| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.5K | 4.1% |
| Total Income | 1.5K | 4.1% |
| Expenditure | 1.4K | 3.4% |
| PBT | 81.30 | 19.3% |
| Net Profit | 52.93 | 20.1% |
| OPM | 6.42% | 0.61pp |
| NPM | 3.55% | 0.71pp |
| EPS | 0.49 | 21.0% |
Parsons Reports Q1 2026 Revenue of $1.5 Billion, Adjusted EBITDA Up 1% to $151 Million
29 Apr 2026 · 29 Apr, 4:28 pm
Summary
Parsons Corporation announced its first quarter 2026 financial results, reporting revenue of $1.5 billion, a 4% decrease year-over-year, primarily due to lower volume on a confidential contract. Despite the revenue decline, the company achieved a record adjusted EBITDA of $151 million, up 1%, and expanded its adjusted EBITDA margin by 50 basis points to a record 10.1%. Net income, however, decreased by 20% to $53 million. Management expressed optimism about future growth, citing increasing global demand for defense and infrastructure, a strong backlog, and a robust pipeline of opportunities.
Key Highlights
- 1
Parsons Corporation reported first quarter 2026 revenue of $1.5 billion, which represents a 4% decrease year-over-year, or an 8% organic decline.
- 2
Net income for Q1 2026 decreased by 20% to $53 million compared to the prior year period.
- 3
Adjusted EBITDA increased by 1% to a Q1 record of $151 million, with the adjusted EBITDA margin expanding 50 basis points to a record 10.1%.
- 4
The company achieved a Q1 record cash flow used in operating activities of $4 million.
- 5
Total backlog reached a record $9.3 billion, up $235 million from Q1 2025, with funded backlog also hitting a record $6.6 billion, representing 71% of total backlog.
- 6
Parsons secured a robust book-to-bill ratio of 1.4x in both its Critical Infrastructure and Federal Solutions segments, extending its streak of a trailing twelve-month book-to-bill ratio of 1.0x or greater since its IPO.
Management Comments
Carey Smith
Our first quarter results highlighted the resilience of our business and our team's high level of execution, as we delivered our highest adjusted EBITDA margin ever, reached record levels for both total and funded backlog, achieved a robust book-to-bill ratio of 1.4x in both segments, and generated record first quarter cash flow. Revenue performance was in line with our expectations, and we continued to complement our organic growth with strategic, accretive acquisitions that enhance our differentiation and drive long-term shareholder value. Looking forward, we are very optimistic about our future. There is increasing global demand for both defense and infrastructure. Our ability to deliver operationally relevant solutions with speed, digitally transform our offerings, and leverage non-traditional commercial business models enables us to uniquely meet our customers’ critical needs. We have a unique and synergistic Critical Infrastructure and Federal Solutions portfolio, consisting of six growing, profitable, and enduring end-markets. With our record total and funded backlog, robust pipeline of large opportunities, strong win rates, and $11 billion in awarded contracts not yet booked, we believe we are well positioned to deliver for our customers and shareholders.
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