v3.26.1
Revenue Recognition
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company follows accounting principles for recognizing revenue upon the transfer of control of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company generally recognizes revenues over time as performance obligations are satisfied. The Company generally measures its progress to completion using an input measure of total costs incurred divided by total costs expected to be incurred, which it believes to be the best measure of progress towards completion of the performance obligation. In the course of providing its services, the Company routinely subcontracts for services and incurs other direct costs on behalf of its clients. These costs are passed through to clients and, in accordance with GAAP, are included in the Company’s revenue and cost of revenue. These pass-through revenues for the nine months ended June 30, 2026 and 2025 were $5.8 billion and $6.4 billion, respectively.
Recognition of revenue and profit is dependent upon a number of factors, including the accuracy of a variety of estimates made at the balance sheet date, such as engineering progress, material quantities, the achievement of milestones, penalty provisions, labor productivity and cost estimates. Additionally, the Company is required to make estimates for the amount of consideration to be received, including bonuses, awards, incentive fees, claims, unpriced change orders, penalties, and liquidated damages. Variable consideration is included in the estimate of the transaction price only to the extent that a significant reversal would not be probable. Management continuously monitors factors that may affect the quality of its estimates, and material changes in estimates are disclosed accordingly. Costs attributable to claims are treated as costs of contract performance as incurred.
The following summarizes the Company’s major contract types:
Cost Reimbursable Contracts
Cost reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time-and-materials price contracts. Under cost-plus contracts, the Company charges clients for its costs, including both direct and indirect costs, plus a negotiated fee or rate. The Company recognizes revenue based on actual direct costs incurred and the applicable fixed rate or portion of the fixed fee earned as of the balance sheet date. Under time-and-materials price contracts, the Company negotiates hourly billing rates and charges its clients based on the actual time that it expends on a project. In addition, clients reimburse the Company for materials and other direct incidental expenditures incurred in connection with its performance under the contract. The Company may apply a practical expedient to recognize revenue in the amount in which it has the right to invoice if its right to consideration is equal to the value of performance completed to date.
Guaranteed Maximum Price Contracts (GMP)
GMP contracts share many of the same contract provisions as cost-plus and fixed-price contracts. As with cost-plus contracts, clients are provided a disclosure of all the project costs, and a lump sum or percentage fee is separately identified. The Company provides clients with a guaranteed price for the overall project (adjusted for change orders issued by clients) and a schedule including the expected completion date. Cost overruns or costs associated with project delays in completion could be the Company’s responsibility. For many of the Company’s GMP contracts, the final price is generally not established until the Company has subcontracted a substantial percentage of the trade contracts with terms consistent with the master contract, and it has negotiated additional contractual limitations, such as waivers of consequential damages as well as aggregate caps on liabilities and liquidated damages. Revenue is recognized for GMP contracts as project costs are incurred relative to total estimated project costs.
Fixed-Price Contracts
Fixed-price contracts include both lump-sum and fixed-unit price contracts. Under lump-sum contracts, the Company performs all the work under the contract for a specified fee. Lump-sum contracts are typically subject to price adjustments if the scope of the project changes or unforeseen conditions arise. Under fixed-unit price contracts, the Company performs a number of units of work at an agreed price per unit with the total payment under the contract determined by the actual number of units delivered. Revenue is recognized for fixed-price contracts using the input method measured on a cost-to-cost basis as the Company believes this is the best measure of progress towards completion.
Disaggregated Revenue
The following tables present the Company’s revenues disaggregated by revenue sources:
Three Months EndedNine Months Ended
June 30,
2026		June 30,
2025		June 30,
2026		June 30,
2025
(in millions)
Cost reimbursable$1,261.6 $1,619.1 $4,499.3 $4,588.4 
Guaranteed maximum price1,311.5 1,575.8 3,825.6 4,446.8 
Fixed-price1,012.9 983.5 2,893.1 2,929.0 
Total revenue$3,586.0 $4,178.4 $11,218.0 $11,964.2 
Three Months EndedNine Months Ended
June 30,
2026		June 30,
2025		June 30,
2026		June 30,
2025
(in millions)
Americas$2,632.9 $3,277.2 $8,521.8 $9,286.2 
Europe, Middle East, India, Africa559.5 536.4 1,627.5 1,604.7 
Asia-Australia-Pacific393.6 364.8 1,068.7 1,073.3 
Total revenue$3,586.0 $4,178.4 $11,218.0 $11,964.2 
Remaining Unsatisfied Performance Obligations
As of June 30, 2026, the Company had allocated $20.4 billion of transaction price to unsatisfied or partially satisfied performance obligations, of which approximately 60% is expected to be satisfied within the next twelve months. The majority of remaining performance obligation after the first 12 months are expected to be recognized over a two-year period.
Contract liabilities represent billings as of the balance sheet date, as allowed under the terms of a contract, but not yet recognized as contract revenue pursuant to the Company's revenue recognition policy. The Company recognized revenue of $762.6 million and $859.9 million during the nine months ended June 30, 2026 and 2025, respectively, that was included in contract liabilities as of September 30, 2025 and 2024, respectively.
The Company’s timing of revenue recognition may not be consistent with its rights to bill and collect cash from its clients. Those rights are generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of work or when services are performed. The Company’s accounts receivables represent amounts billed to clients that have yet to be collected and represent an unconditional right to cash from its clients. Contract assets represent the amount of contract revenue recognized but not yet billed pursuant to contract terms or accounts billed after the balance sheet date.
Net accounts receivable consisted of the following:
June 30,
2026		September 30,
2025
(in millions)
Billed$1,816.2 $1,934.3 
Contract retentions661.8 647.6 
Total accounts receivable—gross2,478.0 2,581.9 
Allowance for doubtful accounts and credit losses(88.3)(84.8)
Total accounts receivable—net$2,389.7 $2,497.1 
Substantially all contract assets as of June 30, 2026 and September 30, 2025 are expected to be billed and collected within twelve months, except for claims. Significant claims recorded in contract assets were approximately $620 million and $400 million as of June 30, 2026 and September 30, 2025, respectively. Contract retentions represent amounts invoiced to clients where payments have been withheld from progress payments until the contracted work has been completed and approved by the client but nonetheless represent an unconditional right to cash.
Estimates of consideration to be received, including variable consideration, are subject to revision during contract performance. As a result, the Company may be exposed to losses if the services cannot be delivered within the total estimated consideration. If estimated total costs on contracts indicate a loss, the Company recognizes that estimated loss in the period the estimated loss first becomes known. During the nine months ended June 30, 2026, the Company recorded a net loss totaling $344.6 million ($258.8 million after tax) related to revisions of contract estimates, including the project discussed below, on contracts for which revenue is recognized using the input method. The loss reduced earnings by $2.01 per basic and diluted share for the three months ended June 30, 2026, and by $2.00 and $1.99 per basic and diluted share, respectively, for the nine months ended June 30, 2026. The Company did not have material revisions to estimates for contracts for which revenue is recognized using the input method during the nine months ended June 30, 2025. Liabilities recorded related to accrued contract losses were not material as of June 30, 2026 and September 30, 2025.
During the third quarter of fiscal 2026, the Company experienced significant delays on a project in its Construction Management business. The Company assessed the estimated cost to complete the project compared to estimated revenue with the relevant components of variable consideration, including significant claims that represent a portion of the amount noted above, and recorded an aggregate loss of $336.8 million on the project. The Company continually monitors the progress on the project and the loss represents its current estimate based on available information. The Company may be required to make subsequent changes to estimates based on new information and project progression, which could result in additional estimated losses and could be material.
The Company considers a broad range of information to estimate expected credit losses including the related ages of past due balances, projections of credit losses based on historical trends, and collection history and credit quality of its clients. Negative macroeconomic trends or delays in payment of outstanding receivables could result in an increase in the estimated credit losses.
No single client accounted for more than 10% of the Company’s outstanding receivables at June 30, 2026 and September 30, 2025.
The Company sold trade receivables to financial institutions, of which $348.9 million and $268.2 million were outstanding as of June 30, 2026 and September 30, 2025, respectively. The Company does not retain financial or legal obligations for these receivables that would result in material losses. The Company’s ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables.