80% 11.20%
Income from passthrough entities   (15.90%) (87.90%)
Return to provision [2]   (1.80%) (155.00%)
Interest and penalties 4.50% 4.30% 0.00%
Other   0.00% 0.00%
Effective Tax Rate 46.50% 11.50% (266.10%)
[1] The state that contributes to the majority (greater than 50%) of the tax effect in this category is California for the years ended December 31, 2025.
[2] The return to provision line item included in the rate reconciliation relates to changes in estimates related to transfer pricing, net costs in excess of billings, research and development tax credits, other deferred tax and income tax payable true-ups
v3.26.1
Provision for (Benefit from) Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Components of Deferred Tax Assets and Liabilities [Line Items]    
Accrued compensation $ 694 $ 673
State income tax 1,136 475
Interest expense limitation 13,208 13,441
Capitalized Research 100 8,209
Lease Liability 22,673 20,703
Other 759 648
Total deferred tax assets 38,570 44,149
Less: Valuation allowance 0 0
Total deferred tax assets, net of valuation allowance 38,570 44,149
ROU asset (18,571) (17,647)
Percentage of completion contracts (915) (148)
Fixed assets (14,540) (8,343)
Intangibles (52,375) (43,381)
Total deferred tax liabilities (86,401) (69,519)
Net deferred tax liabilities $ (47,831) $ (25,370)
v3.26.1
Provision for (Benefit from) Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Line Items]      
Deferred Tax Liabilities Increased $ 22.5    
Unrecognized tax benefits that affect ETR 3.5 $ 1.7 $ 0.6
Interest expense related to uncertain tax positions as tax expense 0.4 0.3  
Total accrued interest liability $ 0.7 $ 0.4  
ASU 2023-09      
Income Tax Disclosure [Line Items]      
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
Goodwill      
Income Tax Disclosure [Line Items]      
Deferred Tax Liabilities Increased $ 11.9    
Federal      
Income Tax Disclosure [Line Items]      
Income tax examination year 2022    
State      
Income Tax Disclosure [Line Items]      
Income tax examination year 2021    
v3.26.1
Provision for (Benefit from) Income Taxes - Summary of Tax Credit Carryforwards (Details) - Research and Development Tax Credits
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Federal  
Operating Loss Carryforwards [Line Items]  
Tax credits $ 176
Tax credit carryforward expiration years 2045
State  
Operating Loss Carryforwards [Line Items]  
Tax credits $ 8
Tax credit carryforward expiration years Indefinite
v3.26.1
Provision for (Benefit from) Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Beginning balance of unrecognized tax benefits $ 2,015 $ 579 $ 466
Gross increases (decreases) based on tax positions related to current year 1,845 801 283
Gross increases (decreases) based on tax positions related to prior years 157 635  
Gross (decreases) based on tax positions related to prior years     (170)
Expiration of statute of limitations (60) 0 0
Ending balance of unrecognized tax benefits $ 3,957 $ 2,015 $ 579
v3.26.1
Subsequent Events - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Feb. 02, 2026
Dec. 31, 2025
Mar. 09, 2026
Apr. 01, 2025
Term Note        
Subsequent Event [Line Items]        
Debt instrument face amount   $ 502.8    
Seemann Composites, LLC and Materials Sciences LLC        
Subsequent Event [Line Items]        
Payment to acquire business in cash   210.0    
Seemann Composites LLC [Member]        
Subsequent Event [Line Items]        
Aggregate value   10.0    
Citi Credit Agreement | Revolving Line of Credit        
Subsequent Event [Line Items]        
Increased revolving credit commitments   $ 50.0    
TCW Asset Management Company | Citi Credit Agreement | Revolving Line of Credit        
Subsequent Event [Line Items]        
Debt instrument face amount       $ 50.0
TCW Asset Management Company | Citi Credit Agreement | Term Loan        
Subsequent Event [Line Items]        
Debt instrument face amount       $ 300.0
Subsequent Event | Term Note        
Subsequent Event [Line Items]        
Decrease in interest rate 0.75%      
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] Secured Overnight Financing Rate (SOFR) [Member]      
Basis spread on variable rate 2.75%      
Debt instrument face amount $ 767.8      
Increase in prinicipal amount $ 265.0      
Subsequent Event | Revolving Line of Credit        
Subsequent Event [Line Items]        
Decrease in credit facility interest rate 0.75%      
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] Secured Overnight Financing Rate (SOFR) [Member]      
Basis spread on variable rate 2.50%      
Debt instrument face amount     $ 50.0  
Increased revolving credit commitments     100.0  
Line of credit facility, revolving credit commitments     $ 150.0