Slide 1: Fourth Quarter and Fiscal Year 2024 Earnings Conference Call Presentation
FOURTH QUARTER AND FISCAL YEAR 2024 Earnings Conference Call Presentation February 19, 2025
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 execution driving consistent results Record Q4 and FY24 results since Parsons’ IPO: total revenue, net income, adjusted EBITDA, and contract awards. For FY24, also achieved record adjusted EBITDA margin and operating cash flow. Delivered record revenue for Q4 and fiscal year
Slide 4: 2024 Financial Performance
2024 FINANCIAL PERFORMANCE Exceptional growth for all three financial guidance metrics 2024 Guidance Mid-point* 2024 Actuals Highlights 24% total revenue growth and organic growth of 22% over Total Revenue $6.700B $6.751B FY23 Adjusted EBITDA $605M $605M 30% increase over the prior year Cash Flow fr
Slide 5: Q4 2024 Key Highlights
Q4 2024 KEY HIGHLIGHTS Record finish to the year Q4 2024 revenue growth of 16% over Q4 2023 with 14% organic growth Record net income increased 21% to $54M year-over-year Q4 2024 REVENUE Record adjusted EBITDA increased 14% to $147M $1.7 Billion Continuing to win large contracts and positioned
Slide 6: FY24 Financial Summary
FY24 FINANCIAL SUMMARY Record total revenue, net income, adjusted EBITDA, adjusted EBITDA margin, operating cash flow, and contract awards FY24 total revenue of $6,751M increased 24% Cash flow from operations of $524M increased 28% and 22% organically from FY23 from FY23 Adjusted EBITDA of $60
Slide 7: FY24 Business Segment Summary
FY24 BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure FY24 revenue of $4,007M increased 33% and FY24 revenue of $2,743M increased 13% and 30% organically from FY23 12% organically from FY23 Adjusted EBITDA of $415M increased 43% Adjusted EBITDA of $189M increased 8% from fr
Slide 8: Q4 2024 Financial Summary
Q4 2024 FINANCIAL SUMMARY Record quarterly total revenue, net income, adjusted EBITDA, and contract awards Q4 2024 total revenue of $1,734M increased Contract awards increased 34% from Q4 2023 to 16% and 14% organically from Q4 2023 $1,672M Adjusted EBITDA of $147M increased 14% from Q4 2024
Slide 9: Q4 2024 Business Segment Summary
Q4 2024 BUSINESS SEGMENT SUMMARY Federal Solutions Critical Infrastructure Q4 2024 revenue increased 19% and Q4 2024 revenue increased 12% and 9% 17% organically from Q4 2023 organically from Q4 2023 Adjusted EBITDA of $100M increased Adjusted EBITDA of $47M increased 21% from prior year per
Slide 10: Delivering Consistent Growth
DELIVERING CONSISTENT GROWTH Delivered organic revenue growth of more than 20% and adjusted EBITDA growth of more than 30% for the second consecutive year Total Revenue Adjusted EBITDA Cash Flow from Operations Contract Awards 31% 48% 28% 7,000 27% 650 500 7,000 $7,039M $6,751M Millions Millions Mil
Slide 11: Significant Contract Wins
SIGNIFICANT CONTRACT WINS Awarded Awarded two new, three-year contracts in Saudi Arabia totaling over $275 million. The company booked the first option period on both awards in the fourth quarter of 2024. $275M+ Awarded Booked a portion of an option year contract with a confidential customer for $24
Slide 12: Significant Contract Wins (Continued)
SIGNIFICANT CONTRACT WINS (CONTINUED) Awarded Awarded an option year totaling $104 million on the company’s General Services Administration C5ISR, exercise, operations, and information services contract. On this program, Parsons designs, develops, trains and deploys $104M scalable machine learning s
Slide 13: Additional Corporate Highlights
ADDITIONAL CORPORATE HIGHLIGHTS Acquired BCC Engineering for Approximately $230M During the fourth quarter, the company announced and closed its acquisition of BCC Engineering in an all-cash transaction valued at $230 million. BCC is a full-service engineering firm that provides planning, design, an
Slide 14: Fiscal Year 2025 Guidance
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 86% of adjust
Slide 15: Reiterating Long-Term Growth Targets
REITERATING LONG-TERM GROWTH TARGETS Long-term Growth Targets Highlights Growth is off a revenue base that is $1.3 billion higher Organic Revenue Growth Mid- single-digit or better organic growth than fiscal year 2023 Growth is off a revenue base that is $1.3 billion higher Total Revenue Growth Mid-
Slide 16: Fiscal Year 2025 Guidance Assumptions
FISCAL YEAR 2025 GUIDANCE ASSUMPTIONS ~ 56% of total revenue to be generated from Federal D&A expenses of ~ $113M, which includes ~ $68M of Solutions segment at the mid-point acquisition-related amortization Adjusted EBITDA margin of ~ 9.3% at the mid-point of FY25 guidance includes ~$16M of
Slide 17: Appendix: Supplemental Materials
APPENDIX: SUPPLEMENTAL MATERIALS Parsons Corporation Sensitive / Proprietary 17
Slide 18: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income to Adjusted EBITDA (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net income attributable to Parsons Corporati
Slide 19: 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 Twelve Months Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Federal Solutio
Slide 20: 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 Twelve Months End