Construction Contracts

6 Months Ended

Jun. 30, 2025

Contractors [Abstract]

Construction Contracts

Construction Contracts

Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of June 30, 2025 during the next 12 to 24 months following June 30, 2025. The Company expects to collect these billings progressively over this period.

Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized.

The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2025 and 2024 (in thousands):

	Six Months Ended  June 30, 2025				Six Months Ended  June 30, 2024
	Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings		Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings
Beginning balance	$	6	$	5,871	$	104	$	21,414
Revenue recognized that was included in the balance at the beginning of the period	—		(5,871)		—		(21,414)
Increases due to new billings, excluding amounts recognized as revenue during the period	—		6,990		—		21,454
Transferred to receivables	(6)		—		(106)		—
Construction contract costs and estimated earnings not billed during the period	2,990		—		542		—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	—		(326)		2		(2,036)
Ending balance	$	2,990	$	6,664	$	542	$	19,418

The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $2.2 million and $1.9 million were deferred as of June 30, 2025 and December 31, 2024, respectively. Amortization of pre-contract costs for the six months ended June 30, 2025 and 2024 was less than $0.1 million and $0.2 million, respectively.

Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of June 30, 2025 and December 31, 2024, construction receivables included retentions of $16.8 million and $38.2 million, respectively.

The Company expects to collect substantially all construction receivables outstanding as of June 30, 2025 during the next 12 to 24 months following June 30, 2025. As of June 30, 2025 and December 31, 2024, construction payables included retentions of $24.1 million and $44.9 million, respectively. The Company intends to settle all construction payables, including retainage recorded, as of June 30, 2025 within the next 12 to 24 months following June 30, 2025. Payments will be made progressively over this period.

The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2025 and December 31, 2024 (in thousands):

	June 30, 2025		December 31, 2024
Costs incurred on uncompleted construction contracts	$	921,461	$	1,006,508
Estimated earnings	28,554		37,250
Billings	(953,689)		(1,049,623)
Net position	$	(3,674)	$	(5,865)
Construction contract costs and estimated earnings in excess of billings	$	2,990	$	6
Billings in excess of construction contract costs and estimated earnings	(6,664)		(5,871)
Net position	$	(3,674)	$	(5,865)

The above table reflects the net effect of projects closed as of June 30, 2025 and December 31, 2024, as applicable.

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2025 and 2024 were as follows (in thousands):

	Three Months Ended June 30,
	2025		2024
Beginning backlog	$	80,423	$	343,406
New contracts/change orders	57,909		76,585
Work performed	(31,769)		(117,141)
Ending backlog	$	106,563	$	302,850

The Company expects to complete a majority of the uncompleted contracts in place as of June 30, 2025 during the next 12 to 24 months following June 30, 2025.