Revenue

6 Months Ended

Jul. 04, 2025

Revenue from Contract with Customer [Abstract]

Disaggregated Revenue

We disaggregate our revenue from customers by business unit, customer type, geographic destination and contract type for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue by business unit and reportable segment was as follows:


	Three Months Ended				Six Months Ended
	July 4,		June 28,		July 4,		June 28,
Dollars in millions	2025		2024		2025		2024

Mission Technology Solutions
Science & Space	$	289	$	291	$	585	$	589
Defense & Intel	785		651		1,604		1,322
Readiness & Sustainment	338		374		691		730

Total Mission Technology Solutions	1,412		1,316		2,880		2,641

Sustainable Technology Solutions	540		531		1,090		1,024




Total revenue	$	1,952	$	1,847	$	3,970	$	3,665

Revenue by customer type was as follows:


	Three Months Ended July 4, 2025						Six Months Ended July 4, 2025
Dollars in millions	MTS		STS		Total		MTS		STS		Total
U.S. Government Defense and Intelligence Clients	$	856	$	—	$	856	$	1,762	$	—	$	1,762
U.S. Government Federal Civilian Clients	273		—		273		554		—		554
International Government Clients	223		—		223		442		—		442
Commercial and Infrastructure Clients	60		540		600		122		1,090		1,212
Total revenue	$	1,412	$	540	$	1,952	$	2,880	$	1,090	$	3,970

	Three Months Ended June 28, 2024						Six Months Ended June 28, 2024
Dollars in millions	MTS		STS		Total		MTS		STS		Total
U.S. Government Defense and Intelligence Clients	$	769	$	—	$	769	$	1,527	$	—	$	1,527
U.S. Government Federal Civilian Clients	268		—		268		548		—		548
International Government Clients	219		—		219		440		—		440
Commercial and Infrastructure Clients	60		531		591		126		1,024		1,150
Total revenue	$	1,316	$	531	$	1,847	$	2,641	$	1,024	$	3,665

Revenue by geographic destination was as follows:



	Three Months Ended July 4, 2025						Six Months Ended July 4, 2025

Total by Countries/Regions Dollars in millions	Mission Technology Solutions		Sustainable Technology Solutions		Total		Mission Technology Solutions		Sustainable Technology Solutions		Total
United States	$	988	$	122	$	1,110	$	1,964	$	255	$	2,219
Europe	290		66		356		670		143		813
Middle East	39		166		205		65		318		383
Australia	56		81		137		106		163		269
Africa	18		51		69		36		84		120
Asia	10		27		37		13		68		81
Other countries	11		27		38		26		59		85
Total revenue	$	1,412	$	540	$	1,952	$	2,880	$	1,090	$	3,970

	Three Months Ended June 28, 2024						Six Months Ended June 28, 2024

Total by Countries/Regions Dollars in millions	Mission Technology Solutions		Sustainable Technology Solutions		Total		Mission Technology Solutions		Sustainable Technology Solutions		Total
United States	$	821	$	129	$	950	$	1,639	$	256	$	1,895
Europe	387		71		458		783		143		926
Middle East	23		165		188		53		300		353
Australia	50		86		136		97		160		257
Africa	16		33		49		33		66		99
Asia	2		23		25		6		50		56
Other countries	17		24		41		30		49		79
Total revenue	$	1,316	$	531	$	1,847	$	2,641	$	1,024	$	3,665

Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:



	Three Months Ended July 4, 2025						Six Months Ended July 4, 2025
Dollars in millions	Mission Technology Solutions		Sustainable Technology Solutions		Total		Mission Technology Solutions		Sustainable Technology Solutions		Total
Cost Reimbursable	$	853	$	—	$	853	$	1,744	$	—	$	1,744
Time-and-Materials	236		379		615		487		719		1,206
Fixed Price	323		161		484		649		371		1,020
Total revenue	$	1,412	$	540	$	1,952	$	2,880	$	1,090	$	3,970

	Three Months Ended June 28, 2024						Six Months Ended June 28, 2024
Dollars in millions	Mission Technology Solutions		Sustainable Technology Solutions		Total		Mission Technology Solutions		Sustainable Technology Solutions		Total
Cost Reimbursable	$	839	$	—	$	839	$	1,683	$	—	$	1,683
Time-and-Materials	209		344		553		408		653		1,061
Fixed Price	268		187		455		550		371		921
Total revenue	$	1,316	$	531	$	1,847	$	2,641	$	1,024	$	3,665

Performance Obligations and Contract Liabilities

Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations

satisfied in previous periods for such matters of $26 million and $23 million for the three months ended July 4, 2025 and June 28, 2024, respectively, and $34 million and $31 million for the six months ended July 4, 2025 and June 28, 2024, respectively.

On July 4, 2025, we had $13.1 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 39% in years two through five and 25% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of July 4, 2025.

We recognized revenue of $214 million and $225 million for the six months ended July 4, 2025 and June 28, 2024, respectively, which was previously included in the contract liability balance at the beginning of each period.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. During the three and six months ended July 4, 2025 we recognized a favorable change in operating income of $50 million and $65 million, respectively, as a result of changes in estimates on an LNG project.

Accounts Receivable


	July 4,		January 3,
Dollars in millions	2025		2025
Unbilled	$	602	$	525
Trade & other	611		541
Accounts receivable	$	1,213	$	1,066

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

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