Parsons Corporation Reports Q2 2025 Revenue of $1.58 Billion, Down 5.2%

Parsons Corporation reported its financial results for the second quarter of 2025, revealing a revenue of $1.58 billion, a decrease of 5.2% from $1.67 billion in the same period last year. For the first half of 2025, total revenue was $3.14 billion, down 2.1% from $3.21 billion in the prior year. The decline in revenue was primarily attributed to a significant drop in the Federal Solutions segment, which saw a decrease of $183.1 million, offset by a $97 million increase in the Critical Infrastructure segment. The company's net income attributable to Parsons Corporation for the quarter was $55.2 million, or $0.52 per share, compared to $69.2 million, or $0.65 per share, in the previous year.

The company experienced notable changes in its operational metrics. Direct costs of contracts decreased by 6.3% to $1.24 billion for the quarter, reflecting reduced volume in the Federal Solutions segment. Selling, general, and administrative expenses rose by 12.9% to $252.1 million, driven by increased investments in personnel and bid activities. The equity in losses of unconsolidated joint ventures improved significantly, with losses of $642,000 compared to $16.8 million in the prior year, indicating a winding down of participation in construction joint ventures.

Strategically, Parsons made significant acquisitions, including Chesapeake Technology International Corp for $89.2 million, enhancing its capabilities in technology solutions for defense. The company also acquired TRS Group, Inc. for $36.6 million, which specializes in environmental remediation. These acquisitions are expected to bolster Parsons' position in the market and contribute to future revenue growth. The company reported a total backlog of $8.94 billion as of June 30, 2025, reflecting a slight increase from $8.83 billion a year earlier, with a remaining unsatisfied performance obligation of $7 billion.

Looking ahead, Parsons anticipates continued challenges in the Federal Solutions segment due to delays in contract awards and a reduction in work volume from a confidential contract. However, the company remains optimistic about growth in the Critical Infrastructure segment, supported by recent acquisitions and an expanding customer base. The company expects to recognize approximately $4.3 billion of its funded backlog as revenue over the next twelve months, indicating a solid pipeline for future earnings.