Slide 1: Third Quarter 2024 Earnings Conference Call Presentation
THIRD QUARTER 2024 Earnings Conference Call Presentation October 30, 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 major contract awards received by us; our ability to generate revenue under certain of our contracts; a
Slide 3: Major Messages
MAJOR MESSAGES Record results since IPO for the third quarter of 2024: total revenue, net income, adjusted EBITDA, operating cash flow, and contract awards Record revenue of $1.8B increases 28% year-over-year Record organic revenue growth of 26%, including six consecutive quarters with year-over
Slide 4: Q3 2024 Key Highlights
Q3 2024 KEY HIGHLIGHTS Record third quarter Total revenue growth of 28% year-over-year; total organic growth of 26% Record total revenue driven by Federal Solutions organic growth of 39% and Critical Infrastructure organic growth of 10% Q3 2024 REVENUE Record net income increases 52% to $72M $
Slide 5: Q3 2024 Financial Summary
Q3 2024 FINANCIAL SUMMARY Record total revenue, adjusted EBITDA, cash flow from operations, and contract awards Q3 2024 total revenue of $1.8B increases 28% year-over- Q3 2024 adjusted EBITDA margin expands 20 bps y/y; year- year to-date adjusted EBITDA margin expands 60 bps Organic revenue gr
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q3 2024 revenue increases 42% and increased Q3 2024 revenue increases 10% on both an 39% organically from Q3 2023 organic and inorganic basis from Q3 2023 Adjusted EBITDA increases 84% to $120M Adjusted EBITDA decreases 25% t
Slide 7: Significant Contract Wins
SIGNIFICANT CONTRACT WINS Awarded Option awards totaling $287 million with a confidential customer in the company's Federal Solutions segment. $287M Awarded Booked an option period totaling $245 million on a General Services Administration contract. This contract supports the Department of Defense a
Slide 8: Significant Contract Wins (continued)
SIGNIFICANT CONTRACT WINS (continued) Awarded In Saudi Arabia, awarded contracts valued at more than $200 million including two large program management awards. $200M+ Awarded $134 million of contracts in the INDOPACOM region. Parsons won a three-year $69 million contract on Kwajalein in the Marshal
Slide 9: Additional Corporate Highlights
Additional Corporate Highlights Announced Acquisition of BCC Engineering, LLC for Approximately $230M After the third quarter ended, Parsons entered into a definitive agreement to acquire BCC Engineering, LLC, one of Florida's leading transportation engineering firms, in an all-cash transaction valu
Slide 10: 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 $6.6 - $6.8B $6.35 - $6.55B +23% (+22% organic) Adjusted EBITDA $590 - $620M $555 - $595M +30% Cash Flow from Operations $425 - $465M $395 - $455M 9%* *2024
Slide 11: Fiscal Year 2024 Guidance Assumptions
FISCAL YEAR 2024 GUIDANCE ASSUMPTIONS ~ 60% of total revenue to be generated from Federal Equity-based compensation expenses of ~ $57M Solutions segment at the mid-point D&A expenses of ~ $99M, which includes ~ $56M of Adjusted EBITDA margin of ~ 9.0% at the mid-point of acquisition-related
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 Nine Months Ended Sept 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 Net income attributable to Parsons Corporation $71,951 $47,447
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 Nine Months Ended Sept 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 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 Nine Months Ended