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Revenue | 3 Months Ended
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Mar. 31, 2026
Revenue |
Revenue | Note 4—Revenue ​ We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts, each of which has a different risk profile. For the three months ended March 31, 2026, and 2025, $1.1 billion, and $1.2 billion, respectively, of our revenue is derived from contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value. For these contracts, revenue is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For certain contracts, where scope is not adequately defined and we cannot reasonably estimate total contract value, revenue is recognized either on an input basis, based on contract costs incurred as defined within the respective contracts, or an output basis, based on units completed. Costs to obtain contracts are generally not significant and are expensed in the period incurred. ​ We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. ASC 606, Revenue from Contracts with Customers, defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation. ​ As of March 31, 2026, we had $4.5 billion of remaining performance obligations. We expect to recognize 75.8% of our remaining performance obligations as revenue during the next 12 months and substantially all of the remaining balance in the 12 to 18 months thereafter. ​ Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue earned. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, can be impacted by changes in productivity, scheduling, the unit cost of labor, subcontracts, materials and equipment. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation including trade and tariffs, politics and pandemics may affect the progress of a project’s completion, and thus the timing of revenue recognition. To the extent that original cost estimates are modified, estimated costs to complete increase, delivery schedules are delayed, or progress under a contract is otherwise impeded, cash flow, revenue recognition and profitability from a particular contract may be adversely affected. ​ The nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right, and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at this time. ​ Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, or will seek, to collect from customers, or others, for customer-caused changes in contract specifications or design, or other customer-related causes of unanticipated additional contract costs on which there is no agreement with customers. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract. ​ As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three months ended March 31, 2026, revenue was negatively impacted by $14.0 million as a result of changes in estimates associated with performance obligations satisfied prior to December 31, 2025. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full, including the reversal of any previously recognized profit, in the period it is identified and recognized as an “Accrued loss provision” which is included in “Contract liabilities” on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods. ​ As of March 31, 2026, we had approximately $217.8 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $203.5 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through March 31, 2026. ​ In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we may reduce the amount recognized as revenue to reflect the uncertainty associated with realization of the eventual cash collection. For example, when a cost reimbursable project exceeds the client’s expected budget amount, the client frequently requests an adjustment to the final amount. Similarly, some utility clients reserve the right to audit costs for significant periods after performance of the work. ​ The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. ​ The caption “Contract assets” in the Condensed Consolidated Balance Sheets represents the following: ​
| ● | unbilled revenue, which arises when revenue has been recorded but the amount will not be billed until a later date;
​
| ● | retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and
​
| ● | contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating to the cost incurred to a specific project.
​ Contract assets consist of the following (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, | ​ | December 31,
​ | ​ ​ ​ | 2026 | ​ ​ ​ | 2025
Unbilled revenue | ​ | $ | 545.3 | ​ | $ | 569.7
Retention receivable | ​ | ​ | 309.7 | ​ | ​ | 311.2
Contract materials (not yet installed) | ​ |  | 62.3 | ​ |  | 56.0
​ | ​ | $ | 917.3 | ​ | $ | 936.9
​ Contract assets decreased by $19.6 million compared to December 31, 2025, primarily due to lower unbilled revenue. ​ The caption “Contract liabilities” in the Condensed Consolidated Balance Sheets represents the following: ​
| ● | deferred revenue, which arises when billings are in excess of revenue recognized to date; and
​
| ● | the accrued loss provision.
​ Contract liabilities consist of the following (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, | ​ | December 31,
​ | ​ ​ ​ | 2026 | ​ ​ ​ | 2025
Deferred revenue | ​ | $ | 568.5 | ​ | $ | 629.2
Accrued loss provision | ​ |  | 3.4 | ​ |  | 4.4
​ | ​ | $ | 571.9 | ​ | $ | 633.6
​ Contract liabilities decreased by $61.7 million compared to December 31, 2025, due to lower deferred revenue. ​ Revenue recognized for the three months ended March 31, 2026, that was included in the contract liability balance as of December 31, 2025, was approximately $415.4 million. The following tables present our revenue disaggregated into various categories. ​ MSA and Non-MSA revenue was as follows (in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended March 31, 2026
Segment | ​ ​ ​ | MSA | ​ ​ ​ | Non-MSA | ​ ​ ​ | Total
Utilities | ​ | $ | 473.6 |  | $ | 159.3 |  | $ | 632.9
Energy | ​ | ​ | 86.2 | ​ | ​ | 869.2 | ​ | ​ | 955.4
Intersegment eliminations | ​ | ​ | — | ​ | ​ | (28.4) | ​ | ​ | (28.4)
Total | ​ | $ | 559.8 |  | $ | 1,000.1 |  | $ | 1,559.9
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended March 31, 2025
Segment | ​ | MSA | ​ ​ ​ | Non-MSA | ​ ​ ​ | Total
Utilities | ​ | $ | 452.1 |  | $ | 111.3 |  | $ | 563.4
Energy | ​ | ​ | 38.4 | ​ | ​ | 1,069.9 | ​ | ​ | 1,108.3
Intersegment eliminations | ​ | ​ | (0.5) | ​ | ​ | (23.1) | ​ | ​ | (23.6)
Total | ​ | $ | 490.0 |  | $ | 1,158.1 |  | $ | 1,648.1
​ Revenue by contract type was as follows (in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended March 31, 2026
Segment | ​ ​ ​ | Fixed-Price | ​ ​ ​ | Unit-Price | ​ ​ ​ | Cost Reimbursable (1) | ​ ​ ​ | Total
Utilities | ​ | $ | 112.1 |  | $ | 399.1 |  | $ | 121.7 |  | $ | 632.9
Energy | ​ | ​ | 615.0 | ​ | ​ | 159.8 | ​ | ​ | 180.6 | ​ | ​ | 955.4
Intersegment eliminations | ​ | ​ | (25.7) | ​ | ​ | (1.6) | ​ | ​ | (1.1) | ​ | ​ | (28.4)
Total | ​ | $ | 701.4 |  | $ | 557.3 |  | $ | 301.2 |  | $ | 1,559.9
| (1) | Includes time and material and cost reimbursable plus fee contracts.
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended March 31, 2025
Segment | ​ | Fixed-Price | ​ ​ ​ | Unit-Price | ​ ​ ​ | Cost Reimbursable (1) | ​ ​ ​ | Total
Utilities | ​ | $ | 77.9 |  | $ | 344.4 |  | $ | 141.1 |  | $ | 563.4
Energy | ​ | ​ | 776.9 | ​ | ​ | 147.2 | ​ | ​ | 184.2 | ​ | ​ | 1,108.3
Intersegment eliminations | ​ | ​ | (19.1) | ​ | ​ | (3.5) | ​ | ​ | (1.0) | ​ | ​ | (23.6)
Total | ​ | $ | 835.7 |  | $ | 488.1 |  | $ | 324.3 |  | $ | 1,648.1
| (1) | Includes time and material and cost reimbursable plus fee contracts.
​ Each of these contract types has a different risk profile. Typically, we assume more risk with fixed-price contracts. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular fixed-price contract. However, these types of contracts offer additional profits when we complete the work for less cost than originally estimated. Unit-price and cost reimbursable contracts generally subject us to lower risk. Accordingly, the associated fees are usually lower than fees earned on fixed-price contracts. Under these contracts, our profit may vary if actual costs vary significantly from the negotiated rates.

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