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REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 9 Months Ended
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Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 2. REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS As discussed in Note 1, we recognize revenue for our contracts in accordance with Topic 606. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our reportable segments, disaggregated by contract type and duration, for the three and nine months ended September 30, 2025 and 2024 (in thousands):
|  | Three Months Ended September 30, 2025 |
|  | Services(1) |  |  | Fabrication(1) |  |  | Shipyard(2) |  |  | Eliminations |  |  | Total |
Fixed-price and unit-rate |  | $ | 622 |  |  | $ | 20,999 |  |  | $ | — |  |  | $ | (2 | ) |  | $ | 21,619 |
T&M and cost-reimbursable |  |  | 19,839 |  |  |  | 9,552 |  |  |  | — |  |  |  | (3 | ) |  |  | 29,388 |
Other |  |  | 1,033 |  |  |  | — |  |  |  | — |  |  |  | (500 | ) |  |  | 533 |
Total |  | $ | 21,494 |  |  | $ | 30,551 |  |  | $ | — |  |  | $ | (505 | ) |  | $ | 51,540 |
Long-term |  | $ | 622 |  |  | $ | 28,774 |  |  | $ | — |  |  | $ | (2 | ) |  | $ | 29,394 |
Short-term |  |  | 20,872 |  |  |  | 1,777 |  |  |  | — |  |  |  | (503 | ) |  |  | 22,146 |
Total |  | $ | 21,494 |  |  | $ | 30,551 |  |  | $ | — |  |  | $ | (505 | ) |  | $ | 51,540 |
|  | Three Months Ended September 30, 2024 |
|  | Services |  |  | Fabrication |  |  | Shipyard |  |  | Eliminations |  |  | Total |
Fixed-price and unit-rate |  | $ | 74 |  |  | $ | 10,235 |  |  | $ | 490 |  |  | $ | (3 | ) |  | $ | 10,796 |
T&M and cost-reimbursable |  |  | 19,403 |  |  |  | 6,875 |  |  |  | — |  |  |  | — |  |  |  | 26,278 |
Other |  |  | 768 |  |  |  | — |  |  |  | — |  |  |  | (202 | ) |  |  | 566 |
Total |  | $ | 20,245 |  |  | $ | 17,110 |  |  | $ | 490 |  |  | $ | (205 | ) |  | $ | 37,640 |
Long-term |  | $ | 74 |  |  | $ | 15,786 |  |  | $ | 490 |  |  | $ | (3 | ) |  | $ | 16,347 |
Short-term |  |  | 20,171 |  |  |  | 1,324 |  |  |  | — |  |  |  | (202 | ) |  |  | 21,293 |
Total |  | $ | 20,245 |  |  | $ | 17,110 |  |  | $ | 490 |  |  | $ | (205 | ) |  | $ | 37,640 |
|  | Nine Months Ended September 30, 2025 |
|  | Services(1) |  |  | Fabrication(1) |  |  | Shipyard(2) |  |  | Eliminations |  |  | Total |
Fixed-price and unit-rate |  | $ | 981 |  |  | $ | 39,798 |  |  | $ | — |  |  | $ | (80 | ) |  | $ | 40,699 |
T&M and cost-reimbursable |  |  | 58,934 |  |  |  | 27,292 |  |  |  | — |  |  |  | (3 | ) |  |  | 86,223 |
Other |  |  | 3,412 |  |  |  | — |  |  |  | — |  |  |  | (983 | ) |  |  | 2,429 |
Total |  | $ | 63,327 |  |  | $ | 67,090 |  |  | $ | — |  |  | $ | (1,066 | ) |  | $ | 129,351 |
Long-term |  | $ | 981 |  |  | $ | 61,937 |  |  | $ | — |  |  | $ | (80 | ) |  | $ | 62,838 |
Short-term |  |  | 62,346 |  |  |  | 5,153 |  |  |  | — |  |  |  | (986 | ) |  |  | 66,513 |
Total |  | $ | 63,327 |  |  | $ | 67,090 |  |  | $ | — |  |  | $ | (1,066 | ) |  | $ | 129,351 |
|  | Nine Months Ended September 30, 2024 |
|  | Services |  |  | Fabrication |  |  | Shipyard |  |  | Eliminations |  |  | Total |
Fixed-price and unit-rate |  | $ | 837 |  |  | $ | 42,792 |  |  | $ | 935 |  |  | $ | (6 | ) |  | $ | 44,558 |
T&M and cost-reimbursable |  |  | 65,719 |  |  |  | 10,183 |  |  |  | — |  |  |  | — |  |  |  | 75,902 |
Other |  |  | 1,990 |  |  |  | — |  |  |  | — |  |  |  | (667 | ) |  |  | 1,323 |
Total |  | $ | 68,546 |  |  | $ | 52,975 |  |  | $ | 935 |  |  | $ | (673 | ) |  | $ | 121,783 |
Long-term |  | $ | 837 |  |  | $ | 49,400 |  |  | $ | 935 |  |  | $ | (6 | ) |  | $ | 51,166 |
Short-term |  |  | 67,709 |  |  |  | 3,575 |  |  |  | — |  |  |  | (667 | ) |  |  | 70,617 |
Total |  | $ | 68,546 |  |  | $ | 52,975 |  |  | $ | 935 |  |  | $ | (673 | ) |  | $ | 121,783 |
(1) Operating results for the Services Division include the Engineering Business and the Government Business, and operating results for the Fabrication Division include the Automation Business, from the applicable Acquisition Date. See Note 3 for further discussion of the Englobal Acquisition. (2) The Shipyard Division is no longer a reportable segment effective January 1, 2025. Remaining operating results for our former Shipyard Division are included in other (income) expense, net on our Statement of Operations and are reflected within our Corporate Division. See Note 7 for further discussion of our former Shipyard Division and change in reportable segments. Future Performance Obligations The following table summarizes our remaining performance obligations for each of our reportable segments, disaggregated by contract type, at September 30, 2025 (in thousands):
|  | September 30, 2025 |
|  | Services |  |  | Fabrication |  |  | Total |
Fixed-price and unit-rate |  | $ | 7,771 |  |  | $ | 27,319 |  |  | $ | 35,090 |
T&M and cost-reimbursable |  |  | — |  |  |  | 1,754 |  |  |  | 1,754 |
Total(1) |  | $ | 7,771 |  |  | $ | 29,073 |  |  | $ | 36,844 |
(1) We expect to recognize revenue of approximately $17.4 million, $16.4 million and $3.0 million for the remainder of 2025, 2026 and thereafter, respectively, associated with our performance obligations at September 30, 2025. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. Contract Assets and Liabilities The timing of customer invoicing and recognition of revenue using the POC method may occur at different times. Customer invoicing is generally dependent upon contractual billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or billings when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet, or to the extent we have an unconditional right to the consideration, is reflected as contract receivables on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to contracts that were incomplete at September 30, 2025 and December 31, 2024, is as follows (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Contract assets(1), (2) |  | $ | 11,679 |  |  | $ | 8,611 |
Contract liabilities(3), (4) |  |  | (981 | ) |  |  | (1,278 | )
Contracts in progress, net |  | $ | 10,698 |  |  | $ | 7,333 |
(1) The increase in contract assets from December 31, 2024 to September 30, 2025, was primarily due to higher net unbilled positions on various projects for our Fabrication Division and contract assets related to the Englobal Business. (2) Contract assets at September 30, 2025 and December 31, 2024, excluded $4.3 million and $4.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The decrease from December 31, 2024 to September 30, 2025, was primarily due to lower unbilled positions on various projects for our Services Division, offset partially by amounts related to the Englobal Business. (3) The decrease in contract liabilities from December 31, 2024 to September 30, 2025, was primarily due to lower advance billings on various projects for our Fabrication Division, offset partially by contract liabilities related to the Englobal Business. (4) Revenue recognized during the three months ended September 30, 2025 and 2024, from amounts included in our contract liabilities balance at June 30, 2025 and 2024, was $1.3 million and $3.0 million, respectively. Revenue recognized during the nine months ended September 30, 2025 and 2024, from amounts included in our contract liabilities balance at December 31, 2024 and 2023, was $0.9 million and $4.8 million, respectively. Allowance for Doubtful Accounts and Credit Losses Our provision for bad debts and credit losses is included in other (income) expense, net on our Statement of Operations. For the three months ended September 30, 2025, and each of the three and nine months ended September 30, 2024, our provision for bad debts and credit losses was not significant. For the nine months ended September 30, 2025, our provision for bad debts and credit losses was $1.5 million related to a reserve for the Alliance Payment made in connection with the Englobal Acquisition. Our allowance for doubtful accounts and credit losses at September 30, 2025 and December 31, 2024, was $1.7 million and $0.2 million, respectively. We had no significant write-offs or recoveries of previously recorded bad debts during the three or nine months ended September 30, 2025 or 2024. See Notes 1 and 3 for further discussion of the Englobal Acquisition and Alliance Payment and related reserve. Variable Consideration For the three and nine months ended September 30, 2025 and 2024, we had no material amounts in revenue related to unapproved change orders, claims or incentives. Changes in Project Estimates We determine the impact of changes in estimated margins on projects for a given period by calculating the amount of revenue recognized in the period that would have been recognized in a prior period had such estimated margins been forecasted in the prior period. The total impact of changes in estimated margins for a project as disclosed on a quarterly basis may be different from the applicable year-to-date impact due to the application of the POC method and the changing progress of the project at each period end. Such impacts may also be different when a project is commenced and completed within the applicable year-to-date period but spans multiple quarters. For the three and nine months ended September 30, 2025 and 2024, individual projects with significant changes in estimated margins did not have a material net impact on our operating results. Other Operating and Project Matters During the nine months ended September 30, 2024, we received insurance payments of $2.0 million from our insurance carriers associated with interruptions to our operations and damage to buildings and equipment resulting from Hurricane Ida during 2021, of which $0.3 million is reflected within investing activities and the remainder is classified within operating activities on our Statement of Cash Flows.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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