Slide 1: Second Quarter 2023 Earnings Conference Call Presentation
SECOND QUARTER 2023 Earnings Conference Call Presentation August 2, 2023
Slide 2: Forward Looking Statements
FORWARD This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and terminations or cancellations caused by competitors’ protests of major contract awards received by us;
Slide 3: Major Messages
MAJOR MESSAGES Strong Second Quarter 2023 Results Delivered another record quarter with all-time highs for revenue, organic revenue growth, adjusted EBITDA, contract awards, and total backlog Record organic growth of 23%, including organic growth of over 20% in both segments Strong book-to-bil
Slide 4: Q2 2023 Key Highlights
Q2 2023 KEY HIGHLIGHTS Record second quarter Total revenue growth of 34% year-over-year; total organic growth of 23% Strong revenue driven by Critical Infrastructure organic growth of 25% and Q2 2023 REVENUE Federal Solutions organic growth of 20% $1.4 Billion Record quarterly adjusted EBITDA
Slide 5: Q2 2023 Financial Summary
Q2 2023 FINANCIAL SUMMARY Record revenue, organic growth, adjusted EBITDA, contract award activity, and total backlog Q2 2023 total revenue of $1.4B increased 34% year-over- Contract awards increased 95% to $1.9B year Total backlog increased $674M to $8.9B from Q2 2022 Organic revenue growth
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q2 2023 revenue increased 42% and increased Q2 2023 revenue increased 26% and increased 20% organically from Q2 2022 25% organically from Q2 2022 Adjusted EBITDA increased 80% to $86M Adjusted EBITDA increased 10% to $33M C
Slide 7: Significant Contract Wins – Q2 2023
SIGNIFICANT CONTRACT WINS – Q2 2023 Awarded the Federal Aviation Administration’s $1.8 billion ceiling value recompete contract to support their Aviation Awarded System Capital Investment Plan, of which the company booked the 3-year base period for $641 million. Parsons has been $1.8B the prime cont
Slide 8: Significant Contract Wins (continued)
SIGNIFICANT CONTRACT WINS (continued) Awarded Awarded a new $127 million contract as a subcontractor to a federal customer, of which the company booked $25 $127M million, to deliver detection technology solutions. Awarded Awarded a $109 million recompete contract from the United States Cyber Command
Slide 9: ESG Highlights
ESG Highlights US Completes Chemical Weapons Stockpile Destruction Operations Parsons was part of the team that helped the United States comply with the 1997 Chemical Weapons Convention agreement by destroying the country’s last chemical weapon. The final sarin nerve agent filled M55 rocket was dest
Slide 10: Fiscal Year 2023 Guidance: Increasing All Guidance Ranges
FISCAL YEAR 2023 GUIDANCE: INCREASING ALL GUIDANCE RANGES Current FY23 Prior FY23 FY23 Y/Y Growth at Guidance Guidance Mid-Point Total Revenue $4.85 - $5.05B $4.5 - $4.7B +18% (+12% organic) Adjusted EBITDA $410 - $440M $375 - $415M +20% Cash Flow from Operations $280 - $340M $275 - $335M +31% Net i
Slide 11: Fiscal Year 2023 Guidance Assumptions
FISCAL YEAR 2023 GUIDANCE ASSUMPTIONS ~ 54% of total revenue to be generated from Federal FY23 guidance includes ~ $10M of transaction and Solutions segment at the mid-point other expenses from prior acquisitions, but does not include future acquisitions Adjusted EBITDA margin of ~ 8.6% at the
Slide 12: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Parsons Corporation Sensitive / Proprietary 12
Slide 13: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income to Adjusted EBITDA (in thousands) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net income attributable to Parsons Corporation $43,241 $18,295
Slide 14: 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 Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Federal Solutions Adjusted EBITDA
Slide 15: 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 Six Months Ended