Slide 1: Third Quarter 2023 Earnings Conference Call Presentation
THIRD QUARTER 2023 Earnings Conference Call Presentation November 1, 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 Third Quarter 2023 Results Delivered another record quarter with all-time highs for revenue, organic revenue growth, and cash flow from operations Record organic growth of 23%, including organic growth of over 20% in both segments for the second consecutive quarter Net in
Slide 4: Q3 2023 Key Highlights
Q3 2023 KEY HIGHLIGHTS Record third quarter Total revenue growth of 25% year-over-year; total organic growth of 23% Strong revenue driven by Critical Infrastructure organic growth of 24% and Q3 2023 REVENUE Federal Solutions organic growth of 23% $1.4 Billion Q3 2023 adjusted EBITDA of $128M,
Slide 5: Q3 2023 Financial Summary
Q3 2023 FINANCIAL SUMMARY Record revenue, organic growth, adjusted EBITDA, and cash flow from operations Q3 2023 total revenue of $1.4B increased 25% year-over- Contract awards increased 14% to $1.4B year Total backlog increased $587M to $8.8B from Q3 2022 Organic revenue growth of 23% year-
Slide 6: Business Segment Summary
BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q3 2023 revenue increased 26% and increased Q3 2023 revenue increased 24% and increased 23% organically from Q3 2022 24% organically from Q3 2022 Adjusted EBITDA increased 7% to $65M Adjusted EBITDA increased 51% to $63M Co
Slide 7: Significant Contract Wins – Q3 2023
SIGNIFICANT CONTRACT WINS – Q3 2023 Awarded a $160 million contract by the Intelligence Community to develop hardware and software solutions that enable Awarded intelligence operations. This classified contract includes a one-year base period plus six one-year option periods and $160M represents bot
Slide 8: Additional Corporate Highlights
Additional Corporate Highlights Acquired Sealing Technologies For Approximately $200M SealingTech expands Parsons’ customer base across the Department of Defense and Intelligence Community, and further enhances the company’s capabilities in defensive cyber operations; integrated mission-solutions po
Slide 9: 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 $5.175 - $5.325B $4.85 - $5.05B +25% (+19% organic) Adjusted EBITDA $440 - $460M $410 - $440M +28% Cash Flow from Operations $300 - $340M $280 - $340M +35% N
Slide 10: Fiscal Year 2023 Guidance Assumptions
FISCAL YEAR 2023 GUIDANCE ASSUMPTIONS ~ 55% of total revenue to be generated from Federal FY23 guidance includes ~ $15M 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 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 to Adjusted EBITDA (in thousands) Three Months Ended Nine Months Ended Sept 30, 2023 Sept 30, 2022 Sept 30, 2023 Sept 30, 2022 Net income attributable to Parsons Corporation $47,447 $29,571
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 Nine Months Ended Sept 30, 2023 Sept 30, 2022 Sept 30, 2023 Sept 30, 2022 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 Attributable to Parsons Corporation (in thousands, except per share information) Three Months Ended Nine Months Ended