v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
As described in Note 1, our operations are assessed based on two reportable segments.
Disaggregated Revenues
Revenues by geographic area and customer type were as follows:
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
United States:
Government$596,938 $26,481 $623,419 $572,313 $88 $572,401 
Non-Government23,934 45,816 69,750 38,224 33,056 71,280 
$620,872 $72,297 $693,169 $610,537 $33,144 $643,681 
Canada:
Government$8,292 $— $8,292 $159 $— $159 
Non-Government242 218,670 218,912 32 199,354 199,386 
$8,534 $218,670 $227,204 $191 $199,354 $199,545 
Other:
Government$6,125 $22 $6,147 $3,701 $— $3,701 
Non-Government3,545 23,213 26,758 2,268 18,473 20,741 
$9,670 $23,235 $32,905 $5,969 $18,473 $24,442 
Segment Revenues$639,076 $314,202 953,278 $616,697 $250,971 867,668 
Eliminations(306)(1,382)
Revenues$952,972 $866,286 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
United States:
Government$1,691,241 $27,322 $1,718,563 $1,611,357 $272 $1,611,629 
Non-Government77,085 132,887 209,972 132,370 73,785 206,155 
$1,768,326 $160,209 $1,928,535 $1,743,727 $74,057 $1,817,784 
Canada:
Government$26,088 $— $26,088 $271 $— $271 
Non-Government480 662,442 662,922 154 442,133 442,287 
$26,568 $662,442 $689,010 $425 $442,133 $442,558 
Other:
Government$12,174 $22 $12,196 $11,297 $— $11,297 
Non-Government11,198 77,687 88,885 5,494 39,230 44,724 
$23,372 $77,709 $101,081 $16,791 $39,230 $56,021 
Segment Revenues$1,818,266 $900,360 2,718,626 $1,760,943 $555,420 2,316,363 
Eliminations(3,812)(3,780)
Revenues$2,714,814 $2,312,583 
Revenues by timing of transfer of goods or services were as follows:
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Over time$631,375 $260,688 $892,063 $612,212 $221,315 $833,527 
Point-in-time7,701 53,514 61,215 4,485 29,656 34,141 
Segment Revenues$639,076 $314,202 953,278 $616,697 $250,971 867,668 
Eliminations(306)(1,382)
Revenues$952,972 $866,286 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Over time$1,797,004 $780,081 $2,577,085 $1,749,201 $477,622 $2,226,823 
Point-in-time21,262 120,279 141,541 11,742 77,798 89,540 
Segment Revenues$1,818,266 $900,360 2,718,626 $1,760,943 $555,420 2,316,363 
Eliminations(3,812)(3,780)
Revenues$2,714,814 $2,312,583 
Revenues by contract type were as follows:
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Fixed-Price Incentive Fee$483,620 $1,042 $484,662 $239,901 $505 $240,406 
Firm-Fixed-Price11,465 192,702 204,167 279,993 147,885 427,878 
Cost-Plus Fee143,497 9,827 153,324 96,706 2,159 98,865 
Time-and-Materials494 110,631 111,125 97 100,422 100,519 
Segment Revenues$639,076 $314,202 953,278 $616,697 $250,971 867,668 
Eliminations(306)(1,382)
Revenues$952,972 $866,286 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
(In thousands)
Fixed-Price Incentive Fee$850,567 $1,809 $852,376 $669,107 $8,350 $677,457 
Firm-Fixed-Price623,931 557,499 1,181,430 795,008 358,189 1,153,197 
Cost-Plus Fee342,746 20,573 363,319 296,602 2,006 298,608 
Time-and-Materials1,022 320,479 321,501 226 186,875 187,101 
Segment Revenues$1,818,266 $900,360 2,718,626 $1,760,943 $555,420 2,316,363 
Eliminations(3,812)(3,780)
Revenues$2,714,814 $2,312,583 
Performance Obligations
As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. The aggregate impact of changes in estimates increased our revenues and operating income as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
(In thousands)(In thousands)
Revenues (1)
$6,840 $4,322 $10,349 $10,253 
Operating Income (1)
$3,639 $3,061 $4,949 $9,107 
(1)During the three and nine months ended September 30, 2026, no adjustments to any one contract had a material impact on our consolidated financial statements. During the three months ended September 30, 2025, no adjustments to any one contract had a material impact on our consolidated financial results. During the nine months ended September 30, 2025, our Government Operations segment results were favorably impacted by material contract adjustments related to a nuclear operations contract resulting in an increase in revenue and operating income of $29.4 million.
Contract Assets and Liabilities
We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. Costs specific to certain contracts for which we recognize revenue at a point in time are also included in Contracts in progress. We include in Advance billings on contract billings that exceed accumulated contract costs and revenues recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled receivables. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. Our fixed-price incentive fee contracts for our Government Operations segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments received during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.
September 30,December 31,
20262025
(In thousands)
Included in Contracts in progress:
Unbilled receivables$714,269 $594,749 
Retainages$98,219 $46,311 
Advance billings on contracts$428,342 $305,285 
During the three months ended September 30, 2026 and 2025, we recognized $3.0 million and $14.7 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year. During the nine months ended September 30, 2026 and 2025, we recognized $149.6 million and $138.3 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year.
Remaining Performance Obligations
Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. At September 30, 2026, our remaining performance obligations were $8,556.2 million. We expect to recognize approximately 46% of the revenue associated with our remaining performance obligations by the end of 2027, with the remainder to be recognized thereafter.