v3.26.1
Revenue
 6 Months Ended
Jul. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue

We disaggregate our revenue from customers by customer type, geographic destination and contract type for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue by customer type was as follows:
Three months endedSix months ended
July 3, 2026July 3, 2026
Dollars in millionsMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$834 $— $834 $1,650 $— $1,650 
U.S. Government Federal Civilian Clients254 — 254 516 — 516 
International Government Clients199 38 237 391 84 475 
Commercial and Infrastructure Clients21 638 659 47 1,219 1,266 
Total revenue$1,308 $676 $1,984 $2,604 $1,303 $3,907 
Three months endedSix months ended
July 4, 2025July 4, 2025
Dollars in millionsMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$856 $— $856 $1,762 $— $1,762 
U.S. Government Federal Civilian Clients273 — 273 554 — 554 
International Government Clients181 42 223 348 94 442 
Commercial and Infrastructure Clients26 574 600 53 1,159 1,212 
Total revenue$1,336 $616 $1,952 $2,717 $1,253 $3,970 

Revenue by geographic destination was as follows:
Three months endedSix months ended
Dollars in millionsJuly 3, 2026July 3, 2026
Total by Countries/RegionsMTSSTSTotalMTSSTSTotal
United States$951 $67 $1,018 $1,901 $149 $2,050 
Europe218 143 361 433 294 727 
Middle East32 213 245 63 405 468 
Australia65 92 157 128 178 306 
Africa20 32 52 39 70 109 
Asia5 44 49 9 79 88 
Other countries17 85 102 31 128 159 
Total revenue$1,308 $676 $1,984 $2,604 $1,303 $3,907 

Three months endedSix months ended
Dollars in millionsJuly 4, 2025July 4, 2025
Total by Countries/RegionsMTSSTSTotalMTSSTSTotal
United States$988 $122 $1,110 $1,964 $255 $2,219 
Europe214 142 356 507 306 813 
Middle East39 166 205 65 318 383 
Australia56 81 137 106 163 269 
Africa18 51 69 36 84 120 
Asia10 27 37 13 68 81 
Other countries11 27 38 26 59 85 
Total revenue$1,336 $616 $1,952 $2,717 $1,253 $3,970 
Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:    
Three months ended July 3, 2026Six months ended July 3, 2026
Dollars in millionsMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$746 $15 $761 $1,517 $22 $1,539 
Time-and-Materials203 374 577 403 737 1,140 
Fixed Price359 287 646 684 544 1,228 
Total revenue$1,308 $676 $1,984 $2,604 $1,303 $3,907 

Three months ended July 4, 2025 Six months ended July 4, 2025
Dollars in millionsMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$853 $— $853 $1,744 $— $1,744 
Time-and-Materials194 421 615 401 805 1,206 
Fixed Price289 195 484 572 448 1,020 
Total revenue$1,336 $616 $1,952 $2,717 $1,253 $3,970 

Performance Obligations and Contract Liabilities

Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations satisfied in previous periods for such matters of $3 million and $26 million for the three months ended July 3, 2026 and July 4, 2025, respectively, and $14 million and $34 million for the six months ended July 3, 2026 and July 4, 2025, respectively.

On July 3, 2026, we had $13.7 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 37% of our remaining performance obligations as revenue within one year, 40% in years two through five and 23% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of July 3, 2026.

We recognized revenue of $203 million and $214 million for the six months ended July 3, 2026 and July 4, 2025, respectively, which was previously included in the contract liability balance at the beginning of each period.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. We recognized a favorable change in operating income of $34 million and $50 million during the three months ended July 3, 2026 and July 4, 2025, respectively, and $76 million and $65 million during the six months ended July 3, 2026 and July 4, 2025, respectively, as a result of changes in estimates on an LNG project.

Accounts Receivable    
Dollars in millionsJuly 3, 2026January 2, 2026
Unbilled$617 $520 
Trade & other492 566 
Accounts receivable, net$1,109 $1,086