Core Insights - Parsons Corporation reported a successful fiscal year 2025 with double-digit revenue growth excluding a confidential contract, record adjusted EBITDA, and strong cash flow performance [4][5] - The company secured 15 contracts valued over $100 million, matching the previous year's record, demonstrating the strength of its diversified portfolio [4][20] Q4 2025 Financial Highlights - Total revenue for Q4 2025 decreased by $131 million, or 8%, to $1.6 billion, with a 10% decline on an organic basis; however, excluding the confidential contract, revenue grew by 11% [5][6] - Operating income increased by 5% to $105 million, while net income rose by 3% to $56 million, with GAAP diluted EPS at $0.51 compared to $0.49 in Q4 2024 [5][6] - Record adjusted EBITDA reached $153 million, a 5% increase year-over-year, with an adjusted EBITDA margin of 9.6% [6][7] Fiscal Year 2025 Highlights - Total revenue for FY 2025 decreased by $386 million, or 6%, to $6.4 billion, with a 9% decline on an organic basis; excluding the confidential contract, revenue grew by 12% [8][9] - Net income for FY 2025 was a record $241 million, with diluted EPS at $2.20, up from $2.12 in FY 2024 [8][9] - Adjusted EBITDA for FY 2025 was a record $609 million, a 1% increase, with an adjusted EBITDA margin of 9.6% [9] Segment Results Critical Infrastructure Segment - Q4 2025 revenue increased by $89 million, or 12%, to $820 million, driven by organic growth of 9% and contributions from recent acquisitions [10][11] - Adjusted EBITDA for Q4 2025 rose by 87% to a record $87 million, with an adjusted EBITDA margin of 10.6% [11] - FY 2025 revenue increased by $400 million, or 15%, to $3.1 billion, with adjusted EBITDA up by 73% to $328 million [12][14] Federal Solutions Segment - Q4 2025 revenue decreased by $219 million, or 22%, to $784 million, with a 24% decline on an organic basis; however, excluding the confidential contract, revenue increased by 9% [15][16] - Adjusted EBITDA for Q4 2025 decreased by 34% to $66 million, with an adjusted EBITDA margin of 8.4% [16] - FY 2025 revenue decreased by $786 million, or 20%, to $3.2 billion, with adjusted EBITDA down by 32% to $281 million [17][18] Key Performance Indicators - Q4 2025 net bookings decreased by 10% to $1.5 billion, with a book-to-bill ratio of 0.9x [19] - FY 2025 net bookings decreased by 9% to $6.4 billion, maintaining a book-to-bill ratio of 1.0x [21] Significant Contract Wins - Parsons secured four contracts worth over $100 million each in Q4 2025, totaling 15 such contracts for the year [20] - Notable contracts include a ten-year $392 million contract for biometrics solutions and a $125 million task order for the U.S. Army [22] Corporate Highlights - The company completed strategic acquisitions, including Altamira Technologies for $375 million, enhancing its capabilities in signals intelligence and space solutions [28] - Parsons received multiple awards for its support of the military community and advancements in space traffic coordination [23][28] Fiscal Year 2026 Guidance - The company projects FY 2026 revenue between $6.5 billion and $6.8 billion, with adjusted EBITDA guidance of $615 million to $675 million [25]

Core Insights - Parsons Corporation has acquired Applied Sciences Consulting, Inc., enhancing its water capabilities in Florida and aligning with its strategy of accretive acquisitions with revenue growth and adjusted EBITDA margins of at least 10% [1][2][3] Company Overview - Parsons Corporation is a leading provider in national security and global infrastructure markets, with expertise in various sectors including water and environment [5] Acquisition Details - The acquisition of Applied Sciences, an engineering firm specializing in water and stormwater solutions, was an all-cash transaction and will be integrated into Parsons' North America Infrastructure business unit [2][3] - Founded in 2005, Applied Sciences has established strong client relationships and focuses on enhancing water infrastructure resilience in Florida [2][4] Strategic Importance - The acquisition strengthens Parsons' presence in Florida, a state that has committed billions to water infrastructure improvements, thereby positioning the company to better serve local communities [3] - This move allows Parsons to leverage Applied Sciences' expertise to deliver innovative solutions for water resilience challenges, expanding capabilities to both new and existing clients globally [3][4]