Quarterly report [Sections 13 or 15(d)]

REVENUE FROM CONTRACTS WITH CUSTOMERS

v3.25.3
REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
Our reportable segments for the three and nine months ended September 30, 2025 are North America Regions, U.S. Federal, Europe, Renewable Fuels, and All Other.
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2025:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 198,448  $ 65,828  $ 5,078  $ 140,598  $ —  $ 409,952 
O&M revenue 12,397  15,583  1,959  831  —  30,770 
Energy assets 23,647  7,763  30,633  494  —  62,537 
Other 3,108  334  4  2,311  16,971  22,728 
Total revenues $ 237,600  $ 89,508  $ 37,674  $ 144,234  $ 16,971  $ 525,987 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2024:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 258,977  $ 66,162  $ 10,295  $ 49,943  $ —  $ 385,377 
O&M revenue 10,284  15,817  1,844  480  —  28,425 
Energy assets 20,444  7,096  31,393  197  —  59,130 
Other 1,906  38  5  1,993  23,999  27,941 
Total revenues $ 291,611  $ 89,113  $ 43,537  $ 52,613  $ 23,999  $ 500,873 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2025:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 521,688  $ 109,325  $ 17,124  $ 371,364  $ —  $ 1,019,501 
O&M revenue 31,327  44,376  5,736  2,132  —  83,571 
Energy assets 65,286  19,900  95,801  1,152  —  182,139 
Other 8,744  798  7  8,127  48,213  65,889 
Total revenues $ 627,045  $ 174,399  $ 118,668  $ 382,775  $ 48,213  $ 1,351,100 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2024:
North America Regions U.S. Federal Renewable Fuels Europe All Other Total
Project revenue $ 553,930  $ 177,721  $ 27,342  $ 161,431  $ —  $ 920,424 
O&M revenue 25,728  45,723  6,357  2,122  —  79,930 
Energy assets 53,944  12,749  88,421  557  29  155,700 
Other 4,425  547  128  5,684  70,423  81,207 
Total revenues $ 638,027  $ 236,740  $ 122,248  $ 169,794  $ 70,452  $ 1,237,261 
The following table presents information related to our revenue recognized over time:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Percentage of revenue recognized over time 96% 97% 96% 96%
The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized.
We attribute revenues to customers based on the location of the customer. The following table presents information related to our revenues by geographic area:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
United States $ 352,725  $ 431,918  $ 887,261  $ 1,020,517 
Canada 29,023  16,337  80,991  46,933 
Europe 144,239  52,618  382,848  169,811 
Total revenues $ 525,987  $ 500,873  $ 1,351,100  $ 1,237,261 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  September 30, 2025 December 31, 2024
Accounts receivable, net $ 253,793  $ 256,961 
Accounts receivable retainage, net 48,846  39,843 
Contract Assets:
Unbilled revenue $ 691,316  $ 644,105 
Contract Liabilities:
Deferred revenue $ 87,297  $ 91,734 
Deferred revenue, non-current (1)
36,369  29,885 
Total contract liabilities $ 123,666  $ 121,619 
September 30, 2024 December 31, 2023
Accounts receivable, net $ 230,298  $ 153,362 
Accounts receivable retainage, net 43,466  33,826 
Contract Assets:
Unbilled revenue $ 572,804  $ 636,163 
Contract Liabilities:
Deferred revenue $ 108,020  $ 52,903 
Deferred revenue, non-current (1)
20,808  18,393 
Total contract liabilities $ 128,828  $ 71,296 
(1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the condensed consolidated balance sheets.
The increase in contract assets for the nine months ended September 30, 2025 was primarily due to revenue recognized of $906,072, as well as reclassifications, primarily from contract liabilities as a result of the timing of customer payments, offset by billings of $886,843. 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 nine months ended September 30, 2025, we recognized revenue of $350,986 and billed $328,495 to customers that had balances which were included in contract liabilities at December 31, 2024.
The decrease in contract assets for the nine months ended September 30, 2024 was primarily due to revenue recognized of $807,913 offset by billings of $921,597. 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 nine months ended September 30, 2024, we recognized revenue of $284,842 and billed $271,173 to customers that had balances which were included in contract liabilities at December 31, 2023.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At September 30, 2025, we had contracted backlog of $3,949,124 of which approximately 34% 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 operations and maintenance (“O&M”) services related to these projects. The long-term services have varying initial contract terms, up to 27 years.
Deferred Project Costs
Deferred project costs include costs incurred on active projects which will be reclassified either to contract assets or energy assets, as applicable, once a change order or other project resolution is finalized.
Project Development Costs
Project development costs of $5,733 and $4,546 were recognized in our condensed consolidated statements of income on projects that converted to customer contracts during the three months ended September 30, 2025 and 2024, respectively. Project development costs of $14,214 and $10,830 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the nine months ended September 30, 2025 and 2024, respectively.
No impairment charges in connection with our project development costs were recorded during the three or nine months ended September 30, 2025 and 2024.