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Dec 31, 2024
Parsons Q4 2024 Earnings Report
Parsons reported record revenue and earnings for Q4 2024, marking its eighth consecutive quarter of double-digit organic growth.
Key Takeaways
Parsons Corporation posted strong Q4 2024 results with 16% revenue growth, reaching $1.73 billion. Net income rose 21% to $54.18 million, while adjusted EBITDA increased 14% to $147 million. The company achieved strong contract awards and maintained a book-to-bill ratio of 1.0x, positioning itself for continued growth in 2025.
Revenue grew 16% YoY to $1.73 billion, driven by organic growth of 14% and acquisitions.
Net income increased 21% YoY to $54.18 million, with GAAP EPS rising to $0.49.
Federal Solutions revenue surged 19% YoY, while Critical Infrastructure grew 12%.
Parsons secured record contract awards of $1.7 billion in Q4, up 34% YoY.
Parsons
Parsons
Parsons Revenue by Segment
Revenue by Segment
Federal Solutions Revenue
CapyFin.comCritical Infrastructure Revenue
CapyFin.com Forward Guidance
Parsons expects revenue growth between 3% and 11% in FY 2025, with an adjusted EBITDA range of $640M to $710M, supported by continued contract wins and strategic acquisitions.
Positive Outlook
- Revenue guidance for FY 2025 set between $7.0B and $7.5B, indicating strong growth potential.
- Expected adjusted EBITDA of $640M to $710M, reflecting margin expansion efforts.
- Continued investment in cybersecurity and infrastructure modernization to drive organic growth.
- Robust backlog of $8.9 billion supports revenue visibility for the coming year.
- Strategic acquisitions of BCC Engineering and TRS Group enhance capabilities and market presence.
Challenges Ahead
- Book-to-bill ratio of 1.0x suggests contract awards need to accelerate to sustain long-term growth.
- Operating margin impacted by cost adjustments in two programs, reducing efficiency gains.
- Potential volatility in net income due to interest, taxes, and acquisition-related amortization.
- Competitive pressures in federal contracts may affect pricing and margins.
- Macroeconomic uncertainties, including infrastructure funding cycles, could impact revenue timing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income