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Business Segments (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Reportable Segments

The following tables set forth certain reportable segment information relating to the Company’s operations for the three and six months ended June 30, 2024 and 2023:

			Reportable Segments
(in thousands)			Civil			Building			Specialty Contractors			Total						Corporate						Consolidated Total
Three Months Ended June 30, 2024
Total revenue			$	577,519		$	433,797		$	163,066		$	1,174,382					$	—					$	1,174,382
Elimination of intersegment revenue			(31,031)			(15,931)			50			(46,912)						—						(46,912)
Revenue from external customers			$	546,488		$	417,866		$	163,116		$	1,127,470					$	—					$	1,127,470
Income (loss) from construction operations			$	75,587		$	5,047		$	(7,846)		$	72,788		(a)			$	(32,295)		(b)			$	40,493
Capital expenditures			$	9,479		$	68		$	(30)		$	9,517					$	1,401					$	10,918
Depreciation and amortization(c)			$	10,727		$	585		$	574		$	11,886					$	2,120					$	14,006
Three Months Ended June 30, 2023
Total revenue			$	555,553		$	321,933		$	136,323		$	1,013,809					$	—					$	1,013,809
Elimination of intersegment revenue			(1,430)			9,409			(37)			7,942						—						7,942
Revenue from external customers			$	554,123		$	331,342		$	136,286		$	1,021,751					$	—					$	1,021,751
Income (loss) from construction operations			$	105,407		$	(13,831)		$	(69,832)		$	21,744		(d)			$	(19,356)		(b)			$	2,388
Capital expenditures			$	9,643		$	1,458		$	256		$	11,357					$	1,470					$	12,827
Depreciation and amortization(c)			$	7,074		$	455		$	622		$	8,151					$	2,195					$	10,346

____________________________________________________________________________________________________

(a)During the three months ended June 30, 2024, the Company’s income (loss) from construction operations was impacted by an unfavorable adjustment of $12.4 million ($9.1 million, or $0.17 per diluted share, after tax) due to the impact of a settlement on two completed Civil segment highway projects in the Northeast.

(b)Consists primarily of corporate general and administrative expenses. Corporate general and administrative expenses for the three months ended June 30, 2024 and 2023 included share-based compensation expense of $16.9 million ($12.4 million, or $0.23 per diluted share, after tax) and $2.6 million ($1.9 million, or $0.04 per diluted share, after tax), respectively. The increase in share-based compensation expense in the second quarter of 2024 was primarily due to a substantial increase in the Company’s stock price during the period, which impacted the fair value of liability-classified awards. These awards are remeasured at fair value at the end of each reporting period with the change in fair value recognized in earnings.

(c)Depreciation and amortization is included in income (loss) from construction operations.

(d)During the three months ended June 30, 2023, the Company’s income (loss) from construction operations was impacted by favorable adjustments totaling $58.1 million ($46.1 million, or $0.89 per diluted share, after tax) resulting from changes in estimates due to improved performance on a Civil segment mass-transit project in California; $35.8 million ($26.0 million, or $0.50 per diluted share, after tax) of unfavorable non-cash adjustments due to changes in estimates on the Specialty Contractors segment’s electrical and mechanical scope of a transportation project in the Northeast associated with a change in the expected recovery on certain unapproved change orders; a non-cash charge of $24.7 million ($18.0 million, or $0.35 per diluted share, after tax) that resulted from an adverse legal ruling on a Specialty Contractors segment educational facilities project in New York; and a $13.1 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a transportation project in the Northeast, split evenly between the Civil and Building segments, due to the settlement of certain change orders during project closeout.

			Reportable Segments
(in thousands)			Civil			Building			Specialty Contractors			Total						Corporate						Consolidated Total
Six Months Ended June 30, 2024
Total revenue			$	1,080,341		$	855,973		$	327,946		$	2,264,260					$	—					$	2,264,260
Elimination of intersegment revenue			(61,688)			(26,165)			50			(87,803)						—						(87,803)
Revenue from external customers			$	1,018,653		$	829,808		$	327,996		$	2,176,457					$	—					$	2,176,457
Income (loss) from construction operations			$	146,330		$	21,167		$	(26,158)		$	141,339		(a)			$	(52,040)		(b)			$	89,299
Capital expenditures			$	17,610		$	285		$	273		$	18,168					$	3,184					$	21,352
Depreciation and amortization(c)			$	20,981		$	1,170		$	1,172		$	23,323					$	4,265					$	27,588
Six Months Ended June 30, 2023
Total revenue			$	933,777		$	551,224		$	333,071		$	1,818,072					$	—					$	1,818,072
Elimination of intersegment revenue			(29,784)			9,771			(8)			(20,021)						—						(20,021)
Revenue from external customers			$	903,993		$	560,995		$	333,063		$	1,798,051					$	—					$	1,798,051
Income (loss) from construction operations			$	123,419		$	(84,040)		$	(82,280)		$	(42,901)		(d)			$	(36,656)		(b)			$	(79,557)
Capital expenditures			$	24,708		$	3,475		$	700		$	28,883					$	1,740					$	30,623
Depreciation and amortization(c)			$	14,055		$	912		$	1,241		$	16,208					$	4,546					$	20,754

____________________________________________________________________________________________________

(a)During the six months ended June 30, 2024, the Company’s income (loss) from construction operations was impacted by unfavorable adjustments of $12.4 million ($9.1 million, or $0.17 per diluted share, after tax) due to the impact of a settlement on two completed Civil segment highway projects in the Northeast and $12.0 million ($8.8 million, or $0.17 per diluted share, after tax) due to an arbitration ruling that only provided a partial award to the Company pertaining to a completed Specialty Contractors segment electrical project in New York. The period was also impacted by a favorable adjustment of $10.2 million ($7.5 million, or $0.14 per diluted share, after tax) on a Civil segment mass-transit project in California related to a dispute resolution and associated expected cost savings.

(b)Consists primarily of corporate general and administrative expenses. Corporate general and administrative expenses for the six months ended June 30, 2024 and 2023 included share-based compensation expense of $22.4 million ($16.5 million, or $0.31 per diluted share, after tax) and $5.6 million ($4.1 million, or $0.08 per diluted share, after tax), respectively. The increase in share-based compensation expense in the current-year period was primarily due to a substantial increase in the Company’s stock price during the period, which impacted the fair value of liability-classified awards. These awards are remeasured at fair value at the end of each reporting period with the change in fair value recognized in earnings.

(c)Depreciation and amortization is included in income (loss) from construction operations.

(d)During the six months ended June 30, 2023, the Company’s income (loss) from construction operations was impacted by an adverse legal ruling on a completed mixed-use project in New York, which resulted in a non-cash, pre-tax charge of $83.6 million ($60.1 million, or $1.16 per diluted share, after tax), of which $72.2 million impacted the Building segment and $11.4 million impacted the Specialty Contractors segment; $35.8 million ($26.0 million, or $0.50 per diluted share, after tax) of unfavorable non-cash adjustments due to changes in estimates on the Specialty Contractors segment’s electrical and mechanical scope of a transportation project in the Northeast associated with a change in the expected recovery on certain unapproved change orders; net favorable adjustments of $30.1 million ($23.9 million, or $0.46 per diluted share, after tax) for a Civil segment mass-transit project in California that resulted from changes in estimates due to improved performance; a non-cash charge of $24.7 million ($18.0 million, or $0.35 per diluted share, after tax) that resulted from an adverse legal ruling on a Specialty Contractors segment educational facilities project in New York; and a $13.1 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a transportation project in the Northeast, split evenly between the Civil and Building segments, due to the settlement of certain change orders during project closeout.

Schedule of Reconciliation of Segment Results to Consolidated Income (Loss) Before Income Taxes

A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:

			Three Months Ended June 30,									Six Months Ended June 30,
(in thousands)			2024			2023						2024			2023
Income (loss) from construction operations			$	40,493		$	2,388					$	89,299		$	(79,557)
Other income, net			5,838			3,058						11,149			9,475
Interest expense			(23,084)			(22,016)						(42,391)			(43,529)
Income (loss) before income taxes			$	23,247		$	(16,570)					$	58,057		$	(113,611)

Schedule of Total Assets for Reportable Segments

Total assets by segment were as follows:

(in thousands)			As of June 30, 2024			As of December 31, 2023
Civil			$	3,520,109		$	3,539,608
Building			1,028,958			898,902
Specialty Contractors			246,128			307,171
Corporate and other(a)			(501,447)			(315,825)
Total assets			$	4,293,748		$	4,429,856

____________________________________________________________________________________________________

(a)Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.

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Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

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