v3.26.1
Contracts with Customers
 3 Months Ended
Mar. 31, 2026
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):

 

 

 

 

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Fixed-Price

 

$

470,903

 

 

$

574,573

 

Time-and-Materials

 

 

372,845

 

 

 

347,090

 

Cost-Plus

 

 

647,428

 

 

 

632,697

 

Total

 

$

1,491,176

 

 

$

1,554,360

 

 

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 March 31, 2026 and December 31, 2025 were as follows (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Contract assets

 

$

1,021,848

 

 

$

915,806

 

Contract liabilities

 

 

359,760

 

 

 

340,113

 

Net contract assets (liabilities) (1)

 

$

662,088

 

 

$

575,693

 

 

(1)
Total contract retentions included in net contract assets (liabilities) were $120.5 million as of March 31, 2026, of which $60.6 million are not expected to be paid in the next 12 months. Total contract retentions included in net contract assets (liabilities) were $114.6 million as of December 31, 2025. Contract assets at March 31, 2026 and December 31, 2025 include $58.9 million and $58.9 million, respectively, related to net claim recoveries. For the three months ended March 31, 2026 and March 31, 2025, 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 March 31, 2026 and March 31, 2025, the Company recognized revenue of $133.2 million and $117.3 million, respectively, that was included in the corresponding contract liability balances at December 31, 2025 and December 31, 2024, respectively.

There was no significant write-down of contract assets recognized during the three months ended March 31, 2026 and March 31, 2025.

 

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

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Acquired contract assets

 

$

12,066

 

 

$

6,533

 

Acquired contract liabilities

 

 

1,200

 

 

 

12,301

 

 

There have been no 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 during the three months ended March 31, 2026 and March 31, 2025.

 

Accounts Receivable, net

Accounts receivable, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

2026

 

 

2025

 

Billed

 

$

665,606

 

 

$

732,414

 

Unbilled

 

 

434,855

 

 

 

395,889

 

   Total accounts receivable, gross

 

 

1,100,461

 

 

 

1,128,303

 

Allowance for doubtful accounts

 

 

(3,886

)

 

 

(3,886

)

   Total accounts receivable, net

 

$

1,096,575

 

 

$

1,124,417

 

 

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 19% as of March 31, 2026 and December 31, 2025, 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 March 31, 2026 represent a measure of the total dollar value of work to be performed on contracts awarded and in-progress. The Company had $7.1 billion in RUPO as of March 31, 2026.

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 March 31, 2026 over the following periods (in thousands):

 

 Period RUPO Will Be Satisfied

 

Within One Year

 

 

Within One to
Two Years

 

 

Thereafter

 

 Federal Solutions

 

$

1,534,828

 

 

$

434,556

 

 

$

152,666

 

 Critical Infrastructure

 

 

2,624,140

 

 

 

1,326,701

 

 

 

1,009,923

 

    Total

 

$

4,158,968

 

 

$

1,761,257

 

 

$

1,162,589