| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 1.6K | 5.7% | 0.5% |
| Total Income | 1.6K | 5.7% | 0.5% |
| Expenditure | 1.6K | 12.8% | 5.8% |
| PBT | 3.76 | 95.4% | 95.8% |
| Net Profit | -15.22 | 128.8% | 127.6% |
| OPM | 0.08% | 6.33pp | 5.96pp |
| NPM | -0.97% | 4.51pp | 4.45pp |
| EPS | -0.14 | 128.6% | 126.9% |
Parsons Reports Second Quarter 2026 Results
29 Jul 2026 · 29 Jul, 4:01 pm
Summary
Parsons Corporation announced its financial results for the second quarter ended June 30, 2026, reporting revenue of $1.6 billion, a slight decrease of 1% year-over-year. The company highlighted strong demand with a 24% year-over-year increase in contract awards and a 1.2x book-to-bill ratio. Net income was impacted by significant charges related to portfolio-shaping actions and joint ventures, resulting in a net loss of $15 million. However, adjusted EBITDA, excluding these charges, showed an 8% year-over-year increase. Management expressed confidence in the company's strategic positioning, backlog, and technology capabilities to drive future profitable growth.
Key Highlights
- 1
Parsons reported a 1.2x book-to-bill ratio for the second quarter of 2026, with contract awards increasing 24% year-over-year.
- 2
The company's Federal Solutions segment saw a 51% year-over-year increase in bookings.
- 3
Q2 2026 revenue was $1.6 billion, a decrease of 1% year-over-year and 5% on an organic basis, in line with expectations.
- 4
Net income for Q2 2026 was ($15 million), impacted by $85 million in losses on portfolio-shaping actions and joint venture charges.
- 5
Adjusted EBITDA decreased 72% to $42 million, but excluding $118 million of charges, it increased 8% year-over-year to $161 million.
- 6
Total and funded backlog increased to $9.3 billion and $6.6 billion, respectively.
Management Comments
Carey Smith
Our second quarter results highlight the demand for our solutions and the effectiveness of our strategy in a dynamic macro environment. Parsons delivered strong book-to-bill ratios in both segments, achieved profitable growth in its core business, and secured strategic contract wins for long-term success. The Middle East business performed exceptionally well despite regional conflict, posting a 1.1x book-to-bill ratio and 10% organic revenue growth, demonstrating strong alignment with regional spending priorities. During the quarter, Parsons took decisive portfolio-shaping actions to focus on profitable and sustainable growth. These steps, combined with robust risk management and enhanced bid discipline, further strengthen the company’s market position and margin profile. Looking ahead, we believe Parsons’ strong backlog, robust pipeline, high win rates, and differentiated technology capabilities—especially in advanced AI, cyber, and electronic warfare—position the company to drive profitable growth and deliver long-term shareholder value.
Informational and educational content only. Not investment advice.