PARSONS (PSN) Company Report

Parsons expects its Federal Solutions segment to achieve mid-teens growth in Q4, with core federal business projected for mid-single digit or better growth in 2026, despite a $350 million headwind from a confidential contract in 2025.
The company anticipates an imminent award for the $12.5 billion FAA modernization program, with an additional $19 billion needed over the last seven years, and expects the contract's margins to be in line with its federal business.
The Critical Infrastructure business has demonstrated robust performance, achieving over three consecutive quarters of greater than 10% margin and 20 consecutive quarters of greater than 1.0 book-to-bill. Year-to-date CI margins reached 10.3%, an increase from 7% last year.
M&A is the primary capital deployment strategy, with three acquisitions completed in 2025 targeting companies with 10% organic revenue growth and 10% EBITDA margin, typically acquired at 9 to 13 times EBITDA.
The water and environment business, representing 15% of total company revenue, is the fastest-growing and most profitable part of critical infrastructure, with a $40 billion addressable market in PFAS elimination.

1 day ago

Transcript

Parsons Discusses Strong Growth Drivers, M&A Strategy, and Market Alignment

PSN

New Projects/Investments

Revenue Acceleration/Inflection

M&A

Parsons' portfolio is well-aligned with significant government funding, including $160 billion for border security, $25 billion for Golden Dome, $21 billion for Indo-Pacom, and $12.5 billion for Federal Aviation Modernization.
The Federal Solutions segment anticipates mid-teens growth for Q4 2025 and mid-single digit or better growth for its core business in 2026, despite a $350 million contribution from a confidential contract in 2025 creating a first-half 2026 headwind.
The Critical Infrastructure business has demonstrated strong performance with over three consecutive quarters of greater than 10% margin and 20 consecutive quarters of greater than 1.0 book-to-bill, driven by the Infrastructure Investment and Jobs Act and Middle East spending. Its year-to-date margin is 10.3%, up from 7% last year.
M&A remains the number one use of capital deployment, with Parsons having acquired 16 companies since 2017, including three in 2025, targeting companies with over 10% organic revenue growth and 10% EBITDA margins at 9 to 13 times EBITDA.
The water and environment business, which constitutes 15% of total company revenue, is the fastest growing and most profitable part of critical infrastructure, with the PFAS market alone representing a $40 billion addressable opportunity for Parsons.

1 day ago

Transcript

Parsons Discusses Growth Outlook, Key Projects, and M&A Strategy at Goldman Sachs Conference

PSN

Guidance Update

New Projects/Investments

M&A

Parsons expects mid-teens growth in its federal segment for Q4 2025 and projects mid-single digit or better growth for its core federal business in 2026, despite a $285 million headwind in H1 2026 from a confidential contract.
The company is a leading contender for the imminent $12.5 billion FAA modernization contract (first three years) and is actively involved in the $25 billion Golden Dome initiative through an existing $2.26 billion contract.
Parsons' infrastructure business has demonstrated robust performance with over three consecutive quarters of greater than 10% margin and 20 consecutive quarters of greater than 1.0 book-to-bill, supported by significant funding in North America and the Middle East.
M&A remains a top capital deployment priority, with 16 acquisitions since 2017 (three this year), targeting companies with over 10% organic revenue growth and 10% EBITDA margin at 9-13 times EBITDA.

1 day ago

Transcript

Parsons awarded position on $15 billion Pacific Deterrence Initiative contract

PSN

New Projects/Investments

Parsons Corporation (NYSE: PSN) was awarded a position on the $15 billion Pacific Deterrence Initiative Multiple Award Construction Contract (PDI MACC) by the Naval Facilities Engineering Systems Command (NAVFAC).
The contract includes a 5-year base period with three one-year option periods.
Under the PDI MACC, Parsons will compete for task orders to provide design and engineering services for projects exceeding $100 million in scope, including critical infrastructure like runways, hangars, and storage solutions.
This contract supports the Pacific Deterrence Initiative, a U.S. Department of Defense program to strengthen deterrence and enhance regional security in the Indo-Pacific region, including strategic locations such as Australia, the Philippines, and various U.S. territories.

Nov 11, 2025, 9:30 PM

Press Release

Parsons Awarded U.S. Coast Guard Biometrics System Modernization Contract

PSN

New Projects/Investments

Parsons Corporation (NYSE: PSN) was awarded an indefinite delivery indefinite quantity contract to modernize the U.S. Coast Guard’s (USCG) Biometrics at Sea System (BASS 2.0).
This contract has a five-year performance period and represents new work for the company.
Under the contract, Parsons will provide personnel for strategic planning and technical expertise to support the software and hardware of its JavelinXL devices and the Ares Gateway.
The BASS platform is a critical tool for maritime law enforcement operations, enabling the Coast Guard to collect and analyze biometric data to verify identities, recognize threats, and enhance security.

Nov 10, 2025, 11:30 AM

Press Release

Parsons Reports Strong Q3 2025 Performance and Updates Full-Year Revenue Guidance

PSN

Earnings

Guidance Update

New Projects/Investments

Parsons reported strong Q3 2025 results, with total revenue growth of 14% and organic revenue growth of 9% (excluding a confidential contract), alongside a 60 basis point expansion in adjusted EBITDA margin to 9.8%.
The company generated $163 million in cash flow from operations and maintained a book-to-bill ratio of 1.0 times for the quarter and trailing twelve months.
For the full year 2025, Parsons updated its revenue guidance to $6.4 billion - $6.5 billion due to timing delays, while reiterating adjusted EBITDA guidance of $600 million - $630 million.
Significant contract wins in Q3 included a $665 million extension for the Hudson Tunnel Project and new defense and security contracts, contributing to a backlog of $8.8 billion and nearly $10 billion in awards awaiting notice.
After the quarter ended, Parsons acquired Applied Sciences Consulting to strengthen its presence in the water market and repurchased $25 million in shares during Q3.

Nov 5, 2025, 1:00 PM

Transcript

Parsons Announces Q3 2025 Results and Updates FY25 Revenue Guidance

PSN

Earnings

Guidance Update

M&A

PSN reported Q3 2025 total revenue of $1.6 billion and net income of $64 million. Total revenue increased 14% and 9% organically (excluding a confidential contract).
Adjusted EBITDA margin expanded 60 basis points to 9.8%, reaching $158 million. The company also generated $163 million in cash flow from operations.
The book-to-bill ratio was 1.0x, and backlog increased by $48 million to $8.8 billion, with 72% funded, marking the highest level since the IPO.
After Q3 2025, PSN acquired Applied Sciences Consulting to enhance its water expertise and strengthen its presence in Florida.
PSN modified its FY25 revenue outlook to $6,400 - $6,500 million but reiterated its adjusted EBITDA and cash flow guidance at the mid-point.

Nov 5, 2025, 1:00 PM

Presentation

Parsons Reports Q3 2025 Results and Updates Guidance

PSN

Earnings

Guidance Update

New Projects/Investments

Parsons reported Q3 2025 revenue of $1.6 billion, a 10% year-over-year decrease, and net income of $64 million, an 11% decrease from the prior year.
Adjusted EBITDA decreased 5% to $158 million in Q3 2025, though the adjusted EBITDA margin expanded 60 basis points to 9.8%.
The company's total backlog increased to $8.8 billion, and it maintained a 1.0x book-to-bill ratio for the quarter.
Parsons is modifying its fiscal year 2025 revenue guidance to a range of $6,400 million - $6,500 million.
Significant contract wins in Q3 2025 included a $665 million extension for the Hudson Tunnel Project and prime positions on multiple-award IDIQ contracts with a combined ceiling value of $43.5 billion.

Nov 5, 2025, 11:30 AM

8-K

Parsons Reports Third Quarter 2025 Results

PSN

Earnings

Guidance Update

New Projects/Investments

Parsons reported Q3 2025 revenue of $1.6 billion, a 10% decrease year-over-year, and net income of $64 million.
Adjusted EBITDA decreased 5% to $158 million, but the adjusted EBITDA margin expanded 60 basis points to 9.8%.
The company's total backlog increased to $8.8 billion, maintaining a book-to-bill ratio of 1.0x.
Parsons is modifying its fiscal year 2025 revenue outlook while reiterating adjusted EBITDA and cash flow guidance ranges at the mid-point.
Significant contract wins in Q3 2025 included four contracts over $100 million each and prime positions on multiple-award IDIQ contracts with a combined ceiling value of $43.5 billion.

Nov 5, 2025, 11:30 AM

Press Release

Parsons awarded over $100M in Middle East defense and security contracts

PSN

New Projects/Investments

Parsons Corporation (NYSE: PSN) has been awarded two new contracts with a combined value of over $100 million from Middle East government customers.
The contracts involve program management and design engineering for regional national security infrastructure programs and border security infrastructure.
This new work represents an expansion of Parsons' defense and security portfolio, leveraging its existing presence and expertise in the Middle East since the 1950s.

Oct 30, 2025, 10:30 AM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for PARSONS.

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