v3.26.3
Revenue
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. For a detailed discussion of our revenue recognition policies, refer to the Company’s 2025 Annual Report on Form 10-K.
Disaggregated Revenue
Refer to Note 10 Business Segments for disaggregated revenue by product line and geography.
Contract Balances
Contract balances are determined on a contract by contract basis. Contract assets represent revenue recognized for goods and services provided to our customers when payment is conditioned on something other than the passage of time. Similarly, the Company records a contract liability when we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract. Such contract liabilities typically result from billings in excess of costs incurred on construction contracts and advance payments received on product sales.
The following table reflects the changes in our contract assets and contract liabilities balances for the nine months ended September 30, 2026 (in thousands):
September 30, 2026December 31, 2025Increase (Decrease)
$%
Accrued revenue$28 $21 
Costs and estimated profits in excess of billings15,317 9,369 
Contract assets$15,345 $9,390 $5,955 63 %
Deferred revenue$11,324 $17,438 
Billings in excess of costs and profits recognized16,907 16,884 
Contract liabilities$28,231 $34,322 $(6,091)(18)%
During the nine months ended September 30, 2026, our contract assets increased by $6.0 million and our contract liabilities decreased $6.1 million primarily due to the timing of milestone billings for projects in our Subsea product line.
During the nine months ended September 30, 2026, we recognized $29.4 million of revenue that was included in the contract liabilities balance at the beginning of the period.
As of September 30, 2026, the Company’s remaining performance obligations totaled approximately $43.3 million related to contracts with an original expected duration of greater than one year. The remaining performance obligations represent contracted revenue that has not yet been recognized and excludes amounts related to contracts with an original expected duration of one year or less, for which the Company has elected the practical expedient under ASC 606.
The Company expects to recognize approximately $29.7 million of the remaining performance obligations over the next twelve months, with the remainder recognized thereafter, generally over the remaining contract terms, which extend up to three years. Actual timing of revenue recognition may vary due to changes in project scope, execution schedules, or other factors.