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Business Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information

17. Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in two reportable segments. The results of the segments, specifically income from operations as adjusted for intercompany profits, are reviewed quarterly by the chief operating decision maker ("CODM"), which is the Company's Chief Executive Officer, for the purposes of allocating resources, including personnel, capital, and financial resources, and assessing performance, including the monitoring of budget versus actual results. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

Engineered Systems segment: The Company's Engineered Systems segment serves the power generation, hydrocarbon transport and processing, water/wastewater treatment, oily water separation and treatment, marine and naval, and natural gas and natural gas liquids infrastructure, treatment and transport sectors. The Company seeks to address the global demand for contaminant removal and environmental protection solutions with its highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints.

Industrial Process Solutions segment: The Company's Industrial Process Solutions segment serves the broad industrial sector with solutions for contamination control, exhaust air treatment, VOC abatement, process filtration and fluid handling in applications such as aluminum beverage can production, vehicle production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum processing, engineered wood products manufacturing, chemical processing, general manufacturing and machining, coating and surface treatment, battery production and recycling, and wind and solar power components manufacturing end markets. The Company assists customers in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through its platforms including duct fabrication and installation, industrial air, and fluid handling.

The financial segment information is as follows for the three months ended March 31, 2025:

(table only in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

Sales

 

$

124,827

 

 

$

59,170

 

Income from operations

 

 

18,740

 

 

 

69,650

 

 

A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the three months ended March 31, 2025:

(table only in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Sales from external customers

 

$

120,434

 

 

$

56,263

 

 

$

176,697

 

Intra-segment sales

 

 

4,296

 

 

 

2,907

 

 

 

7,203

 

Inter-segment sales

 

 

97

 

 

 

-

 

 

 

97

 

Total segment sales

 

 

124,827

 

 

 

59,170

 

 

 

183,997

 

Reconciliation to sales

 

 

 

 

 

 

 

 

 

Elimination of intra- and inter-segment sales

 

 

 

 

 

 

 

 

7,300

 

Total consolidated sales

 

 

 

 

 

 

 

 

176,697

 

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

Direct cost of sales

 

 

73,066

 

 

 

35,639

 

 

 

108,705

 

Shop burden

 

 

2,932

 

 

 

2,895

 

 

 

5,827

 

Selling expense

 

 

7,832

 

 

 

3,730

 

 

 

11,562

 

Project engineering expense

 

 

4,730

 

 

 

2,873

 

 

 

7,603

 

General and administrative expense

 

 

9,040

 

 

 

4,268

 

 

 

13,308

 

Gain on sale of Global Pump Solutions business

 

 

-

 

 

 

(64,502

)

 

 

(64,502

)

Other segment items(1)

 

 

4,093

 

 

 

1,710

 

 

 

5,803

 

Income from operations

 

 

23,134

 

 

 

72,557

 

 

 

95,691

 

Stock-based compensation

 

 

 

 

 

 

 

 

3,356

 

Other corporate expenses(2)

 

 

 

 

 

 

 

 

23,165

 

Elimination of intra- and inter-segment activity

 

 

 

 

 

 

 

 

7,300

 

Interest expense

 

 

 

 

 

 

 

 

6,217

 

Other loss(3)

 

 

 

 

 

 

 

 

594

 

Total consolidated income before income taxes

 

 

 

 

 

 

 

 

55,059

 

(1) Includes amortization expenses, acquisition and integration expenses, and divestiture expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes gain on sale of business, foreign exchange (gain) loss and pension expense.

Other segment information is as follows for the three months ended March 31, 2025:

(table only in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

Property and equipment additions

 

$

694

 

 

$

633

 

Depreciation and amortization(1)

 

 

1,985

 

 

 

2,324

 

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.

The financial segment information is as follows for the three months ended March 31, 2024:

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

Sales

 

$

92,518

 

 

$

39,579

 

Income from operations

 

 

16,277

 

 

 

7,100

 

 

A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the three months ended March 31, 2024:

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

 

Total

 

Sales from external customers

 

$

89,349

 

 

$

36,983

 

 

$

126,332

 

Intra-segment sales

 

 

3,082

 

 

 

2,535

 

 

 

5,617

 

Inter-segment sales

 

 

87

 

 

 

61

 

 

 

148

 

Total segment sales

 

 

92,518

 

 

 

39,579

 

 

 

132,097

 

Reconciliation to sales

 

 

 

 

 

 

 

 

 

Elimination of intra- and inter-segment sales

 

 

 

 

 

 

 

 

5,765

 

Total consolidated sales

 

 

 

 

 

 

 

 

126,332

 

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

Direct cost of sales

 

 

57,095

 

 

 

20,224

 

 

 

77,319

 

Shop burden

 

 

1,576

 

 

 

2,304

 

 

 

3,880

 

Selling expense

 

 

5,540

 

 

 

2,899

 

 

 

8,439

 

Project engineering expense

 

 

2,322

 

 

 

1,557

 

 

 

3,879

 

General and administrative expense

 

 

4,821

 

 

 

2,237

 

 

 

7,058

 

Other segment items(1)

 

 

1,643

 

 

 

661

 

 

 

2,304

 

Income from operations

 

 

19,521

 

 

 

9,697

 

 

 

29,218

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,670

 

Other corporate expenses(2)

 

 

 

 

 

 

 

 

14,097

 

Elimination of intra- and inter-segment activity

 

 

 

 

 

 

 

 

5,765

 

Interest expense

 

 

 

 

 

 

 

 

3,413

 

Other profit or loss(3)

 

 

 

 

 

 

 

 

1,513

 

Total consolidated income before income taxes

 

 

 

 

 

 

 

 

2,760

 

(1) Includes amortization expenses, acquisition and integration expenses, and asbestos litigation expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes foreign exchange (gain) loss and pension expense.

Other segment information is as follows for the three months ended March 31, 2024:

(in thousands)

 

Engineered Systems

 

 

Industrial Process Solutions

 

Property and equipment additions

 

$

1,137

 

 

$

606

 

Depreciation and amortization(1)

 

 

1,785

 

 

 

1,119

 

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.

Geographic Information

Net sales by geographic area are as follows:

 

 

Three months ended March 31,

 

(in thousands)

 

2025

 

 

2024

 

United States

 

$

112,003

 

 

$

83,878

 

United Kingdom

 

 

19,558

 

 

 

12,198

 

Netherlands

 

 

11,225

 

 

 

16,811

 

China

 

 

14,794

 

 

 

4,331

 

Other

 

 

19,117

 

 

 

9,114

 

Total net sales

 

$

176,697

 

 

$

126,332

 

The geographical area data for net sales is based upon the country location of the Company's business unit generating such sales.

Long-lived assets by geographic area are as follows:

(in thousands)

 

March 31, 2025

 

 

December 31, 2024

 

United States

 

$

374,173

 

 

$

332,162

 

United Kingdom

 

 

27,632

 

 

 

27,003

 

China

 

 

33,841

 

 

 

36,315

 

Other

 

 

45,348

 

 

 

33,248

 

Total long-lived assets

 

$

480,994

 

 

$

428,728

 

The geographical area data for long-lived assets is based upon physical location of such assets.