Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities

12 Months Ended

Dec. 31, 2025

Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities

The following table provides details of accounts receivable, net of allowance, and contract assets (together “accounts receivable, net”) as of the dates indicated (in millions):


	December 31,
	2025		2024
Contract billings	$	1,558.2	$	1,400.6
Less allowance	(17.9)		(19.1)
Accounts receivable, net of allowance	$	1,540.3	$	1,381.5

Retainage	$	428.4	$	335.3
Unbilled receivables	1,573.5		1,220.5
Contract assets	$	2,001.9	$	1,555.8

Contract billings represent the amount of performance obligations that have been billed but not yet collected, whereas contract assets consist of unbilled receivables and retainage. Unbilled receivables, which are included in contract assets, represent the estimated value of unbilled work for projects with performance obligations recognized over time. Unbilled receivables include amounts for work performed for which the Company has an unconditional right to receive payment and that are not subject to the completion of any other specific task, other than the billing itself. Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount until final contract settlement, which is generally from 5% to 10% of contract billings. Retainage is not considered to be a significant financing component because the intent is to protect the customer. Unbilled receivables and retainage amounts are generally classified as current assets within the Company’s consolidated balance sheets. Retainage that has been billed, but is not due until completion of performance and acceptance by customers, is generally expected to be collected within one year. Accounts receivable balances expected to be collected beyond one year are recorded within other long-term assets. As of December 31, 2025, 2024 and 2023, contract assets totaled approximately $2,001.9 million, $1,555.8 million and $1,756.4 million, respectively. The increase in contract assets as of December 31, 2025, was driven primarily by ordinary course activity, including in connection with increased project volume primarily within the Company’s Communications segment.

For the year ended December 31, 2025, provisions for credit losses totaled a recovery of approximately $0.5 million, and for the year ended December 31, 2024, provisions for credit losses totaled approximately $4.8 million, both of which included certain project-specific reserves. For the years ended December 31, 2025 and 2024, amounts charged against the allowance, including direct write-offs, totaled approximately $0.7 million and $0.8 million, respectively. Impairment losses on contract assets were not material in any of the years ended December 31, 2025, 2024 or 2023.

Contract liabilities, which are generally classified within current liabilities on the Company’s consolidated balance sheets, consist primarily of deferred revenue and also include the amount of any accrued project losses. Under certain contracts, the Company may be entitled to invoice the customer and receive payments in advance of performing the related contract work. In those instances, the Company recognizes a liability for advance billings in excess of revenue recognized, which is referred to as deferred revenue. Deferred revenue is not considered to be a significant financing component because it is generally used to meet working capital demands that can be higher in the early stages of a contract. Total contract liabilities, including accrued project losses, totaled approximately $747.7 million, $735.6 million and $481.0 million as of December 31, 2025, 2024 and 2023, respectively, of which deferred revenue comprised approximately $741.0 million, $725.1 million and $475.2 million, respectively. For the years ended December 31, 2025, 2024 and 2023, the Company recognized revenue of approximately $705.6 million, $416.8 million and $363.3 million, respectively, related to amounts that were included in deferred revenue as of December 31, 2024, 2023 and 2022, respectively, resulting primarily from the advancement of physical progress on the related projects during the respective periods.

The Company is party to certain non-recourse financing arrangements in the ordinary course of business, under which certain receivables are sold to a financial institution in return for a nominal fee. The Company has certain additional non-recourse financing arrangements under which it continues to manage collections for the transferred receivables, and for which the corresponding servicing assets or liabilities are not material. For the years ended December 31, 2025, 2024 and 2023, the Company sold approximately $555 million, $442 million and $131 million, respectively, of receivables under financing arrangements for which it continues to manage collections for the transferred receivable, and, as of December 31, 2025 and 2024, outstanding sold receivables related thereto totaled approximately $172 million and $84 million, respectively, which amounts are excluded from accounts receivable, net of allowance, in the consolidated balance sheets. The Company’s involvement in the collection process for these receivables is not considered to constitute significant continuing involvement, and, therefore, the receivables are accounted for as a sale under ASC Topic 860, Transfers and Servicing. Cash collections from the sale of receivables are reflected within operating activities in the consolidated statements of cash flows. The Company is also party to arrangements with certain customers that allow for early collection of receivables for a nominal fee, at the Company’s option. Discount charges related to the above described financing arrangements, which are included within interest expense, net, totaled approximately $23.8 million, $20.7 million and $12.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.