Core Viewpoint - Parsons (PSN) reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing an increase from $0.70 per share a year ago, indicating a 5.41% earnings surprise [1] Financial Performance - The company posted revenues of $1.55 billion for the quarter ended March 2025, which was 3.45% below the Zacks Consensus Estimate, and slightly up from $1.54 billion year-over-year [2] - Over the last four quarters, Parsons has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Parsons shares have declined approximately 25.6% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current Zacks Rank for Parsons is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.76 billion, and for the current fiscal year, it is $3.62 on revenues of $7.16 billion [7] - The trend of estimate revisions for Parsons has been unfavorable ahead of the earnings release [6] Industry Context - The Technology Services industry, to which Parsons belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company achieved record first quarter results for total revenue of $1.6 billion, a 1% increase year-over-year, but a 2% decline on an organic basis [14][25] - Adjusted EBITDA reached $149 million, a 5% increase from the prior quarter, with an adjusted EBITDA margin of 9.6%, marking a first quarter record [27][15] - The company reported a book-to-bill ratio of 1.1 times, driven by strong win rates of 68% and large contract wins [17][33] Business Line Data and Key Metrics Changes - In the Federal Solutions segment, total revenue decreased by 7% year-over-year, but excluding the confidential contract, revenue increased by 86% on an organic basis [27][28] - The Critical Infrastructure segment saw a revenue increase of $86 million or 14% year-over-year, driven by organic growth of 8% and contributions from recent acquisitions [28][29] - Adjusted EBITDA for the Critical Infrastructure segment increased by 51% year-over-year, with a record adjusted EBITDA margin of 10.3% [29] Market Data and Key Metrics Changes - The company reported a record total backlog of $9.1 billion, with 69% funded, and a pipeline of $55 billion, including over 100 opportunities worth more than $100 million each [23][34] - The Middle East infrastructure business continues to excel, with significant growth driven by major projects aligned with Saudi Vision 2030 and other regional initiatives [11][12] Company Strategy and Development Direction - The company is focused on capitalizing on unprecedented spending in North America and Middle East infrastructure markets, with a strong emphasis on hard infrastructure projects [8][9] - The strategic direction includes being an advanced solutions integrator that differentiates with software, aligning with national security priorities and leveraging technology leadership in emerging markets [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial results, citing long-term tailwinds in both the Critical Infrastructure and Federal Solutions segments [22][23] - The company anticipates continued growth in the federal budget, particularly in defense spending, with expectations for a $1 trillion defense budget in fiscal year 2026 [12][61] Other Important Information - The company completed the acquisition of TRS Group for $37 million, enhancing its environmental remediation capabilities [21] - The company was named one of the world's most ethical companies for the sixteenth consecutive year, reflecting its commitment to ethics and integrity [21] Q&A Session Summary Question: Inquiry about Critical Infrastructure segment margins - Management confirmed that the strong margins in the Critical Infrastructure segment were due to underlying business performance without any favorable adjustments [41][43] Question: Expectations for the balance of the year regarding Critical Infrastructure - Management indicated that they expect the Critical Infrastructure margin to be around 9.1% for the full year, with strong performance anticipated in the upcoming quarters [45] Question: Clarification on the Middle East growth and contract ramp-up - Management noted that larger contracts in the Middle East experienced slower ramp-up due to holidays but expect double-digit growth for the full year [48][50] Question: Resilience of the federal solutions award environment - Management expressed optimism about the federal solutions segment, expecting a book-to-bill ratio over 1.0 for the full year [55] Question: Update on the confidential contract and its impact - Management confirmed that the confidential contract is currently at an 80% run rate and anticipates a surge in activity following a review period [66][95] Question: Hiring dynamics in light of Doge and federal workforce availability - Management reported strong employee retention and a positive hiring environment, with an emphasis on hiring cleared federal personnel [106] Question: Expectations for M&A activity - Management expects to complete two to three acquisitions this year, with a robust pipeline in both federal and critical infrastructure sectors [75]

Parsons (PSN) Q1 2025 Earnings Call April 30, 2025 08:00 AM ET Company Participants Dave Spille - SVP, IRCarey Smith - President, CEO & ChairwomanMatt Ofilos - CFOMariana Pérez Mora - DirectorTobey Sommer - Managing DirectorSheila Kahyaoglu - Aerospace & Defense and Airlines Equity ResearchAlex Dwyer - AVP - Equity Research Conference Call Participants Andrew Wittmann - Senior Research AnalystGautam Khanna - AnalystJosh Sullivan - Managing Director & Equity Research Analyst Operator Ladies and gentlemen, th ...

FIRST QUARTER 2025 Earnings Conference Call Presentation April 30, 2025 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statem ...

Acquisitions - The Company acquired TRS Group, Inc. for $36.6 million, with $3.8 million to be paid in July 2026, and generated $4.1 million in revenue for the three months ended March 31, 2025[37][38]. - The acquisition of BCC Engineering, LLC was completed for $233.5 million, with $27.6 million in revenue generated for the three months ended March 31, 2025[41][44]. - BlackSignal Technologies, LLC was acquired for $203.7 million, contributing $13.1 million in revenue for the three months ended March 31, 2025[46][48]. - The Company recognized $4.2 million of acquisition-related expenses for BCC and $2.5 million for BlackSignal in the consolidated statements of income for the year ended December 31, 2024[41][46]. Pro Forma Financials - Pro forma revenue for the three months ended March 31, 2025, assuming TRS acquisition was consummated at the beginning of fiscal year 2024, was $1,556.4 million[40]. - Pro forma net income for the same period, including noncontrolling interests, was $82.0 million[40]. - Pro forma revenue for the three months ended March 31, 2025, assuming BCC acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[45]. - Pro forma net income for the same period, including noncontrolling interests, was $82.8 million[45]. - Pro forma revenue for the three months ended March 31, 2025, assuming BlackSignal acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[49]. - Pro forma net income for the same period, including noncontrolling interests, was $82.7 million[49]. Revenue and Growth - Total revenue for the three months ended March 31, 2025, was $1,554,360 thousand, a slight increase from $1,535,676 thousand in the same period of 2024, representing a growth of 1.1%[51]. - The company recognized revenue of $117.3 million during the three months ended March 31, 2025, from contract liabilities that were recorded as of December 31, 2024[52]. - Revenue from consolidated joint ventures for the three months ended March 31, 2025 was $196.4 million, a decrease of 2.3% from $202.0 million in the same period of 2024[120]. - Revenue from unconsolidated joint ventures increased to $524.6 million for the three months ended March 31, 2025, up 10.8% from $473.5 million in the same period of 2024[122]. - Basic earnings per share for the three months ended March 31, 2025 was $0.62, an increase from $0.37 in the same period of 2024[134]. - Total revenue for the three months ended March 31, 2025, was $1,554,360, compared to $1,535,676 for the same period in 2024, representing a year-over-year increase of 1.2%[148]. - Adjusted EBITDA attributable to Parsons Corporation for Q1 2025 was $133,719, up from $125,504 in Q1 2024, reflecting a growth of 6.0%[145][152]. - Net income attributable to Parsons Corporation for Q1 2025 was $66,203, compared to $39,750 in Q1 2024, indicating a significant increase of 66.7%[145][146]. - Federal Solutions revenue decreased to $842,557 in Q1 2025 from $909,608 in Q1 2024, a decline of 7.4%[152]. - Critical Infrastructure revenue increased to $711,803 in Q1 2025 from $626,068 in Q1 2024, marking an increase of 13.7%[152]. - North America revenue for Q1 2025 was $1,284,232, slightly up from $1,272,250 in Q1 2024, a growth of 0.5%[148]. Assets and Liabilities - Contract assets increased to $822,781 thousand as of March 31, 2025, compared to $741,504 thousand at December 31, 2024, reflecting a growth of 10.9%[52]. - Remaining unsatisfied performance obligations (RUPO) amounted to $6.8 billion as of March 31, 2025, indicating the total dollar value of work to be performed on awarded contracts[56]. - The company expects to satisfy $4,334,583 thousand of RUPO within one year, with an additional $1,498,923 thousand expected to be satisfied in the following two years[59]. - Total accounts receivable, net, increased to $1,124,951 thousand as of March 31, 2025, from $1,100,396 thousand as of December 31, 2024, marking a growth of 2.2%[54]. - Goodwill increased from $2,082,680 thousand as of December 31, 2024, to $2,107,072 thousand as of March 31, 2025, primarily due to acquisitions[62]. - Consolidated joint ventures reported total assets of $505.9 million and total liabilities of $322.7 million as of March 31, 2025[120]. - Unconsolidated joint ventures had total assets of $1.9 billion and total liabilities of $1.4 billion as of March 31, 2025[122]. Expenses - The aggregate amortization expense of intangible assets for the three months ended March 31, 2025, was $16.4 million, compared to $13.7 million for the same period in 2024, reflecting an increase of 19.7%[63]. - The company reported total lease costs of $20,245 thousand for the three months ended March 31, 2025, slightly higher than $20,081 thousand for the same period in 2024[60]. - Depreciation expense for the three months ended March 31, 2025, was $9.1 million, a decrease from $9.4 million in the same period of 2024[65]. - The Company’s selling, general and administrative expenses for Q1 2025 totaled $91,536, compared to $69,725 in Q1 2024, reflecting a rise of 31.2%[145][146]. Debt and Financing - Total debt as of March 31, 2025, was $1,220.1 million, a decrease of 2.2% from $1,247.5 million on December 31, 2024[66]. - Short-term debt decreased from $463.4 million on December 31, 2024, to $434.9 million as of March 31, 2025, primarily due to a reduction in convertible senior notes[66]. - The company incurred $0.9 million in debt issuance costs related to the $350 million Delayed Draw Term Loan, which remains fully drawn as of March 31, 2025[67]. - Interest expense for the Delayed Draw Term Loan was $4.9 million for the three months ended March 31, 2025, down from $6.0 million for the same period in 2024[67]. - The company issued $800 million of 2.625% Convertible Senior Notes due 2029 in February 2024, with net proceeds of $781.1 million after transaction fees[82]. - The carrying value of the Convertible Senior Notes due 2029 was $785.4 million as of March 31, 2025, compared to $784.3 million on December 31, 2024[89]. - Interest expense for the Convertible Senior Notes due 2029 was $6.3 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024[89]. - The company recorded a deferred tax liability of $16.2 million related to the Convertible Senior Notes debt discount and capitalized debt issuance costs[81]. - The Company entered into capped call transactions with a cap price of $131.7575 per share, representing a 75% premium over the last reported sale price of $75.29 per share on February 21, 2024[91]. - The cost of the capped call transactions was $88.4 million, recorded as a reduction to additional paid-in capital[91]. - The Company used $391.8 million of net proceeds from the issuance of Convertible Senior Notes due 2029 to repurchase approximately $228.1 million of Convertible Senior Notes due 2025[93]. - A partial repurchase during the three months ended March 31, 2024, resulted in a $18.4 million repurchase loss and a $3.2 million charge to interest expense[94]. Tax and Commitments - The Company's effective tax rate decreased to 18.8% for the three months ended March 31, 2025, down from 19.5% for the same period in 2024[100]. - As of March 31, 2025, the Company's deferred tax assets were subject to a valuation allowance of $45.8 million[101]. - The Company has letters of credit commitments outstanding aggregating approximately $335.6 million as of March 31, 2025[99]. - The Company has a $650 million unsecured revolving credit facility, with interest rates at 5.7% as of March 31, 2025[97]. - The Company recorded a $211.0 million loss on debt extinguishment associated with the 0.25% Convertible Senior Notes due 2025[95]. Share Repurchase and Equity - The company repurchased 423,980 shares of common stock at an average price of $58.95 per share during the three months ended March 31, 2025[138]. - The company’s board authorized a share repurchase program with a capacity of $250 million as of March 2025, increasing from previous authorizations[135]. - The total joint venture equity for consolidated joint ventures decreased from $230.3 million as of December 31, 2024 to $183.1 million as of March 31, 2025[120]. - The company’s maximum exposure to loss from unconsolidated joint ventures is typically limited to the carrying value of the investment and future funding commitments[121].

Parsons Reports Record First Quarter 2025 Results Exhibit 99.1 Total revenue for the first quarter of 2025 increased by $19 million, or 1%, to $1.6 billion and was down 2% on an organic basis. Excluding the company's confidential contract, total revenue growth was 11% and organic revenue growth was 7% driven by double-digit growth in Parsons' cyber, transportation, and environmental remediation markets. Operating income increased 7% to $109 million primarily due to stronger program performance and a decreas ...

Core Insights - Parsons Corporation reported record first quarter results for total revenue, net income, earnings per share, adjusted EBITDA, and backlog, indicating strong performance and growth potential [3][5][8]. Financial Performance - Total revenue for Q1 2025 increased by $19 million, or 1%, to $1.6 billion, with a 2% decline on an organic basis. Excluding a confidential contract, total revenue growth was 11% and organic revenue growth was 7% [5][8]. - Operating income rose by 7% to $109 million, while net income surged by 67% to $66 million, attributed to improved operating performance and a prior year loss from convertible debt repurchase [5][8]. - GAAP diluted earnings per share (EPS) increased to $0.60 from $0.37 year-over-year, reflecting strong financial results [5][8]. Adjusted Metrics - Adjusted EBITDA for Q1 2025 was $149 million, a 5% increase from the previous year, with an adjusted EBITDA margin expanding by 40 basis points to 9.6% [6][8]. - Adjusted EPS rose to $0.78 from $0.70, driven by the increase in adjusted EBITDA [6][8]. Segment Performance - The Federal Solutions segment experienced a revenue decline of 7% to $842.6 million, but showed an 8% increase when excluding the confidential contract [9][10]. - The Critical Infrastructure segment reported a 14% revenue increase to $711.8 million, driven by organic growth and contributions from recent acquisitions [11][12]. Backlog and Book-to-Bill Ratio - Total backlog reached a record $9.1 billion, up $42 million from Q1 2024, with a book-to-bill ratio of 1.1x supported by a 1.4x ratio in the Critical Infrastructure segment [8][14]. - The company won four contracts worth over $100 million each during the first quarter, contributing to strong net bookings of $1.8 billion [14][18]. Corporate Highlights - Parsons was recognized as one of the World's Most Ethical Companies for the 16th consecutive year, reflecting its commitment to responsible enterprise practices [16][18]. - The Board of Directors increased the stock repurchase authorization to $250 million, with approximately 424,000 shares repurchased at an average price of $58.95 during Q1 2025 [18][19]. Fiscal Year Guidance - The company reiterated its fiscal year 2025 guidance for revenue between $7.0 billion and $7.5 billion, adjusted EBITDA of $640 million to $710 million, and cash flow from operations of $420 million to $480 million [19][17].

King Salman Park Parsons will provide Project Office Management services for King Salman Park, one of the world's most unique urban transformation projects. CHANTILLY, Va., April 23, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that it has been awarded a contract for Project Management Office (PMO) services by the King Salman Park Foundation for King Salman Park. This 25-month contract marks new work for Parsons. King Salman Park is one of the world's most unique urban trans ...

CHANTILLY, Va., April 16, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE:PSN) announced today it was selected by the Lee County Port Authority to provide project management services for Phase 1 of the Southwest Florida International Airport (RSW) Terminal Expansion Project in Fort Myers, Florida.  "We are honored to support the Lee County Port Authority to ensure the successful delivery of Phase 1 of the transformative Terminal Expansion Project," said Mark Fialkowski, president of Infrastructure North ...

Core Insights - Sealing Technologies, a subsidiary of Parsons Corporation, has launched two new edge computing nodes, the GN 7100 and GN 9000, aimed at enhancing operational effectiveness for U.S. national security missions [1][6] Product Features - The GN 7100 utilizes PCIe Gen 5 and AMD's latest 9000 EPYC series, providing faster processing speeds and is designed for AI and machine learning applications, enhancing defense capabilities for cyber protection teams [2] - The GN 9000 features two GPUs for maximum resource pooling, delivering 188GB of HBM3 memory to support demanding AI models at the edge, while also maximizing operational effectiveness and storage capacity [3] Strategic Importance - Both products are designed with flexibility and scalability to meet current and future needs of warfighters, providing AI/ML edge computing capabilities that were previously limited to datacenters [4] - Sealing Technologies emphasizes its commitment to developing purpose-built defensive cyber solutions, aiming to deliver increased capability, storage, agility, and value to its customers [4]