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Contracts with Customers
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Contracts with Customers
5.
Contracts with Customers

Disaggregation of Revenue

The Company’s contracts contain both fixed-price and cost reimbursable components. Contract types are based on the component that represents the majority of the contract. The following table presents revenue disaggregated by contract type (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30, 2024

 

Fixed-Price

 

$

535,901

 

 

$

790,820

 

 

$

1,642,609

 

 

$

2,129,274

 

Time-and-Materials

 

 

394,076

 

 

 

354,114

 

 

 

1,114,111

 

 

 

1,052,040

 

Cost-Plus

 

 

691,771

 

 

 

665,182

 

 

 

2,003,711

 

 

 

1,834,945

 

Total

 

$

1,621,748

 

 

$

1,810,116

 

 

$

4,760,431

 

 

$

5,016,259

 

 

See “Note 18 – Segments Information” for the Company’s revenues by business lines.

Contract Assets and Contract Liabilities

Contract assets and contract liabilities balances at September 30, 2025 and December 31, 2024 were as follows (in thousands):

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

$ change

 

 

% change

 

Contract assets

 

$

822,487

 

 

$

741,504

 

 

$

80,983

 

 

 

10.9

%

Contract liabilities

 

 

343,509

 

 

 

289,799

 

 

 

53,710

 

 

 

18.5

%

Net contract assets (liabilities) (1)

 

$

478,978

 

 

$

451,705

 

 

$

27,273

 

 

 

6.0

%

 

(1)
Total contract retentions included in net contract assets (liabilities) were $109.3 million as of September 30, 2025, of which $54.1 million are not expected to be paid in the next 12 months. Total contract retentions included in net contract assets (liabilities) were $89.8 million as of December 31, 2024. Contract assets at September 30, 2025 and December 31, 2024 include $58.6 million and $70.7 million, respectively, related to net claim recoveries. For the three and nine months ended September 30, 2025 and September 30, 2024, there were no material losses recognized related to the collectability of claims, unapproved change orders, and requests for equitable adjustment.

During the three months ended September 30, 2025 and September 30, 2024, the Company recognized revenue of $12.9 million and $10.7 million, respectively, and $178.1 million and $179.9 million during the nine months ended September 30, 2025 and September 30, 2024, respectively that was included in the corresponding contract liability balances at December 31, 2024 and December 31, 2023, respectively.

There was no significant impairment of contract assets recognized during the three and nine months ended September 30, 2025 and September 30, 2024.

 

Certain changes in contract assets and contract liabilities consisted of the following (in thousands):

 

 

 

September 30, 2025

 

 

December 31, 2024

 

Acquired contract assets

 

$

6,533

 

 

$

19,858

 

Acquired contract liabilities

 

 

12,301

 

 

 

4,446

 

 

The following table presents certain financial statement impacts from revisions in estimates, such as changes in estimated claims or incentives, related to performance obligations partially satisfied in previous periods that individually had an impact of $5 million or more on revenue. In certain instances, revisions in estimates on a contract do not exceed the threshold in any particular quarter but exceed the threshold on a year-to-date basis (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30, 2024

 

Revenue impact, net

 

$

1,286

 

 

$

(21,626

)

 

$

(977

)

 

$

(35,129

)

Operating income (loss)

 

 

1,286

 

 

 

(23,520

)

 

 

(977

)

 

 

(37,023

)

Net income (loss)

 

$

974

 

 

$

(17,569

)

 

$

(740

)

 

$

(27,656

)

Accounts Receivable, net

Accounts receivable, net consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):

 

 

2025

 

 

2024

 

Billed

 

$

724,743

 

 

$

712,046

 

Unbilled

 

 

503,047

 

 

 

392,236

 

   Total accounts receivable, gross

 

 

1,227,790

 

 

 

1,104,282

 

Allowance for doubtful accounts

 

 

(3,886

)

 

 

(3,886

)

   Total accounts receivable, net

 

$

1,223,904

 

 

$

1,100,396

 

 

 

Billed accounts receivable represents amounts billed to clients that have not been collected. Unbilled accounts receivable represents amounts where the Company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date. Receivables from contracts with the U.S. federal government and its agencies were 16% and 23% as of September 30, 2025 and December 31, 2024, respectively.

The allowance for doubtful accounts was determined based on consideration of trends in actual and forecasted credit quality of clients, including delinquency and payment history, type of client, such as a government agency or commercial sector client, and general economic conditions and particular industry conditions that may affect a client’s ability to pay.

Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations

The Company’s remaining unsatisfied performance obligations (“RUPO”) as of September 30, 2025 represent a measure of the total dollar value of work to be performed on contracts awarded and in-progress. The Company had $7.0 billion in RUPO as of September 30, 2025.

RUPO will increase with awards of new contracts and decrease as the Company performs work and recognizes revenue on existing contracts. Projects are included within RUPO at such time the project is awarded and agreement on contract terms has been reached.

RUPO is comprised of: (a) original transaction price, (b) change orders for which written confirmations from our customers have been received, (c) pending change orders for which the Company expects to receive confirmations in the ordinary course of business, and (d) claim amounts that the Company has made against customers for which it has determined that it has a legal basis under existing contractual arrangements and a significant reversal of revenue is not probable, less revenue recognized to-date.

The Company expects to satisfy its RUPO as of September 30, 2025 over the following periods (in thousands):

 

 Period RUPO Will Be Satisfied

 

Within One Year

 

 

Within One to
Two Years

 

 

Thereafter

 

 Federal Solutions

 

$

1,812,846

 

 

$

451,123

 

 

$

159,490

 

 Critical Infrastructure

 

 

2,241,022

 

 

 

1,364,224

 

 

 

1,019,598

 

    Total

 

$

4,053,868

 

 

$

1,815,347

 

 

$

1,179,088