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- **Revenue Growth**: 14% YoY total revenue growth (excluding confidential contract), driven by 18% Critical Infrastructure and 9% Federal Solutions organic growth.
- **Margin Expansion**: 60 basis points of adjusted EBITDA margin expansion to 9.8%, with Critical Infrastructure at 10.3%.
- **Strategic Wins**: $1.6 billion in new contracts, including Hudson Tunnel extension and Georgia Express Lanes. 4 contracts over $100 million won in Q3.
- **FAA Opportunity**: Imminent decision on $12.5 billion air traffic control system contract, positioning for mid-single-digit Federal Solutions growth.
- **Challenges**: Federal Solutions revenue decline due to confidential contract wind-down and $100 million+ delays from government shutdown.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue grew 14% year-over-year (YoY), excluding a confidential contract, with 18% growth in Critical Infrastructure and 9% in Federal Solutions. Adjusted EBITDA margin expanded by 60 basis points to 9.8%.
- **Contract Wins**: Secured $1.6 billion in new contracts, including a $665 million extension for the Hudson Tunnel project and a $133 million Georgia Express Lanes contract. Won 4 contracts over $100 million, 2 representing new work.
- **Strategic Acquisitions**: Acquired Applied Sciences Consulting to strengthen water infrastructure capabilities in Florida. 4 of 6 recent acquisitions are in high-growth Critical Infrastructure markets.
- **FAA Modernization**: Imminent decision on the $12.5 billion brand-new air traffic control system contract, with Parsons as the top-ranked program manager partnered with IBM.
- **Pipeline Strength**: $58 billion pipeline with 115+ opportunities over $100 million, including 15 over $500 million. Federal Solutions awaiting $10 billion in awards.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA of $158 million, 60 basis points margin expansion. Operating cash flow of $163 million, free cash flow conversion of 135%. Net debt leverage ratio of 1.4x.
- **Segment Performance**: Critical Infrastructure revenue up 18% YoY, EBITDA margin 10.3%. Federal Solutions revenue down 29% YoY due to confidential contract, but organic growth 5% excluding it.
- **Guidance Update**: Total revenue expected $6.4–$6.5 billion (14% YoY growth), adjusted EBITDA $600–$630 million. Federal Solutions revenue decline reflects delays in sole-source task orders and material procurements.
- **Balance Sheet**: $85 million convertible notes settled, $25 million share repurchases in Q3. Strong cash flow generation despite government shutdown impacts.

**【Q&A Key Highlights】**
- **Confidential Contract Impact**: Q3 revenue from the contract was immaterial, with wind-down expected. FY25 contribution ~$350 million, ~5% of total revenue.
- **FAA Modernization**: Imminent award for the $12.5 billion contract, with Parsons as the top bidder. Potential to drive mid-single-digit organic growth in Federal Solutions.
- **Government Shutdown**: Delays in task order approvals and material procurements caused $100 million+ revenue deferrals. Q4 guidance assumes shutdown extends into Q4, but expects recovery in 2026.
- **Critical Infrastructure Momentum**: Water and environment market expected to reach $650 million in 2025, with Applied Sciences Consulting enhancing Florida water infrastructure capabilities.
- **Defense and Security Growth**: Expansion into Middle East defense and border security markets, with wins for national security infrastructure and counter unmanned air systems.


Parsons Corporation (PSN) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 organic revenue up 8% (excluding confidential contract), with North America infrastructure up 17% and Middle East growth >10%.
- **Margin Expansion**: 40 basis points of margin improvement to 9.4%, driven by program execution and acquisitions.
- **Strategic Wins**: Secured $176M Army contract, $138M cyber contract, and $134M mine reclamation project, with book-to-bill of 1.0x.
- **Federal Funding**: FAA and Golden Dome initiatives align with $150B defense funding boost, positioning Parsons for H2 federal growth >20%.
- **Acquisition Impact**: Chesapeake adds $30M revenue and $5M EBITDA, with accretive synergies in cyber and electronic warfare.

**【CEO Summary Section】**
- **Q2 Financial Highlights**: Total revenue of $1.6 billion, adjusted EBITDA of $149 million (9.4% margin), and $160 million in cash flow from operations. Excluding a confidential contract, organic revenue grew 8% year-over-year.
- **Key Wins and Growth Drivers**: Secured $176M Army contract, $138M cyber contract, and $134M mine reclamation project. North America infrastructure revenue up 17%, Middle East revenue expected to grow over 10% in 2025.
- **Strategic Acquisitions**: Acquired Chesapeake Technology International to strengthen cyber and electronic warfare capabilities, aligning with federal funding increases.
- **Guidance Update**: Full-year revenue guidance raised to $6.48-6.68 billion, with adjusted EBITDA of $595-635 million, driven by pipeline execution and acquisitions.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $420 million, non-GAAP EPS of $1.08. Federal Solutions revenue grew 11% (8% organic), driven by cyber and aviation programs. Critical Infrastructure EBITDA margin expanded 350 basis points to 10.5%.
- **Cash Flow and Leverage**: Generated $574 million in trailing 12-month operating cash flow. Net debt leverage ratio of 1.5x, with $15 million in share repurchases.
- **Bookings and Backlog**: Q2 bookings of $1.5 billion (1.0x book-to-bill). Total backlog of $8.9 billion, with $6.2 billion funded.

**【Q&A Key Highlights】**
- **Federal Contracts**: FAA integrator contract ($12.5B funding) and Golden Dome initiative ($25B) align with Parsons' program management expertise. Federal Solutions organic growth expected to exceed 20% in H2.
- **Infrastructure Growth**: North America infrastructure spending to peak in 2028, with projects like Georgia SR400 and Hudson River Tunnel driving double-digit growth.
- **Margin Expansion**: Critical Infrastructure margins at 10.5% (Q2 record), Federal Solutions margins expected to improve to low 9% range in H2.
- **Acquisition Impact**: Chesapeake contributed $30M to revenue and $5M to EBITDA, with accretive synergies in federal and cyber markets.

Parsons Corporation (PSN) Q2 2025 Earnings Call Transcript

- **Q1 Records Across Metrics**: Revenue, net income, EPS, EBITDA all hit new highs. Excluding one contract, organic growth 7%.
- **Infrastructure Dominance**: 14% revenue growth in Critical Infrastructure, 10.3% EBITDA margin. Middle East projects drive double-digit growth.
- **Federal Growth Accelerating**: Cyber market up 20%+; $138M post-quarter contract win. 2025 defense budget alignment supports 8%+ growth.
- **Backlog & Pipeline Strength**: $9.1B backlog, $55B pipeline. 19+ $500M opportunities highlight long-term visibility.
- **Share Buyback & Cash Flow**: $25M Q1 repurchases; 125% free cash flow conversion. Strong balance sheet supports growth initiatives.

**【CEO Summary Section】**
- **Record Q1 Financials**: Total revenue of $1.6B, up 1% YoY; net income and EPS hit all-time highs. Excluding a confidential federal contract, organic revenue growth was 7%.
- **Critical Infrastructure Strength**: 14% revenue growth driven by North America and Middle East projects (e.g., Saudi Arabia's Vision 2030). Adjusted EBITDA margin reached 10.3%, a company record.
- **Federal Solutions Momentum**: 8% revenue growth in cyber and intelligence markets. Won $138M cyber contract post-quarter, aligning with $150B defense budget reconciliation.
- **Backlog & Pipeline**: $9.1B total backlog (69% funded), $55B pipeline with 19+ $500M opportunities. Book-to-bill ratio 1.1x enterprise-wide.

**【CFO Financial Commentary】**
- **Profitability Expansion**: Adjusted EBITDA up 5% YoY to $149M; margin +40bps to 9.6%. Federal Solutions margin 9%, despite cost-type contract mix.
- **Cash Flow Strength**: Operating cash use improved by $52M YoY to -$12M. Free cash flow conversion 125% trailing 12 months. Repurchased $25M in shares Q1.
- **Balance Sheet Health**: Net debt leverage 1.6x. $250M share repurchase authorization remains, with $225M available.

**【Q&A Highlights】**
- **Confidential Contract Update**: Running at 80% of prior year volume; resolution expected by mid-May. 2025 guidance assumes option year two negotiated value (-10% YoY).
- **DOGE Impact**: Minimal effect; focus on accelerating FAA modernization ($15B allocated in reconciliation). No IT consulting exposure.
- **M&A Outlook**: 2-3 acquisitions planned, with TRS Group ($37M) enhancing environmental remediation capabilities.
- **Federal Budget Alignment**: 10/17 DoD priority areas aligned with Parsons' capabilities (e.g., missile defense, cyber, munitions). FY26 $1T defense budget could drive growth.


Parsons (PSN)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record Growth**: FY2024 revenue up 24%, organic growth 22%, adjusted EBITDA +30%.
- **Federal Strength**: 30% organic growth in Federal Solutions driven by cyber, missile defense, and border security.
- **Infrastructure Expansion**: 15%+ growth in North America and Middle East, including $275M Saudi Arabia wins.
- **Acquisition Impact**: BlackSignal, BCC, TRS Group add $430M to FY2024 revenue with >10% margins.
- **Key Risks**: Confidential program volume uncertainty and federal budget delays.
- **2025 Outlook**: 7.5% revenue growth (5% organic), 12% adjusted EBITDA growth, 86% free cash flow conversion.


**【CEO Opening Remarks】**
- Parsons achieved record results in FY2024, including $6.7B+ revenue, 22% organic growth, and 30% adjusted EBITDA growth.
- Federal Solutions segment aligned with new administration priorities (missile defense, cyber, border security) drove 30% organic growth.
- Critical Infrastructure segment benefited from global infrastructure spending, with 15%+ growth in both North America and Middle East.
- Key contract wins include $275M in Saudi Arabia, $242M confidential program, and $1.2B Newark AirTrain project.
- Acquisitions (BlackSignal, BCC Engineering, TRS Group) expanded capabilities in cyber, infrastructure, and PFAS remediation.

**【CFO Financial Highlights】**
- Q4 2024 revenue: $1.7B (16% YoY growth), adjusted EBITDA: $147M (14% YoY growth).
- FY2024 adjusted EBITDA margin: 9% (up 50bps YoY), operating cash flow: $524M.
- 2025 guidance: Revenue $7.0B-$7.5B, adjusted EBITDA $640M-$710M, free cash flow conversion ~86%.
- Risks include paused related program impacting confidential contract and federal budget uncertainties.

**【Q&A Key Takeaways】**
- **Confidential Contract**: FY2025 plan assumes $242M funding, but full value contingent on related program restart.
- **Federal Aviation Agency (FAA)**: $1.8B 10-year contract with $1.6B remaining ceiling for technical support services.
- **M&A Strategy**: 2-3 accretive acquisitions/year targeting cyber, infrastructure, and PFAS capabilities.
- **Cash Flow**: FY2025 guidance reflects one-time $30M 401K match shift and lower federal program growth.
- **Sentinel Program**: Parsons expects to participate in restructured ground infrastructure bid.
- **Iron Dome Act**: Parsons' missile defense expertise positions it for $19.5B FY2026 funding opportunity.


Parsons Corporation (PSN) Q4 2024 Earnings Call Transcript

Parsons (PSN)-30 Oct 24-2024 Q3 Earnings call transcript

Parsons (PSN)-31 Jul 24-2024 Q2 Earnings call transcript

Parsons (PSN)-1 May 24-2024 Q1 Earnings call transcript

Parsons (PSN)-14 Feb 24-2023 Q4 Earnings call transcript

- **Record Growth**: Q3 revenue up 25% YoY to $1.4B; organic growth 23% across both segments. 
- **Strategic Wins**: $160M intelligence contract and $150M water authority project highlight cyber and infrastructure strength. 
- **M&A Impact**: Sealing Technologies and I.S. Engineers add $110M in cyber revenue and Texas infrastructure expertise. 
- **Guidance Raised**: Full-year revenue up $300M to $5.175B-$5.325B; EBITDA up $25M to $440M-$460M. 
- **Margin Expansion**: CI EBITDA margin 9.8% (vs. 8.5% H1); Federal Solutions targeting mid-9% margins. 
- **Backlog Strength**: $8.8B total backlog; $14B in unbooked contract awards. 
- **Geopolitical Resilience**: 50% of portfolio unaffected by gov shutdown; Middle East growth unaffected by Israel-Gaza conflict.

**【CEO Summary Section】**
- Parsons reported record third-quarter results, including total revenue of $1.4 billion (25% YoY growth), organic revenue growth of 23%, and adjusted EBITDA of $128 million (24% YoY increase). 
- Federal Solutions and Critical Infrastructure segments both achieved over 20% organic growth, driven by contract wins in cyber, space, and infrastructure. 
- Key wins include a $160 million intelligence community contract and a $150 million water authority project. 
- Acquisitions of Sealing Technologies and I.S. Engineers expanded cyber capabilities and Texas infrastructure expertise. 
- Full-year guidance raised to $5.175B-$5.325B revenue, $440M-$460M EBITDA, and $300M-$340M operating cash flow. 

**【CFO Financial Commentary】**
- GAAP net income: $420 million; Non-GAAP EPS: $1.08 (exceeded expectations). 
- Operating cash flow: $204 million (47% YoY increase); DSO: 65 days. 
- Federal Solutions EBITDA margin: 8.3%; Critical Infrastructure margin: 9.8%. 
- Book-to-bill ratio: 1.0x (enterprise), 1.2x (trailing 12 months). 
- Backlog: $8.8 billion (7% YoY growth). 

**【Q&A Key Highlights】**
- **Growth Sustainability**: CEO expects 20%+ organic growth in 2023, with 2024 guidance to be updated in Feb '24. 
- **M&A Pipeline**: Strong pipeline in cyber, space, and infrastructure; recent deals meet 10%+ EBITDA margin criteria. 
- **Margin Management**: CI margins improving (9.8% Q3 vs. 8.5% H1); Federal Solutions targeting mid-9% margins. 
- **Shutdown Risk**: 50% of portfolio unaffected; FAA exposure limited to $20M (10% EBITDA margin). 
- **Middle East Growth**: 30%+ quarterly growth in Middle East; 5 of 6 Saudi giga projects underway. 
- **Cyber Expansion**: Cyber represents 13% of portfolio; Sealing Technologies adds $110M in 2024 revenue. 
- **Texas Infrastructure**: I.S. Engineers acquisition taps $30B in IIJA funding for Texas transportation. 
- **Geopolitical Impact**: No direct impact on operations; focus on stabilizing Middle East through infrastructure. 
- **Legacy Programs**: 98% complete for one program; second program 84% complete. 
- **Free Cash Flow**: 100% conversion of adjusted net income expected for 2023.

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