Slide 1: Second Quarter 2024 Earnings Conference Call Presentation
SECOND QUARTER 2024 Earnings Conference Call Presentation July 31, 2024
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 Record results since IPO for the second quarter of 2024: total revenue, net income, adjusted EBITDA, and operating cash flow Record revenue of $1.7B increases 23% year-over-year Strong second quarter organic revenue growth of 22%, marking the fifth consecutive quarter with year-ov
Slide 4: Q2 2024 Key Highlights
Q2 2024 KEY HIGHLIGHTS Record second quarter Total revenue growth of 23% year-over-year; total organic growth of 22% Record total revenue driven by Federal Solutions organic growth of 27% and Q2 2024 REVENUE Critical Infrastructure organic growth of 15% $1.7 Billion Record net income increases
Slide 5: Q2 2024 Financial Summary
Q2 2024 FINANCIAL SUMMARY Record total revenue, adjusted EBITDA, and cash flow from operations Q2 2024 total revenue of $1.7B increases 23% year-over- Cash flow from operations increased $138M to $161M year Trailing twelve-month operating cash flow of $492M Organic revenue growth of 22% year
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q2 2024 revenue increased 30% and increased Q2 2024 revenue increased 15% on both an 27% organically from Q2 2023 organic and inorganic basis from Q2 2023 Adjusted EBITDA increased 20% to $103M Adjusted EBITDA increased 46% t
Slide 7: Significant Contract Wins
SIGNIFICANT CONTRACT WINS Awarded an option period totaling $460M under the company’s Technical Engineering, Advisory, and Management Support contract. On this program, Parsons provides system engineering and integration for the Nation’s missile defense Awarded system. This includes engineering expe
Slide 8: Additional Corporate Highlights
Additional Corporate Highlights Anticipated Acquisition of BlackSignal Technologies for Approximately $200M After the second quarter ended, Parsons entered into a definitive agreement to acquire BlackSignal Technologies in a transaction valued at approximately $200M. BlackSignal is a next-generation
Slide 9: Fiscal Year 2024 Guidance: Increasing All Guidance Ranges
FISCAL YEAR 2024 GUIDANCE: INCREASING ALL GUIDANCE RANGES Current FY24 Prior FY24 FY24 Y/Y Growth at Guidance Guidance Mid-Point Total Revenue $6.35 - $6.55B $6.1 - $6.4B +19% (+18% organic) Adjusted EBITDA $555 - $595M $535 - $575M +24% Cash Flow from Operations $395 - $455M $380 - $440M 4%* *2024
Slide 10: Fiscal Year 2024 Guidance Assumptions
FISCAL YEAR 2024 GUIDANCE ASSUMPTIONS ~ 58% of total revenue to be generated from Federal Equity-based compensation expenses of ~ $46M Solutions segment at the mid-point D&A expenses of ~ $91M, which includes ~ $50M of Adjusted EBITDA margin of ~ 8.9% at the mid-point of acquisition-related
Slide 11: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Parsons Corporation Sensitive / Proprietary 11
Slide 12: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income (loss) attributable to Parsons Corporation $6
Slide 13: 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, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Federal Solutions Adjusted EBITDA
Slide 14: 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 (Loss) Attributable to Parsons Corporation (in thousands, except per share information) Three Months Ended Six Months