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Jun 30
Parsons Q2 2025 Earnings Report
Parsons reported strong second quarter 2025 results, with total and organic revenue growth across its core business, margin expansion, and exceptional free cash flow.
Key Takeaways
Parsons Corporation delivered a strong second quarter in 2025, with total revenue of $1.6 billion, despite a 5% year-over-year decrease. Excluding a confidential contract, revenue grew by 13%. The company achieved a net income of $55 million and an adjusted EBITDA of $149 million, with an expanded adjusted EBITDA margin of 9.4%. Parsons maintained a book-to-bill ratio of 1.0x and increased its total backlog to $8.9 billion, with 70% funded, the highest level since its IPO. The company also increased its fiscal year 2025 guidance for revenue, adjusted EBITDA, and cash flow from operations.
Total revenue for Q2 2025 was $1.6 billion, a 5% decrease year-over-year, but showed 13% growth excluding a confidential contract.
Net income for the quarter was $55 million, and adjusted EBITDA was $149 million, with an adjusted EBITDA margin of 9.4%, an increase of 40 basis points.
The company maintained a book-to-bill ratio of 1.0x and increased its total backlog to $8.9 billion, with 70% of it funded, marking the highest level since its IPO.
Parsons raised its fiscal year 2025 guidance for revenue, adjusted EBITDA, and cash flow from operations, reflecting strong performance and strategic acquisitions.
Parsons
Parsons
Parsons Revenue by Segment
Revenue by Segment
Federal Solutions Revenue
CapyFin.comCritical Infrastructure Revenue
CapyFin.com Forward Guidance
Parsons is increasing its fiscal year 2025 guidance ranges for revenue, adjusted EBITDA, and cash flow from operations, reflecting strong second-quarter performance and the impact of the CTI acquisition.
Positive Outlook
- Increased fiscal year 2025 revenue guidance to $6.48 billion - $6.68 billion.
- Increased fiscal year 2025 adjusted EBITDA guidance to $595 million - $635 million.
- Increased fiscal year 2025 cash flow from operating activities guidance to $400 million - $440 million.
- Guidance reflects strong second quarter operating performance.
- Guidance incorporates the positive impact of the CTI acquisition.
Challenges Ahead
- Net income guidance is not provided due to volatility associated with interest, taxes, depreciation, amortization, and other non-recurring events.
- Volatility from M&A impacts makes accurate net income guidance difficult.
- The company believes it cannot provide accurate net income guidance for fiscal year 2025.
- Factors like one-time and nonrecurring events contribute to the difficulty in providing net income guidance.
- The company does not assume any obligation to update forward-looking statements except as required by federal securities laws.