v3.26.1
Reportable Segments
 6 Months Ended
Mar. 29, 2026
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
We manage our operations under two reportable segments, GSG and CIG.
At the beginning of fiscal 2026, we transferred certain operating units between our two reportable segments and redefined our reporting units to better align our operations with the clients, markets and geographies that they serve. Prior year amounts for reportable segments have been revised to conform to the current year presentation.
GSG provides high-end consulting and engineering services primarily to U.S. government clients (federal, state and local). GSG supports U.S. government defense and civilian agencies with services in water, environment, sustainable infrastructure, information technology and disaster management. GSG also provides engineering design services for U.S. based federal and municipal clients, especially in water infrastructure, flood protection and solid waste.
CIG primarily provides high-end consulting and engineering services to U.S. commercial clients, and international clients inclusive of the commercial and government sectors. CIG supports commercial clients worldwide in energy, industrial and high performance buildings markets. CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), Europe, the United Kingdom and Brazil.
Our Chief Executive Officer serves as the chief operating decision maker (“CODM”) and is responsible for evaluating segment performance and allocating resources to our segments. The CODM assesses segment revenue and segment operating income on a monthly basis by comparing actual results against the annual plan. This evaluation supports strategic decisions related to segment profitability, resource allocation, pricing strategies, and cost optimization. The segment operating income is presented before amortization expense associated with acquisitions and other unallocated corporate costs. It is calculated as revenue less subcontractor costs, and other segment items including other costs of revenue and segment selling, general, and administrative expenses.
Certain expenses are not allocated to GSG and CIG segments for purposes of making operating decisions or evaluating financial performance and are reported under corporate expenses. These expenses include amortization of intangibles, goodwill impairment charges, contingent consideration gains and losses, acquisition and integration expenses, certain legal contingency costs, as well as other costs and benefits that our CODM deems to be enterprise in nature. Corporate expenses also include stock-based compensation expense related to corporate employees.
We account for inter-segment revenue and transfers as if they were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation.
Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment. The accounting policies for segment reporting are the same as for our consolidated financial statements. The tables below present financial information of our reportable segments (in thousands):
Three Months EndedThree Months Ended
March 29, 2026March 30, 2025
GSGCIGTotalGSGCIGTotal
Revenue from external customers$551,364 $668,793 $1,220,157 $693,645 $628,468 $1,322,113 
Inter-segment revenue7,987 7,330 15,317 5,228 9,218 14,446 
Segment revenue559,351 676,123 1,235,474 698,873 637,686 1,336,559 
Elimination of inter-segment revenue(15,317)(14,446)
Total consolidated revenue1,220,157 1,322,113 
Subcontractor costs - external(93,558)(76,966)(170,524)(125,350)(93,058)(218,408)
Subcontractor costs - inter-segment(7,330)(7,987)(15,317)(9,218)(5,228)(14,446)
Segment subcontractor costs(100,888)(84,953)(185,841)(134,568)(98,286)(232,854)
Elimination of inter-segment subcontractor costs15,317 14,446 
Total consolidated subcontractor costs(170,524)(218,408)
Other segment items (1)
(383,610)(519,117)(902,727)(484,529)(470,302)(954,831)
Segment operating income74,853 72,053 146,906 79,776 69,098 148,874 
Reconciliation of profit (segment operating income):
Other non-operating income4,651 — 
Impairment of goodwill— (92,416)
Contingent consideration - fair value adjustments58 1,931 
Interest expense, net(8,838)(8,491)
Other corporate expenses (2)
(15,441)(18,786)
Income before income tax expense$127,336 $31,112 
(1) These amounts include $0.8 million and $0.9 million of GSG depreciation expense for the second quarters of fiscal 2026 and 2025, respectively, and $4.7 million and $4.3 million of CIG depreciation expense for the second quarters of fiscal 2026 and 2025, respectively. Additionally, our GSG other segment items include the equity in the net income of investees accounted for by the equity method of $(0.1) million and $0.3 million for the second quarters of fiscal 2026 and 2025, respectively. Our CIG other segment items also reflect the equity in the net income of investees accounted for by the equity method of $0.6 million and $0.9 million for the second quarters of fiscal 2026 and 2025, respectively.
(2) Other corporate expenses include the amortization expense of intangible assets of $8.8 million and $8.6 million for the second quarters of fiscal 2026 and 2025, respectively. These amounts also include $5.8 million and $5.0 million of stock-based compensation expense for the second quarters of fiscal 2026 and 2025, respectively.
Six Months EndedSix Months Ended
March 29, 2026March 30, 2025
GSGCIGTotalGSGCIGTotal
Revenue from external customers$1,064,842 $1,365,978 $2,430,820 $1,477,626 $1,265,048 $2,742,674 
Inter-segment revenue20,017 14,322 34,339 12,599 17,540 30,139 
Segment revenue1,084,859 1,380,300 2,465,159 1,490,225 1,282,588 2,772,813 
Elimination of inter-segment revenue(34,339)(30,139)
Total consolidated revenue2,430,820 2,742,674 
Subcontractor costs - external(179,971)(164,040)(344,011)(261,006)(180,633)(441,639)
Subcontractor costs - inter-segment(14,322)(20,017)(34,339)(17,540)(12,599)(30,139)
Segment subcontractor costs(194,293)(184,057)(378,350)(278,546)(193,232)(471,778)
Elimination of inter-segment subcontractor costs34,339 30,139 
Total consolidated subcontractor costs(344,011)(441,639)
Other segment items (1)
(744,296)(1,045,272)(1,789,568)(1,039,983)(951,219)(1,991,202)
Segment operating income146,270 150,971 297,241 171,696 138,137 309,833 
Reconciliation of profit (segment operating income):
Other non-operating income12,361 — 
Legal contingency costs— (115,000)
Impairment of goodwill— (92,416)
Contingent consideration - fair value adjustments7,506 2,297 
Interest expense, net(15,966)(15,709)
Other corporate expenses (2)
(32,230)(42,585)
Income before income tax expense$268,912 $46,420 
(1) For the first six months of fiscal 2026 and 2025 these amounts include $1.6 million and $1.8 million of GSG depreciation expense, respectively, and $9.4 million and $8.7 million of CIG depreciation expense for the first six months of fiscal 2026 and 2025, respectively. Additionally, our GSG other segment items include the equity in the net income of investees accounted for by the equity method of $0.1 million and $0.7 million for the first halves of fiscal 2026 and 2025, respectively. Our CIG other segment items also reflect the equity in the net income of investees accounted for by the equity method of $1.0 million and $1.3 million for the first halves of fiscal 2026 and 2025, respectively.
(2) For the first halves of fiscal 2026 and 2025 other corporate expenses include the amortization expense of intangible assets of $17.2 million and $19.3 million, respectively. These amounts also include $10.8 million and $9.8 million of stock-based compensation expense for the first halves of fiscal 2026 and 2025, respectively.