Parsons(US:PSN)2025-04-30 10:30Financial Performance - Total revenue for Q1 2025 increased by $19 million, or 1%, to $1.6 billion, with an organic revenue decline of 2%[6] - Net income for Q1 2025 rose by 67% to $66 million, compared to $40 million in Q1 2024[6] - GAAP diluted earnings per share (EPS) increased by 61% to $0.60 in Q1 2025, up from $0.37 in the prior year[8] - Adjusted EBITDA for Q1 2025 was $149 million, a 5% increase year-over-year, with an adjusted EBITDA margin of 9.6%, up 40 basis points[7] - 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 growth of 1.1%[28] - Net income attributable to Parsons Corporation for the three months ended March 31, 2025, was $66,203, an increase of 66.7% from $39,750 in the same period of 2024[28] - Basic earnings per share (EPS) increased to $0.62 for the three months ended March 31, 2025, compared to $0.37 for the same period in 2024, reflecting a growth of 67.6%[28] - Adjusted net income attributable to Parsons Corporation for the three months ended March 31, 2025, was $84,548,000, up from $74,807,000 in the same period last year[42] - Adjusted earnings per share increased to $0.79 for basic shares and $0.78 for diluted shares, compared to $0.71 and $0.70 respectively in the prior year[42] - Adjusted EBITDA for the three months ended March 31, 2025, was $148,776,000, compared to $141,093,000 for the same period in 2024[39] Segment Performance - Federal Solutions segment revenue decreased by 7% to $842.6 million, while adjusted EBITDA margin fell to 9.0%[9][10] - Critical Infrastructure segment revenue increased by 14% to $711.8 million, driven by organic growth of 8% and contributions from recent acquisitions[11][12] - Federal Solutions Adjusted EBITDA attributable to Parsons Corporation decreased to $75,532,000 from $92,541,000 year-over-year, while Critical Infrastructure Adjusted EBITDA increased to $58,187,000 from $32,963,000[41] Contracts and Backlog - The book-to-bill ratio was 1.1x, supported by a 1.4x ratio in the Critical Infrastructure segment, with total backlog reaching a record $9.1 billion[8][13] - The company won four single-award contracts worth over $100 million each during Q1 2025, enhancing its growth prospects[15] - Total contract awards for the three months ended March 31, 2025, were $1,766,506, a decrease of 15.1% from $2,082,309 in the same period of 2024[33] - Total backlog as of March 31, 2025, is $9,071,226,000, slightly up from $9,028,843,000 as of March 31, 2024[34] - Funded backlog in Federal Solutions decreased to $1,770,655,000 from $1,804,251,000 year-over-year, while unfunded backlog decreased from $3,450,328,000 to $2,799,723,000[34] - Critical Infrastructure funded backlog increased significantly from $3,706,435,000 to $4,451,234,000, with unfunded backlog decreasing from $67,829,000 to $49,614,000[34] - The overall book-to-bill ratio decreased to 1.1 in March 2025 from 1.4 in March 2024, indicating a decline in contract awards relative to revenue[35][37] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $269,745 as of March 31, 2025, from $453,548 at the end of 2024, a decline of 40.5%[31] - Total assets as of March 31, 2025, were $5,449,144, a slight decrease from $5,487,962 at the end of 2024[31] - Total liabilities decreased to $2,903,412 as of March 31, 2025, from $2,953,473 at the end of 2024, a reduction of 1.7%[31] - Operating income for the three months ended March 31, 2025, was $109,233, compared to $101,844 for the same period in 2024, indicating an increase of 7.1%[28] - The company reported a net cash used in operating activities of $11,787 for the three months ended March 31, 2025, compared to $63,420 for the same period in 2024, showing an improvement[32] - The company made capital expenditures of $13,473 for the three months ended March 31, 2025, compared to $9,436 in the same period of 2024, reflecting an increase of 42.9%[32] Guidance - Fiscal year 2025 guidance includes revenue expectations of $7.0 billion to $7.5 billion and adjusted EBITDA of $640 million to $710 million[19] Acquisitions - Parsons closed its acquisition of TRS Group for $37 million, strengthening its environmental remediation capabilities[16] Non-GAAP Measures - The company continues to adjust for non-GAAP measures to provide a clearer picture of its operational performance, excluding non-recurring and non-operational costs[36]