v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 6 – REVENUE

Substantially all of the Company’s revenue is recognized over time as control of the related goods or services is transferred to customers.

Disaggregation of Revenue

The Company disaggregates revenue from clients into categories that depict how the nature, amount, and uncertainty of revenue and cash flows are affected by economic and business factors. Those categories are client market, client type, and contract mix.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy, environment, infrastructure, and disaster recovery

 

$

251,112

 

 

 

53

%

 

$

248,504

 

 

 

52

%

 

$

483,031

 

 

 

53

%

 

$

487,034

 

 

 

51

%

Health and social programs

 

 

158,719

 

 

 

33

%

 

 

158,625

 

 

 

33

%

 

 

301,319

 

 

 

33

%

 

 

328,059

 

 

 

34

%

Security and other civilian & commercial

 

 

64,664

 

 

 

14

%

 

 

69,026

 

 

 

15

%

 

 

127,645

 

 

 

14

%

 

 

148,680

 

 

 

15

%

Total

 

$

474,495

 

 

 

100

%

 

$

476,155

 

 

 

100

%

 

$

911,995

 

 

 

100

%

 

$

963,773

 

 

 

100

%

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal government

 

$

184,913

 

 

 

39

%

 

$

204,389

 

 

 

43

%

 

$

367,356

 

 

 

40

%

 

$

443,551

 

 

 

46

%

U.S. state and local government

 

 

84,049

 

 

 

18

%

 

 

85,682

 

 

 

18

%

 

 

161,097

 

 

 

18

%

 

 

162,793

 

 

 

17

%

International government

 

 

39,521

 

 

 

8

%

 

 

29,259

 

 

 

6

%

 

 

71,347

 

 

 

8

%

 

 

56,348

 

 

 

6

%

Total Government

 

 

308,483

 

 

 

65

%

 

 

319,330

 

 

 

67

%

 

 

599,800

 

 

 

66

%

 

 

662,692

 

 

 

69

%

Commercial

 

 

166,012

 

 

 

35

%

 

 

156,825

 

 

 

33

%

 

 

312,195

 

 

 

34

%

 

 

301,081

 

 

 

31

%

Total

 

$

474,495

 

 

 

100

%

 

$

476,155

 

 

 

100

%

 

$

911,995

 

 

 

100

%

 

$

963,773

 

 

 

100

%

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Contract Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time-and-materials

 

$

202,311

 

 

 

43

%

 

$

206,710

 

 

 

43

%

 

$

394,296

 

 

 

43

%

 

$

415,702

 

 

 

43

%

Fixed-price

 

 

245,423

 

 

 

52

%

 

 

238,456

 

 

 

50

%

 

 

459,168

 

 

 

50

%

 

 

476,577

 

 

 

50

%

Cost-based

 

 

26,761

 

 

 

5

%

 

 

30,989

 

 

 

7

%

 

 

58,531

 

 

 

7

%

 

 

71,494

 

 

 

7

%

Total

 

$

474,495

 

 

 

100

%

 

$

476,155

 

 

 

100

%

 

$

911,995

 

 

 

100

%

 

$

963,773

 

 

 

100

%

Contract Assets and Liabilities

Contract assets consist of unbilled receivables on contracts where revenue recognized exceeds the amount billed. Contract liabilities result from advance payments received on a contract or from billings in excess of revenue recognized.

The following table summarizes the contract assets and liabilities as of June 30, 2026 and December 31, 2025:

 

 

Financial Statement Classification

 

June 30, 2026

 

 

December 31, 2025

 

 

$ Change

 

Contract assets

 

Contract assets

 

$

196,075

 

 

$

186,684

 

 

$

9,391

 

Contract liabilities - current

 

Contract liabilities

 

 

(45,717

)

 

 

(43,444

)

 

 

(2,273

)

Contract liabilities - non-current

 

Other long-term liabilities

 

 

(5,086

)

 

 

(3,043

)

 

 

(2,043

)

Net contract assets (liabilities)

 

 

 

$

145,272

 

 

$

140,197

 

 

$

5,075

 

 

The increase in net contract assets (liabilities) is primarily due to the timing difference between the performance of services and billings to customers. During the six months ended June 30, 2026 and 2025, the Company recognized $24.5 million and $17.5 million in revenue related to the contract liabilities balance at December 31, 2025 and 2024, respectively.

Changes in Estimates on Contracts

The Company recognized net income of $4.1 million and $5.3 million during the three months ended June 30, 2026 and 2025, respectively, and $4.3 million and $11.6 million during the six months ended June 30, 2026 and 2025, respectively, as a result of net changes in estimates related to fixed-price contracts accounted for under the percentage-of-completion method. The impact of the changes on the Company’s diluted earnings per share was $0.23 and $0.29 for the three months ended June 30, 2026 and 2025, respectively, and $0.24 and $0.63 for the six months ended June 30, 2026 and 2025, respectively.

 

Revenue Adjustments from Previously Satisfied Performance Obligations

The Company recognized $11.2 million, and $1.5 million, respectively, of revenue from previously satisfied performance obligations during the three months ended June 30, 2026 and 2025, and $12.4 million and $5.0 million during the six months ended June 30, 2026 and 2025, respectively. The adjustments were primarily due to changes in transaction price from contract modifications and final award performance determinations.

Unfulfilled Performance Obligations

In computing unfulfilled performance obligations (“UPO”), the Company excludes contracts with a stated term of one year or less (practical expedient), and contracts with the U.S. federal government. As of June 30, 2026, the UPO was $0.2 billion, of which 46% is expected to be recognized as revenue by December 31, 2026, 65% by December 31, 2027, 90% by December 31, 2028, and the remainder by December 31, 2029.