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 Insights - Parsons Corporation has been ranked 1 on Engineering News-Record's (ENR) annual list of Top 50 Program Management Firms, improving its position from the previous year [1] - The company emphasizes its commitment to innovation, collaboration, and accountability in delivering complex projects, with a total constructed value of over $1 trillion across various sectors [2][4] - In addition to the top program management ranking, Parsons achieved high rankings in several other categories, including number two on the Top 100 Professional Services Firms list and number three on the Top 50 Construction Management Firms list [3] Company Overview - Parsons provides a comprehensive range of program and construction management solutions across multiple industries, including aviation, rail, transit, and water management [4] - The company has over 80 years of experience in designing and delivering global infrastructure projects that connect and protect communities [4] - Parsons is recognized as a leading provider of disruptive technology in national security and global infrastructure markets, with capabilities in cyber and intelligence, space defense, and critical infrastructure protection [6] Notable Projects - The Delta Conveyance Project saw Parsons save 18 months on the master program schedule through innovative strategies [6] - The FAA Technical Support Service Contract involved safe and timely project delivery at over 500 airports in the U.S. [6] - For the National Nuclear Security Administration, Parsons reduced the analysis of alternatives process from over a year to three months [6] - In the King Abdullah Financial District project, Parsons successfully restored and handed over 96 percent of the structures to date [6]