Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The following table summarizes the Company’s sales by major product and service line for the periods presented:

	Three Months Ended March 31,
	2024		2023
Rail Products	$	53,038	$	40,228
Global Friction Management	14,022		15,820
Technology Services and Solutions	15,563		8,336
Rail, Technologies, and Services	82,623		64,384
Precast Concrete Products	21,091		24,288
Steel Products	20,606		26,816
Infrastructure Solutions	41,697		51,104
Total net sales	$	124,320	$	115,488

The majority of the Company’s revenue is from products transferred and services rendered to customers at a point in time. The Company recognizes revenue at the point in time at which the customer obtains control of the product or service, which is generally when the product title passes to the customer upon shipment or the service has been rendered to the customer. In limited cases, title does not transfer and revenue is not recognized until the customer has received the products at a designated physical location.

Net sales by the timing of the transfer of goods and services was as follows for the periods presented:

	Three Months Ended March 31, 2024
	Rail, Technologies, and Services		Infrastructure Solutions		Total
Point in time	$	65,539	$	29,657	$	95,196
Over time	17,084		12,040		29,124
Total net sales	$	82,623	$	41,697	$	124,320
	Three Months Ended March 31, 2023
	Rail, Technologies, and Services		Infrastructure Solutions		Total
Point in time	$	53,834	$	29,128	$	82,962
Over time	10,550		21,976		32,526
Total net sales	$	64,384	$	51,104	$	115,488

The Company’s performance obligations under long-term agreements with its customers are generally satisfied over time. Over time revenue is primarily comprised of transit infrastructure and technology services and solutions projects within the Rail segment, precast concrete buildings within the Precast Concrete Products division in the Infrastructure segment, and long-term bridge projects and custom precision metering systems within the Steel Products division in the Infrastructure segment. Revenue under these long-term agreements is generally recognized over time, either using an input measure based upon the proportion of actual costs incurred to estimated total project costs or an input measure based upon actual labor costs as a percentage of estimated total labor costs, depending upon which measure the Company believes best depicts the Company’s performance to date under the terms of the contract, or an output method, specifically units delivered, based upon certain customer acceptance and delivery requirements. The use of an input or an output measure to recognize revenue is determined based on what is most appropriate given the nature of the work performed and terms of the associated agreement.

Accounting for these long-term agreements involves the use of various techniques to estimate total revenues and costs. The Company estimates profit on these long-term agreements as the difference between total estimated revenues and expected costs to complete a contract and recognizes that profit over the life of the contract. As a result of management's reviews of contract-related estimates the Company makes adjustments to contract estimates that impact our revenue and profit totals. Changes in estimates are primarily attributed to updated considerations, including economic conditions and historic contract patterns, resulting in changes to anticipated revenue from existing contracts. During the three months ended March 31, 2024, reductions to net sales stemming from changes in actual and expected values of certain commercial contracts and settlements of such contracts were immaterial. Such adjustments were $393 during the three months ended March 31, 2023. The Company’s estimates related to these long-term agreements are further described in Note 4 Revenue of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2023.

Revenue recognized over time was as follows for the periods presented:

	Three Months Ended March 31,				Percentage of Total Net Sales Three Months Ended March 31,
	2024		2023		2024		2023
Over time input method	$	13,143	$	16,211	10.6	%	14.0	%
Over time output method	15,981		16,315		12.9		14.1
Total over time sales	$	29,124	$	32,526	23.4	%	28.2	%

The timing of revenue recognition, billings, and cash collections results in billed receivables, costs in excess of billings (included in “Contract assets - net”), and billings in excess of costs (contract liabilities), included in “Deferred revenue” within the Condensed Consolidated Balance Sheets.

The following table sets forth the Company’s contract assets:

	Contract Assets
Balance as of December 31, 2023	$	29,489
Net additions to contract assets	4,212
Transfers from contract asset balance to accounts receivable	(9,560)
Balance as of March 31, 2024	$	24,141

The following table sets forth the Company’s contract liabilities:

	Contract Liabilities
Balance as of December 31, 2023	$	2,189
Revenue recognized from contract liabilities	(1,467)
Increase in billings in excess of cost, excluding revenue recognized	1,850
Other adjustments	317
Balance as of March 31, 2024	$	2,889

The Company has established policies regarding allowance for credit losses associated with contract assets, which includes standalone reserve assessments for its long term, complex contracts as needed as well as detailed regular review and updates to contract margins, progress, and value. A standard reserve threshold is applied to contract assets related to short term, less complex contracts. Management also regularly reviews collection patterns and future expected collections and makes necessary revisions to allowance for credit losses related to contract assets.

As of March 31, 2024, the Company had approximately $222,261 of remaining performance obligations, which is also referred to as backlog. Approximately 10.5% of the March 31, 2024 backlog was related to projects that are anticipated to extend beyond March 31, 2025.