Quarterly report [Sections 13 or 15(d)]

REPORTABLE SEGMENTS

v3.25.3
REPORTABLE SEGMENTS
 9 Months Ended
Sep. 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 nine months ended September 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 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.

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 nine months ended September 30, 2025 and 2024, is as follows (in thousands):

 

 

Three Months Ended September 30, 2025

 

 

 

Services(1)

 

 

Fabrication(1)

 

 

Shipyard(2)

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

21,494

 

 

$

30,551

 

 

$

—

 

 

$

(505

)

 

$

51,540

 

Cost of revenue

 

 

19,668

 

 

 

27,497

 

 

 

—

 

 

 

(505

)

 

 

46,660

 

Gross profit

 

 

1,826

 

 

 

3,054

 

 

 

—

 

 

 

—

 

 

 

4,880

 

General and administrative expense

 

 

984

 

 

 

978

 

 

 

—

 

 

 

1,689

 

 

 

3,651

 

Other (income) expense, net

 

 

(1

)

 

 

(55

)

 

 

—

 

 

 

139

 

 

 

83

 

Operating income (loss)

 

$

843

 

 

$

2,131

 

 

$

—

 

 

$

(1,828

)

 

$

1,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

439

 

 

$

765

 

 

$

—

 

 

$

24

 

 

$

1,228

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

411

 

 

$

411

 

Capital expenditures

 

$

10

 

 

$

187

 

 

$

—

 

 

$

—

 

 

$

197

 

Total assets(3)

 

$

23,398

 

 

$

54,705

 

 

$

—

 

 

$

68,623

 

 

$

146,726

 

 

 

 

Three Months Ended September 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

20,245

 

 

$

17,110

 

 

$

490

 

 

$

(205

)

 

$

37,640

 

Cost of revenue

 

 

18,205

 

 

 

14,569

 

 

 

415

 

 

 

(205

)

 

 

32,984

 

Gross profit

 

 

2,040

 

 

 

2,541

 

 

 

75

 

 

 

—

 

 

 

4,656

 

General and administrative expense

 

 

634

 

 

 

489

 

 

 

—

 

 

 

1,862

 

 

 

2,985

 

Other (income) expense, net

 

 

10

 

 

 

18

 

 

 

53

 

 

 

(82

)

 

 

(1

)

Operating income (loss)

 

$

1,396

 

 

$

2,034

 

 

$

22

 

 

$

(1,780

)

 

$

1,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

495

 

 

$

633

 

 

$

—

 

 

$

80

 

 

$

1,208

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

647

 

 

$

647

 

Capital expenditures

 

$

17

 

 

$

1,297

 

 

$

—

 

 

$

—

 

 

$

1,314

 

Total assets(3)

 

$

24,445

 

 

$

34,895

 

 

$

233

 

 

$

71,195

 

 

$

130,768

 

 

 

 

Nine Months Ended September 30, 2025

 

 

 

Services(1)

 

 

Fabrication(1)

 

 

Shipyard(2)

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

63,327

 

 

$

67,090

 

 

$

—

 

 

$

(1,066

)

 

$

129,351

 

Cost of revenue

 

 

56,820

 

 

 

58,541

 

 

 

—

 

 

 

(1,066

)

 

 

114,295

 

Gross profit

 

 

6,507

 

 

 

8,549

 

 

 

—

 

 

 

—

 

 

 

15,056

 

General and administrative expense

 

 

2,513

 

 

 

2,373

 

 

 

—

 

 

 

5,286

 

 

 

10,172

 

Other (income) expense, net

 

 

(1

)

 

 

(157

)

 

 

—

 

 

 

1,695

 

 

 

1,537

 

Operating income (loss)

 

$

3,995

 

 

$

6,333

 

 

$

—

 

 

$

(6,981

)

 

$

3,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

1,358

 

 

$

2,196

 

 

$

—

 

 

$

124

 

 

$

3,678

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,470

 

 

$

1,470

 

Capital expenditures

 

$

81

 

 

$

732

 

 

$

—

 

 

$

—

 

 

$

813

 

Total assets(3)

 

$

23,398

 

 

$

54,705

 

 

$

—

 

 

$

68,623

 

 

$

146,726

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

68,546

 

 

$

52,975

 

 

$

935

 

 

$

(673

)

 

$

121,783

 

Cost of revenue

 

 

60,005

 

 

 

47,003

 

 

 

510

 

 

 

(673

)

 

 

106,845

 

Gross profit

 

 

8,541

 

 

 

5,972

 

 

 

425

 

 

 

—

 

 

 

14,938

 

General and administrative expense

 

 

2,064

 

 

 

1,475

 

 

 

—

 

 

 

6,284

 

 

 

9,823

 

Other (income) expense, net

 

 

25

 

 

 

(3,387

)

 

 

52

 

 

 

(238

)

 

 

(3,548

)

Operating income (loss)

 

$

6,452

 

 

$

7,884

 

 

$

373

 

 

$

(6,046

)

 

$

8,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

1,461

 

 

$

1,942

 

 

$

—

 

 

$

238

 

 

$

3,641

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,792

 

 

$

1,792

 

Capital expenditures

 

$

684

 

 

$

4,196

 

 

$

—

 

 

$

—

 

 

$

4,880

 

Total assets(3)

 

$

24,445

 

 

$

34,895

 

 

$

233

 

 

$

71,195

 

 

$

130,768

 

 

(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.