v3.26.1
Reportable Segments
 9 Months Ended
Jun. 28, 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 technical 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 technical 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
June 28, 2026June 29, 2025
GSGCIGTotalGSGCIGTotal
Revenue from external customers$590,567 $717,988 $1,308,555 $703,108 $666,708 $1,369,816 
Inter-segment revenue7,835 10,288 18,123 6,303 9,780 16,083 
Segment revenue598,402 728,276 1,326,678 709,411 676,488 1,385,899 
Elimination of inter-segment revenue(18,123)(16,083)
Total consolidated revenue1,308,555 1,369,816 
Subcontractor costs - external(113,777)(86,219)(199,996)(126,971)(89,829)(216,800)
Subcontractor costs - inter-segment(10,288)(7,835)(18,123)(9,780)(6,303)(16,083)
Segment subcontractor costs(124,065)(94,054)(218,119)(136,751)(96,132)(232,883)
Elimination of inter-segment subcontractor costs18,123 16,083 
Total consolidated subcontractor costs(199,996)(216,800)
Other segment items (1)
(391,500)(538,677)(930,177)(472,942)(493,244)(966,186)
Segment operating income82,837 95,545 178,382 99,718 87,112 186,830 
Reconciliation of profit (segment operating income):
Contingent consideration - fair value adjustments(77)58 
Interest expense, net(7,158)(8,288)
Other corporate expenses (2)
(20,380)(21,902)
Income before income tax expense$150,767 $156,698 
(1) These amounts include $0.8 million and $0.8 million of GSG depreciation expense for the third quarters of fiscal 2026 and 2025, respectively, and $4.8 million and $4.5 million of CIG depreciation expense for the third quarters of fiscal 2026 and 2025, respectively. Our GSG and CIG other segment items include immaterial amounts of net equity income of investees accounted for by the equity method for the third quarters of fiscal 2026 and 2025.
(2) Other corporate expenses include the amortization expense of intangible assets of $9.0 million and $8.3 million for the third quarters of fiscal 2026 and 2025, respectively. These amounts also include $5.9 million and $5.0 million of stock-based compensation expense for the third quarters of fiscal 2026 and 2025, respectively.
Nine Months EndedNine Months Ended
June 28, 2026June 29, 2025
GSGCIGTotalGSGCIGTotal
Revenue from external customers$1,655,408 $2,083,966 $3,739,374 $2,180,734 $1,931,756 $4,112,490 
Inter-segment revenue27,852 24,610 52,462 18,902 27,320 46,222 
Segment revenue1,683,260 2,108,576 3,791,836 2,199,636 1,959,076 4,158,712 
Elimination of inter-segment revenue(52,462)(46,222)
Total consolidated revenue3,739,374 4,112,490 
Subcontractor costs - external(293,748)(250,259)(544,007)(387,977)(270,462)(658,439)
Subcontractor costs - inter-segment(24,610)(27,852)(52,462)(27,320)(18,902)(46,222)
Segment subcontractor costs(318,358)(278,111)(596,469)(415,297)(289,364)(704,661)
Elimination of inter-segment subcontractor costs52,462 46,222 
Total consolidated subcontractor costs(544,007)(658,439)
Other segment items (1)
(1,135,795)(1,583,948)(2,719,743)(1,512,925)(1,444,463)(2,957,388)
Segment operating income229,107 246,517 475,624 271,414 225,249 496,663 
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 adjustments7,429 2,355 
Interest expense, net(23,124)(23,996)
Other corporate expenses (2)
(52,611)(64,488)
Income before income tax expense$419,679 $203,118 
(1) For the first nine months of fiscal 2026 and 2025 these amounts include $2.4 million and $2.6 million of GSG depreciation expense, respectively, and $14.2 million and $13.3 million of CIG depreciation expense for the first nine months of fiscal 2026 and 2025, respectively. Our GSG and CIG other segment items include immaterial amounts of net equity income of investees accounted for by the equity method for the first nine months of fiscal 2026 and 2025.
(2) For the first nine months of fiscal 2026 and 2025 other corporate expenses include the amortization expense of intangible assets of $26.2 million and $27.6 million, respectively. These amounts also include $16.7 million and $14.9 million of stock-based compensation expense for the first nine months of fiscal 2026 and 2025, respectively.