Parsons (PSN) Q4 2024 earnings summary

Executive summary

• Achieved record results in revenue, net income, adjusted EBITDA, and contract awards for both Q4 and FY 2024, with organic revenue growth of 22%–24% and adjusted EBITDA growth of 30% year-over-year.

• Delivered double-digit organic growth for eight consecutive quarters, driven by new business wins, on-contract growth, and strong hiring and retention.

• Closed strategic acquisitions (BCC Engineering, TRS Group, BlackSignal), enhancing capabilities in cyber, infrastructure, and environmental remediation.

• Won 15 contracts each worth over $100 million in FY 2024, with major wins in Saudi Arabia, Dubai, and US federal agencies.

• Recognized as Contractor of the Year and ranked 8th Most Trusted Company in America by Forbes.

Financial highlights

• FY 2024 revenue reached $6.8 billion, up 24% year-over-year; Q4 revenue was $1.7 billion, up 16%.

• Adjusted EBITDA for FY 2024 was $605 million, up 30% year-over-year; Q4 adjusted EBITDA was $147 million, up 14%.

• Net income for FY 2024 was $235 million, up 46%; adjusted EPS was $3.26.

• Operating cash flow for FY 2024 was $524 million, up 28%; free cash flow conversion rate was 116%.

• Total backlog at year-end was $8.9 billion, up 4% year-over-year.

Outlook and guidance

• FY 2025 revenue guidance: $7.0–$7.5 billion (7%–7.5% growth at midpoint, 5% organic); adjusted EBITDA: $640–$710 million; margin expansion to ~9.3%.

• Operating cash flow expected between $420–$480 million; CapEx planned at $60 million (<1% of revenue).

• Long-term targets: mid-single-digit or better organic revenue growth, 20–30 basis points margin expansion annually, and ≥100% free cash flow conversion.

• Plan to supplement organic growth with 2–3 acquisitions per year.

• Capital deployment priorities include M&A and share repurchases.