v3.25.2
Contracts with Customers
6 Months Ended
Jun. 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

 

 

For the Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

June 30, 2025

 

 

June 30, 2024

 

Fixed-Price

 

$

532,135

 

 

$

707,235

 

 

$

1,106,708

 

 

$

1,338,454

 

Time-and-Materials

 

 

372,945

 

 

 

347,275

 

 

 

720,035

 

 

 

697,926

 

Cost-Plus

 

 

679,243

 

 

 

615,957

 

 

 

1,311,940

 

 

 

1,169,763

 

Total

 

$

1,584,323

 

 

$

1,670,467

 

 

$

3,138,683

 

 

$

3,206,143

 

 

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 June 30, 2025 and December 31, 2024 were as follows (in thousands):

 

 

 

June 30, 2025

 

 

December 31, 2024

 

 

$ change

 

 

% change

 

Contract assets

 

$

836,366

 

 

$

741,504

 

 

$

94,862

 

 

 

12.8

%

Contract liabilities

 

 

320,295

 

 

 

289,799

 

 

 

30,496

 

 

 

10.5

%

Net contract assets (liabilities) (1)

 

$

516,071

 

 

$

451,705

 

 

$

64,366

 

 

 

14.2

%

 

(1)
Total contract retentions included in net contract assets (liabilities) were $103.6 million as of June 30, 2025, of which $48.1 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 June 30, 2025 and December 31, 2024 include $70.3 million and $70.7 million, respectively, related to net claim recoveries. For the three and six months ended June 30, 2025 and June 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 June 30, 2025 and June 30, 2024, the Company recognized revenue of $47.8 million and $30.9 million, respectively, and $165.1 million and $169.2 million during the six months ended June 30, 2025 and June 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 six months ended June 30, 2025 and June 30, 2024.

 

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

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

June 30, 2025

 

 

June 30, 2024

 

Revenue impact, net

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(8,939

)

Operating income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(8,939

)

Net income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,677

)

Diluted income (loss) per share

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(0.06

)

Accounts Receivable, net

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

 

 

2025

 

 

2024

 

Billed

 

$

717,761

 

 

$

712,046

 

Unbilled

 

 

453,966

 

 

 

392,236

 

   Total accounts receivable, gross

 

 

1,171,727

 

 

 

1,104,282

 

Allowance for doubtful accounts

 

 

(3,886

)

 

 

(3,886

)

   Total accounts receivable, net

 

$

1,167,841

 

 

$

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 June 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 June 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 June 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. The difference between RUPO and backlog relates to unexercised option years that are included within backlog and the value of Indefinite Delivery/Indefinite Quantity (“IDIQ”) contracts included in backlog for which delivery orders have not been issued.

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 June 30, 2025 over the following periods (in thousands):

 

 Period RUPO Will Be Satisfied

 

Within One Year

 

 

Within One to
Two Years

 

 

Thereafter

 

 Federal Solutions

 

$

1,949,998

 

 

$

291,682

 

 

$

147,114

 

 Critical Infrastructure

 

 

2,344,370

 

 

 

1,311,150

 

 

 

930,779

 

    Total

 

$

4,294,368

 

 

$

1,602,832

 

 

$

1,077,893