Parsons (PSN) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024 for total revenue, net income, adjusted EBITDA, and contract awards, with organic revenue growth of 22%–over 20% and adjusted EBITDA growth of 30%–over 30% year-over-year, and double-digit organic growth for eight consecutive quarters.

• Q4 2024 revenue was $1.7B (+16% year-over-year), net income $54M (+21%), and adjusted EBITDA $147M (+14%).

• FY24 total revenue reached $6.8B (+24%), adjusted EBITDA $605M (+30%), net income $235M (+46%), and operating cash flow $524M (+28%).

• Closed strategic acquisitions in 2024 (BCC Engineering, TRS Group, BlackSignal) and received industry recognitions including Contractor of the Year and 8th Most Trusted Company in America by Forbes.

• Won record $7B in contract awards for 2024 (+17%), including 15 contracts over $100M each, with major wins in Saudi Arabia, Dubai, and US federal agencies.

Financial highlights

• FY24 organic revenue growth was 22%; adjusted EBITDA margin expanded 50 bps to 9.0%.

• Free cash flow conversion rate was 116% in FY24; Q4 free cash flow conversion was 108%.

• Total backlog at year-end was $8.9B (+4% year-over-year), with funded backlog at 66% and over $12B in contract wins not yet booked.

• Book-to-bill ratio for Q4 and FY24 was 1.0x; critical infrastructure segment at 1.2x.

• Adjusted net income per diluted share for FY24 was $3.26 (+34% year-over-year).

Outlook and guidance

• FY25 revenue guidance: $7.0–$7.5B (+7.5% at midpoint, 5% organic); adjusted EBITDA $640–$710M (+12% at midpoint); margin expansion of 30 bps to ~9.3%.

• Operating cash flow guidance for 2025 is $420–$480M, with free cash flow conversion expected at 86%.

• CapEx planned at $60M (<1% of revenue).

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