| Summary of segment reporting information |
Summarized financial information for our reporting segments is shown below: | | | | | | | | | | | | Contract | | Aftermarket | | | | (in thousands) | | Operations | | Services | | Total | Three months ended June 30, 2026 | | | | | | | | | | Revenue(1) | | $ | 329,260 | | $ | 41,978 | | $ | 371,238 | Cost of sales, exclusive of depreciation and amortization | | | 94,672 | | | 32,054 | | | 126,726 | Adjusted gross margin | | | 234,588 | | | 9,924 | | | 244,512 | | | | | | | | | | | Three months ended June 30, 2025 | | | | | | | | | | Revenue(1) | | $ | 318,327 | | $ | 64,825 | | $ | 383,152 | Cost of sales, exclusive of depreciation and amortization | | | 96,152 | | | 49,886 | | | 146,038 | Adjusted gross margin | | | 222,175 | | | 14,939 | | | 237,114 | | | | | | | | | | | Six months ended June 30, 2026 | | | | | | | | | | Revenue(1) | | $ | 660,140 | | $ | 84,865 | | $ | 745,005 | Cost of sales, exclusive of depreciation and amortization | | | 187,943 | | | 65,127 | | | 253,070 | Adjusted gross margin | | | 472,197 | | | 19,738 | | | 491,935 | | | | | | | | | | | Six months ended June 30, 2025 | | | | | | | | | | Revenue(1) | | $ | 618,724 | | $ | 111,591 | | $ | 730,315 | Cost of sales, exclusive of depreciation and amortization | | | 185,951 | | | 85,143 | | | 271,094 | Adjusted gross margin | | | 432,773 | | | 26,448 | | | 459,221 |
| (1) | Segment revenue includes only sales to external customers. |
The following table reconciles gross margin, the most directly comparable GAAP measure, to adjusted gross margin: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Total revenues | | $ | 371,238 | | $ | 383,152 | | $ | 745,005 | | $ | 730,315 | Cost of sales, exclusive of depreciation and amortization | | | (126,726) | | | (146,038) | | | (253,070) | | | (271,094) | Depreciation and amortization | | | (71,478) | | | (63,139) | | | (141,212) | | | (120,759) | Gross margin | | | 173,034 | | | 173,975 | | | 350,723 | | | 338,462 | Depreciation and amortization | | | 71,478 | | | 63,139 | | | 141,212 | | | 120,759 | Adjusted gross margin | | $ | 244,512 | | $ | 237,114 | | $ | 491,935 | | $ | 459,221 |
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| Reconciliation of adjusted gross margin to income before taxes |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Adjusted gross margin | | $ | 244,512 | | $ | 237,114 | | $ | 491,935 | | $ | 459,221 | Less: | | | | | | | | | | | | | Selling, general and administrative | | | 39,641 | | | 36,244 | | | 84,872 | | | 73,451 | Depreciation and amortization | | | 71,478 | | | 63,139 | | | 141,212 | | | 120,759 | Long-lived and other asset impairment | | | 4,881 | | | 10,847 | | | 10,140 | | | 11,819 | Restructuring charges | | | 125 | | | 144 | | | 261 | | | 809 | Debt extinguishment gain | | | (687) | | | — | | | (687) | | | — | Interest expense | | | 37,016 | | | 41,711 | | | 76,526 | | | 79,452 | Transaction-related costs | | | 328 | | | 6,127 | | | 924 | | | 10,062 | Gain on sale of assets, net | | | (297) | | | (4,297) | | | (10,413) | | | (11,632) | Other income, net | | | (967) | | | (2,841) | | | (1,572) | | | (3,525) | Income before income taxes | | $ | 92,994 | | $ | 86,040 | | $ | 190,672 | | $ | 178,026 |
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