REVENUE RECOGNITION
Disaggregation of Revenues
The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the years ended June 30, 2025, 2024, and 2023. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica.
| | | | | | | | | | | |
| Year Ended June 30, 2025 |
| Service Center | Engineered Solutions | Total |
| Geographic Areas: | | | |
| United States | $ | 2,524,036 | | $ | 1,476,918 | | $ | 4,000,954 | |
| Canada | 296,661 | | — | | 296,661 | |
| Other Countries | 193,651 | | 72,158 | | 265,809 | |
| Total | $ | 3,014,348 | | $ | 1,549,076 | | $ | 4,563,424 | |
| | | | | | | | | | | |
| Year Ended June 30, 2024 |
| Service Center | Engineered Solutions | Total |
| Geographic Areas: | | | |
| United States | $ | 2,540,427 | | $ | 1,391,762 | | $ | 3,932,189 | |
| Canada | 310,210 | | — | | 310,210 | |
| Other Countries | 205,918 | | 31,089 | | 237,007 | |
| Total | $ | 3,056,555 | | $ | 1,422,851 | | $ | 4,479,406 | |
| | | | | | | | | | | |
| Year Ended June 30, 2023 |
| Service Center | Engineered Solutions | Total |
| Geographic Areas: | | | |
| United States | $ | 2,441,281 | | $ | 1,419,140 | | $ | 3,860,421 | |
| Canada | 315,499 | | — | | 315,499 | |
| Other Countries | 210,062 | | 26,812 | | 236,874 | |
| Total | $ | 2,966,842 | | $ | 1,445,952 | | $ | 4,412,794 | |
The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the years ended June 30, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| | Year Ended June 30, 2025 |
| Service Center | | Engineered Solutions | | Total |
| General Industry | 34.5 | % | | 40.0 | % | | 36.4 | % |
| Industrial Machinery | 8.3 | % | | 23.3 | % | | 13.3 | % |
| Food | 15.4 | % | | 3.2 | % | | 11.3 | % |
| Metals | 11.0 | % | | 7.3 | % | | 9.8 | % |
| Forest Products | 12.2 | % | | 3.2 | % | | 9.1 | % |
| Chem/Petrochem | 2.8 | % | | 14.6 | % | | 6.8 | % |
| Cement & Aggregate | 7.3 | % | | 1.4 | % | | 5.3 | % |
| Transportation | 3.6 | % | | 4.9 | % | | 4.1 | % |
| Oil & Gas | 4.9 | % | | 2.1 | % | | 3.9 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | |
| | Year Ended June 30, 2024 |
| Service Center | | Engineered Solutions | | Total |
| General Industry | 35.0 | % | | 38.7 | % | | 36.2 | % |
| Industrial Machinery | 8.2 | % | | 24.2 | % | | 13.3 | % |
| Food | 15.0 | % | | 2.8 | % | | 11.1 | % |
| Metals | 10.9 | % | | 7.9 | % | | 10.0 | % |
| Forest Products | 12.0 | % | | 3.2 | % | | 9.2 | % |
| Chem/Petrochem | 2.7 | % | | 16.0 | % | | 6.9 | % |
| Cement & Aggregate | 7.4 | % | | 1.3 | % | | 5.5 | % |
| Transportation | 3.7 | % | | 4.2 | % | | 3.8 | % |
| Oil & Gas | 5.1 | % | | 1.7 | % | | 4.0 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | |
| Year Ended June 30, 2023 |
| Service Center | | Engineered Solutions | | Total |
| General Industry | 34.0 | % | | 41.2 | % | | 36.2 | % |
| Industrial Machinery | 9.8 | % | | 26.1 | % | | 15.2 | % |
| Food | 13.2 | % | | 2.7 | % | | 9.8 | % |
| Metals | 10.6 | % | | 7.5 | % | | 9.6 | % |
| Forest Products | 12.1 | % | | 2.8 | % | | 9.1 | % |
| Chem/Petrochem | 2.8 | % | | 13.9 | % | | 6.4 | % |
| Cement & Aggregate | 7.8 | % | | 1.3 | % | | 5.7 | % |
| Transportation | 3.7 | % | | 3.1 | % | | 3.5 | % |
| Oil & Gas | 6.0 | % | | 1.4 | % | | 4.5 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
The following tables present the Company’s percentage of revenue by reportable segment and product line for the years ended June 30, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| | Year Ended June 30, 2025 |
| Service Center | | Engineered Solutions | | Total |
| Power Transmission | 37.5 | % | | 9.8 | % | | 28.2 | % |
| General MRO & Other | 22.3 | % | | 22.3 | % | | 22.2 | % |
| Fluid Power | 14.4 | % | | 34.9 | % | | 21.3 | % |
| Bearings, Linear & Seals | 25.8 | % | | 0.4 | % | | 17.3 | % |
| Specialty Flow Control | — | % | | 32.6 | % | | 11.0 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | |
| | Year Ended June 30, 2024 |
| Service Center | | Engineered Solutions | | Total |
| Power Transmission | 37.7 | % | | 11.3 | % | | 29.4 | % |
| General MRO & Other | 22.1 | % | | 17.2 | % | | 20.5 | % |
| Fluid Power | 14.1 | % | | 36.3 | % | | 21.1 | % |
| Bearings, Linear & Seals | 26.1 | % | | 0.4 | % | | 18.0 | % |
| Specialty Flow Control | — | % | | 34.8 | % | | 11.0 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | |
| Year Ended June 30, 2023 |
| Service Center | | Engineered Solutions | | Total |
| Power Transmission | 37.3 | % | | 10.6 | % | | 28.5 | % |
| General MRO & Other | 21.1 | % | | 19.3 | % | | 20.6 | % |
| Fluid Power | 13.3 | % | | 34.3 | % | | 20.2 | % |
| Bearings, Linear & Seals | 28.3 | % | | 0.4 | % | | 19.1 | % |
| Specialty Flow Control | — | % | | 35.4 | % | | 11.6 | % |
| Total | 100.0 | % | | 100.0 | % | | 100.0 | % |
Contract Assets and Liabilities
Changes related to contract assets and contract liabilities are as follows:
| | | | | | | | | | | | | | |
| June 30, 2025 | June 30, 2024 | $ Change | % Change |
| Contract assets | $ | 11,659 | | $ | 12,648 | | $ | (989) | | (7.8) | % |
| Contract liabilities | 29,244 | | 15,777 | | 13,467 | | 85.4 | % |
The change in balances noted above of the Company's contract assets primarily results from the timing difference between the Company's performance and when the customer is billed. The increase in the contract liability balance from the prior year is primarily due to acquisitions in fiscal 2025.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.