v3.26.1
REVENUE RECOGNITION AND CONTRACTS
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND CONTRACTS REVENUE RECOGNITION AND CONTRACTS
Revenue Recognition

We generate the vast majority of our revenues from the supply of, and aftermarket services for, steam-generating, environmental and auxiliary equipment.

A performance obligation is a contractual promise to transfer a distinct product or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for more than 90% of revenue for the three months ended March 31, 2026 and 2025. Revenue from products and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for less than 10% of revenue for the three months ended March 31, 2026 and 2025.

Refer to Note 5 to the Condensed Consolidated Financial Statements for further disaggregation of revenue.

Base Electron Agreement

Effective February 26, 2026, we entered into a written definitive agreement with Base Electron, an IPP backed by Applied Digital, to complete the design and installation of four 300-megawatt natural gas-fired power plants. The total consideration
in exchange for completion of this project is $2.4 billion, of which $2.0 billion is for variable charges and the remaining is a fixed fee. The variable charges are based on reimbursable costs incurred plus mark-up. The plant is targeted to begin commercial operation in 2029.

Revenue for this project is recognized over time as we satisfy our performance obligation. For the three months ended March 31, 2026, we have recognized $31.0 million of revenue related to this contract.

Contract Balances

The following represents the components of Accounts receivable – trade, net, Contracts in progress and Advance billings on contracts included in the Condensed Consolidated Balance Sheets. Also included are accrued contract losses, which are presented in Other accrued liabilities in the Condensed Consolidated Balance Sheets:
(in thousands)March 31, 2026December 31, 2025$ Change% Change
Accounts receivable – trade, net$126,357 $118,383 $7,974 7 %
Contracts in progress90,854 72,808 18,046 25 %
Advance billings on contracts106,466 111,987 (5,521)(5)%
Accrued contract losses323 469 (146)(31)%

(in thousands)March 31, 2025December 31, 2024$ Change% Change
Accounts receivable – trade, net$105,184 $91,767 $13,417 15 %
Contracts in progress63,957 79,149 (15,192)(19)%
Advance billings on contracts50,674 56,381 (5,707)(10)%
Accrued contract losses(17)217 (234)(108)%

For the three months ended March 31, 2026 and 2025, we recognized 75% and 88% of the revenue related to amounts that were included in Advance billings on contracts as of December 31, 2025 and 2024, respectively.

Backlog

At March 31, 2026 we had $2.7 billion of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 21%, 22% and 57% of the remaining performance obligations as revenue in 2026, 2027 and thereafter, respectively.