Q3 2026 Key Takeaways

• Revenue, profitability, and cash flow exceeded commitments, with adjusted EBITDA and margin reaching record levels
• Continued strong demand across both segments, with contract awards increasing 14% year-over-year and a 1.1x consolidated book-to-bill ratio, including a 53% increase in Federal Solutions contract awards
• Record total and funded backlog
• Third-quarter financial results, combined with growing backlog, strong bookings, and a robust pipeline, underscore the resilience of the company’s portfolio and provide a solid foundation for sustained organic growth across both segments

Q3 2026 Highlights

• Achieved a 1.1x book-to-bill ratio, maintaining a TTM ratio of at least 1.0x in every quarter since 2019 IPO; both segments delivered a third-quarter ratio of 1.0x or greater
• Q3 revenue of $1.7 billion increased 2% year-over-year and decreased 1% on an organic basis, exceeding commitments
• Revenue growth of 5% excluding confidential contract; 2% on an organic basis
• Net income of $54 million decreased $10 million. Net income was impacted by transaction-related expenses
• Adjusted EBITDA increased 6% to a record $168 million; margin expanded 40 basis points to a record 10.2%
• Total and funded backlog increased 6% and 7%, respectively, both reaching record levels of $9.4 billion and $6.8 billion
• Signed a definitive purchase agreement and finalizing novation for the divestiture of the remote-location contracts; made measurable progress on the Critical Infrastructure joint venture program
• Narrowing and reiterating mid-point of fiscal year 2026 revenue and adjusted EBITDA guidance ranges; reiterating operating cash flow guidance range

Key Takeaways

• Continued strong demand with 24% year-over-year increase in contract awards and a 1.2x book-to-bill ratio for the quarter, positioning the company for continued success
• Middle East resiliency with 10% organic revenue growth and a 1.1x book-to-bill ratio
• Portfolio-shaping initiatives implemented to prioritize profitable, sustainable growth and enhance long-term shareholder value
   

Q2 2026 Financial Highlights

• Book-to-bill ratio of 1.2x, exceeded 1.0x in both segments and continued streak of TTM book-to-bill ratio of 1.0x or greater in every quarter since 2019 IPO. Federal Solutions bookings increase 51% year-over-year
• Significant Q2 2026 wins underscore Parsons strategic positioning and technology leadership
• Q2 revenue of $1.6 billion decreased 1% year-over-year and 5% on an organic basis, in-line with expectations
• Revenue growth of 8% excluding confidential contract and portfolio-shaping actions; 3% on an organic basis
• Net income of ($15 million) decreased $70 million year-over-year. Net income was impacted by a net loss of $85 million on programs relating to the company's portfolio-shaping actions and charges on a joint venture program
• Adjusted EBITDA decreased 72% to $42 million. Excluding $118 million of charges, adjusted EBITDA of $161 million increased 8% year-over-year
• Adjusted EBITDA margin contracted 670 basis points to 2.7%. Excluding the impact of charges, adjusted EBITDA increased 70 basis points to 10.1%
• Total and funded backlog increased to $9.3 billion and $6.6 billion, respectively
• Revising fiscal year 2026 guidance ranges
   

View Full Release

Q1 2026 Financial Highlights 

• Q1 revenue of $1.5 billion decreased 4% year-over-year and 8% on an organic basis
• Revenue growth of 8% excluding confidential contract; 3% on an organic basis
• Net income of $53 million decreased $13 million year-over-year
• Adjusted EBITDA increased 1% to $151 million, a Q1 record
• Adjusted EBITDA margin expanded 50 basis points to a record 10.1%
• Cash flow used in operating activities of $4 million, a Q1 record
• Book-to-bill ratio of 1.4x in both segments extends company streak of TTM book-to-bill ratio of 1.0x or greater in every quarter since IPO
• Total and funded backlog increased to a record $9.3 billion and $6.6 billion, respectively
• Reiterating fiscal year 2026 guidance ranges
   

CHANTILLY, Va., April 29, 2026 (GLOBE NEWSWIRE) -- 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.

View Full Release

Q4 2025 Financial Highlights 

• Q4 revenue of $1.6 billion decreased 8% year-over-year and 10% on an organic basis
• Total revenue growth of 11% and 8% on an organic basis excluding confidential contract
• Net income of $56 million increased 3% year-over-year, a fourth quarter record
• Record adjusted EBITDA of $153 million increased 5%; adjusted EBITDA margin of 9.6%
• Cash flow from operations increased 32% to $168 million
• Book-to-bill ratio of 0.9x and continued streak of TTM book-to-bill ratio of 1.0x or greater in every quarter since IPO

Fiscal Year 2025 Highlights

• FY25 revenue of $6.4 billion, decreased 6% year-over-year and 9% on an organic basis
• Total revenue growth of 12% and 8% on an organic basis excluding confidential contract
• Record net income of $241 million increased 3%
• Adjusted EBITDA of $609 million increased 1%; adjusted EBITDA margin of 9.6%, both records for a full-year
• Cash flow from operations decreased 9% to $478 million; 100% free cash flow conversion
• Won 15 contracts each worth $100 million or more, matching the company's record from last year
• Establishing fiscal year 2026 guidance and long-term financial targets
  
   

View Full Release