Parsons Corporation Reports $6.4 Billion Revenue for Fiscal Year 2025, Down 5.7%

Parsons Corporation reported a revenue of $6.4 billion for the fiscal year ending December 31, 2025, a decrease of 5.7% from $6.8 billion in the previous year. The company's net income attributable to Parsons Corporation was $241.1 million, reflecting a net income margin of 3.8%, compared to 3.5% in 2024. Adjusted EBITDA for the year was $609.3 million, representing an adjusted EBITDA margin of 9.6%, up from 9.0% in the prior year. The decline in revenue was primarily attributed to a significant reduction in the Federal Solutions segment, which saw a 19.6% drop in revenue, largely due to decreased volume from a confidential contract. In contrast, the Critical Infrastructure segment experienced a 14.6% increase in revenue, driven by organic growth and contributions from recent acquisitions.

The company’s total backlog as of December 31, 2025, was approximately $8.7 billion, a slight decrease of 2% from the previous year. This backlog consisted of $6.4 billion in funded contracts and $2.3 billion in unfunded contracts. Parsons achieved a book-to-bill ratio of 1.0, indicating that the total awards received matched the revenue recognized during the year. The company reported a win rate of 61% for the year, with a notable 99.6% re-compete win rate, providing a degree of stability in its contract portfolio.

Strategically, Parsons made several acquisitions in 2025, including Chesapeake Technology International Corp. for $91.5 million, Applied Sciences Consulting, Inc. for $28.1 million, and TRS Group, Inc. for $36.6 million. These acquisitions are expected to enhance Parsons' capabilities in critical areas such as defense technology and environmental remediation. The company continues to focus on leveraging technology and innovation to drive growth, particularly in sectors like cyber and electronic warfare, space and missile defense, and critical infrastructure protection.

Operationally, Parsons employed approximately 21,000 individuals as of December 31, 2025, reflecting a commitment to maintaining a skilled workforce amid competitive labor market conditions. The company reported a net days sales outstanding (DSO) of 67 days, an increase from 55 days in the previous year, indicating a need for improved cash collection processes. Looking ahead, Parsons anticipates continued growth driven by government spending in defense and infrastructure, although it remains cautious about potential budgetary constraints and changing government priorities that could impact future revenue streams.