Parsons(US:PSN)2025-11-05 11:30Financial 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].