Cost and Estimated Earnings on Uncompleted Contracts

6 Months Ended

Jun. 30, 2026

Cost and Estimated Earnings on Uncompleted Contracts

Cost and Estimated Earnings on Uncompleted Contracts

Note 9. Cost and Estimated Earnings on Uncompleted Contracts

Contract assets as of June 30, 2026, and December 31, 2025, consisted of the following:


	As of
(Amounts in thousands)	June 30, 2026		December 31, 2025
Costs in excess of billings	$	252,226	$	366,360
Costs to fulfill contracts, net		20,118		23,002
Contract assets	$	272,344	$	389,362

Costs and estimated earnings on uncompleted contracts were as follows as of June 30, 2026, and December 31, 2025:


	As of
(Amounts in thousands)	June 30, 2026		December 31, 2025
Costs incurred on uncompleted contracts	$	8,058,157	$	8,078,898
Estimated earnings (losses)		(56,153)		72,937
Costs incurred and estimated earnings (losses)		8,002,004		8,151,835
Less: billings to date		(7,944,194)		(8,038,018)
Costs to fulfill contracts, net		20,118		23,002
Net contract position	$	77,928	$	136,819

Our net contract position is included on the unaudited condensed consolidated balance sheets under the following captions:


	As of
(Amounts in thousands)	June 30, 2026		December 31, 2025
Contract assets	$	272,344	$	389,362
Contract liabilities		(194,416)		(252,543)
Net contract position	$	77,928	$	136,819

We periodically evaluate our project forecasts and the amounts recognized with respect to our claims and unapproved change orders, and other potential modifications under review (referred to collectively as “Unresolved Contract Modifications”). On certain projects we have assessed Unresolved Contract Modifications to recover additional costs and profits which we believe we are entitled under the terms of our contracts. This includes Unresolved Contract Modifications on completed projects and projects that are not yet complete. Until an Unresolved Contract Modification is finalized it is likely that additional costs will be incurred in future periods. Our customers, or other third parties, may disagree with some or all of our assessed Unresolved Contract Modifications. As of June 30, 2026 and December 31, 2025, we have recorded $306.4 million and $382.3 million, respectively, related to Unresolved Contract Modifications.

As of January 1, 2025, we had contract assets of $483.2 million, with the changes in 2025 and 2026 primarily driven by the timing of billings and Unresolved Contract Modifications activity.

As of January 1, 2026, we had contract liabilities of $252.5 million, of which $83.4 million and $203.2 million were recognized as revenue during the three and six months ended June 30, 2026, respectively.

As of January 1, 2025, we had contract liabilities of $249.7 million, of which $54.5 million and $175.1 million were recognized as revenue during the three and six months ended June 30, 2025, respectively.