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Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue Recognition [Abstract]  
Revenue Recognition

NOTE 3: REVENUE RECOGNITION

Disaggregated revenue

The following table summarizes total revenue by the Company’s segments:

 

 

Three months ended March 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Revenue:

 

 

 

 

 

 

Engine Services

 

$

1,268,313

 

 

$

1,097,392

 

Component Repair Services

 

 

167,275

 

 

 

138,331

 

Total revenue

 

$

1,435,588

 

 

$

1,235,723

 

 

The following table presents revenues from customers that contributed to more than 10% of revenues:

 

 

Three months ended March 31,

 

 

2025

 

 

2024

 

Customer A

 

 

15.9

%

 

 

22.9

%

 

The following table presents revenues from external customers by end market:

 

 

Three months ended March 31,

 

 

2025

 

 

2024

 

 

(in thousands)

 

Commercial Aerospace

 

$

853,036

 

 

$

722,515

 

Military & Helicopter

 

 

249,527

 

 

 

227,103

 

Business Aviation

 

 

283,293

 

 

 

250,928

 

Other

 

 

49,732

 

 

 

35,177

 

 

$

1,435,588

 

 

$

1,235,723

 

 

Contract assets and liabilities

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing or reimbursable costs related to a specific contract. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. The following table provides information about contract assets and contract liabilities from contracts with customers:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

(in thousands)

 

Contract assets

 

$

972,126

 

 

$

915,940

 

Less: allowance for credit loss

 

 

(519

)

 

 

(740

)

Contract assets, net

 

$

971,607

 

 

$

915,200

 

Contract liabilities

 

$

407,277

 

 

$

400,025

 

 

Changes in contract assets and contract liabilities primarily result from the timing difference between our performance of services and payments from customers. The Company recognized revenue that was included in the beginning of period contract liability balance of approximately $400.0 million three months ended March 31, 2025 and $355.7 million for the three months ended March 31, 2024.

Remaining performance obligations

As of March 31, 2025, the Company had approximately $1.9 billion of remaining performance obligations, which primarily relates to the Company’s engine utilization contracts that are satisfied over multiple years. Of this amount, the Company expects approximately 30% to be satisfied over the next two years and the remainder thereafter. The expected timing of the satisfaction of performance obligations is dependent on the timing of the customer’s maintenance requirements and as such, the timing of the revenue recognition is subject to estimation uncertainty. The Company excludes from its remaining performance obligation balance the value of remaining performance obligations for its fixed price and time & material contracts, as the performance obligations for these contracts generally have an original expected duration of one year or less.