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Dec 31, 2025
Parsons Q4 2025 Earnings Report
Parsons reported its fourth quarter and fiscal year 2025 financial results, showing a decrease in revenue but an increase in net income and adjusted EBITDA for the quarter.
Key Takeaways
Parsons Corporation announced its financial results for the fourth quarter and fiscal year ended December 31, 2025. For Q4 2025, revenue decreased by 8% year-over-year to $1.6 billion, while net income increased by 3% to $56 million, marking a fourth-quarter record. Adjusted EBITDA rose by 5% to $153 million, with an adjusted EBITDA margin of 9.6%.
Q4 revenue decreased 8% year-over-year to $1.6 billion, and 10% on an organic basis.
Net income for Q4 increased 3% year-over-year to $56 million, setting a new fourth-quarter record.
Adjusted EBITDA for Q4 increased 5% to $153 million, with an adjusted EBITDA margin of 9.6%.
Cash flow from operations for Q4 increased 32% to $168 million.
Revenue by Segment
Forward Guidance
Parsons Corporation provided fiscal year 2026 guidance, projecting revenue between $6.5 billion and $6.8 billion, adjusted EBITDA between $615 million and $675 million, and cash flow from operating activities between $470 million and $530 million. The company also outlined long-term growth targets including mid-single-digit or better organic revenue growth and double-digit adjusted EBITDA margin by 2028.
Positive Outlook
- Projected FY26 revenue of $6.5 billion - $6.8 billion.
- Projected FY26 adjusted EBITDA of $615 million - $675 million.
- Projected FY26 cash flow from operating activities of $470 million - $530 million.
- Long-term target of mid-single-digit or better organic revenue growth.
- Long-term target of double-digit adjusted EBITDA margin by 2028.
Challenges Ahead
- Net income guidance is not provided due to volatility associated with interest, taxes, depreciation, amortization, and other nonrecurring events.
- The company acknowledges potential impacts from M&A on net income guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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