Parsons (NYSE: PSN) Q1 2026 results show record margins, backlog and reaffirmed outlook
Rhea-AI Filing Summary
Parsons Corporation reported mixed first quarter 2026 results with strong backlog but lower earnings. Revenue was $1.49 billion, down 4% year-over-year and 8% on an organic basis, mainly due to lower volume on a fixed-price confidential contract. Excluding this contract, total revenue rose 8% and organic revenue grew 3%.
Net income attributable to Parsons fell to $52.9 million from $66.2 million, with GAAP diluted EPS declining to $0.49 from $0.60. However, adjusted EBITDA edged up 1% to a record $150.9 million, and adjusted EBITDA margin improved to a record 10.1%. The Critical Infrastructure segment grew revenue 3% and expanded adjusted EBITDA margin to 10.8%, while Federal Solutions revenue declined 10% but improved margin to 9.4%.
Parsons posted a book-to-bill ratio of 1.4x on $2.06 billion of awards, driving record total backlog of $9.31 billion and record funded backlog of $6.6 billion. Operating cash flow was a Q1 record use of $4 million, an improvement versus the prior year. The company closed the up-to $375 million Altamira acquisition and reiterated its 2026 guidance, including revenue of $6.5–$6.8 billion and adjusted EBITDA of $615–$675 million.
Positive
- Record profitability and backlog: Adjusted EBITDA reached $150.9 million with a record 10.1% margin, while total backlog rose to a record $9.31 billion and funded backlog to $6.6 billion, supported by a 1.4x book-to-bill ratio.
- Guidance reaffirmed with strategic M&A: Management reiterated 2026 guidance for $6.5–$6.8 billion of revenue and $615–$675 million of adjusted EBITDA and closed the up-to $375 million Altamira acquisition in high-growth national security markets.
Negative
- Revenue and net income declines: Q1 2026 revenue fell 4% to $1.49 billion and net income attributable to Parsons declined 20% to $52.9 million, reflecting lower volume on a key fixed-price confidential contract and higher acquisition-related expenses.
Insights
Parsons posts softer revenue and EPS but record margins, backlog, and reaffirms 2026 guidance.
Parsons delivered Q1 2026 revenue of $1.49 billion, down 4%, driven by reduced volume on a fixed-price confidential contract. GAAP diluted EPS fell to $0.49 from $0.60, while adjusted diluted EPS was stable at $0.79 versus $0.78 a year earlier.
Profitability metrics were stronger. Adjusted EBITDA reached a Q1 record of $150.9 million, with margin expanding to 10.1%. The Critical Infrastructure segment grew revenue 3% and lifted adjusted EBITDA margin to 10.8%. Federal Solutions revenue fell 10%, but its margin improved to 9.4%, helped by accretive contracts and acquisitions.
Growth indicators are solid: Q1 book-to-bill was 1.4x on $2.06 billion of awards, and total backlog reached a record $9.31 billion with funded backlog at $6.6 billion. Management reiterated full-year 2026 guidance for revenue of $6.5–$6.8 billion, adjusted EBITDA of $615–$675 million, and operating cash flow of $470–$530 million, suggesting confidence in demand despite near-term revenue pressure from the confidential contract.
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
book-to-bill ratio financial
funded backlog financial
organic basis financial
noncontrolling interests financial
Other Transaction Agreements regulatory
Earnings Snapshot
For 2026, Parsons guides to revenue of $6.5–$6.8 billion, adjusted EBITDA of $615–$675 million, and operating cash flow of $470–$530 million, reiterating prior outlook.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Parson Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2026 and certain other financial information. A copy of the press release is attached to this Form 8-K as Exhibit 99.1
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
The following exhibit is furnished as part of this Report pursuant to Item 2.02
99.1 Press Release Dated April 29, 2026, announcing the Company’s financial results for the quarter ended March 31, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
The information disclosed pursuant to Items 2.02 and 9.01 in this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for the purposes of Section 18 of the Securities Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore, the information disclosed pursuant to Items 2.02 and 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, of the Securities Exchange Act of 1934, as amended
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Parsons Corporation |
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Date: |
April 29, 2026 |
By: |
/s/ Matthew M. Ofilos |
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Matthew M. Ofilos |
Exhibit 99.1
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Parsons* third quarter 2022 earnings press release
Parsons Reports First Quarter 2026 Results
Q1 2026 Financial Highlights
Chantilly, VA – April 29, 2026 Parsons Corporation (NYSE: PSN) today announced financial results for the first quarter ended March 31, 2026.
CEO Commentary
“Our first quarter results highlighted the resilience of our business and our team's high level of execution, as we delivered our highest adjusted EBITDA margin ever, reached record levels for both total and funded backlog, achieved a robust book-to-bill ratio of 1.4x in both segments, and generated record first quarter cash flow. Revenue performance was in line with our expectations, and we continued to complement our organic growth with strategic, accretive acquisitions that enhance our differentiation and drive long-term shareholder value," said Carey Smith, chair, president, and chief executive officer.
"Looking forward, we are very optimistic about our future. There is increasing global demand for both defense and infrastructure. Our ability to deliver operationally relevant solutions with speed, digitally transform our offerings, and leverage non-traditional commercial business models enables us to uniquely meet our customers’ critical needs. We have a unique and synergistic Critical Infrastructure and Federal Solutions portfolio, consisting of six growing, profitable, and enduring end-markets. With our record total and funded backlog, robust pipeline of large opportunities, strong win rates, and $11 billion in awarded contracts not yet booked, we believe we are well positioned to deliver for our customers and shareholders."
First Quarter 2026 Results
Year-over-Year Comparisons (Q1 2026 vs. Q1 2025)
Total revenue for the first quarter of 2026 decreased by $63 million, or 4%, to $1.5 billion and was down 8% on an organic basis. Excluding the company's confidential contract, total revenue increased 8% and organic revenue increased 3% driven by growth in the company's Critical Infrastructure and Protection, Space and Missile Defense, and Transportation markets. Operating income decreased 12% to $96 million primarily due to lower volume on the company's fixed-price confidential contract, and higher acquisition-related expenses. Net income decreased 20% to $53 million due to the items noted above. GAAP diluted earnings per share (EPS) attributable to Parsons was $0.49 in the first quarter of 2026, compared to $0.60 in the prior year period.
Adjusted EBITDA including noncontrolling interests for the first quarter of 2026 was $151 million, a 1% increase over the prior year period. Adjusted EBITDA margin expanded 50 basis points to 10.1% compared to 9.6% in the first quarter of 2025. These increases were driven by improved execution and contributions from accretive acquisitions, offsetting lower revenue on the company's confidential contract. Adjusted diluted EPS was $0.79 in the first quarter of 2026, compared to $0.78 in the first quarter of 2025. The year-over-year adjusted diluted EPS increase was driven by the items that impacted adjusted EBITDA above.
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Segment Results
Critical Infrastructure Segment
Critical Infrastructure Year-over-Year Comparisons (Q1 2026 vs. Q1 2025)
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Three Months Ended |
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Growth |
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March 31, 2026 |
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March 31, 2025 |
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Dollars/ |
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Percent |
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Revenue |
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$ |
732,828 |
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$ |
711,803 |
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$ |
21,025 |
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3 |
% |
Adjusted EBITDA |
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$ |
79,359 |
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$ |
73,193 |
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$ |
6,166 |
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8 |
% |
Adjusted EBITDA margin |
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10.8 |
% |
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10.3 |
% |
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0.5 |
% |
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5 |
% |
First quarter 2026 Critical Infrastructure revenue increased $21 million, or 3%, from the first quarter of 2025. This increase was driven by organic growth of 2% and inorganic revenue contributions from the company's TRS Group and Applied Sciences acquisitions. Organic growth was primarily driven by the Global Transportation markets.
First quarter 2026 adjusted EBITDA including noncontrolling interests increased by $6 million, or 8%, compared to the prior year period. Adjusted EBITDA margin expanded 50 basis points to 10.8% from 10.3% in the prior year period. Both adjusted EBITDA dollars and margins were first quarter records for Critical Infrastructure. These increases were driven by the ramp-up of recent contract awards, accretive acquisitions and strong program execution.
Federal Solutions Segment
Federal Solutions Year-over-Year Comparisons (Q1 2026 vs. Q1 2025)
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Three Months Ended |
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Growth |
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March 31, 2026 |
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March 31, 2025 |
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Dollars/ |
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Percent |
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Revenue |
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$ |
758,348 |
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$ |
842,557 |
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$ |
(84,209 |
) |
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(10 |
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Adjusted EBITDA |
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$ |
71,570 |
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$ |
75,583 |
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$ |
(4,013 |
) |
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(5 |
)% |
Adjusted EBITDA margin |
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9.4 |
% |
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9.0 |
% |
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0.4 |
% |
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4 |
% |
First quarter 2026 revenue decreased $84 million, or 10%, compared to the prior year period and 17% on an organic basis. Excluding the company's confidential contract, Federal Solutions' revenue increased 12%, and 4% on an organic basis. These increases were driven by growth in the company's Critical Infrastructure Protection, Space and Missile Defense, and Transportation markets.
First quarter 2026 Federal Solutions adjusted EBITDA including noncontrolling interests decreased by $4 million, or 5% from the first quarter of 2025, and adjusted EBITDA margin increased 40 basis points to 9.4%. The adjusted EBITDA dollars were primarily impacted by lower volume on the fixed price confidential contract. The adjusted EBITDA margin increase was primarily driven by accretive contract growth and acquisitions.
First Quarter 2026 Key Performance Indicators
parsons.com |
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©Parsons Corporation. All Rights Reserved. 3 |
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Significant Contract Wins
Parsons continues to win new business across both segments. During the first quarter of 2026, the company won four single-award contracts worth more than $100 million each.
Additional Corporate Highlights
Parsons continues its successful track record of acquiring strategic companies in high-growth markets that strengthens its portfolio. During the quarter, the company was named one of the World's Most Ethical Companies by Ethisphere for the 17th consecutive year. Parsons was also recognized for delivering project excellence on two major infrastructure programs.
parsons.com |
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©Parsons Corporation. All Rights Reserved. 4 |
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Fiscal Year 2026 Guidance
The company is reiterating its fiscal year 2026 revenue, adjusted EBITDA, and operating cash flow guidance ranges. The table below summarizes the company’s fiscal year 2026 guidance.
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Current Fiscal Year 2026 Guidance |
Growth at the Mid-point |
Revenue |
$6,500 million - $6,800 million |
+4.5% growth and +0.6% organically; +10.5% growth and +6% organically excluding confidential contract |
Adjusted EBITDA including non-controlling interest |
$615 million - $675 million |
+6% growth (10 bps expansion) |
Cash Flow from Operating Activities |
$470 million - $530 million |
+5% growth |
We have not provided a reconciliation of our Adjusted EBITDA guidance because the information needed to reconcile this measure is unavailable due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred which may be significant. Additionally, estimating such GAAP measure and providing a meaningful reconciliation for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort.
Conference Call Information
Parsons will host a conference call today, April 29, 2026, at 8:00 a.m. ET to discuss the financial results for its first quarter 2026.
Access to a webcast of the live conference call can be obtained through the Investor Relations section of the company's website (https://investors.parsons.com). Those parties interested in participating via telephone may register on the Investor Relations website or by clicking here.
A replay will be available on the company's website approximately two hours after the conference call and continuing for one year.
parsons.com |
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©Parsons Corporation. All Rights Reserved. 5 |
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About Parsons Corporation
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn and Facebook to learn how we’re making an impact.
Forward-Looking Statements
This Earnings Release and materials included therewith contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; volatility of government budgets and funding; our dependence on the award, maintenance and renewal of long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors including under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2025, and our other filings with the Securities and Exchange Commission.
All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.
Media: |
Investor Relations: |
Bryce McDevitt |
Dave Spille |
Parsons Corporation |
Parsons Corporation |
(703) 851-4425 |
(571) 775-0408 |
Bryce.McDevitt@Parsons.com |
Dave.Spille@Parsons.us |
parsons.com |
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©Parsons Corporation. All Rights Reserved. 6 |
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PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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Three Months Ended |
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March 31, 2026 |
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March 31, 2025 |
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Revenue |
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$ |
1,491,176 |
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$ |
1,554,360 |
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Direct cost of contracts |
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1,133,756 |
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1,200,377 |
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Equity in earnings (losses) of unconsolidated joint ventures |
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6,156 |
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(687 |
) |
Selling, general and administrative expenses |
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267,902 |
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244,063 |
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Operating income |
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95,674 |
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109,233 |
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Interest income |
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1,811 |
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2,142 |
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Interest expense |
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(15,998 |
) |
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(12,246 |
) |
Other income (expense), net |
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(189 |
) |
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1,635 |
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Total other income (expense) |
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(14,376 |
) |
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(8,469 |
) |
Income before income tax expense |
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81,298 |
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100,764 |
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Income tax benefit (expense) |
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|
(16,087 |
) |
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(18,977 |
) |
Net income including noncontrolling interests |
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65,211 |
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81,787 |
|
Net income attributable to noncontrolling interests |
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(12,285 |
) |
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(15,584 |
) |
Net income attributable to Parsons Corporation |
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$ |
52,926 |
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$ |
66,203 |
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Earnings per share: |
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Basic |
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$ |
0.49 |
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$ |
0.62 |
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Diluted |
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$ |
0.49 |
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$ |
0.60 |
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Weighted average number shares used to compute basic and diluted EPS
(In thousands) (Unaudited)
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Three Months Ended |
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March 31, 2026 |
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March 31, 2025 |
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Basic weighted average number of shares outstanding |
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107,182 |
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|
106,831 |
|
Dilutive effect of stock-based awards |
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1,182 |
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1,637 |
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Dilutive effect of warrants |
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28 |
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440 |
|
Dilutive effect of convertible senior notes |
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- |
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2,118 |
|
Diluted weighted average number of shares outstanding |
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108,392 |
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111,026 |
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Net income available to shareholders used to compute diluted EPS as a result of adopting the if-converted method in connection with the Convertible Senior Notes
(In thousands) (Unaudited)
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Three Months Ended |
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March 31, 2026 |
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March 31, 2025 |
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Net income attributable to Parsons Corporation |
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$ |
52,926 |
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$ |
66,203 |
|
Convertible senior notes if-converted method interest adjustment |
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- |
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54 |
|
Diluted net income attributable to Parsons Corporation |
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$ |
52,926 |
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|
$ |
66,257 |
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parsons.com |
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©Parsons Corporation. All Rights Reserved. 7 |
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PARSONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
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March 31, 2026 |
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December 31, 2025 |
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Assets |
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Current assets: |
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Cash and cash equivalents (including $90,488 and $153,144 Cash of consolidated joint ventures) |
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$ |
283,921 |
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$ |
466,388 |
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Accounts receivable, net (including $323,655 and $337,270 Accounts receivable of consolidated joint ventures) |
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1,096,575 |
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1,124,417 |
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Contract assets (including $38,585 and $41,318 Contract assets of consolidated joint ventures) |
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1,021,848 |
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915,806 |
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Prepaid expenses and other current assets (including $16,139 and $11,145 Prepaid expenses and other current assets of consolidated joint ventures) |
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191,796 |
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|
176,932 |
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|
Total current assets |
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2,594,140 |
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|
2,683,543 |
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||
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Property and Equipment, net (including $2,462 and $2,488 Property and equipment of consolidated joint ventures) |
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154,586 |
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|
151,061 |
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Right of use assets, operating leases (including $3,895 and $4,482 Right of use assets, operating leases of consolidated joint ventures) |
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|
151,669 |
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|
126,770 |
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Goodwill |
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|
2,423,561 |
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|
2,186,650 |
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Investments in and advances to unconsolidated joint ventures |
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162,296 |
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|
148,640 |
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Intangible assets, net |
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|
407,859 |
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|
325,880 |
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Deferred tax assets |
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|
60,254 |
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|
88,191 |
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Other noncurrent assets |
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|
57,743 |
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|
|
58,799 |
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Total assets |
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$ |
6,012,108 |
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|
$ |
5,769,534 |
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||
Liabilities and Shareholders' Equity |
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Current liabilities: |
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|
|
|
|
|||
|
Accounts payable (including $21,234 and $58,914 Accounts payable of consolidated joint ventures) |
|
$ |
232,588 |
|
|
$ |
250,514 |
|
|
Accrued expenses and other current liabilities (including $191,847 and $195,747 Accrued expenses and other current liabilities of consolidated joint ventures) |
|
|
831,532 |
|
|
|
884,445 |
|
|
Contract liabilities (including $48,749 and $44,802 Contract liabilities of consolidated joint ventures) |
|
|
359,760 |
|
|
|
340,113 |
|
|
Short-term lease liabilities, operating leases (including $2,004 and $2,395 Short-term lease liabilities, operating leases of consolidated joint ventures) |
|
|
42,760 |
|
|
|
45,353 |
|
|
Income taxes payable |
|
|
12,903 |
|
|
|
11,239 |
|
|
Total current liabilities |
|
|
1,479,543 |
|
|
|
1,531,664 |
|
|
|
|
|
|
|
|
|
||
|
Long-term employee incentives |
|
|
27,870 |
|
|
|
30,834 |
|
|
Long-term debt |
|
|
1,512,921 |
|
|
|
1,237,816 |
|
|
Long-term lease liabilities, operating leases (including $1,888 and $2,083 Long-term lease liabilities, operating leases of consolidated joint ventures) |
|
|
121,309 |
|
|
|
94,044 |
|
|
Deferred tax liabilities |
|
|
11,900 |
|
|
|
12,159 |
|
|
Other long-term liabilities |
|
|
104,408 |
|
|
|
95,345 |
|
|
Total liabilities |
|
$ |
3,257,951 |
|
|
$ |
3,001,862 |
|
Contingencies (Note 12) |
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|
|
|
|
|
|||
Shareholders' equity: |
|
|
|
|
|
|
|||
|
Common stock, $1 par value; authorized 1,000,000,000 shares; 145,677,597 and 145,676,335 shares issued; 56,923,103 and 56,103,965 public shares outstanding; 50,046,241 and 50,864,117 ESOP shares outstanding |
|
$ |
145,678 |
|
|
$ |
145,676 |
|
|
Treasury stock, 38,708,253 shares at cost |
|
|
(793,002 |
) |
|
|
(792,638 |
) |
|
Additional paid-in capital |
|
|
2,610,651 |
|
|
|
2,648,730 |
|
|
Retained earnings |
|
|
709,725 |
|
|
|
661,173 |
|
|
Accumulated other comprehensive loss |
|
|
(23,439 |
) |
|
|
(20,921 |
) |
|
Total Parsons Corporation shareholders' equity |
|
|
2,649,613 |
|
|
|
2,642,020 |
|
|
Noncontrolling interests |
|
|
104,544 |
|
|
|
125,652 |
|
|
Total shareholders' equity |
|
|
2,754,157 |
|
|
|
2,767,672 |
|
|
Total liabilities and shareholders' equity |
|
$ |
6,012,108 |
|
|
$ |
5,769,534 |
|
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 8 |
|
PARSONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands,
(Unaudited)
|
|
|
For the Three Months Ended |
|
|||||
|
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|||
|
Net income including noncontrolling interests |
|
$ |
65,211 |
|
|
$ |
81,787 |
|
|
Adjustments to reconcile net income to net cash used in operating activities |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
35,926 |
|
|
|
27,403 |
|
|
Amortization of debt issue costs |
|
|
1,212 |
|
|
|
1,223 |
|
|
Loss (gain) on disposal of property and equipment |
|
|
122 |
|
|
|
15 |
|
|
Deferred taxes |
|
|
4,528 |
|
|
|
1,555 |
|
|
Foreign currency transaction gains and losses |
|
|
1,012 |
|
|
|
(786 |
) |
|
Equity in losses (earnings) of unconsolidated joint ventures |
|
|
(6,156 |
) |
|
|
687 |
|
|
Return on investments in unconsolidated joint ventures |
|
|
7,208 |
|
|
|
12,963 |
|
|
Stock-based compensation |
|
|
11,242 |
|
|
|
10,979 |
|
|
Contributions of treasury stock |
|
|
19,347 |
|
|
|
17,764 |
|
|
Changes in assets and liabilities, net of acquisitions and consolidated |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
47,235 |
|
|
|
(21,015 |
) |
|
Contract assets |
|
|
(94,998 |
) |
|
|
(78,015 |
) |
|
Prepaid expenses and other assets |
|
|
(12,552 |
) |
|
|
(17,171 |
) |
|
Accounts payable |
|
|
(21,430 |
) |
|
|
79,659 |
|
|
Accrued expenses and other current liabilities |
|
|
(75,250 |
) |
|
|
(132,892 |
) |
|
Contract liabilities |
|
|
19,247 |
|
|
|
3,153 |
|
|
Income taxes |
|
|
589 |
|
|
|
(2 |
) |
|
Other long-term liabilities |
|
|
(6,193 |
) |
|
|
906 |
|
|
Net cash used in operating activities |
|
|
(3,700 |
) |
|
|
(11,787 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|||
|
Capital expenditures |
|
|
(14,921 |
) |
|
|
(13,473 |
) |
|
Payments for acquisitions, net of cash acquired |
|
|
(333,511 |
) |
|
|
(31,612 |
) |
|
Investments in unconsolidated joint ventures |
|
|
(23,695 |
) |
|
|
(16,585 |
) |
|
Return of investments in unconsolidated joint ventures |
|
|
7,540 |
|
|
|
- |
|
|
Net cash used in investing activities |
|
|
(364,587 |
) |
|
|
(61,670 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|||
|
Proceeds from borrowings under credit agreement |
|
|
350,000 |
|
|
|
145,900 |
|
|
Repayments of borrowings under credit agreement |
|
|
(76,000 |
) |
|
|
(145,900 |
) |
|
Repurchases of convertible notes due 2025 |
|
|
- |
|
|
|
(28,480 |
) |
|
Contributions by noncontrolling interests |
|
|
234 |
|
|
|
260 |
|
|
Distributions to noncontrolling interests |
|
|
(33,628 |
) |
|
|
(42,009 |
) |
|
Repurchases of common stock |
|
|
(34,989 |
) |
|
|
(24,995 |
) |
|
Taxes paid on vested stock |
|
|
(19,702 |
) |
|
|
(15,640 |
) |
|
Proceeds from issuance of common stock |
|
|
572 |
|
|
|
- |
|
|
Net cash (used in) provided by financing activities |
|
|
186,487 |
|
|
|
(110,864 |
) |
|
Effect of exchange rate changes |
|
|
(667 |
) |
|
|
518 |
|
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(182,467 |
) |
|
|
(183,803 |
) |
|
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
||
|
Beginning of year |
|
|
466,388 |
|
|
|
453,548 |
|
|
End of period |
|
$ |
283,921 |
|
|
$ |
269,745 |
|
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 9 |
|
Contract Awards
(in thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Federal Solutions |
|
$ |
1,031,334 |
|
|
$ |
744,709 |
|
Critical Infrastructure |
|
$ |
1,027,075 |
|
|
|
1,021,797 |
|
Total Awards |
|
$ |
2,058,409 |
|
|
$ |
1,766,506 |
|
Backlog
(in thousands)
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Federal Solutions: |
|
|
|
|
|
|
||
Funded |
|
$ |
1,862,047 |
|
|
$ |
1,770,655 |
|
Unfunded |
|
|
2,616,068 |
|
|
|
2,799,723 |
|
Total Federal Solutions |
|
|
4,478,115 |
|
|
|
4,570,378 |
|
Critical Infrastructure: |
|
|
|
|
|
|
||
Funded |
|
|
4,787,648 |
|
|
|
4,451,234 |
|
Unfunded |
|
|
40,163 |
|
|
|
49,614 |
|
Total Critical Infrastructure |
|
|
4,827,811 |
|
|
|
4,500,848 |
|
Total Backlog |
|
$ |
9,305,926 |
|
|
$ |
9,071,226 |
|
Book-To-Bill Ratio1:
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Federal Solutions |
|
|
1.4 |
|
|
|
0.9 |
|
Critical Infrastructure |
|
|
1.4 |
|
|
|
1.4 |
|
Overall |
|
|
1.4 |
|
|
|
1.1 |
|
Non-GAAP Financial Information
The tables under "Parsons Corporation Inc. Reconciliation of Non-GAAP Measures" present Adjusted Net Income attributable to Parsons Corporation, Adjusted Earnings per Share, Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), Adjusted EBITDA, EBITDA Margin, and Adjusted EBITDA Margin, reconciled to their most directly comparable GAAP measure. These financial measures are calculated and presented on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles ("Non-GAAP Measures"). Parsons has provided these Non-GAAP Measures to adjust for, among other things, the impact of amortization expenses related to our acquisitions, costs associated with a loss or gain on the disposal or sale of property, plant and equipment, restructuring and related expenses, costs associated with mergers and acquisitions, software implementation costs, legal and settlement costs, and other costs considered non-operational in nature. These items have been Adjusted because they are not considered core to the company’s business or otherwise not considered operational or because these charges are non-cash or non-recurring. The company presents these Non-GAAP Measures because management believes that they are meaningful to understanding Parsons’s performance during the periods presented and the company’s ongoing business. Non-GAAP Measures are not prepared in accordance with GAAP and therefore are not necessarily comparable to similarly titled metrics or the financial results of other companies. These Non-GAAP Measures should be considered a supplement to, not a substitute for, or superior to, the corresponding financial measures calculated in accordance with GAAP.
1 Book-to-Bill ratio is calculated as total contract awards divided by total revenue for the period.
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 10 |
|
PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net Income to Adjusted EBITDA
(in thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Net income attributable to Parsons Corporation |
|
$ |
52,926 |
|
|
$ |
66,203 |
|
Interest expense, net |
|
|
14,187 |
|
|
|
10,104 |
|
Income tax expense |
|
|
16,087 |
|
|
|
18,977 |
|
Depreciation and amortization (a) |
|
|
35,926 |
|
|
|
27,403 |
|
Net income attributable to noncontrolling interests |
|
|
12,285 |
|
|
|
15,584 |
|
Equity-based compensation |
|
|
9,454 |
|
|
|
7,103 |
|
Transaction-related costs (b) |
|
|
8,439 |
|
|
|
3,701 |
|
Other (c) |
|
|
1,625 |
|
|
|
(299 |
) |
Adjusted EBITDA |
|
$ |
150,929 |
|
|
$ |
148,776 |
|
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 11 |
|
PARSONS CORPORATION
Non-GAAP Financial Information
Computation of Adjusted EBITDA Attributable to Noncontrolling Interests
(in thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Federal Solutions Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
71,553 |
|
|
$ |
75,532 |
|
Federal Solutions Adjusted EBITDA attributable to noncontrolling interests |
|
|
17 |
|
|
|
51 |
|
Federal Solutions Adjusted EBITDA including noncontrolling interests |
|
$ |
71,570 |
|
|
$ |
75,583 |
|
|
|
|
|
|
|
|
||
Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation |
|
|
66,901 |
|
|
|
58,187 |
|
Critical Infrastructure Adjusted EBITDA attributable to noncontrolling interests |
|
|
12,458 |
|
|
|
15,006 |
|
Critical Infrastructure Adjusted EBITDA including noncontrolling interests |
|
$ |
79,359 |
|
|
$ |
73,193 |
|
|
|
|
|
|
|
|
||
Total Adjusted EBITDA including noncontrolling interests |
|
$ |
150,929 |
|
|
$ |
148,776 |
|
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 12 |
|
PARSONS CORPORATION
Non-GAAP Financial Information
Reconciliation of Net Income Attributable to Parsons Corporation to Adjusted Net Income Attributable to Parsons Corporation
(in thousands, except per share information)
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
||
Net income attributable to Parsons Corporation |
|
$ |
52,926 |
|
|
$ |
66,203 |
|
Acquisition related intangible asset amortization |
|
|
23,797 |
|
|
|
16,381 |
|
Equity-based compensation |
|
|
9,454 |
|
|
|
7,103 |
|
Transaction-related costs (a) |
|
|
8,439 |
|
|
|
3,701 |
|
Other (b) |
|
|
1,625 |
|
|
|
(299 |
) |
Tax effect on adjustments |
|
|
(10,609 |
) |
|
|
(8,541 |
) |
Adjusted net income attributable to Parsons Corporation |
|
$ |
85,632 |
|
|
$ |
84,548 |
|
Adjusted earnings per share: |
|
|
|
|
|
|
||
Weighted-average number of basic shares outstanding |
|
|
107,182 |
|
|
|
106,831 |
|
Weighted-average number of diluted shares outstanding (c) |
|
|
108,364 |
|
|
|
108,468 |
|
Adjusted net income attributable to Parsons Corporation per basic share |
|
$ |
0.80 |
|
|
$ |
0.79 |
|
Adjusted net income attributable to Parsons Corporation per diluted share |
|
$ |
0.79 |
|
|
$ |
0.78 |
|
parsons.com |
|
©Parsons Corporation. All Rights Reserved. 13 |