Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2025

Net Sales and Income from Operation by Business Segment

The financial segment information is as follows for the three and six months ended June 30, 2025:


	Three months ended June 30, 2025				Six months ended June 30, 2025
(table only in thousands)	Engineered Systems		Industrial Process Solutions		Engineered Systems		Industrial Process Solutions
Sales	$	133,035	$	58,960	$	260,475	$	115,519
Income from operations		25,194		15,110		43,934		84,761

The financial segment information is as follows for the three and six months ended June 30, 2024:


	Three months ended June 30, 2024				Six months ended June 30, 2024
(in thousands)	Engineered Systems		Industrial Process Solutions		Engineered Systems		Industrial Process Solutions
Sales	$	102,141	$	44,673	$	194,659	$	84,252
Income from operations		19,330		5,669		35,607		12,769

Property and Equipment Additions, Depreciation and Amortization and Identifiable Assets

Other segment information is as follows for the three and six months ended June 30, 2025:


	Three months ended June 30, 2025				Six months ended June 30, 2025
(table only in thousands)	Engineered Systems		Industrial Process Solutions		Engineered Systems		Industrial Process Solutions
Property and equipment additions	$	512	$	328	$	1,206	$	961
Depreciation and amortization(1)		2,113		1,864		4,098		4,188

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.

Other segment information is as follows for the three and six months ended June 30, 2024:


	Three months ended June 30, 2024				Six months ended June 30, 2024
(in thousands)	Engineered Systems		Industrial Process Solutions		Engineered Systems		Industrial Process Solutions
Property and equipment additions	$	890	$	429	$	2,027	$	1,035
Depreciation and amortization(1)		1,814		1,131		3,599		2,250

(1) The amounts of depreciation and amortization disclosed by reportable segment are included within the other segment expense captions, such as shop burden or general and administrative expense.

Intra-Segment and Inter-Segment Revenues

A reconciliation of total segment sales to total consolidated sales, as well as total segment income from operations to total consolidated income from operations and total consolidated net income is as follows for the three months ended June 30, 2025:


(table only in thousands)	Engineered Systems		Industrial Process Solutions			Total
Sales from external customers	$	128,460	$	56,931		$	185,391
Intra-segment sales		4,484		2,029			6,513
Inter-segment sales		91		—			91
Total segment sales		133,035		58,960			191,995
Reconciliation to sales
Elimination of intra- and inter-segment sales							6,604
Total consolidated sales							185,391
Reconciliation to income before income taxes
Direct cost of sales		76,638		36,078			112,715
Shop burden		3,338		2,230			5,568
Selling expense		7,933		2,857			10,790
Project engineering expense		4,729		2,803			7,531
General and administrative expense		9,185		2,278			11,463
Other segment items(1)		1,445		(4,424	)		(2,979	)
Income from operations		29,769		17,139			46,908
Stock-based compensation							2,878
Other corporate expenses(2)							19,365
Elimination of intra- and inter-segment activity							6,604
Interest expense							4,898
Other income(3)							(1,454	)
Total consolidated income before income taxes							14,617

(1) Includes amortization expenses, acquisition and integration expenses, and divestiture expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes gain on sale of business, foreign exchange (gain) loss and pension expense.


(table only in thousands)	Engineered Systems		Industrial Process Solutions			Total
Sales from external customers	$	248,894	$	113,195		$	362,088
Intra-segment sales		11,393		2,324			13,717
Inter-segment sales		188		—			188
Total segment sales		260,475		115,519			375,993
Reconciliation to sales
Elimination of intra- and inter-segment sales							13,905
Total consolidated sales							362,088
Reconciliation to income before income taxes
Direct cost of sales		149,703		71,717			221,420
Shop burden		6,269		5,125			11,394
Selling expense		15,765		6,587			22,353
Project engineering expense		9,459		5,675			15,134
General and administrative expense		18,225		6,547			24,772
Gain on sale of Global Pump Solutions business		—		(64,502	)		(64,502	)
Other segment items(1)		5,538		(2,714	)		2,824
Income from operations		55,515		87,084			142,599
Stock-based compensation							6,234
Other corporate expenses(2)							42,530
Elimination of intra- and inter-segment activity							13,905
Interest expense							11,115
Other income(3)							(861	)
Total consolidated income before income taxes							69,676


(in thousands)	Engineered Systems		Industrial Process Solutions		Total
Sales from external customers	$	97,392	$	40,130	$	137,522
Intra-segment sales		4,553		4,440		8,993
Inter-segment sales		196		103		299
Total segment sales		102,141		44,673		146,814
Reconciliation to sales
Elimination of intra- and inter-segment sales						9,292
Total consolidated sales						137,522
Reconciliation to income before income taxes
Direct cost of sales		59,483		24,081		83,563
Shop burden		2,224		2,679		4,903
Selling expense		5,865		2,794		8,659
Project engineering expense		4,066		1,652		5,718
General and administrative expense		4,716		2,502		7,218
Other segment items(1)		1,707		754		2,461
Income from operations		24,080		10,211		34,291
Stock-based compensation						2,177
Other corporate expenses(2)						13,565
Elimination of intra- and inter-segment activity						9,292
Interest expense						3,254
Other loss(3)						679
Total consolidated income before income taxes						5,324

(1) Includes amortization expenses, acquisition and integration expenses, and asbestos litigation expenses.
(2) Includes corporate compensation, professional services and information technology expenses, and other general and administrative corporate expenses.
(3) Includes foreign exchange (gain) loss and pension expense.


(in thousands)	Engineered Systems		Industrial Process Solutions		Total
Sales from external customers	$	186,741	$	77,113	$	263,854
Intra-segment sales		7,635		6,975		14,610
Inter-segment sales		283		164		447
Total segment sales		194,659		84,252		278,911
Reconciliation to sales
Elimination of intra- and inter-segment sales						15,057
Total consolidated sales						263,854
Reconciliation to income before income taxes
Direct cost of sales		116,578		44,305		160,883
Shop burden		3,800		4,983		8,783
Selling expense		11,405		5,693		17,098
Project engineering expense		6,388		3,209		9,597
General and administrative expense		9,537		4,740		14,277
Other segment items(1)		3,425		1,415		4,840
Income from operations		43,526		19,907		63,433
Stock-based compensation						3,847
Other corporate expenses(2)						27,586
Elimination of intra- and inter-segment activity						15,057
Interest expense						6,667
Other loss(3)						2,192
Total consolidated income before income taxes						8,084

Net Sales By Geographic Area

Net sales by geographic area are as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2025		2024		2025		2024
United States	$	120,204	$	90,450	$	230,875	$	168,238
United Kingdom		12,470		14,353		32,027		26,555
Netherlands		15,763		13,496		26,989		30,308
China		13,563		8,883		28,357		13,213
Other		23,391		10,340		43,840		25,540
Total net sales	$	185,391	$	137,522	$	362,088	$	263,854

The geographical area data for net sales is based upon the country location of the Company's business unit generating such sales.

Long-Lived Assets By Geographic Area

Long-lived assets by geographic area are as follows:


(in thousands)	June 30, 2025		December 31, 2024
United States	$	372,714	$	332,162
United Kingdom		28,300		27,003
China		36,614		36,315
Other		55,955		33,248
Total long-lived assets	$	493,583	$	428,728

The geographical area data for long-lived assets is based upon physical location of such assets.

CECO ENVIRONMENTAL CORP 10-Q