2 unchanged sentences
Consolidated Condensed Balance Sheets
−Removed: March 29, 2025 with Comparative Figures for December 31, 2024
+Added: June 28, 2025 with Comparative Figures for December 31, 2024
(In thousands)
−Removed: March 29, 2025 December 31, 2024
+Added: June 28, 2025 December 31, 2024
Current Assets:
40 unchanged sentences
Consolidated Condensed Statements of Operations
−Removed: Three Months Ended March 29, 2025 with Comparative Figures for 2024
+Added: Three and Six Months Ended June 28, 2025 with Comparative Figures for 2024
(In thousands, except per share data)
−Removed: Three Months Ended
−Removed: March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Sales $ 410,614 $ 383,188 $ 204,678 $ 198,114
16 unchanged sentences
Consolidated Condensed Statements of Comprehensive Income (Loss)
−Removed: Three Months Ended March 29, 2025 with Comparative Figures for 2024
+Added: Three and Six Months Ended June 28, 2025 with Comparative Figures for 2024
(In thousands)
−Removed: Three Months Ended
−Removed: March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Net Income (Loss) $ 10,842 $ ( 1,645 ) $ 1,314 $ 1,533
1 unchanged sentence
Foreign Currency Translation Adjustments
+Added: 2,931 ( 924 ) 2,179 ( 168 )
Retirement Liability Adjustment – Net of Tax
+Added: ( 472 ) 562 ( 236 ) 281
Total Other Comprehensive Income (Loss) 2,459 ( 362 ) 1,943 113
4 unchanged sentences
Consolidated Condensed Statements of Cash Flows
−Removed: Three Months Ended March 29, 2025 with Comparative Figures for 2024
+Added: Six Months Ended June 28, 2025 with Comparative Figures for 2024
(In thousands)
−Removed: Three Months Ended
−Removed: March 29, 2025 March 30, 2024
+Added: Six Months Ended
+Added: June 28, 2025 June 29, 2024
Cash Flows from Operating Activities:
8 unchanged sentences
Operating Lease Non-cash Expense 3,174 2,562
+Added: Simplification Initiative-related Non-cash Charges 6,229 —
Non-Cash 401K Contribution and Quarterly Bonus Accrual — 3,454
Non-Cash Annual Stock Bonus Accrual — 1,448
−Removed: Non-Cash Litigation Provision Adjustment 6,228 —
Other ( 601 ) 1,827
21 unchanged sentences
Effect of Exchange Rates on Cash 1,280 ( 109 )
−Removed: Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash 7,520 ( 4,703 )
+Added: Decrease in Cash and Cash Equivalents and Restricted Cash ( 4,968 ) ( 6,921 )
Cash and Cash Equivalents and Restricted Cash at Beginning of Period 18,428 11,313
7 unchanged sentences
Consolidated Condensed Statements of Shareholders’ Equity
−Removed: Three Months Ended March 29, 2025 with Comparative Figures for 2024
+Added: Three and Six Months Ended June 28, 2025 with Comparative Figures for 2024
(In thousands)
−Removed: Three Months Ended
−Removed: March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Beginning of Period $ 329 $ 314 $ 333 $ 318
32 unchanged sentences
Consolidated Condensed Statements of Shareholders’ Equity, Continued
−Removed: Three Months Ended March 29, 2025 with Comparative Figures for 2024
+Added: Three and Six Months Ended June 28, 2025 with Comparative Figures for 2024
(In thousands)
−Removed: Three Months Ended
−Removed: (Shares) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (Shares) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Beginning of Period 32,871 31,402 33,301 31,832
15 unchanged sentences
Notes to Consolidated Condensed Financial Statements
−Removed: March 29, 2025
+Added: June 28, 2025
1) Basis of Presentation
6 unchanged sentences
The results of operations for any interim period are not necessarily indicative of results for the full year.
−Removed: Operating results for the three months ended March 29, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.
+Added: Operating results for the six months ended June 28, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.
The balance sheet on December 31, 2024, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S.
9 unchanged sentences
Restricted Cash
−Removed: Under the provisions of the ABL Revolving Credit Facility (as defined and discussed below in Note 7, Long-term Debt and Notes Payable), the Company has a cash dominion arrangement with the banking institution for its accounts within the United States whereby daily cash receipts are contractually utilized to pay down outstanding balances on the ABL Revolving Credit Facility.
+Added: Under the provisions of the ABL Revolving Credit Facility (as defined and discussed below in Note 7, Long-term Debt and Notes Payable), the Company has a cash dominion arrangement with the banking institution for its accounts within the United States whereby daily cash receipts are contractually utilized to pay down outstanding balances, if any, on the ABL Revolving Credit Facility.
Account balances that have not yet been applied to the ABL Revolving Credit Facility are classified as restricted cash in the accompanying Consolidated Condensed Balance Sheets.
The following table provides a reconciliation of cash and restricted cash included in Consolidated Condensed Balance Sheets to the amounts included in the Consolidated Condensed Statements of Cash Flows.
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: (In thousands) June 28, 2025 June 29, 2024
Cash and Cash Equivalents $ 13,460 $ 2,857
5 unchanged sentences
Table of Content
−Removed: The changes in allowances for estimated credit losses for the three months ended March 29, 2025 and March 30, 2024 consisted of the following:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: The changes in allowances for estimated credit losses for the three and six months ended June 28, 2025 and June 29, 2024 consisted of the following:
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Balance at Beginning of the Period $ 2,377 $ 9,193 $ 2,291 $ 8,596
2 unchanged sentences
Balance at End of the Period $ 842 $ 1,495 $ 842 $ 1,495
+Added: Write-offs in the three and six months ended June 29, 2024 include $ 7.5 million of accounts receivable related with a non-core contract manufacturing customer, which was reserved for in 2023.
On February 4, 2025, the Company entered into a factoring agreement with Citibank, N.A.
1 unchanged sentence
The arrangement is designed to provide the Company with an immediate cash advance on eligible receivables, up to a limit of $ 45.0 million per year, as restricted by the terms of our ABL Revolving Credit Facility.
−Removed: The Company did not utilize the factoring agreement during the three months ended March 29, 2025.
+Added: The Company did not utilize the factoring agreement during the three and six months ended June 28, 2025.
+Added: Simplification Initiatives
+Added: In the second quarter of 2025, the Company initiated simplification activities in the Aerospace segment, including costs related to footprint rationalization and portfolio shaping.
+Added: Restructuring charges, including impairments of inventory and other long-lived assets, were recorded as a result of these simplification initiatives.
+Added: In the three and six months ended June 28, 2025, the Company recorded $ 5.8 million and $ 0.4 million in simplification initiative charges to Cost of Products Sold and Selling, General and Administrative Expenses, respectively, in the accompanying Consolidated Condensed Statements of Operations.
Research and Development Expenses
2 unchanged sentences
These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit.
−Removed: Research and development expenses, which amounted to $ 11.1 million and $ 13.3 million for the three months ended March 29, 2025 and March 30, 2024, respectively, have been reclassified from Cost of Products Sold to a separate line item below Gross Profit in the accompanying Consolidated Condensed Statements of Operations.
+Added: Research and development expenses, which amounted to $ 14.2 million and $ 27.5 million for the three and six months ended June 29, 2024, respectively, have been reclassified from Cost of Products Sold to a separate line item below Gross Profit in the accompanying Consolidated Condensed Statements of Operations.
All periods presented have been revised to reflect this presentation.
4 unchanged sentences
Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value.
−Removed: As of March 29, 2025 and March 30, 2024, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the three-month periods then ended.
+Added: As of June 28, 2025 and June 29, 2024, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the six-month periods then ended.
Foreign Currency Translation
−Removed: The aggregate foreign currency transaction gain or loss included in operations was immaterial for the three months ended March 29, 2025 and March 30, 2024.
+Added: The aggregate foreign currency transaction gain or loss included in operations was immaterial for the three and six months ended June 28, 2025 and June 29, 2024.
New or Recent Accounting Pronouncements
We consider the applicability and impact of all ASUs.
−Removed: There have been no new applicable accounting pronouncements or changes in accounting pronouncements during the three months ended March 29, 2025 as compared with the recent accounting pronouncements described in the 2024 10-K.
+Added: There have been no new applicable accounting pronouncements or changes in accounting pronouncements during the three months ended June 28, 2025 as compared with the recent accounting pronouncements described in the 2024 10-K.
ASUs not disclosed were assessed and determined to be either not applicable or had or are expected to have minimal impact on our financial statements and related disclosures.
−Removed: On March 29, 2025, we had $ 673.0 million of remaining performance obligations, which we refer to as total backlog.
−Removed: We expect to recognize approximately $ 508.3 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.
Table of Content
+Added: On June 28, 2025, we had $ 645.4 million of remaining performance obligations, which we refer to as total backlog.
+Added: We expect to recognize approximately $ 481.3 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.
The Company’s contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively.
3 unchanged sentences
$ 54,171 $ 28,171
−Removed: Ending Balance, March 29, 2025
+Added: Ending Balance, June 28, 2025
$ 50,213 $ 27,823
−Removed: The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period, partially offset by a $ 1.9 million revision of estimated costs to complete a certain long-term mass transit Test contract, which was recorded in the first quarter of 2025.
−Removed: The revision resulted in reduced revenue recognized during the three months ended March 29, 2025 due to lower estimates of the percentage of work completed on the program.
−Removed: The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.
−Removed: We recognized $ 11.6 million and $ 9.2 million during the three months ended March 29, 2025 and March 30, 2024, respectively, in revenues that were included in the contract liability balance at the beginning of the period.
+Added: The decrease in contract assets reflects $ 8.3 million in revisions of estimated costs to complete certain long-term mass transit Test contracts, which was recorded during the six months ended June 28, 2025, partially offset by the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period.
+Added: The revisions resulted in reduced revenue recognized during the six months ended June 28, 2025 due to lower estimates of the percentage of work completed on the programs.
+Added: The decrease in contract liabilities reflects the net impact of revenue recognized in excess of new customer advances or deferred revenues recorded.
+Added: The Company recognized $ 9.9 million and $ 9.0 million during the three months ended and $ 17.8 million and $ 15.2 million during the six months ended June 28, 2025 and June 29, 2024, respectively, in revenues that were included in the contract liability balance at the beginning of the period.
The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered.
3 unchanged sentences
Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off.
−Removed: The Company capitalized fulfillment costs of $ 5.3 million and $ 8.3 million on March 29, 2025 and December 31, 2024, respectively.
−Removed: Amortization of fulfillment costs recognized within Cost of Products Sold was $ 3.3 million and $ 0.3 million for the three months ended March 29, 2025 and March 30, 2024, respectively.
+Added: The Company’s capitalized fulfillment costs amounted to $ 5.7 million and $ 8.3 million on June 28, 2025 and December 31, 2024, respectively.
+Added: Amortization of fulfillment costs recognized within Cost of Products Sold was $ 0.1 million and $ 2.7 million for the three months and $ 3.4 million and $ 3.0 million for the six months ended June 28, 2025 and June 29, 2024, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Aerospace Segment
5 unchanged sentences
33,613 38,566 18,370 19,015
+Added: 7,577 10,326 2,250 4,748
Aerospace Total 385,001 340,581 193,626 176,943
6 unchanged sentences
The following table presents our revenue disaggregated by Product Lines as follows:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Aerospace Segment
5 unchanged sentences
Systems Certification
+Added: 7,904 7,812 2,836 3,364
+Added: 6,320 6,185 3,325 3,078
+Added: 7,577 10,326 2,250 4,748
Aerospace Total 385,001 340,581 193,626 176,943
4 unchanged sentences
( In thousands )
−Removed: March 29, 2025 December 31, 2024
+Added: June 28, 2025 December 31, 2024
Finished Goods
4 unchanged sentences
$ 194,311 $ 199,741
+Added: The Company recorded a $ 5.8 million reduction in inventory in the three and six months ended June 28, 2025 in connection with simplification initiatives as further discussed in Note 1, Basis of Presentation.
4) Property, Plant and Equipment
1 unchanged sentence
(In thousands)
−Removed: March 29, 2025 December 31, 2024
+Added: June 28, 2025 December 31, 2024
$ 8,664 $ 8,551
10 unchanged sentences
The following table summarizes acquired intangible assets as follows:
−Removed: March 29, 2025 December 31, 2024
+Added: June 28, 2025 December 31, 2024
(In thousands) Weighted
9 unchanged sentences
Amortization expense for acquired intangibles is summarized as follows:
−Removed: Three Months Ended
+Added: Six Months Ended Three Months Ended
(In thousands)
−Removed: March 29, 2025 March 30, 2024
+Added: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Amortization Expense
3 unchanged sentences
2025 $ 10,944
−Removed: The following table summarizes the changes in the carrying amount of goodwill for the three months ended March 29, 2025:
+Added: The following table summarizes the changes in the carrying amount of goodwill for the six months ended June 28, 2025:
(In thousands) December 31, 2024 Foreign
−Removed: March 29, 2025
+Added: June 28, 2025
Aerospace $ 36,421 $ 87 $ 36,508
6 unchanged sentences
The Company and the applicable lenders also agreed in a separate first amendment to increase the amount of unsecured indebtedness the Company is permitted to incur under the ABL Revolving Credit Facility, subject to completion of the Convertible Notes offering (discussed below).
−Removed: Under the terms of the ABL Revolving Credit Facility, the Company pays interest on the unpaid principal amount of the ABL Revolving Credit Facility at a rate equal to SOFR plus a term SOFR adjustment in the amount of 0.10 % per annum (which collectively shall be at least 1.00 %) plus an applicable margin ranging from 2.75 % to 3.25 % determined based upon the
+Added: Under the terms of the ABL Revolving Credit Facility, the Company pays interest on the unpaid principal amount of the ABL Revolving Credit Facility at a rate equal to SOFR plus a term SOFR adjustment in the amount of 0.10 % per annum (which
Table of Content
−Removed: Company’s Excess Availability (as defined in the ABL Revolving Credit Facility).
+Added: collectively shall be at least 1.00 %) plus an applicable margin ranging from 2.75 % to 3.25 % determined based upon the Company’s Excess Availability (as defined in the ABL Revolving Credit Facility).
The Company is required to pay a quarterly commitment fee under the ABL Revolving Credit Facility on undrawn revolving credit commitments in an amount equal to 0.25 % or 0.375 % based on the Company’s average excess availability under the ABL Revolving Credit Facility.
−Removed: On March 29, 2025, there was $ 1.1 million outstanding on the ABL Revolving Credit Facility and there remained $ 187.1 million available for future borrowings, before our minimum excess availability requirement discussed below.
−Removed: The amount available for future borrowings as of March 29, 2025, is net of a $ 18.1 million reserve for the damage award relating to the patent infringement dispute in the United Kingdom discussed in Note 13, Legal Proceedings, and $ 2.3 million in outstanding letters of credit.
+Added: On June 28, 2025, there was no balance outstanding on the ABL Revolving Credit Facility and there remained $ 197.8 million available for future borrowings, before our minimum excess availability requirement discussed below.
+Added: The amount available for future borrowings as of June 28, 2025, is net of $ 2.3 million in outstanding letters of credit.
Pursuant to the ABL Revolving Credit Facility, the Company is subject to a minimum fixed charge coverage ratio of 1.10 to 1.00.
The Company is also required to maintain a minimum excess availability of the greater of 10 % of the borrowing base under the ABL Revolving Credit Facility, or $ 15.0 million.
−Removed: As of March 29, 2025, the Company was in compliance with these covenants.
+Added: As of June 28, 2025, the Company was in compliance with these covenants.
On December 3, 2024, the Company issued $ 165.0 million aggregate principal amount of 5.500 % Convertible Senior Notes due 2030 (the “Convertible Notes”), which amount includes the additional Convertible Notes issued pursuant to the initial purchasers’ full exercise of their option to purchase additional Convertible Notes.
5 unchanged sentences
Beginning March 20, 2028, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the Convertible Notes may be called at the option of the issuer.
−Removed: Under the same conditions, the Company can elect to redeem the Convertible Notes for cash.
−Removed: After the first quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 20 of 30 trading days ending on and including the last trading day of the immediately preceding quarter, the Convertible Notes may be called at the option of the holder.
−Removed: The fair value of the Convertible Notes was approximately $ 228.4 million and $ 176.9 million as of March 29, 2025 and December 31, 2024, respectively, based on quoted prices for these instruments in active markets, and is classified as a Level 1 measurement within the fair value hierarchy.
−Removed: Interest expense was approximately $ 3.2 million and $ 5.8 million during the three months ended March 29, 2025 and March 30, 2024, respectively.
+Added: After the first quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 20 of 30 trading days ending on and including the last trading day of the immediately preceding quarter, the Convertible Notes may be redeemed at the option of the holder.
+Added: During the fiscal quarter ended June 28, 2025, our stock price met the price trigger defined above, and therefore, holders of our Convertible Notes may convert their notes at their option at any time during our third fiscal quarter ended September 27, 2025.
+Added: The fair value of the Convertible Notes was approximately $ 284.0 million and $ 176.9 million as of June 28, 2025 and December 31, 2024, respectively, based on quoted prices for these instruments in active markets, and is classified as a Level 1 measurement within the fair value hierarchy.
+Added: Interest expense was $ 3.1 million and $ 5.9 million for the three months ended and $ 6.2 million and $ 11.6 million for the six months ended June 28, 2025 and June 29, 2024, respectively.
The Company entered into a $ 90.0 million Term Loan Facility on January 19, 2023, and paid interest at a rate equal to SOFR (which was required to be at least 2.50 %) plus 8.75 %.
The Company refinanced its credit facilities on July 11, 2024, and repaid in full all outstanding indebtedness under the previous term loan dated January 19, 2023.
−Removed: Debt issuance cost amortization expense was approximately $ 0.6 million and $ 0.8 million during the three months ended March 29, 2025 and March 30, 2024, respectively.
−Removed: Unamortized deferred debt issuance costs associated with the ABL Revolving Credit Facility ($ 2.7 million and $ 3.0 million as of March 29, 2025 and December 31, 2024, respectively) are recorded within Other Assets and those associated with the Convertible Notes ($ 6.0 million and $ 6.3 million as of March 29, 2025 and December 31, 2024, respectively) are recorded as a reduction of the carrying value of the debt on the Consolidated Condensed Balance Sheets.
+Added: Debt issuance cost amortization expense was $ 0.6 million and $ 0.9 million for the three months ended and $ 1.2 million and $ 1.7 million for the six months ended June 28, 2025 and June 29, 2024, respectively.
+Added: All costs are amortized to interest expense over the term of the respective agreement.
+Added: Unamortized deferred debt issuance costs associated with the ABL Revolving Credit Facility ($ 2.4 million and $ 3.0 million as of June 28, 2025 and December 31, 2024, respectively) are recorded within Other Assets and those associated with the Convertible Notes ($ 5.7 million and $ 6.3 million as of June 28, 2025 and December 31, 2024, respectively) are recorded as a reduction of the carrying value of the debt on the Consolidated Condensed Balance Sheets.
Certain of the Company’s subsidiaries are borrowers under the ABL Revolving Credit Facility and the assets of such subsidiaries also secure the obligations under the ABL Revolving Credit Facility.
6 unchanged sentences
Activity in the warranty accrual, which is included in Accrued Expenses and Other Current Liabilities on the Consolidated Condensed Balance Sheets, is summarized as follows:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Balance at Beginning of Period $ 18,081 $ 9,751 $ 17,611 $ 10,522
4 unchanged sentences
9) Income Taxes
−Removed: The effective tax rates were approximately 6.3 % and 29.8 % for the three months ended March 29, 2025 and March 30, 2024, respectively.
+Added: The effective tax rates were approximately 29.0 % and ( 21.8 )% for the three months ended and 9.8 % and 49.7 % for the six months ended June 28, 2025 and June 29, 2024, respectively.
Beginning with the 2022 tax year, certain research and development costs are required to be capitalized and amortized over sixty months for income tax purposes.
5 unchanged sentences
However, the Company is relying on a significant portion of its existing deferred tax liabilities for the realizability of deferred tax assets.
−Removed: Accordingly, during the years ended December 31, 2024 and 2023, the Company determined that a portion of its deferred tax assets were not expected to be realizable in the future and the Company continues to maintain the valuation allowance against its deferred tax assets as of March 29, 2025.
+Added: Accordingly, during the years ended December 31, 2024 and 2023, the Company determined that a portion of its deferred tax assets were not expected to be realizable in the future and the Company continues to maintain the valuation allowance against its deferred tax assets as of June 28, 2025.
+Added: On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States.
+Added: The OBBBA permanently extends and modifies significant provisions enacted in 2017 as part of the Tax Cuts and Jobs Act (“TCJA”) that were originally set to expire at the end of 2025.
+Added: In addition, the OBBBA makes changes to certain U.S.
+Added: corporate tax provisions, many of which are not in effect until 2026.
+Added: Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and our effective tax rate in the future and the Company is currently evaluating the impacts of the new legislation.
10) Earnings Per Share
The following table sets forth the computation of basic earnings per share:
−Removed: Three months ended
−Removed: (In thousands, except per share amounts) March 29, 2025 March 30, 2024
+Added: Six months ended Three months ended
+Added: (In thousands, except per share amounts) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Basic Earnings per Common Share:
4 unchanged sentences
The following table sets forth the computation of diluted net income (loss) per share:
−Removed: Three months ended
−Removed: (In thousands, except per share amounts) March 29, 2025 March 30, 2024
+Added: Six months ended Three months ended
+Added: (In thousands, except per share amounts) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Diluted Earnings per Common Share:
−Removed: Net Income (Loss) - Basic $ 9,528 $ ( 3,178 )
−Removed: Convertible Notes Interest Expense, Net of Tax 1,792 —
Net Income (Loss) - Diluted $ 10,842 $ ( 1,645 ) $ 1,314 $ 1,533
1 unchanged sentence
Net Effect of Dilutive Stock Awards 712 — 962 540
−Removed: Net Effect of Dilutive Convertible Notes 7,208 —
Weighted Average Shares - Diluted 36,059 34,936 36,368 35,547
−Removed: Diluted Net Income (Loss) Per Share $ 0.26 $ ( 0.09 )
−Removed: Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive.
+Added: Diluted Earnings per Common Share $ 0.30 $ ( 0.05 ) $ 0.04 $ 0.04
The Company includes the dilutive effect of shares issuable upon conversion of its Convertible Notes in the calculation of diluted income per share using the if-converted method.
The Company has the option for the Convertible Notes to settle the conversion value in any combination of cash or shares, and as such, the maximum number of shares issuable are included in the dilutive share count if the effect would be dilutive.
−Removed: The Company incurred a net loss for the three months ended March 30, 2024, therefore all outstanding stock options and unvested restricted stock units were excluded from the computation of diluted loss per share because the effect of their inclusion would be anti-dilutive.
−Removed: The number of common shares excluded from the computation was approximately 471,000 shares as of March 29, 2025 and 1,043,000 shares as of March 30, 2024.
+Added: The Company excluded all impacts of the Convertible Notes from the computation of diluted earnings per share as the effect would be anti-dilutive.
+Added: Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive.
+Added: The Company incurred a net loss for the six months ended June 29, 2024, therefore all outstanding stock options and unvested restricted stock units were excluded from the computation of diluted loss per share because the effect of their inclusion would be anti-dilutive.
+Added: The number of common shares excluded from the computation was approximately 399,000 shares as of June 28, 2025 and 1,072,000 shares as of June 29, 2024.
11) Shareholders’ Equity
4 unchanged sentences
On August 8, 2023, the Company initiated an at-the-market equity offering program (the “ATM Program”) for the sale from time to time of shares of the Company’s common stock, par value $ 0.01 per share, having an aggregate offering price of up to $ 30.0 million.
−Removed: During the three months ended March 29, 2025 and March 30, 2024, the Company did not sell any shares of our common stock under the ATM Program.
−Removed: As of March 29, 2025, the Company had remaining capacity under the ATM Program to sell shares of common stock having an aggregate offering price up to approximately $ 8.2 million.
+Added: During the three and six months ended June 28, 2025 and June 29, 2024, the Company did not sell any shares of our common stock under the ATM Program.
+Added: As of June 28, 2025, the Company had remaining capacity under the ATM Program to sell shares of common stock having an aggregate offering price up to approximately $ 8.2 million.
Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss are as follows:
−Removed: (In thousands) March 29, 2025 December 31, 2024
+Added: (In thousands) June 28, 2025 December 31, 2024
Foreign Currency Translation Adjustments $ ( 5,291 ) $ ( 8,222 )
5 unchanged sentences
The components of other comprehensive income (loss) are as follows:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Foreign Currency Translation Adjustments $ 2,931 $ ( 924 ) $ 2,179 $ ( 168 )
2 unchanged sentences
Amortization of Prior Service Cost
+Added: 193 193 97 96
Amortization of Net Actuarial (Gains) Losses
+Added: ( 665 ) 369 ( 333 ) 185
Retirement Liability Adjustment ( 472 ) 562 ( 236 ) 281
2 unchanged sentences
The loss of major customers or a significant reduction in business with a major customer would significantly, and negatively impact our sales and earnings.
−Removed: In the three months ended March 29, 2025, the Company had one major customer over 10% of consolidated sales within the Aerospace segment.
−Removed: Sales to the Safran Group (“Safran”) accounted for 10.3 % of consolidated sales during the three months ended March 29, 2025.
−Removed: Accounts receivable from Safran on March 29, 2025 were approximately $ 8.1 million.
−Removed: In the three months ended March 30, 2024, the Company had one major customer over 10% of consolidated sales primarily in the Aerospace segment.
−Removed: Sales to the Boeing Company (“Boeing”) accounted for 10.7 % of consolidated sales in the three months ended March 30, 2024.
+Added: In the three and six months ended June 28, 2025, the Company had no major customers over 10% of consolidated sales.
+Added: In the three and six months ended June 29, 2024, the Company had one major customer over 10% of consolidated sales primarily in the Aerospace segment.
+Added: Sales to the Boeing Company (“Boeing”) accounted for 11.7 % and 11.2 % of consolidated sales in the three and six months ended June 29, 2024.
13) Legal Proceedings
2 unchanged sentences
Additional information about these legal proceedings can be found in Note 19, Legal Proceedings, to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the 2024 10-K.
−Removed: The reserve for the German indirect claim and interest was approximately $ 17.2 million at March 29, 2025 and $ 17.1 million on December 31, 2024.
+Added: The reserve for the German indirect claim and interest was approximately $ 17.3 million at June 28, 2025 and $ 17.1 million on December 31, 2024.
The Company currently believes it is unlikely that the damages in the German indirect proceedings and related interest will be paid within the next twelve months.
−Removed: Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at March 29, 2025 and December 31, 2024.
+Added: Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at June 28, 2025 and December 31, 2024.
In the matter before the UK High Court of Justice, Lufthansa had pleaded its case for monetary compensation at a separate trial which was conducted in October 2024.
3 unchanged sentences
Following a consequential hearing on March 20, 2025, the amount was adjusted upwards by $ 0.5 million related to the resolution of a provisional item.
−Removed: Additionally, on April 30, 2025, the UK High Court of Justice issued a draft order related to interest associated with damages, which obligated the Company to accrue a reserve estimate of $ 5.7 million relating to such interest associated with the damages.
−Removed: Both of these amounts were recorded in the three months ended March 29, 2025 within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations.
−Removed: Accordingly, as of March 29, 2025, we have recognized a liability within Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheet of $ 18.1 million associated with this claim, inclusive of interest.
−Removed: The Company paid $ 12.4 million of this liability for damages in the second quarter of 2025, and expects to pay an additional $ 5.7 million in interest liability related thereto in the second quarter of 2025.
−Removed: There is a further consequential hearing on May 16, 2025 which will address applications for permission to appeal the court’s findings in these matters, as well as the issue of reimbursement of legal fees in the damages phase of the litigation.
−Removed: In the normal course, a defendant in the Company’s position would be ordered to make a partial reimbursement of Lufthansa’s legal costs.
−Removed: Whether that is the case and the amount depends on a number of variables including the size of the order for payment of profits.
−Removed: On May 1, 2025, Lufthansa estimated their legal fees at approximately $ 7.2 million.
−Removed: The Company believes they have valid defenses against this claim and as such, no amounts have been reserved for legal fee reimbursement as of March 29, 2025.
−Removed: The Company expects any appeal will likely be heard in the first half of 2026.
−Removed: Table of Content
−Removed: A liability for reimbursement of Lufthansa’s legal expenses associated with the UK matter, exclusive of the damages phase, was approximately $ 1.0 million at March 29, 2025 and December 31, 2024, which is expected to be paid within the next twelve months and, as such, is classified in Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheets as of March 29, 2025 and December 31, 2024.
+Added: There was a further consequential hearing on May 16, 2025 which addressed applications concerning interest on the ordered damages, permission to appeal the court’s findings in these matters, as well as the issue of reimbursement of legal fees in the damages phase of the litigation.
+Added: The Company was ordered to make payments of $ 5.7 million in relation to interest and $ 3.5 million for partial reimbursement of Lufthansa’s legal costs.
+Added: The interest amount was recorded in the first quarter, while the legal cost reimbursement was recorded in the second quarter.
+Added: Both of these items are reflected within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations.
+Added: During the three months ended June 28, 2025, the Company made payments totaling $ 21.6 million, in satisfaction of the liabilities for damages, interest and provisional legal fee reimbursement.
+Added: Both the Company and Lufthansa have been granted permission to appeal the rulings by the UK High Court of Justice.
+Added: The appeals are scheduled to be heard by the UK Court of Appeal in March 2026.
+Added: A liability for reimbursement of Lufthansa’s legal expenses associated with the UK matter, exclusive of the damages phase, was approximately $ 1.0 million at June 28, 2025 and December 31, 2024, which is expected to be paid within the next twelve months and, as such, is classified in Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheets as of June 28, 2025 and December 31, 2024.
With respect to the proceeding in France, as previously disclosed, on December 4, 2020, the Court held the French patent invalid for all asserted claims.
Lufthansa appealed this judgment.
−Removed: The appeal hearing took place on December 8, 2022, and on February 24, 2023, the Court upheld the first instance judgment in favor of AES.
+Added: The appeal hearing took place on December 8, 2022, and on
+Added: Table of Content
+Added: February 24, 2023, the Court upheld the first instance judgment in favor of AES.
Lufthansa lodged an appeal before the French Supreme Court.
A decision from this Court was rendered on March 19, 2025, remanding the case to the Court of Appeal of Paris for reconsideration of the invalidity of Lufthansa’s French patent.
−Removed: It is now upon Lufthansa to initiate the remanded proceedings before the court of appeal by filing a specific declaration.
−Removed: A second ruling by the Court of Appeal of Paris is not expected before at least 2026.
−Removed: As loss exposure is not probable and estimable at this time, the Company has not recorded any liability with respect to the French matter as of March 29, 2025 or December 31, 2024.
−Removed: There were no other significant developments in any of these matters during the three months ended March 29, 2025.
+Added: A second trial on nullity is scheduled on October 28, 2026 and a ruling by the Court of Appeal of Paris on nullity is not expected before early first quarter 2027.
+Added: As loss exposure is not probable and estimable at this time, the Company has not recorded any liability with respect to the French matter as of June 28, 2025 or December 31, 2024.
+Added: There were no other significant developments in any of these matters during the three months ended June 28, 2025.
On March 23, 2020, Teradyne, Inc.
11 unchanged sentences
As such, the summary judgment ruling stands and final judgment in favor of ATS has been entered.
−Removed: No amounts have been accrued for this matter in the Consolidated Condensed Financial Statements as of March 29, 2025, or the Consolidated Financial Statements as of December 31, 2024, as loss exposure was neither probable nor estimable at such times.
+Added: This matter is concluded.
Other than these proceedings, we are not party to any significant pending legal proceedings that management believes will result in a material adverse effect on our financial condition or results of operations.
1 unchanged sentence
The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments.
−Removed: The CODM, which is the Company’s Chief Executive Officer, allocates resources and assesses the performance of each operating segment based on historical and potential future product sales, gross margin associated with those sales, and operating income (loss) before interest, taxes, and corporate expenses.
+Added: The CODM, which is the Company’s Chief Executive Officer, allocates resources and assesses the performance of each operating segment based on historical and potential future product sales, gross margin associated with those sales, and operating profit (loss) before interest, taxes, and corporate expenses.
The Company has determined its reportable segments to be Aerospace and Test Systems based on the information used by the CODM.
1 unchanged sentence
Segment information and reconciliations to consolidated amounts are as follows:
−Removed: Three Months Ended
−Removed: (In thousands) March 29, 2025 March 30, 2024
+Added: Six Months Ended Three Months Ended
+Added: (In thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Aerospace $ 385,035 $ 340,623 $ 193,647 $ 176,948
13 unchanged sentences
Test Systems 9,235 13,097 4,646 6,885
−Removed: Operating Income (Loss) and Margins:
+Added: Operating Profit (Loss) and Margins:
Aerospace 40,303 31,377 18,039 19,280
+Added: 10.5 % 9.2 % 9.3 % 10.9 %
Test Systems ( 8,933 ) ( 8,415 ) ( 6,710 ) ( 5,336 )
( 34.9 ) % ( 19.8 ) % ( 60.7 ) % ( 25.2 ) %
−Removed: Total Operating Income 20,041 9,018
+Added: Total Operating Profit 31,370 22,962 11,329 13,944
+Added: 7.6 % 6.0 % 5.5 % 7.0 %
Deductions from Segment Measure of Operating Profit:
Interest Expense, Net of Interest Income
+Added: 6,247 11,615 3,097 5,856
Corporate Expenses and Other
+Added: 13,098 14,617 6,381 6,829
Income (Loss) Before Income Taxes $ 12,025 $ ( 3,270 ) $ 1,851 $ 1,259
3 unchanged sentences
(In thousands)
−Removed: March 29, 2025 December 31, 2024
+Added: June 28, 2025 December 31, 2024
Total Assets:
4 unchanged sentences
Table of Content
−Removed: Three Months Ended
+Added: Six Months Ended Three Months Ended
(In thousands)
−Removed: March 29, 2025 March 30, 2024
+Added: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024
Depreciation and Amortization:
$ 8,955 $ 9,966 $ 4,457 $ 4,945
+Added: 1,990 2,453 912 1,202
Total Depreciation and Amortization $ 10,966 $ 12,531 $ 5,378 $ 6,203
1 unchanged sentence
$ 6,525 $ 2,799 $ 4,443 $ 1,329
+Added: 185 585 162 467
Total Capital Expenditures $ 6,710 $ 3,394 $ 4,605 $ 1,796
15) Fair Value
−Removed: There were no financial assets or liabilities carried at fair value measured on a recurring basis on March 29, 2025 or December 31, 2024.
−Removed: There were no non-recurring fair value measurements performed in the three months ended March 29, 2025 and March 30, 2024.
+Added: There were no financial assets or liabilities carried at fair value measured on a recurring basis on June 28, 2025 or December 31, 2024.
+Added: There were no non-recurring fair value measurements performed in the six months ended June 28, 2025 and June 29, 2024.
Due to their short-term nature, the carrying value of cash and equivalents, accounts receivable, and accounts payable approximate fair value.
1 unchanged sentence
Refer to Note 7, Long-term Debt and Notes Payable, for additional information relating to the fair value of the Company’s outstanding fixed-rate Convertible Notes.
+Added: 16) Subsequent Events
+Added: On June 30, 2025, the Company purchased the membership interests of Envoy Aerospace, LLC, located in Aurora, Illinois.
+Added: Envoy Aerospace is an FAA Organization Designation Authorization (“ODA”) services provider.
+Added: Envoy Aerospace is included in our Aerospace segment.
+Added: The total purchase price was approximately $ 8.3 million, net of cash acquired and the estimated closing adjustment.
+Added: Of the purchase price, $ 4.5 million was paid at the closing date, $ 2.0 million will be paid in one year from the closing date, and $ 1.8 million will be paid in two years from the closing date based on certain milestones.
+Added: The Company expects to complete a preliminary allocation during the third quarter of 2025.
+Added: Purchased intangible assets and goodwill are expected to be deductible for tax purposes over 15 years.
+Added: This transaction was not considered material to the Company’s financial position or results of operations.
Table of Content
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.