| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 1.7K | 4.7% | 1.8% |
| Total Income | 1.7K | 4.7% | 1.8% |
| Expenditure | 1.5K | 1.8% | 2.2% |
| PBT | 87.86 | 2236.7% | 10.2% |
| Net Profit | 54.15 | 455.8% | 15.6% |
| OPM | 6.29% | 6.21pp | 0.37pp |
| NPM | 3.28% | 4.25pp | 0.67pp |
| EPS | 0.51 | 464.3% | 15.0% |
Parsons Reports Third Quarter 2026 Results
28 Oct 2026 · 1d ago, 4:06 pm
Summary
Parsons Corporation announced strong third quarter 2026 results, with revenue reaching $1.7 billion, a 2% increase year-over-year. The company achieved record adjusted EBITDA of $168 million, up 6%, and a record adjusted EBITDA margin of 10.2%, up 40 basis points. Both the Federal Solutions and Critical Infrastructure segments showed revenue growth, with strong demand reflected in a 1.1x book-to-bill ratio and record backlog levels. Management expressed confidence in the company's diversified portfolio and differentiated solutions, highlighting a solid foundation for sustained organic growth.
Key Highlights
- 1
Parsons reported Q3 revenue of $1.7 billion, an increase of 2% year-over-year, exceeding commitments.
- 2
Adjusted EBITDA increased by 6% to a record $168 million, with the margin expanding 40 basis points to a record 10.2%.
- 3
Total backlog reached a record $9.4 billion, up 6% year-over-year, and funded backlog reached a record $6.8 billion, up 7% year-over-year.
- 4
The company achieved a 1.1x book-to-bill ratio in the third quarter, with both segments delivering a ratio of 1.0x or greater.
- 5
Critical Infrastructure segment revenue increased 2% to $846 million, with adjusted EBITDA margin expanding 80 basis points to a record 11.1%.
- 6
Federal Solutions segment revenue increased 2% to $805 million, with adjusted EBITDA margin remaining unchanged at 9.2%.
- 7
Cash flow from operating activities for Q3 2026 was $269 million, a significant increase from $163 million in the prior year period.
Management Comments
Carey Smith
We delivered a strong third quarter, exceeding our commitments with record adjusted EBITDA and adjusted EBITDA margin, and robust operating cash flow and bookings across both Federal Solutions and Critical Infrastructure. This performance highlights the resilience of our diversified portfolio and the strength of our differentiated solutions and products. Strong awards, record total and funded backlog, and a robust pipeline provide a solid foundation for continued organic growth. We also continued to strengthen our portfolio, making meaningful progress on the strategic initiatives we outlined last quarter. While we continue to navigate procurement timing and geopolitical uncertainty, the alignment of our differentiated capabilities with our customers’ most critical national security and infrastructure needs reinforces our confidence in Parsons’ outlook. We remain focused on disciplined execution, converting our strong pipeline and recent awards into profitable growth, and delivering long-term value for our customers, employees, and shareholders.
Informational and educational content only. Not investment advice.