v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
As described in Note 1, our operations are assessed based on two reportable segments.
Disaggregated Revenues
Revenues by geographic area and customer type were as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
United States:
Government$560,184 $— $560,184 $513,749 $— $513,749 
Non-Government27,886 48,264 76,150 69,873 24,852 94,725 
$588,070 $48,264 $636,334 $583,622 $24,852 $608,474 
Canada:
Government$4,835 $— $4,835 $10 $— $10 
Non-Government237 224,295 224,532 65 141,161 141,226 
$5,072 $224,295 $229,367 $75 $141,161 $141,236 
Other:
Government$2,653 $— $2,653 $3,725 $— $3,725 
Non-Government5,496 29,953 35,449 1,537 10,126 11,663 
$8,149 $29,953 $38,102 $5,262 $10,126 $15,388 
Segment Revenues$601,291 $302,512 903,803 $588,959 $176,139 765,098 
Eliminations(2,178)(1,059)
Revenues$901,625 $764,039 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
United States:
Government$1,094,124 $— $1,094,124 $1,039,044 $— $1,039,044 
Non-Government53,150 87,913 141,063 94,146 40,914 135,060 
$1,147,274 $87,913 $1,235,187 $1,133,190 $40,914 $1,174,104 
Canada:
Government$17,978 $— $17,978 $112 $— $112 
Non-Government237 443,771 444,008 122 242,778 242,900 
$18,215 $443,771 $461,986 $234 $242,778 $243,012 
Other:
Government$6,049 $— $6,049 $7,596 $— $7,596 
Non-Government7,653 54,474 62,127 3,226 20,757 23,983 
$13,702 $54,474 $68,176 $10,822 $20,757 $31,579 
Segment Revenues$1,179,191 $586,158 1,765,349 $1,144,246 $304,449 1,448,695 
Eliminations(3,507)(2,398)
Revenues$1,761,842 $1,446,297 

Revenues by timing of transfer of goods or services were as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Over time$592,459 $267,898 $860,357 $586,443 $153,085 $739,528 
Point-in-time8,832 34,614 43,446 2,516 23,054 25,570 
Segment Revenues$601,291 $302,512 903,803 $588,959 $176,139 765,098 
Eliminations(2,178)(1,059)
Revenues$901,625 $764,039 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Over time$1,165,630 $519,392 $1,685,022 $1,136,989 $256,306 $1,393,295 
Point-in-time13,561 66,766 80,327 7,257 48,143 55,400 
Segment Revenues$1,179,191 $586,158 1,765,349 $1,144,246 $304,449 1,448,695 
Eliminations(3,507)(2,398)
Revenues$1,761,842 $1,446,297 
Revenues by contract type were as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Fixed-Price Incentive Fee$103,881 $767 $104,648 $220,653 $3,517 $224,170 
Firm-Fixed-Price395,790 202,292 598,082 259,153 118,365 377,518 
Cost-Plus Fee101,298 881 102,179 109,107 — 109,107 
Time-and-Materials322 98,572 98,894 46 54,257 54,303 
Segment Revenues$601,291 $302,512 903,803 $588,959 $176,139 765,098 
Eliminations(2,178)(1,059)
Revenues$901,625 $764,039 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Fixed-Price Incentive Fee$366,765 $768 $367,533 $429,205 $7,844 $437,049 
Firm-Fixed-Price612,466 364,796 977,262 515,015 210,305 725,320 
Cost-Plus Fee199,432 10,746 210,178 199,896 — 199,896 
Time-and-Materials528 209,848 210,376 130 86,300 86,430 
Segment Revenues$1,179,191 $586,158 1,765,349 $1,144,246 $304,449 1,448,695 
Eliminations(3,507)(2,398)
Revenues$1,761,842 $1,446,297 

Performance Obligations
As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. The aggregate impact of changes in estimates increased our revenues and operating income as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(In thousands)(In thousands)
Revenues (1)
$8,811 $17,520 $3,509 $5,930 
Operating Income (1)
$7,037 $17,605 $1,310 $6,046 
(1)During the three and six months ended June 30, 2026, no adjustments to any one contract had a material impact on our consolidated financial statements. During the three and six months ended June 30, 2025, our Government Operations segment results were favorably impacted by material contract adjustments related to a nuclear operations contract resulting in an increase in revenue and operating income of $29.4 million.
Contract Assets and Liabilities
We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. Costs specific to certain contracts for which we recognize revenue at a point in time are also included in Contracts in progress. We include in Advance billings on contract billings that exceed accumulated contract costs and revenues recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled receivables. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. Our fixed-price incentive fee contracts for our Government Operations segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments received during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.
June 30,December 31,
20262025
(In thousands)
Included in Contracts in progress:
Unbilled receivables$622,287 $594,749 
Retainages$62,303 $46,311 
Advance billings on contracts$313,256 $305,285 
During the three months ended June 30, 2026 and 2025, we recognized $79.3 million and $54.1 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year. During the six months ended June 30, 2026 and 2025, we recognized $146.6 million and $123.6 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year.
Remaining Performance Obligations
Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. At June 30, 2026, our remaining performance obligations were $8,398.1 million. We expect to recognize approximately 55% of the revenue associated with our remaining performance obligations by the end of 2027, with the remainder to be recognized thereafter.