Contract assets and liabilities fluctuate period to period based on various factors, including changes in the number and size of projects in progress at period-end and variability in billing and payment terms due to milestone billings.

For the three months ended June 30, 2026 and 2025, the Company recognized revenue of $10.4 million and $10.6 million, respectively, that was included in contract liabilities at the beginning of the period. For the six months ended June 30, 2026 and 2025, the Company recognized revenue of $15.8 million and $16.8 million, respectively, that was included in contract liabilities at the beginning of the period.

The increase of $56.9 million in deferred income for the six months ended June 30, 2026 is associated with a recently executed customer agreement.