Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.

Changes in cost estimates on certain contracts can arise from, but not limited to, changes in productivity and performance expectations, availability of skilled labor in geographic locations of such projects, costs of labor and/or materials, changes in subcontractor productivity and performance, and extended overhead due to weather or other delays. These changes in estimates may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management's estimates of additional contract revenues that have been earned and are probable of collection.

As of September 30, 2025 and December 31, 2024, $67.4 million and $56.2 million, respectively, of unexecuted change orders were included in contract transaction price and in Contract assets or Contract liabilities, net on the unaudited condensed consolidated balance sheets. The Company was in the process of negotiating execution of these change orders in the normal course of business and the recognized amounts represent the Company’s best estimates of additional contract revenues for which it is not probable that a significant reversal of the revenue amounts will occur in the future.

As of September 30, 2025 and December 31, 2024, the Company recorded loss provisions of $2.6 million and $1.0 million, respectively, in Contract liabilities, net on the unaudited condensed consolidated balance sheets related to contracts that are still being completed.

The Company had claim positions of $34.4 million and $54.9 million that were excluded from the contract transaction price as of September 30, 2025 and December 31, 2024, respectively. The Company continues to evaluate these active claims and no impact to operating income during the quarter.

The Company received notification in October 2023 from a customer that it is withholding payment of approximately $31.3 million on remaining outstanding billings, including retention, on a large project with a contract that was billed on a time and materials basis with no stated maximum price. The Company believes it has substantial defenses against these claims based upon the terms of the contract and it has performed under the terms of the contract. Therefore, the Company believes collection of the remaining outstanding billings, including retention, is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.

Additionally, the cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. Changes in estimates may result from contract modifications, which affects the estimated progress of the related performance obligations. As a result, the Company recognizes additional revenue on a cumulative catch-up basis in the current period from performance obligations that were satisfied or partially satisfied in prior periods or the reversal of previously recognized revenue if the current estimated progress is less than the previous estimate. In some instances, contract modifications may occur after completion of work under the contract. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated.

Since these changes in estimates could significantly affect our profitability, the Company reviews and updates contract-related estimates regularly and recognizes adjustments in estimated gross profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact to gross profit is recognized in the period that the adjustment is identified. As such, future operating revenues and gross profit of contract performance are recognized using the adjusted estimates.

Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted operating revenues, and in turn gross profit, by approximately $51.6 million and $102.2 million for the three and nine months ended September 30, 2025, respectively. As result, net income was positively net impacted by $37.9 million and $74.8 million and diluted EPS by $0.74 and $1.46, respectively.

Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted operating revenues, and in turn gross profit, by approximately $25.8 million and $71.5 million for the three and nine months ended September 30, 2024, respectively. As result, net income was positively net impacted by $19.4 million and $53.1 million and diluted EPS by $0.38 and $1.04, respectively.

For the three and nine months ended September 30, 2025, net changes in estimates pertaining to certain projects, each individually positively or negatively affecting profitability in excess of $1.0 million, positively net impacted operating revenues, and in turn gross profit, by $21.0 million and $46.4 million, respectively, which resulted in positive net impacts to net income of $15.4 million and $34.0 million and diluted EPS of $0.30 and $0.67, respectively.

During the three and nine months ended September 30, 2024, net changes in estimates pertaining to certain projects, each individually positively or negatively affecting profitability in excess of $1.0 million, positively net impacted operating revenues, and in turn gross profit, by $4.9 million and $20.4 million, respectively, which resulted in positive net impacts to net income of $3.7 million and $15.1 million and diluted EPS of $0.07 and $0.30, respectively.

The changes in estimates resulted from changes in performance estimates due to revisions to total estimated costs and/or anticipated contract value and from the mitigation of risks and contingencies as projects progressed to completion. The changes in estimates were made in the ordinary course of business and there were no changes that resulted in material amounts that should have been recognized in a prior period. Additional discussion on the impact of these changes in estimates can be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Consolidated Results of Operations.”

In the following tables, revenues are disaggregated by contract type and customer type for each reportable segment. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. For more information on the Company’s reportable segments, refer to Note 11 – Segment Information.


Three months ended September 30, 2025	E&M		T&D		Total
	(In thousands)
Fixed-price	$	396,402	$	118,828	$	515,230
Cost reimbursable*	362,826		63,966		426,792
Unit-price	8,084		40,618		48,702
Total contract revenues	767,312		223,412		990,724
Eliminations	(1,772)		(2,132)		(3,904)
Total operating revenues	$	765,540	$	221,280	$	986,820


Three months ended September 30, 2024	E&M		T&D		Total
	(In thousands)
Fixed-price	$	326,972	$	106,936	$	433,908
Cost reimbursable*	194,892		74,720		269,612
Unit-price	15,031		46,848		61,879
Total contract revenues	536,895		228,504		765,399
Eliminations	(2,154)		(2,260)		(4,414)
Total operating revenues	$	534,741	$	226,244	$	760,985


Nine months ended September 30, 2025	E&M		T&D		Total
	(In thousands)
Fixed-price	$	1,126,383	$	326,205	$	1,452,588
Cost reimbursable*	972,574		192,870		1,165,444
Unit-price	30,182		101,736		131,918
Total contract revenues	2,129,139		620,811		2,749,950
Eliminations	(7,994)		(7,041)		(15,035)
Total operating revenues	$	2,121,145	$	613,770	$	2,734,915


Nine months ended September 30, 2024	E&M		T&D		Total
	(In thousands)
Fixed-price	$	966,035	$	282,582	$	1,248,617
Cost reimbursable*	466,489		223,179		689,668
Unit-price	49,254		118,016		167,270
Total contract revenues	1,481,778		623,777		2,105,555
Eliminations	(5,627)		(9,881)		(15,508)
Total operating revenues	$	1,476,151	$	613,896	$	2,090,047


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(In thousands)
Commercial	$	553,077	$	327,403	$	1,480,106	$	860,088
Institutional	90,951		93,390		286,612		274,916
Industrial	70,114		76,493		233,802		236,349
Service & other	33,699		29,195		85,796		82,874
Renewables	19,471		10,414		42,823		27,551
Total E&M	767,312		536,895		2,129,139		1,481,778
Utility	196,471		206,669		545,971		559,922
Transportation	26,941		21,835		74,840		63,855
Total T&D	223,412		228,504		620,811		623,777
Eliminations	(3,904)		(4,414)		(15,035)		(15,508)
Total operating revenues	$	986,820	$	760,985	$	2,734,915	$	2,090,047


	September 30, 2025		December 31, 2024
	(In thousands)
Costs incurred on uncompleted contracts	$	7,458,281	$	7,034,838
Estimated earnings	1,031,582		995,766
Costs and estimated earnings on uncompleted contracts	8,489,863		8,030,604
Less: billings to date	(8,509,218)		(8,070,859)
Net contract liabilities	$	(19,355)	$	(40,255)

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. A variance in timing of the billings in comparison to the timing of revenue recognition may result in contract assets or contract liabilities.

Contract assets consist of unbilled revenue and retainage. Unbilled revenue occurs when revenues are recognized under the cost-to-cost measure of progress, which exceed amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. Retainage represents amounts that have been contractually invoiced to customers and where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. Contract assets are not considered a significant financing component as they are intended to protect the customer in the event the Company does not perform on its obligations under the contract.

Contract liabilities occur when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. Contract liabilities are not considered to have a significant financing component as they are used to meet working capital requirements that generally are higher in the early stages of a contract and are intended to protect the Company from the counterparty failing to meet its obligations under the contract.

The Company classifies Contract assets and Contract liabilities, net that may be settled after one year from the balance sheet date as current, consistent with the timing of the Company’s project operating cycle.


	September 30, 2025		December 31, 2024
	(In thousands)
Unbilled revenue	$	181,478	$	124,007
Retainage	68,999		43,042

Contract assets	$	250,477	$	167,049

Deferred revenue	$	368,812	$	279,430
Accrued loss provision	2,570		1,021
Less: retainage	(101,550)		(73,147)
Contract liabilities, net	$	269,832	$	207,304


	September 30, 2025						December 31, 2024
	Contract Assets		Contract Liabilities, Net		Net Contract Assets (Liabilities)		Contract Assets		Contract Liabilities, Net		Net Contract Assets (Liabilities)
	(In thousands)
Balance at beginning of period	$	167,049	$	(207,304)	$	(40,255)	$	206,235	$	(140,108)	$	66,127
Net change during period	83,428		(62,528)		20,900		(39,186)		(67,196)		(106,382)
Balance at end of period	$	250,477	$	(269,832)	$	(19,355)	$	167,049	$	(207,304)	$	(40,255)

Contract assets and contract liabilities fluctuate period to period based on various factors, including, but not limited to, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; variability in billing of retainage and the satisfaction of the specified condition; and unapproved change orders and contract claims recognized as revenues. The primary driver of the difference between the Company's opening and closing contract asset and contract liability balances is the timing of the Company's billings, including retainage, in relation to its performance of work.

The Company recognized a net increase in revenues of $12.7 million and $146.4 million for the three and nine months ended September 30, 2025, respectively, related to previously recognized deferred revenues that were included in Contract liabilities, net as of December 31, 2024. The Company recognized a net increase in revenues of $46.6 million and $136.5 million for the three and nine months ended September 30, 2024, respectively, related to previously recognized deferred revenues that were included in Contract liabilities, net as of December 31, 2023.

Remaining performance obligations include unrecognized revenues that the Company reasonably expects to be realized from the uncompleted portion of services to be performed under job-specific contracts to the extent management believes additional contract revenues will be earned and are deemed probable of collection. The majority of the Company's contracts for contracting services have an original duration of less than one year.

As of September 30, 2025 and December 31, 2024, the aggregate amount of the transaction price allocated to the Company's remaining performance obligations was $2.69 billion and $2.46 billion, respectively. The table below shows additional information regarding the Company’s remaining performance obligations as of September 30, 2025, including an estimate of when the Company expects to recognize its remaining performance obligations as revenues: