REVENUE RECOGNITION
We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for distribution and manufacturing operations are included in the Other category and are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in millions):
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| Years ended December 31, |
| Installation: | 2025 | | | | 2024 | | | | 2023 | | |
| Residential new construction | $ | 2,072.1 | | | 70 | % | | $ | 2,127.3 | | | 72 | % | | $ | 1,999.4 | | | 72 | % |
| Repair and remodel | 179.4 | | | 6 | % | | 174.0 | | | 6 | % | | 159.0 | | | 6 | % |
| Commercial | 512.1 | | | 17 | % | | 460.6 | | | 16 | % | | 447.2 | | | 16 | % |
| Net revenue, Installation | $ | 2,763.6 | | | 93 | % | | $ | 2,761.9 | | | 94 | % | | $ | 2,605.6 | | | 94 | % |
| Other | 207.2 | | | 7 | % | | 179.4 | | | 6 | % | | 173.0 | | | 6 | % |
| Net revenue, as reported | $ | 2,970.8 | | | 100 | % | | $ | 2,941.3 | | | 100 | % | | $ | 2,778.6 | | | 100 | % |
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| Years ended December 31, |
| Installation: | 2025 | | | | 2024 | | | | 2023 | | |
| Insulation | $ | 1,708.9 | | | 58 | % | | $ | 1,767.7 | | | 60 | % | | $ | 1,666.0 | | | 60 | % |
| Shower doors, shelving and mirrors | 218.8 | | | 7 | % | | 209.9 | | | 7 | % | | 191.5 | | | 7 | % |
| Garage doors | 172.9 | | | 6 | % | | 176.1 | | | 6 | % | | 168.5 | | | 6 | % |
| Waterproofing | 160.7 | | | 5 | % | | 142.2 | | | 5 | % | | 133.3 | | | 5 | % |
| Rain gutters | 124.9 | | | 4 | % | | 126.4 | | | 4 | % | | 119.0 | | | 4 | % |
| Fireproofing/firestopping | 116.6 | | | 4 | % | | 86.3 | | | 3 | % | | 73.7 | | | 3 | % |
| Window blinds | 76.6 | | | 3 | % | | 75.8 | | | 3 | % | | 65.2 | | | 2 | % |
| Other building products | 184.2 | | | 6 | % | | 177.5 | | | 6 | % | | 188.4 | | | 7 | % |
| Net revenues, Installation | $ | 2,763.6 | | | 93 | % | | $ | 2,761.9 | | | 94 | % | | $ | 2,605.6 | | | 94 | % |
| Other | 207.2 | | | 7 | % | | 179.4 | | | 6 | % | | 173.0 | | | 6 | % |
| Net revenue, as reported | $ | 2,970.8 | | | 100 | % | | $ | 2,941.3 | | | 100 | % | | $ | 2,778.6 | | | 100 | % |
Contract Assets and Liabilities
Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Consolidated Balance Sheets.
Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in millions):
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| As of December 31, |
| 2025 | | 2024 |
| Contract assets | $ | 27.3 | | | $ | 33.2 | |
| Contract liabilities | (20.5) | | | (19.7) | |
Uncompleted contracts were as follows (in millions):
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| As of December 31, |
| 2025 | | 2024 |
| Costs incurred on uncompleted contracts | $ | 213.7 | | | $ | 248.4 | |
| Estimated earnings | 158.5 | | | 128.5 | |
| Total | 372.2 | | | 376.9 | |
| Less: Billings to date | 355.5 | | | 352.9 | |
| Net under billings | $ | 16.7 | | | $ | 24.0 | |
Net under billings were as follows (in millions):
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| As of December 31, |
| 2025 | | 2024 |
| Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ | 27.3 | | | $ | 33.2 | |
| Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (10.6) | | | (9.2) | |
| Net under billings | $ | 16.7 | | | $ | 24.0 | |
The difference between contract assets and contract liabilities as of December 31, 2025 compared to December 31, 2024 is primarily the result of timing differences between our performance of obligations under contracts and customer payments and billings. During the year ended December 31, 2025, we recognized $19.1 million of revenue that was included in the contract liability balance at December 31, 2024. We did not recognize any impairment losses on our contract assets during the years ended December 31, 2025, 2024 and 2023.
Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $162.9 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.