Parsons (PSN) investor relations material

Executive summary

• Q3 revenue was $1.651B, up 1.8% YoY; adjusted EBITDA reached a record $167.8M, up 6.1%, with a record 10.2% margin.

• Q3 bookings rose 14% to $1.8B; total and funded backlog reached records of $9.4B and $6.8B.

• Strong bookings, backlog and pipeline support growth prospects amid procurement timing and geopolitical uncertainty.

Financial highlights

• Revenue rose 1.8% to $1.651B; organic revenue declined 1%, while revenue excluding the confidential contract rose 5% and organic revenue rose 2%.

• GAAP net income attributable to shareholders fell to $54.2M from $64.1M; diluted EPS was $0.51 vs. $0.59, while adjusted diluted EPS rose to $0.89 from $0.86.

• Adjusted EBITDA increased 6% to $167.8M; margin expanded 40 bps to 10.2%.

• Operating cash flow was $269M vs. $163M; trailing-12-month operating cash flow rose 12% to $490M, with free cash flow conversion of 130%.

• Nine-month revenue fell 0.9% to $4.718B; net income attributable to shareholders declined to $91.9M from $185.6M and adjusted EBITDA to $361.0M from $456.0M.

Outlook and guidance

• FY 2026 guidance: revenue $6.25B–$6.45B, adjusted EBITDA $510M–$550M and operating cash flow $430M–$490M; free cash flow conversion is expected to exceed 100% of adjusted net income.

• Q4 revenue is expected to decelerate modestly from Q3, mainly from FAA and Canadian mine program seasonality; adjusted EBITDA is expected roughly flat QoQ.

• Long-term targets remain mid-single-digit or better growth and double-digit margins by 2028; formal FY 2027 guidance is expected in February 2027.

• Federal Solutions is expected to grow faster than Critical Infrastructure in 2027, subject to protest-related timing that could delay program ramps.