Core Insights - Q3 2025 saw strong market gains, providing opportunities for active managers to excel by leveraging the market's rally and effectively navigating Federal Reserve policy changes [2][3] - The PSN Top Guns list highlights top-performing separate accounts, managed accounts, and managed ETF strategies, showcasing the value of active management in separately managed accounts (SMAs) [1][2] Market Performance - Strong equity performance was driven by demand for artificial intelligence and technology, anticipated interest rate cuts, and solid corporate earnings [3] - Investors showed resilience amid policy uncertainties, trade tensions, persistent inflation, and elevated valuations [3] PSN Top Guns List - The PSN Top Guns list for Q3 2025 includes notable strategies such as: - White Pine Capital, LLC.: Small Cap (+25.7% for the quarter) - RBC Global Asset Management: RBC China Equity (+31.9% for the quarter) - Fisher Investments: China A-Share Equity (+27.6% for the quarter) [6] PSN Database and Features - The PSN SMA database comprises over 2,800 firms, 285 universes, and more than 21,000 products, providing detailed asset breakdowns and compliance information [2][8] - PSN's historical database offers over 40 years of data, including net and gross-of-fee returns, enhancing its value for asset managers [2][8] New Initiatives - Zephyr launched the "Inside SMAs" podcast to discuss SMA strategies, market trends, and industry insights, aiming to engage thought leaders in the field [5][10] - The PSN Manager Advantage program was introduced to enhance visibility and branding for PSN contributors through digital coverage and market intelligence [4]

Core Insights - Parsons Corporation has been awarded a position on the $15 billion Pacific Deterrence Initiative Multiple Award Construction Contract (PDI MACC) by the Naval Facilities Engineering Systems Command (NAVFAC) [1][2] - The contract includes a 5-year base period with three one-year option periods and aims to enhance deterrence capabilities and regional security in the Indo-Pacific region [1][3] - Parsons will compete for task orders to provide design and engineering services for projects exceeding $100 million, including various critical infrastructure developments [2][3] Company Performance - Parsons has been recognized as the number one Program Management Firm by Engineering News-Record and has secured over $400 million in INDOPACOM-related contracts since 2019 [4] - The company leverages its expertise in program and construction management, engineering, and national security solutions to deliver integrated solutions across the national security and critical infrastructure sectors [4][5] Strategic Importance - The PDI MACC will facilitate faster execution of critical infrastructure projects in strategic locations such as Australia and the Philippines, enhancing regional resilience and support for U.S. forces [3][4] - The contract underscores Parsons' integrated portfolio and its capability to provide comprehensive solutions in national security and critical infrastructure protection [5]

Core Insights - Parsons Corporation has been awarded a contract to modernize the U.S. Coast Guard's Biometrics at Sea System (BASS 2.0), which is essential for maritime law enforcement operations [1][2] - The contract has a five-year performance period and signifies new work for Parsons, enhancing its role in national security [1][2] Company Overview - Parsons is recognized as a leading provider of disruptive technology in national security and global infrastructure markets, with expertise in various sectors including cyber warfare, space defense, and critical infrastructure protection [5] - The company has delivered over 3,500 mobile biometrics solutions to various federal customers, including the Department of Defense and law enforcement agencies [4] Contract Details - Under the new contract, Parsons will provide personnel for strategic planning and technical support for the BASS platform, including the JavelinXL devices and Ares Gateway [2][3] - The JavelinXL devices are rugged, Android-based handhelds capable of multi-modal biometric capture, enhancing real-time data collection and threat detection [3] Technological Capabilities - The JavelinXL kits and Ares Gateway will enable the Coast Guard to collect and analyze biometric data more efficiently, improving identity verification and threat detection during missions [3] - These devices are designed for use in dynamic maritime environments, providing lightweight and modular solutions for biometric data integration [3]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved a total revenue growth of 14% and an organic revenue growth of 9%, excluding the impact from a confidential contract [5][17] - Adjusted EBITDA margin expanded by 60 basis points to 9.8%, driven by improved program performance and accretive acquisitions [18][24] - The company generated $163 million in cash flow from operations, resulting in a free cash flow conversion of 135% for the quarter [20][24] Business Line Data and Key Metrics Changes - Critical Infrastructure revenue increased by 18% year-over-year, with organic growth of 13%, driven by recent contract wins and growth on existing contracts [19] - Federal Solutions revenue increased by 9% year-over-year, with organic growth of 5%, excluding the confidential contract [19] - Adjusted EBITDA for Critical Infrastructure increased by 83% year-over-year, with an adjusted EBITDA margin of 10.3% [19] Market Data and Key Metrics Changes - The company reported a book-to-bill ratio of 1.0 times for the quarter and trailing twelve months, maintaining a streak since its IPO [6][21] - The total backlog at the end of Q3 was nearly $9 billion, with 72% funded, and a funded backlog of $6.4 billion, the highest since the IPO [16][22] - The company has a $58 billion pipeline, including over 115 opportunities worth $100 million or more [16][42] Company Strategy and Development Direction - The company is focused on capitalizing on long-term macro trends in national security and infrastructure, with a strong emphasis on operationally relevant solutions [4][12] - Recent acquisitions, particularly in the water market, are aimed at enhancing capabilities and expanding presence in high-growth areas [11][49] - The company expects mid-single-digit organic revenue growth excluding the confidential contract for the foreseeable future [12][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities, citing strong program execution and a robust pipeline of large opportunities [12][24] - The company anticipates a surge in activity once the government reopens, as there is a significant backlog of contracting actions [94][96] - The FAA air traffic control system contract is expected to be awarded imminently, with the company well-positioned to capitalize on this opportunity [39][90] Other Important Information - The company was recognized as one of the world's best companies by Time and received the Diamond Award from ACEC New York for its work on the Brooklyn Bridge Rehabilitation Project [12] - The company completed its third accretive acquisition of the year in the strategic water market [17] Q&A Session Summary Question: Revenue from the confidential contract in Q3 and its impact on Q4 guidance - Management confirmed that there was some revenue from the confidential contract in Q3, but it was small and immaterial, with expectations for Q4 to be similar [27] Question: Critical Infrastructure margins and future expectations - Management indicated that strong program execution has led to consistent double-digit margins in Critical Infrastructure, with expectations for continued solid performance [29][31] Question: Top line performance and federal customer capacity - Management noted that timing issues affected Q3 performance, with expectations for a recovery in Q4 as delays are resolved [35][37] Question: FAA contract and its implications - Management confirmed that the FAA air traffic control system contract is not impacted by the government shutdown and is expected to be awarded soon [39] Question: Growth outlook for Federal Solutions - Management projected high single-digit growth for Federal Solutions, with a strong pipeline and backlog supporting this outlook [76] Question: Impact of the government shutdown on operations - Management stated that 50% of the business is not federal government-related, and a surge in activity is expected once the government reopens [94][96]

Core Viewpoint - Parsons (PSN) reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, but down from $0.95 per share a year ago, indicating an earnings surprise of +19.44% [1][2] Financial Performance - The company posted revenues of $1.62 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.03% and down from $1.81 billion year-over-year [2] - Over the last four quarters, Parsons has surpassed consensus EPS estimates three times but has not beaten revenue estimates [2] Stock Performance - Parsons shares have declined approximately 13.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] - The current Zacks Rank for Parsons is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $1.79 billion, and for the current fiscal year, it is $3.20 on revenues of $6.6 billion [7] - The outlook for the Technology Services industry, where Parsons operates, is currently in the top 39% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

Q3 2025 Financial Performance - Total revenue reached $1622 million, reflecting a 14% increase excluding the confidential contract [8, 12] - Organic revenue growth, excluding the confidential contract, was 9% [7, 15] - Adjusted EBITDA margin expanded by 60 basis points to 98% [7, 13] - Cash flow from operations amounted to $163 million, with a free cash flow conversion of 135% [7, 8] - The book-to-bill ratio was 10x, maintaining a trailing 12-month ratio of 10x or greater since the IPO [7, 8] Segment Performance - Critical Infrastructure revenue increased by 18% to $833 million, with adjusted EBITDA margin expanding by 360 basis points to 103% [17] - Federal Solutions revenue decreased by 29% to $789 million, with adjusted EBITDA margin decreasing by 170 basis points to 92% [19] Contract Wins and Backlog - The company secured four contract wins exceeding $100 million in Q3 2025 [10] - Backlog increased by $48 million to $88 billion, with 72% being funded [10] - The company has approximately $11 billion worth of contract wins not yet included in the backlog [10] Fiscal Year 2025 Guidance - The company is modifying its FY25 revenue outlook to $64 billion - $65 billion, representing a -4% growth and -8% organically, but reiterating adjusted EBITDA guidance of $600 million - $630 million and cash flow guidance at the mid-point [7, 36]

Acquisitions - The Company acquired Chesapeake Technology International, Corp for $91.5 million, recognizing $2.2 million in acquisition-related expenses[40] - The Company acquired TRS Group, Inc. for $36.6 million, with $0.5 million recognized in acquisition-related expenses[44] - The Company acquired BCC Engineering, LLC for $233.5 million, with $4.2 million in acquisition-related expenses recognized[50] - The acquisition of BlackSignal Technologies, LLC was completed for $203.7 million, enhancing the company's capabilities in cyber warfare and electronic warfare[55] - The Company has entered into a merger agreement to acquire Applied Sciences Consulting, Inc. for approximately $28 million, which is not material to the consolidated financial statements[173] Revenue - Revenue generated by CTI for the three and nine months ended September 30, 2025, was $19.2 million[42] - Revenue generated by TRS for the three and nine months ended September 30, 2025, was $7.6 million and $19.0 million, respectively[47] - Revenue generated by BCC was $32.5 million and $95.9 million for the three and nine months ended September 30, 2025, respectively[52] - Pro forma revenue for the three months ended September 30, 2025, assuming CTI acquisition was $1,621,748 thousand[43] - Pro forma revenue for the three months ended September 30, 2025 was $1,621,748 thousand, compared to $1,836,915 thousand for the same period in 2024, reflecting a decrease of approximately 11.7%[54] - Revenue for Q3 2025 was $1,621,748, a decrease from $1,810,116 in Q3 2024, with North America contributing $1,313,775 and the Middle East $302,886[169] - Total revenue for the three months ended September 30, 2025, was $1,621,748, a decrease of 10.4% compared to $1,810,116 for the same period in 2024[172] - Federal Solutions segment generated revenue of $788,607 in Q3 2025, while the Critical Infrastructure segment contributed $833,141[166] - Defense and Intelligence segment revenue increased to $468,935 for the three months ended September 30, 2025, up from $459,318 in 2024, reflecting a growth of 1.3%[172] - Engineered Systems segment revenue decreased significantly to $319,672 for the three months ended September 30, 2025, down from $646,262 in 2024, representing a decline of 50.6%[172] - Federal Solutions revenue for the three months ended September 30, 2025, was $788,607, a decrease of 28.7% from $1,105,580 in 2024[172] Financial Performance - Pro forma net income for the nine months ended September 30, 2025, including noncontrolling interests, was $236,520 thousand[43] - The Company reported net income attributable to Parsons Corporation for Q3 2025 was $64,123, compared to $71,951 in Q3 2024[166] - The company reported net income attributable to Parsons Corporation of $180,873 for the nine months ended September 30, 2024, compared to $33,768 in the same period of 2023, indicating a significant increase[174] - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.60, down from $0.68 in the same period of 2024[153] - Diluted EPS for the three months ended September 30, 2025, was $0.59, compared to $0.65 for the same period in 2024[153] - Basic earnings per share for the nine months ended September 30, 2024, was $1.70, up from $0.32 in the previous year[174] Assets and Liabilities - Total contract assets increased by 10.9% to $822,487 thousand as of September 30, 2025, compared to $741,504 thousand at December 31, 2024[62] - Total accounts receivable, net, increased to $1,223,904 thousand as of September 30, 2025, from $1,100,396 thousand as of December 31, 2024[65] - The company's remaining unsatisfied performance obligations (RUPO) amounted to $7.0 billion as of September 30, 2025[68] - The carrying value of goodwill increased from $2,082,680 thousand on December 31, 2024, to $2,163,469 thousand on September 30, 2025, representing a growth of 3.9%[75] - Total debt as of September 30, 2025, was $1,236,700 thousand, a slight decrease from $1,247,501 thousand on December 31, 2024[79] - The total joint venture equity for consolidated joint ventures decreased to $210,569 thousand as of September 30, 2025, from $230,314 thousand at the end of 2024[139] - The company's total liabilities for unconsolidated joint ventures remained relatively stable at $1,414,504 thousand as of September 30, 2025, compared to $1,416,880 thousand at the end of 2024[141] Expenses - The Company recognized $12.9 million in revenue during the three months ended September 30, 2025, from contract liability balances[63] - Amortization expense related to intangible assets was $3.2 million for the three months ended September 30, 2025[57] - The aggregate amortization expense for intangible assets for the nine months ended September 30, 2025, was $51.4 million, compared to $40.8 million for the same period in 2024, an increase of 25.5%[76] - Operating lease costs for the three months ended September 30, 2025, were $16,971 thousand, compared to $16,022 thousand for the same period in 2024, reflecting an increase of 5.9%[72] - Total lease costs for the nine months ended September 30, 2025, were $61,557 thousand, slightly up from $61,098 thousand in 2024, indicating a year-over-year increase of 0.75%[72] - The Company recognized interest expense of $18.9 million for the nine months ended September 30, 2025, related to the Convertible Senior Notes due 2029[100] - Total ESOP contribution expense was $18.6 million for the three months ended September 30, 2025, compared to $13.2 million for the same period in 2024[133] Cash Flow and Financing - The Company reported operating cash flows for operating leases of $49,892 thousand for the nine months ended September 30, 2025, down from $51,013 thousand in 2024, a decrease of 2.2%[73] - The Company entered into a $450 million unsecured Term Loan in June 2025, with an interest rate of 5.3% as of September 30, 2025[82] - The Company issued $800.0 million of 2.625% Convertible Senior Notes due 2029, receiving proceeds of $781.1 million net of transaction fees[93] - The Company entered into a $750 million unsecured revolving credit facility with a five-year maturity, increasing the previous facility from $650 million[109] - The interest rate on the new Credit Agreement was 5.4% as of September 30, 2025[109] - The Company incurred $1.7 million in costs related to the new Credit Agreement[109] - The net carrying value of the Convertible Senior Notes due 2029 was $787.5 million as of September 30, 2025[100] - The Company has no amounts outstanding under the Revolving Credit Facility as of September 30, 2025, with interest rates at 5.4%[280] Taxation - The effective tax rate for the three months ended September 30, 2025, was 16.4%, down from 20.8% for the same period in 2024[116] - The effective tax rate for the nine months ended September 30, 2025, was 18.7%, compared to 20.8% for the same period in 2024[117] - The Company recorded a deferred tax asset of $22.3 million related to the Capped Call Transactions costs through additional paid-in capital[103] - As of September 30, 2025, the Company's deferred tax assets were subject to a valuation allowance of $45.0 million[120] - The liability for income taxes associated with uncertain tax positions was $28.1 million as of September 30, 2025[121] Joint Ventures - Consolidated joint ventures reported revenue of $213,752 thousand for the three months ended September 30, 2025, representing a 10.6% increase from $193,461 thousand in the same period of 2024[139] - Net income for consolidated joint ventures increased to $35,629 thousand for the three months ended September 30, 2025, up 29.2% from $27,588 thousand in the prior year[139] - Unconsolidated joint ventures reported revenue of $608,305 thousand for the three months ended September 30, 2025, a 4.0% increase compared to $581,232 thousand for the same period in 2024[142] - The net income from unconsolidated joint ventures was $44,473 thousand for the three months ended September 30, 2025, significantly up from $20,740 thousand in the same period of 2024[142] - The company had net contributions of $7.5 million to unconsolidated joint ventures for the nine months ended September 30, 2025, compared to $83.7 million for the same period in 2024[142] Other - The Company believes that the ultimate resolution of certain lawsuits will not have a material adverse effect on its consolidated financial position[124] - The company limits exposure to foreign currency fluctuations through contract provisions, reducing the need for hedging foreign currency cash flows[282]

Financial Performance - Total revenue for Q3 2025 decreased by $188 million, or 10%, to $1.6 billion, with a 14% decline on an organic basis[5]. - Adjusted EBITDA for Q3 2025 was $158 million, a 5% decrease year-over-year, while the adjusted EBITDA margin expanded 60 basis points to 9.8%[6]. - Revenue for Q3 2025 was $1,621,748, a decrease of 10.4% compared to $1,810,116 in Q3 2024[28]. - Net income attributable to Parsons Corporation for Q3 2025 was $64,123, down 10.8% from $71,951 in Q3 2024[28]. - Basic earnings per share (EPS) for Q3 2025 was $0.60, compared to $0.68 in Q3 2024, reflecting a decrease of 11.8%[28]. - Operating income for Q3 2025 was $107,955, a decrease of 6.5% from $114,988 in Q3 2024[28]. - Adjusted net income attributable to Parsons Corporation for Q3 2025 was $93,053, compared to $102,823 in Q3 2024, reflecting a decline of approximately 9%[42]. - Adjusted earnings per share (EPS) for Q3 2025 was $0.87 per basic share, down from $0.97 per basic share in Q3 2024[42]. - Total adjusted net income for the nine months ended September 30, 2025, was $261,879,000, slightly down from $267,669,000 for the same period in 2024[42]. Segment Performance - Critical Infrastructure segment revenue increased by $129 million, or 18%, driven by organic growth of 13% and contributions from recent acquisitions[8]. - Federal Solutions segment revenue decreased by $317 million, or 29%, with a 31% decline on an organic basis; however, excluding a confidential contract, revenue increased by 9%[10]. Backlog and Contracts - Total backlog increased to $8.8 billion, with 72% funded, marking the highest level since the company's IPO[12]. - The company won four contracts worth over $100 million each during Q3 2025, including a $665 million contract extension for the Hudson Tunnel Project[14]. - Total contract awards for the nine months ended September 30, 2025, were $4,865,560,000, down from $5,367,109,000 in 2024, indicating a decrease of about 9.3%[33]. - Total backlog as of September 30, 2025, was $8,832,447,000, slightly up from $8,784,047,000 in 2024, reflecting an increase of approximately 0.5%[34]. - Total funded backlog in the Critical Infrastructure segment increased to $4,483,659,000 as of September 30, 2025, from $3,811,638,000 in 2024, marking an increase of approximately 17.6%[34]. Cash Flow and Assets - Cash flow from operating activities in Q3 2025 was $163 million, down from $299 million in Q3 2024[13]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $310,864,000, a decrease from $396,840,000 in 2024, representing a decline of approximately 21.6%[32]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $188,314,000, compared to $344,614,000 in 2024, indicating a reduction of about 45.5%[32]. - Total assets increased to $5,736,717 as of September 30, 2025, up from $5,487,962 at the end of 2024, representing a growth of 4.5%[31]. - Current liabilities decreased to $1,587,951 as of September 30, 2025, down from $1,915,644 at the end of 2024, a reduction of 17.1%[31]. - Long-term debt increased to $1,236,700 as of September 30, 2025, compared to $784,096 at the end of 2024, an increase of 57.7%[31]. - Cash and cash equivalents were $422,554 as of September 30, 2025, down from $453,548 at the end of 2024, a decrease of 6.8%[31]. - Total current assets increased to $2,649,045 as of September 30, 2025, up from $2,462,400 at the end of 2024, a growth of 7.6%[31]. Recognition and Awards - Parsons was recognized as one of the World's Best Companies in 2025 and received multiple awards for its infrastructure projects[21]. Other Financial Metrics - The company reported equity in earnings of unconsolidated joint ventures of $8,266 for Q3 2025, compared to $872 in Q3 2024, a significant increase[28]. - The book-to-bill ratio for the nine months ended September 30, 2025, was 1.0, down from 1.1 in the same period of 2024, indicating a decline in contract awards relative to revenue[35]. - The company incurred $17,996,000 in acquisition-related intangible asset amortization for Q3 2025, up from $13,328,000 in Q3 2024[42]. - Equity-based compensation expenses were $11,568,000 in Q3 2025, a decrease from $21,251,000 in Q3 2024[42]. - Transaction-related costs for Q3 2025 amounted to $5,074,000, an increase from $3,770,000 in Q3 2024[42]. - The tax effect on adjustments for Q3 2025 was $(7,829,000), compared to $(8,016,000) in Q3 2024[42]. - Restructuring costs for Q3 2025 were $292,000, while there were no such costs reported in Q3 2024[43].

Core Insights - Parsons Corporation reported a 10% decrease in total revenue for Q3 2025, amounting to $1.6 billion, with a 14% decline on an organic basis. Excluding a confidential contract, total revenue growth was 14% and organic growth was 9% [4][7] - The company achieved a 60 basis points margin expansion, with adjusted EBITDA margin increasing to 9.8% from 9.2% year-over-year, despite a 5% decrease in adjusted EBITDA to $158 million [5][8] - Parsons secured significant defense contracts and maintained a strong backlog of $8.8 billion, with 72% funded, marking the highest level since its IPO [7][12] Financial Performance - Total revenue decreased by $188 million, or 10%, compared to Q3 2024, with operating income down 6% to $108 million and net income down 11% to $64 million [4][7] - GAAP diluted EPS was $0.59, down from $0.65 in the prior year [4][5] - Adjusted EBITDA, including noncontrolling interests, was $158 million, a 5% decrease year-over-year, while adjusted diluted EPS fell to $0.86 from $0.95 [5][8] Segment Analysis Critical Infrastructure Segment - Revenue increased by $129 million, or 18%, year-over-year, driven by organic growth of 13% and contributions from recent acquisitions [6] - Adjusted EBITDA for this segment rose by 83% to $86 million, with an adjusted EBITDA margin of 10.3% [6][8] Federal Solutions Segment - Revenue decreased by $317 million, or 29%, year-over-year, with adjusted EBITDA down 40% to $73 million [9][10] - Excluding the confidential contract, revenue increased by 9%, driven by growth in key markets [9] Key Performance Indicators - The book-to-bill ratio was 1.0x for Q3 2025, maintaining a streak of 1.0x or greater since the IPO [7][12] - Total backlog increased to $8.8 billion, with a funded backlog of $6.4 billion, the highest since the company's IPO [7][12] Contract Wins and Acquisitions - Parsons won four contracts worth over $100 million each during Q3 2025, including significant defense and infrastructure projects [11] - The company completed an acquisition of Applied Sciences Consulting, enhancing its capabilities in water and stormwater solutions [13][18] Fiscal Year 2025 Guidance - The company modified its fiscal year 2025 revenue outlook to $6.4 billion - $6.5 billion, while reiterating adjusted EBITDA and cash flow guidance [14][15]

Core Insights - Q-Gold Resources Ltd. has appointed Scott R.G. Parsons to its Board of Directors, effective immediately, enhancing the board's expertise in mineral exploration and resource development [1][2] - Scott Parsons brings over 20 years of experience in the mining industry, currently serving as Vice President of Exploration at Alamos Gold Inc., and has a strong track record in overseeing successful exploration projects [2][3] - The appointment follows the resignation of Gregory Biniowsky, with the company expressing gratitude for his contributions [4] Company Overview - Q-Gold Resources Ltd. is a publicly traded mineral exploration and development company focused on advancing gold and silver projects in North America [5] - The company is committed to progressing its flagship Quartz Mountain Gold Project in Oregon and the Mine Centre Gold Project in Ontario towards production [6]