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SEGMENT DISCLOSURES
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT DISCLOSURES SEGMENT DISCLOSURES
We conduct operations in two segments: IHT and MS. Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the services we offer. The reportable segments results are reviewed regularly by the chief operating decision maker (“CODM”), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments’ operating performance based on adjusted EBITDA defined as net income (loss) before income taxes, interest expense, depreciation and amortization, and other non-recurring and non-operational items. Our CODM uses adjusted EBITDA as a measure to make resource allocation decisions for each segment for the budgeting process and reviews budget-to-actual variances to assess performance and allocate capital.
As of January 1, 2026, service type Emission Control Services, previously included within the MS segment, was moved to the IHT segment. This change by the Company to the composition of its reportable segments was completed to better align with how the CODM evaluates segment performance. Prior period segment information was recast to conform to the current period presentation. The recasting of the prior period segment information did not have any impact on the Company’s previously reported consolidated revenue or consolidated adjusted EBITDA. The impact of this change for the three months ended June 30, 2025 was to decrease previously reported revenue and adjusted EBITDA for the MS segment with a similar increase to the IHT segment by approximately $7.8 million and $2.2 million, respectively. The impact of the change for the six months ended June 30, 2025 was to decrease previously reported revenue and adjusted EBITDA for the MS segment with a similar increase to the IHT segment by approximately $15.2 million and $4.2 million, respectively.
Segment data for our two operating segments are as follows (in thousands):
Three Months Ended
June 30, 2026
IHTMSTotal
(unaudited)(unaudited)(unaudited)
Revenues$131,283 $97,395 $228,678 
Adjusted operating expenses1
99,221 71,971 171,192 
Adjusted selling, general and administrative expenses2
14,942 19,304 34,246 
Adjusted EBITDA
$17,120 $6,120 $23,240 

Three Months Ended
June 30, 2025
IHTMSTotal
(unaudited)(unaudited)(unaudited)
Revenues$138,222 $109,804 $248,026 
Adjusted operating expenses1
100,642 76,118 176,760 
Adjusted selling, general and administrative expenses2
15,905 20,885 36,790 
Adjusted EBITDA
$21,675 $12,801 $34,476 
Six Months Ended
June 30, 2026
IHTMSTotal
(unaudited)(unaudited)(unaudited)
Revenues$254,674 $189,060 $443,734 
Adjusted operating expenses1
192,232 140,769 333,001 
Adjusted selling, general and administrative expenses2
30,035 39,616 69,651 
Adjusted EBITDA
$32,407 $8,675 $41,082 


Six Months Ended
June 30, 2025
IHTMSTotal
(unaudited)(unaudited)(unaudited)
Revenues$251,843 $194,838 $446,681 
Adjusted operating expenses1
185,696 139,311 325,007 
Adjusted selling, general and administrative expenses2
30,810 41,270 72,080 
Adjusted EBITDA
$35,337 $14,257 $49,594 


_____________
1    Represent operating expenses including direct depreciation and amortization but excluding severance cost.
2    Represent segment selling, general and administrative expenses excluding noncash share-based compensation, professional, legal and other non-recurring costs.


Reconciliation of segment adjusted EBITDA to consolidated loss before income taxes:

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(unaudited)(unaudited)(unaudited)(unaudited)
IHT$17,120 $21,675 $32,407 $35,337 
MS6,120 12,801 8,675 14,257 
     Segment adjusted EBITDA
23,240 34,476 41,082 49,594 
Segment depreciation and amortization
(7,109)(7,183)(14,222)(14,270)
Segment professional fees, severance and other
(490)(1,376)(1,790)(1,825)
Corporate and shared support cost(13,468)(13,814)(26,268)(27,399)
Consolidated operating income (loss)2,173 12,103 (1,198)6,100 
Interest expense(9,280)(11,896)(18,162)(23,332)
Loss on debt extinguishment— — — (11,853)
Other income/(expense)193 (3,490)1,118 (3,694)
Loss before income taxes$(6,914)$(3,283)$(18,242)$(32,779)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(unaudited)(unaudited)(unaudited)(unaudited)
Capital expenditures1:
IHT$1,397 $1,671 $2,829 $3,129 
MS1,859 1,277 2,912 1,944 
Corporate and shared support services77 304 291 318 
Total capital expenditures
$3,333 $3,252 $6,032 $5,391 
____________
1    Excludes finance leases. Totals may vary from amounts presented in the consolidated statements of cash flows due to the timing of cash payments.

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(unaudited)(unaudited)(unaudited)(unaudited)
Depreciation and amortization:
IHT$3,396 $2,898 $6,712 $5,714 
MS3,713 4,285 7,510 8,556 
Corporate and shared support services1,357 1,344 2,697 2,659 
Total depreciation and amortization
$8,466 $8,527 $16,919 $16,929 
Separate measures of our assets by operating segment are not produced or utilized by our CODM to evaluate segment performance.