Parsons Corporation Reports 24% Revenue Growth to $6.75 Billion in Fiscal 2024

Parsons Corporation (PSN) reported revenues of $6.75 billion for the fiscal year ended December 31, 2024, a 24% increase compared to $5.44 billion in fiscal 2023. Net income attributable to Parsons Corporation was $235.1 million in fiscal 2024, representing a 3.5% margin, up from $161.1 million (3% margin) in fiscal 2023. Adjusted EBITDA, a non-GAAP measure, reached $605.0 million in fiscal 2024, a 9% margin, compared to $464.7 million (8.5% margin) in the prior year. The increase in revenue and profitability was driven by growth in both the Federal Solutions and Critical Infrastructure segments.

Significant changes compared to the previous fiscal year included a 33% year-over-year increase in Federal Solutions revenue and a 13% increase in Critical Infrastructure revenue. The company's overall win rate was 72% in fiscal 2024, up from 66% in fiscal 2023 and 49% in fiscal 2022. Total backlog increased by 4% to $8.9 billion as of December 31, 2024, compared to $8.59 billion at the end of fiscal 2023. The company attributed the increase in new awards to significant option period awards in the Federal Solutions segment and several large transportation and mining awards in the Critical Infrastructure segment.

During fiscal 2024, Parsons completed several acquisitions, including BCC Engineering, LLC for $232.7 million and BlackSignal Technologies, LLC for $203.7 million. Other acquisitions in prior periods included I.S. Engineers, LLC, Sealing Technologies, Inc., IPKeys Power Partners, Inc., and Xator Corporation. These acquisitions expanded Parsons' capabilities in areas such as infrastructure, cybersecurity, and electronic warfare, and broadened its customer base across the Department of Defense and Intelligence Community. As of December 31, 2024, Parsons employed approximately 19,600 people.

Key operational developments included a 72% win rate in fiscal 2024, and a strong re-compete win rate of 84%. The company's iNET® platform, an Advanced Traffic Management System, has been deployed to numerous state Departments of Transportation, cities, and countries. Parsons also highlighted its involvement in major infrastructure projects globally, including the Riyadh Metro and various projects in the Middle East. The company's backlog as of December 31, 2024, was $8.9 billion, with $3.9 billion expected to be recognized as revenue in the following twelve months.

Parsons noted several factors that could affect its future performance, including changes in government spending and priorities, competition, and the successful integration of acquired businesses. The company stated that it expects operating expenses to increase due to anticipated growth but anticipates these costs to decline as a percentage of total revenue as it realizes the benefits of scale. The company also highlighted risks related to government contract terminations, cybersecurity threats, and the potential for impairment of goodwill and intangible assets.