Reportable Segments

6 Months Ended

Jun. 30, 2022

Reportable Segments

Reportable Segments

Note 15—Reportable Segments

The current reportable segments include the Utilities segment, the Energy/Renewables segment, and the Pipeline segment.

Each of our reportable segments is composed of similar business units that specialize in services unique to the segment. Driving the end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment; the production processes of each segment; the type or class of customer using the segment’s services; the methods used by the segment to provide the services; and the regulatory environment of each segment’s customers.

The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made.

The following is a brief description of the reportable segments:

The Utilities segment operates throughout the United States and specializes in a range of services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communications systems.

The Energy/Renewables segment operates throughout the United States and in Canada and specializes in a range of services that include engineering, procurement, and construction, retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services for entities in the renewable energy and energy storage, renewable fuels, and petroleum and petrochemical industries, as well as state departments of transportation.

The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction and maintenance, pipeline facility and integrity services, installation of compressor and pump stations, and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities.

All intersegment revenue and gross profit, which was immaterial, has been eliminated in the following tables. Total assets by segment is not presented as our Chief Operating Decision Maker as defined by ASC 280 does not review or allocate resources based on segment assets.

Segment Revenue

Revenue by segment was as follows (in thousands):

	For the three months ended June 30,
	2022			2021
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Utilities	$	476,121	46.5%	$	425,421	48.3%
Energy/Renewables		486,349	47.6%		335,010	38.0%
Pipeline		60,478	5.9%		121,179	13.7%
Total	$	1,022,948	100.0%	$	881,610	100.0%

	For the six months ended June 30,
	2022			2021
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Utilities	$	834,849	46.2%	$	760,433	44.7%
Energy/Renewables		845,399	46.8%		687,874	40.5%
Pipeline		127,085	7.0%		251,632	14.8%
Total	$	1,807,333	100.0%	$	1,699,939	100.0%

Segment Gross Profit

Gross profit by segment was as follows (in thousands):

	For the three months ended June 30,
	2022			2021
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Utilities	$	40,356	8.5%	$	48,849	11.5%
Energy/Renewables		53,143	10.9%		33,232	9.9%
Pipeline		(1,390)	(2.3%)		30,945	25.5%
Total	$	92,109	9.0%	$	113,026	12.8%

	For the six months ended June 30,
	2022			2021
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Utilities	$	62,709	7.5%	$	70,565	9.3%
Energy/Renewables		93,074	11.0%		75,904	11.0%
Pipeline		(7,189)	(5.7%)		46,738	18.6%
Total	$	148,594	8.2%	$	193,207	11.4%

Segment Goodwill

The amount of goodwill recorded by each segment at June 30, 2022 and at December 31, 2021 is presented in Note 6 – “Goodwill and Intangible Assets”.

Geographic Region — Revenue and Total Assets

The majority of our revenue is derived from customers in the United States with approximately 4.7% and 4.0% generated from sources outside of the United States during the six months ended June 30, 2022 and 2021, respectively, principally in Canada. At June 30, 2022 and December 31, 2021, approximately 3.9% and 3.5%, respectively, of total assets were located outside of the United States, principally in Canada.