Revenue
Disaggregation of Revenues
The following table presents net sales disaggregated by product line for each segment:
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| (in millions) December 31, | | 2025 | | 2024 | | 2023 |
| Aerospace & Advanced Technologies | | | | | |
| Commercial Original Equipment | | $ | 397.3 | | | $ | 349.4 | | | $ | 291.4 | |
| Military Original Equipment | | 297.5 | | | 273.1 | | | 252.4 | |
| Commercial Aftermarket Products | | 247.5 | | | 218.5 | | | 180.2 | |
| Military Aftermarket Products | | 106.6 | | | 91.7 | | | 65.3 | |
| Total Aerospace & Advanced Technologies | $ | 1,048.9 | | | $ | 932.7 | | | $ | 789.3 | |
| | | | | | |
| Process Flow Technologies | | | | | |
| Process Valves and Related Products | | $ | 947.6 | | | $ | 913.3 | | | $ | 811.3 | |
| Commercial Valves | | 147.4 | | | 137.9 | | | 116.4 | |
| Pumps and Systems | | 161.1 | | | 147.3 | | | 145.1 | |
| Total Process Flow Technologies | $ | 1,256.1 | | | $ | 1,198.5 | | | $ | 1,072.8 | |
| | | | | | |
| Total Net Sales | $ | 2,305.0 | | | $ | 2,131.2 | | | $ | 1,862.1 | |
Remaining Performance Obligations
The transaction price allocated to remaining performance obligations represents the transaction price of firm orders which have not yet been fulfilled, which we also refer to as total backlog. As of December 31, 2025, backlog was $1,435.4 million. We expect to recognize approximately 81% of our remaining performance obligations as revenue in 2026, an additional 15% by 2027 and the balance thereafter.
Contract Assets and Contract Liabilities
Contract assets represent unbilled amounts that typically arise from contracts for customized products or contracts for products sold directly to the U.S. government or indirectly to the U.S. government through subcontracts, where revenue recognized using the cost-to-cost method exceeds the amount billed to the customer. Contract assets are assessed for impairment and recorded at their net realizable value. Contract liabilities represent advance payments from customers. Revenue related to contract liabilities is recognized when control is transferred to the customer. We report contract assets, which are included within “Other current assets” in our Consolidated Balance Sheets, and contract liabilities, which are included within “Accrued liabilities” on our Consolidated Balance Sheets, on a contract-by-contract net basis at the end of each reporting period. Net contract assets and contract liabilities consisted of the following:
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| (in millions) December 31, | 2025 | | 2024 | | | | |
| Contract assets | $ | 71.7 | | | $ | 65.7 | | | | | |
| Contract liabilities | $ | 46.0 | | | $ | 36.3 | | | | | |
During 2025 we recognized revenue of $33.7 million related to contract liabilities as of December 31, 2024.
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.