Quarterly report [Sections 13 or 15(d)]

REPORTABLE SEGMENTS

v3.25.2
REPORTABLE SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS

7. REPORTABLE SEGMENTS

During 2021, we sold our former Shipyard Division operating assets and certain construction contracts and commenced the wind down of our remaining Shipyard Division operations, which consisted of completion of a seventy-vehicle ferry and two forty-vehicle ferry projects (collectively, the “Ferry Projects”). The wind down of our Shipyard Division operations was substantially completed in the fourth quarter 2023 and final completion occurred in the first quarter 2025 with the expiration of the last warranty period for the Ferry Projects. While our Shipyard Division represented a reportable segment for the year ended December 31, 2024, the Shipyard Division is no longer a reportable segment effective January 1, 2025. Accordingly, we currently operate and manage our business through two operating divisions (“Services” and “Fabrication”) and one non-operating division (“Corporate”), which represent our reportable segments. Remaining operating results for our former Shipyard Division for the three and six months ended June 30, 2025, are included in other (income) expense, net on our Statement of Operations and are reflected within our Corporate Division.

Further, during the second quarter 2025, we acquired the Automation Business, for which the operating results are reflected within in our Fabrication Division from the applicable Acquisition Date, and we acquired the Engineering Business and Government Business, for which the operating results are reflected within our Services Division from the applicable Acquisition Date. The Automation Business provides engineering, design, fabrication and integration of industrial automation systems to the oil and gas, renewable energy and traditional power industries. The Engineering Business provides various engineering solutions to the oil and gas and renewable energy industries. The Government Business provides Englobal’s engineering and automation solutions to federal, state and local governments and educational institutions, generally in the form of technical field services. See Note 3 for further discussion of the Englobal Acquisition. Our two operating divisions and Corporate Division are discussed below.

Services Division – Our Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, cleaning and environmental and other specialty services on offshore platforms and inland structures and at industrial facilities; provides services required to connect production equipment and service modules and equipment on offshore platforms; and provides engineering, design, project management, commissioning and technical field services for the oil and gas and renewable energy industries and federal, state and local governments. Our services activities are managed from our various Facilities.

Fabrication Division – Our Fabrication Division fabricates modules, skids and piping systems for onshore refining, petrochemical, LNG and industrial facilities and offshore facilities; fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities; fabricates, assembles and integrates industrial automation systems for the oil and gas, renewable energy and traditional power industries; fabricates offshore production platforms and associated structures, including jacket foundations, piles and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms for the oil and gas industry; and fabricates other complex steel structures and components for a variety of end markets. Our fabrication activities are performed at our Houma Facility and Houston Facility.

Corporate Division and Allocations – Our Corporate Division includes costs that do not directly relate to our operating divisions. Such costs include, but are not limited to, costs of maintaining our corporate office, executive management salaries and incentives, Board fees, certain insurance costs and costs associated with overall corporate governance and reporting requirements for a publicly traded company. Shared resources and costs that benefit more than one operating division are allocated amongst the operating divisions based on each operating division’s estimated share of the benefit received. Such costs include, but are not limited to, human resources, insurance, information technology, accounting, business development and certain division leadership costs.

Segment Results – Our chief operating decision maker is our chief executive officer and he generally evaluates the performance of, and allocates resources to, our divisions based upon gross profit or loss and operating income or loss. Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of and for the three and six months ended June 30, 2025 and 2024, is as follows (in thousands):

 

 

Three Months Ended June 30, 2025

 

 

 

Services(1)

 

 

Fabrication(1)

 

 

Shipyard(2)

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

21,978

 

 

$

15,845

 

 

$

—

 

 

$

(285

)

 

$

37,538

 

Cost of revenue

 

 

19,580

 

 

 

14,682

 

 

 

—

 

 

 

(285

)

 

 

33,977

 

Gross profit

 

 

2,398

 

 

 

1,163

 

 

 

—

 

 

 

—

 

 

 

3,561

 

General and administrative expense

 

 

829

 

 

 

828

 

 

 

—

 

 

 

1,629

 

 

 

3,286

 

Other (income) expense, net

 

 

—

 

 

 

(72

)

 

 

—

 

 

 

1,426

 

 

 

1,354

 

Operating income (loss)

 

$

1,569

 

 

$

407

 

 

$

—

 

 

$

(3,055

)

 

$

(1,079

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

437

 

 

$

733

 

 

$

—

 

 

$

24

 

 

$

1,194

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

510

 

 

$

510

 

Capital expenditures

 

$

71

 

 

$

238

 

 

$

—

 

 

$

—

 

 

$

309

 

Total assets(3)

 

$

25,659

 

 

$

41,745

 

 

$

—

 

 

$

66,944

 

 

$

134,348

 

 

 

 

Three Months Ended June 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

22,767

 

 

$

18,727

 

 

$

36

 

 

$

(268

)

 

$

41,262

 

Cost of revenue

 

 

19,879

 

 

 

17,488

 

 

 

5

 

 

 

(268

)

 

 

37,104

 

Gross profit

 

 

2,888

 

 

 

1,239

 

 

 

31

 

 

 

—

 

 

 

4,158

 

General and administrative expense

 

 

687

 

 

 

545

 

 

 

—

 

 

 

2,122

 

 

 

3,354

 

Other (income) expense, net

 

 

12

 

 

 

(435

)

 

 

22

 

 

 

(78

)

 

 

(479

)

Operating income (loss)

 

$

2,189

 

 

$

1,129

 

 

$

9

 

 

$

(2,044

)

 

$

1,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

486

 

 

$

674

 

 

$

—

 

 

$

80

 

 

$

1,240

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

603

 

 

$

603

 

Capital expenditures

 

$

373

 

 

$

640

 

 

$

—

 

 

$

—

 

 

$

1,013

 

Total assets(3)

 

$

26,179

 

 

$

39,449

 

 

$

541

 

 

$

67,094

 

 

$

133,263

 

 

 

 

Six Months Ended June 30, 2025

 

 

 

Services(1)

 

 

Fabrication(1)

 

 

Shipyard(2)

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

41,833

 

 

$

36,539

 

 

$

—

 

 

$

(561

)

 

$

77,811

 

Cost of revenue

 

 

37,152

 

 

 

31,044

 

 

 

—

 

 

 

(561

)

 

 

67,635

 

Gross profit

 

 

4,681

 

 

 

5,495

 

 

 

—

 

 

 

—

 

 

 

10,176

 

General and administrative expense

 

 

1,529

 

 

 

1,395

 

 

 

—

 

 

 

3,597

 

 

 

6,521

 

Other (income) expense, net

 

 

—

 

 

 

(102

)

 

 

—

 

 

 

1,556

 

 

 

1,454

 

Operating income (loss)

 

$

3,152

 

 

$

4,202

 

 

$

—

 

 

$

(5,153

)

 

$

2,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

919

 

 

$

1,431

 

 

$

—

 

 

$

100

 

 

$

2,450

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,059

 

 

$

1,059

 

Capital expenditures

 

$

71

 

 

$

545

 

 

$

—

 

 

$

—

 

 

$

616

 

Total assets(3)

 

$

25,659

 

 

$

41,745

 

 

$

—

 

 

$

66,944

 

 

$

134,348

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

48,301

 

 

$

35,865

 

 

$

445

 

 

$

(468

)

 

$

84,143

 

Cost of revenue

 

 

41,800

 

 

 

32,434

 

 

 

95

 

 

 

(468

)

 

 

73,861

 

Gross profit

 

 

6,501

 

 

 

3,431

 

 

 

350

 

 

 

—

 

 

 

10,282

 

General and administrative expense

 

 

1,430

 

 

 

986

 

 

 

—

 

 

 

4,422

 

 

 

6,838

 

Other (income) expense, net

 

 

15

 

 

 

(3,405

)

 

 

(1

)

 

 

(156

)

 

 

(3,547

)

Operating income (loss)

 

$

5,056

 

 

$

5,850

 

 

$

351

 

 

$

(4,266

)

 

$

6,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

966

 

 

$

1,309

 

 

$

—

 

 

$

158

 

 

$

2,433

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,145

 

 

$

1,145

 

Capital expenditures

 

$

667

 

 

$

2,899

 

 

$

—

 

 

$

—

 

 

$

3,566

 

Total assets(3)

 

$

26,179

 

 

$

39,449

 

 

$

541

 

 

$

67,094

 

 

$

133,263

 

 

 

(1)
Operating results for the Services Division include the Engineering Business and the Government Business, and operating results for the Fabrication Division include the Automation Business, from the applicable Acquisition Date. See Note 3 for further discussion of the Englobal Acquisition.
(2)
The Shipyard Division is no longer a reportable segment effective January 1, 2025. Remaining operating results for our former Shipyard Division are included in other (income) expense, net on our Statement of Operations and are reflected within our Corporate Division.
(3)
Cash and short-term investments are reported within our Corporate Division.