Reportable Segments

9 Months Ended

Sep. 30, 2023

Reportable Segments

Reportable Segments

Note 15—Reportable Segments

Through the end of 2022, we segregated our business into three reportable segments: the Utilities segment, the Energy/Renewables segment, and the Pipeline segment. In the first quarter of 2023, we changed our reportable segments in connection with the realignment of our internal organization and management structure. The segment changes reflect the focus of our CODM on the range of services we provide to our end user markets. Our CODM regularly reviews our operating and financial performance based on these new segments.

The current reportable segments include the Utilities segment and the Energy segment, which is made up of our former Energy/Renewables and Pipeline Services segments.

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 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, pipeline construction and maintenance, pipeline integrity services, 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.

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 September 30,
	2023			2022
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Utilities	$	644,639	42.1%	$	613,008	47.7%
Energy		884,847	57.9%		671,120	52.3%
Total	$	1,529,486	100.0%	$	1,284,128	100.0%

	For the nine months ended September 30,
	2023			2022
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Utilities	$	1,813,768	43.2%	$	1,447,857	46.8%
Energy		2,385,992	56.8%		1,643,604	53.2%
Total	$	4,199,760	100.0%	$	3,091,461	100.0%

Segment Gross Profit

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

	For the three months ended September 30,
	2023			2022
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Utilities	$	64,654	10.0%	$	78,046	12.7%
Energy		109,241	12.3%		76,861	11.5%
Total	$	173,895	11.4%	$	154,907	12.1%

	For the nine months ended September 30,
	2023			2022
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Utilities	$	164,244	9.1%	$	140,755	9.7%
Energy		266,647	11.2%		162,746	9.9%
Total	$	430,891	10.3%	$	303,501	9.8%

Segment Goodwill

The amount of goodwill recorded by each segment at September 30, 2023 and at December 31, 2022 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 5.6% and 6.2% generated from sources outside of the United States during the nine months ended September 30, 2023 and 2022, respectively, principally in Canada. At September 30, 2023 and December 31, 2022, approximately 3.8% and 4.2%, respectively, of total assets were located outside of the United States, principally in Canada.