Parsons Corporation · NYSE:PSN
Parsons — Q1 2025 Earnings Presentation
17 slides from Parsons's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Earnings Conference Call Presentation
FIRST QUARTER 2025 Earnings Conference Call Presentation April 30, 2025
Slide 2: Forward Looking Statements
FORWARD This presentation contains forward-looking statements within the of major contract awards received by us; our ability to generate meaning of the Private Securities Litigation Reform Act of 1995, revenue under certain of our contracts; any inability to attract, train Section 27A of the Securi
Slide 3: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Strong financial performance across portfolio Record first quarter results for total revenue, net income, earnings per share, adjusted EBITDA, and adjusted EBITDA margin. Total and funded backlog are at all-time highs Adjusted EBITDA margin expands 40 basis points to 9.6% St
Slide 4: Q1 2025 Key Highlights
Q1 2025 KEY HIGHLIGHTS Strong start to the year with Q1 financial records Total revenue increased $19M to $1.6B Q1 2025 REVENUE Net income increased 67% to $66M Adjusted EBITDA of $149M; up 5% from Q1 2024 $1.6 Billion Adjusted EBITDA margin expands 40 basis points to 9.6% NET INCOME Continu
Slide 5: Q1 2025 Financial Summary
Q1 2025 FINANCIAL SUMMARY Record quarterly total revenue, net income, earnings per share, adjusted EBITDA, and adjusted EBITDA margin. All-time high total and funded backlog. Q1 2025 total revenue of $1,554M increased Adjusted EBITDA of $149M increased 5% from 1% from Q1 2024 prior year period
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q1 2025 total revenue of $843M decreased 7% from Q1 2025 revenue increased 14% and 8% organically prior year period from Q1 2024 Q1 2025 revenue growth of 8% and 6% on an organic Adjusted EBITDA of $73M increased basis exclud
Slide 7: Two Industry-Leading Segments with Uniquely Synergistic Portfolio
TWO INDUSTRY-LEADING SEGMENTS WITH UNIQUELY SYNERGISTIC PORTFOLIO Federal Solutions + Federal Critical Infrastructure Critical Infrastructure Create an exquisite non-traditional company Leverage reputation, brand, design & engineering, and that delivers operationally relevant cyber, Capitalize on un
Slide 8: Significant Contract Wins
Awarded $243M Awarded an option year totaling $243 million on a General Services Administration contract. This is for both new and continuing defense work delivering global quick reaction capabilities that leverage advanced technology solutions across the all-domain battlespace. This award is part o
Slide 9: Significant Contract Wins (Continued)
Awarded $95M In space and missile defense, Parsons received a new $95 million contract for operational fielding and sustainment of the US Air Force's Europe Air Defense Early Warning Capability to U.S. and NATO-partners across the European Command Area of Operations. Awarded $49M Awarded a new five-
Slide 10: Winning Business Across Six End Markets
WINNING BUSINESS ACROSS SIX END MARKETS Cyber & Intelligence Space & Missile Defense Critical Infrastructure Protection 8-10% $243M GSA option year focused on near peer threat 7-8% $95M Air Base Air Defense 4-6% $138M Defense Threat Reduction Agency award Market CAGR Market CAGR Market CAGR Transpor
Slide 11: Additional Corporate Highlights
Acquired TRS Group for Approximately $37M Parsons announced and closed its acquisition of TRS Group, an industry leader in PFAS, thermal, and holistic environmental remediation, having cleaned hazardous and toxic substances from soil, groundwater, and fire suppression systems for global clients. Thi
Slide 12: Reiterating Fiscal Year 2025 Guidance
REITERATING FISCAL YEAR 2025 GUIDANCE 2024 Actuals 2025 Guidance Growth at Mid-Point Total Revenue $6.8B $7.0 - $7.5B +7% (5% organic) Adjusted EBITDA $605M $640 - $710M +12% (30 bps) Cash Flow from Operations $524M $420 - $480M -14%* *2025 free cash flow conversion is expected to be approximately 8
Slide 13: Fiscal Year 2025 Guidance Assumptions
FISCAL YEAR 2025 GUIDANCE ASSUMPTIONS ~ 56% of total revenue to be generated from Federal Solutions segment at the mid-point PATTERNS Adjusted EBITDA margin of ~ 9.3% at the mid-point of the Revenue: approximately 8% sequential growth revenue guidance, up 30bps from 2024 (Q1 2025 to Q2 2025) and
Slide 14: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Parsons Corporation 14
Slide 15: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income to Adjusted EBITDA (in thousands) Three Months Ended March 31, 2025 March 31, 2024 Net income attributable to Parsons Corporation $66,203 $39,750 Interest expense, net 10,104 11,846 Income
Slide 16: Adjusted EBITDA Attributable to NCI
ADJUSTED EBITDA ATTRIBUTABLE TO NCI PARSONS CORPORATION Non-GAAP Financial Information Computation of Adjusted EBITDA Attributable to Noncontrolling Interests (in thousands) Three Months Ended March 31, 2025 March 31, 2024 Federal Solutions Adjusted EBITDA attributable to Parsons Corporation $75,532
Slide 17: Adjusted Net Income Attributable to Parsons
ADJUSTED NET INCOME ATTRIBUTABLE TO PARSONS PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income Attributable to Parsons Corporation to Adjusted Net Income Attributable to Parsons Corporation (in thousands, except per share information) Three Months Ended March 31, 2025 Ma