Annual report [Section 13 and 15(d), not S-K Item 405]

Revenue from Contracts with Customers

v3.25.0.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
Our reportable segments for the year ended December 31, 2024 were North America Regions, U.S. Federal, Europe, and Renewable Fuels (formerly Alternative Fuels). On January 1, 2024, we changed the structure of our internal organization, and our U.S. Regions and Canada are now included in North America Regions. Additionally, our Asset Sustainability Group was formerly included in Canada, but is now included in “All Other”. As a result, previously reported amounts have been reclassified for comparative purposes.
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2024:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 762,404  $ 294,082  $ 43,353  $ 238,848  $ —  $ 1,338,687 
O&M revenue 35,707  60,057  7,895  2,807  —  106,466 
Energy assets 73,059  17,449  121,960  847  29  213,344 
Other 7,658  948  134  8,072  94,619  111,431 
Total revenues $ 878,828  $ 372,536  $ 173,342  $ 250,574  $ 94,648  $ 1,769,928 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2023:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 519,079  $ 342,238  $ —  $ 138,730  $ 1,250  $ 1,001,297 
O&M revenue 26,310  53,496  10,697  1,979  1  92,483 
Energy assets 64,668  6,326  106,359  1,392  145  178,890 
Other 6,377  824  19  7,253  87,490  101,963 
Total revenues $ 616,434  $ 402,884  $ 117,075  $ 149,354  $ 88,886  $ 1,374,633 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2022:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 1,093,738  $ 333,846  $ —  $ 53,680  $ —  $ 1,481,264 
O&M revenue 22,259  51,857  10,377  456  16  84,965 
Energy assets 51,818  5,822  104,082  281  87  162,090 
Other 5,466  366  —  3,993  86,278  96,103 
Total revenues $ 1,173,281  $ 391,891  $ 114,459  $ 58,410  $ 86,381  $ 1,824,422 
See Note 16 for our revenue disaggregated by geographical region.
The following table presents information related to our revenue recognized over time:
Year Ended December 31,
2024 2023 2022
Percentage of revenue recognized over time 96  % 95  % 96  %
The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized.
Contract Balances
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:
  December 31, 2024 December 31, 2023 January 1, 2023
Accounts receivable, net $ 256,961  $ 153,362  $ 174,009 
Accounts receivable retainage 39,843  33,826  38,057 
Contract Assets
Unbilled revenue 644,105    636,163  576,363 
Contract Liabilities
Deferred revenue 91,734  52,903  34,796 
Deferred revenue, non-current (1)
29,885  18,393  7,617 
Total contract liabilities $ 121,619  $ 71,296  $ 42,413 
(1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the consolidated balance sheets.
The increase in contract assets for the year ended December 31, 2024 was primarily due to revenue recognized of $1,192,464, as well as reclassifications primarily from contract liabilities as a result of timing of customer payments, offset by billings of $1,213,716. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, as well as reclassifications from contract assets as a result of timing of customer payments. The advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the year ended December 31, 2024, we recognized revenue of $377,569 and billed $377,591 to customers that had balances which were included in contract liabilities at December 31, 2023.
The increase in contract assets for the year ended December 31, 2023 was primarily due to revenue recognized of $940,317, offset in part by billings of $886,788. Contract assets also increased due to reclassifications, primarily from contract liabilities as a result of timing of customer payments. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, as well as reclassifications from contract assets as a result of timing of customer payments. The advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the year ended December 31, 2023, we recognized revenue of $160,713 and billed $184,174 to customers that had balances which were included in contract liabilities at January 1, 2023.
Performance Obligations
Our remaining performance obligations (“fully-contracted backlog”) represent the unrecognized revenue value of our contract commitments. Our backlog may vary significantly each reporting period based on the timing of major new contract commitments and the fully-contracted backlog may fluctuate with currency movements. In addition, our customers have the right, under some circumstances, to terminate contracts or defer the timing of our services and their payments to us. At December 31, 2024, we had fully-contracted backlog of $3,922,391 and approximately 32% of our fully-contracted backlog is anticipated to be recognized as revenue in the next twelve months. The remaining performance obligations primarily relate to the energy efficiency and renewable energy construction projects, including long-term O&M services related to these projects. The long-term services have varying initial contract terms, up to 25 years.
We applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed.
Contract Acquisition Costs
As of December 31, 2024 and 2023, we had capitalized commission costs of $1,623 and $1,735, respectively, related to contracts that were not completed, which were included in other assets in the accompanying consolidated balance sheets. For contracts that have a duration of less than one year, we follow a practical expedient and expense these costs when incurred. During the years ended December 31, 2024 and 2023, the amortization of commission costs related to contracts was not material and have been included in the accompanying consolidated statements of income.
Project Development Costs
The following table presents information related to our project development costs recognized in the consolidated statements of income on projects that converted to customer contracts:
Year Ended December 31,
2024 2023 2022
Project development costs recognized $ 18,023  $ 13,051  $ 15,507