v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Disaggregation of Revenue [Line Items]  
Revenue from Contracts with Customers
(4)
Revenue from Contracts with Customers
Revenue Overview
We apply the guidance in ASC 606,
Revenue from Contracts with Customers (Topic 606)
, when recognizing revenue associated with its contracts with customers. We generate revenue from the construction of new solar, battery storage, T&D or other projects pursuant to EPC contracts. We also generate revenue from maintaining, upgrading, or repowering existing solar, battery storage or T&D projects pursuant to O&M agreements.
We recognize revenue using the
percentage-of-completion
method (an input method), based on costs incurred to date compared to total estimated costs. Costs related to uninstalled materials are included in this calculation provided that control of those materials has transferred to the customer. This method is the most accurate measure of our contract performance because it directly measures the value of the goods and services transferred to the customer.
Estimated costs include our latest estimates using judgments with respect to labor hours and costs, materials, subcontractor costs, among other costs. Changes to total estimated costs or losses, if any, are recognized in the period in which they are determined to be assessed at the contract level.
For our O&M agreements, revenue is also generally recognized over time as the customer simultaneously receives and consumes the benefits of our performance as we perform the service. For our fixed price O&M agreements with specified service periods, revenue is generally recognized on a straight-line basis over such service period when our inputs are expended evenly and the customer receives and consumes the benefits of our performance throughout the contract term.
Revenues recognized by us from the sale of development projects are recognized at a point in time when control of the related project transfers to the customer in an amount that reflects the consideration we expect to be entitled to in exchange for the project.
 
 
The following table presents our revenue disaggregated by service type:
 
    
Three Months Ended June 30,
    
Six Months Ended June 30,
  
    
2026
    
2025
    
2026
    
2025
  
By service type:
                     
New Construction
    $ 913,122        95.9 %    $ 486,155        90.7 %    $ 1,563,855        96.1 %    $ 863,316        91.5 % 
Existing infrastructure
      27,970        2.9 %      36,401        6.8 %      52,934        3.3 %      62,909        6.7 % 
Other
      10,151        1.2 %      13,396        2.5 %      11,259        0.6 %      17,574        1.8 % 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total revenues
    $ 951,243        100.0 %    $ 535,952        100.0 %    $ 1,628,048        100.0 %    $ 943,799        100.0 % 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Variable Consideration
The nature of our contracts gives rise to variable consideration, including unexecuted change orders and liquidated damage penalties. Change orders are for goods and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract. We recognize revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. We estimate the amount of revenue to be recognized on variable consideration by using the expected value or the most likely amount method, whichever is expected to better predict the amount.
Estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based on an assessment of the anticipated performance and all information (historical, current, and forecasted) that is reasonably available including, but not limited to, contractual entitlement and documented approval by
customers.
Change in Estimates
Due to uncertainties inherent in the estimation process and the significant judgments involved in determining variable consideration, our estimates of costs to complete performance obligations and transaction prices may change as new information becomes available.
Revenues were positively impacted by $24,320 and $27,278 during the three months ended June 30, 2026 and 2025, respectively, as a result of changes in estimates associated with performance obligations on contracts partially satisfied prior to March 31, 2026 and 2025, respectively. Revenues were positively impacted by $49,486 and $30,660 during the six months ended June 30, 2026 and 2025, respectively, as a result of changes in estimates associated with performance obligations on contracts partially satisfied prior to December 31, 2025 and 2024, respectively.
Practical Expedient
If we have a right to consideration from a customer in an amount that corresponds directly with the value of our performance completed to date, we recognize revenue in the amount to which it has a right to invoice for services performed.
Remaining Performance Obligations
As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $3,546,244, which is related to our EPC service contracts. We anticipate recognizing revenue on substantially all the remaining performance obligations under these contracts over the next 12 to 18 months.
For our O&M agreements, we have elected to apply the optional exemption, which waives the requirement to disclose the remaining performance obligation for revenue recognized through the right to invoice practical expedient and contracts that have an original expected duration of one year or less.
Contract Assets and Liabilities
During the six months ended June 30, 2026 and 2025, we recognized revenue of $296,596 and $207,293 related to contract liabilities outstanding as of the beginning of each respective period.
 
Contract assets and liabilities consisted of the following:
 
    
June 30, 2026
     
December 31, 2025
  
Contract assets
    $ 181,525      $ 156,744  
  
 
 
     
 
 
  
Contract liabilities, current
    $ 258,245      $ 308,619  
Contract liabilities, noncurrent
(1)
      1,215        1,363  
  
 
 
     
 
 
  
Total contract liabilities
    $ 259,460      $ 309,982  
  
 
 
     
 
 
  
 
(1)
Noncurrent contract liabilities are presented within “Other long-term liabilities” on the Condensed Consolidated Balance Sheets.
Contract assets and liabilities fluctuate period to period based primarily on changes in the number and size of projects in progress at period end, variability in billing and payment terms, and the amounts of unapproved change orders and contract claims. The increase in contract assets for the six months ended June 30, 2026 was primarily attributable to the commencement of new projects in 2026, partially offset by completion of certain projects and the corresponding billings of amounts previously recorded in contract assets.
The decrease in contract liabilities for the six months ended June 30, 2026 is due primarily to the completion of certain projects and satisfaction of performance obligations related to contract amounts previously billed, partially offset by the commencement of new projects in 2026 and timing of billings in relation to costs incurred on certain projects.