Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Revenue

A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to perform a defined scope of a project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts require the Company to include a guaranteed not-to-exceed maximum price.

Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to three years in duration; however, most of the Company’s contracts, including MSAs, may be terminated by the customer on short notice, typically 30 to 90 days, even if the Company is not in default under the contract. Under MSAs, customers generally agree to use the Company for certain services in a specified geographic region. Most MSAs include no obligation for the contract counterparty to assign specific volumes of work to the Company and do not require the counterparty to use the Company exclusively, although in some cases the MSA contract gives the Company a right of first refusal for certain work. Additional information related to the Company’s market types is provided in Note 10–Segment Information.

The components of the Company’s revenue by contract type for the three months ended June 30, 2023 and 2022 were as follows:

	Three months ended June 30, 2023
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	261,348	51.9	%	$	313,409	81.4	%	$	574,757	64.7	%
Unit price	139,929		27.8		23,558		6.1		163,487		18.4
T&E	102,460		20.3		47,912		12.5		150,372		16.9
	$	503,737	100.0	%	$	384,879	100.0	%	$	888,616	100.0	%

	Three months ended June 30, 2022
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	192,934	46.5	%	$	243,682	83.2	%	$	436,616	61.7	%
Unit price	117,609		28.3		17,932		6.1		135,541		19.1
T&E	104,692		25.2		31,265		10.7		135,957		19.2
	$	415,235	100.0	%	$	292,879	100.0	%	$	708,114	100.0	%

The components of the Company’s revenue by contract type for the six months ended June 30, 2023 and 2022 were as follows:

	Six months ended June 30, 2023
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	490,582	51.7	%	$	619,030	82.4	%	$	1,109,612	65.3	%
Unit price	253,637		26.7		41,200		5.5		294,837		17.3
T&E	204,841		21.6		90,942		12.1		295,783		17.4
	$	949,060	100.0	%	$	751,172	100.0	%	$	1,700,232	100.0	%

	Six months ended June 30, 2022
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	343,838	44.1	%	$	462,259	81.9	%	$	806,097	59.9	%
Unit price	221,930		28.4		32,735		5.8		254,665		19.0
T&E	214,323		27.5		69,653		12.3		283,976		21.1
	$	780,091	100.0	%	$	564,647	100.0	%	$	1,344,738	100.0	%

The components of the Company’s revenue by market type for the three months ended June 30, 2023 and 2022 were as follows:

	Three months ended June 30, 2023					Three months ended June 30, 2022
(dollars in thousands)	Amount		Percent		Segment	Amount		Percent		Segment
Transmission	$	322,272	36.3	%	T&D	$	250,078	35.3	%	T&D
Distribution	181,465		20.4		T&D	165,157		23.3		T&D
Electrical construction	384,879		43.3		C&I	292,879		41.4		C&I
Total revenue	$	888,616	100.0	%		$	708,114	100.0	%

The components of the Company’s revenue by market type for the six months ended June 30, 2023 and 2022 were as follows:

	Six months ended June 30, 2023					Six months ended June 30, 2022
(dollars in thousands)	Amount		Percent		Segment	Amount		Percent		Segment
Transmission	$	620,370	36.5	%	T&D	$	471,685	35.1	%	T&D
Distribution	328,690		19.3		T&D	308,406		22.9		T&D
Electrical construction	751,172		44.2		C&I	564,647		42.0		C&I
Total revenue	$	1,700,232	100.0	%		$	1,344,738	100.0	%

Remaining Performance Obligations

As of June 30, 2023, the Company had $2.54 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions.

The following table summarizes the amount of remaining performance obligations as of June 30, 2023 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months.

	Remaining Performance Obligations at June 30, 2023
(in thousands)	Total		Amount estimated to not be recognized within 12 months		Total at December 31, 2022
T&D	$	1,004,670	$	81,156	$	898,617
C&I	1,537,060		387,745		1,428,257
Total	$	2,541,730	$	468,901	$	2,326,874

The Company expects the vast majority of the remaining performance obligations to be recognized within twenty-four months, although the timing of the Company’s performance is not always under its control. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”