v3.26.1
Contract Assets and Liabilities
 6 Months Ended
Jun. 30, 2026
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]  
Contract Assets and Liabilities Contract Assets and Liabilities
Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms. These contracts frequently include retention provisions contained in each contract. Retainage amounts are reflected in contract assets or contract liabilities depending on the net contract position of the particular contract.
The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.5 million as of June 30, 2026 and December 31, 2025, respectively.
Contract assets consisted of the following:
(in thousands)June 30,
2026		December 31,
2025
Unbilled revenue, net$159,882 $160,543 
Contract retainages, net65,171 81,223 
Contract assets, net$225,053 $241,766 
The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue, an accrual for contracts in a loss provision and retainage receivables.
Contract liabilities consisted of the following:
(in thousands)June 30,
2026		December 31,
2025
Deferred revenue$345,692 $386,071 
Accrued loss provision12,572 13,084 
Less, retainage receivables(112,442)(98,595)
Contract liabilities, net$245,822 $300,560 
The following table provides information about contract assets and contract liabilities from contracts with customers:
(in thousands)June 30,
2026		December 31,
2025		Change
Contract assets, net$225,053 $241,766 $(16,713)
Contract liabilities, net(245,822)(300,560)54,738 
Net contract assets (liabilities)$(20,769)$(58,794)$38,025 
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $78.2 million and $153.9 million for the three and six months ended June 30, 2026, respectively. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $48.2 million and $117.7 million for the three and six months ended June 30, 2025, respectively. This revenue consists primarily of work performed on previous billings to customers.
The net liability position for contracts in process consisted of the following:
(in thousands)June 30,
2026		December 31,
2025
Costs and estimated earnings on uncompleted contracts$8,536,344 $8,368,365 
Less: billings to date8,722,154 8,593,893 
$(185,810)$(225,528)
The net liability position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows:
(in thousands)June 30,
2026		December 31,
2025
Unbilled revenue, net$159,882 $160,543 
Deferred revenue, net(345,692)(386,071)
$(185,810)$(225,528)