Summary of Adjusted EBITDA Business Segment Information |
The following tables present segment information provided to the CODM, as of each period presented, along with a reconciliation of segment adjusted EBITDA attributable to Parsons Corporation to net income attributable to Parsons Corporation for the periods presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2025 |
|
|
|
Federal Solutions |
|
|
Critical Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
805,464 |
|
|
$ |
778,859 |
|
|
$ |
1,584,323 |
|
Direct cost of contracts |
|
|
(642,807 |
) |
|
|
(593,163 |
) |
|
|
(1,235,970 |
) |
Selling, general and administrative expenses (a) |
|
|
(43,208 |
) |
|
|
(48,563 |
) |
|
|
(91,771 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
989 |
|
|
|
(1,631 |
) |
|
|
(642 |
) |
Other segment items (b) |
|
|
(53,366 |
) |
|
|
(69,309 |
) |
|
|
(122,675 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
67,072 |
|
|
$ |
66,193 |
|
|
|
133,265 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
15,866 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(28,592 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(11,501 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(18,690 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(11,519 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(5,135 |
) |
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(2,361 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(844 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
70,489 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(15,259 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
55,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2024 |
|
|
|
Federal Solutions |
|
|
Critical Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
988,603 |
|
|
$ |
681,864 |
|
|
$ |
1,670,467 |
|
Direct cost of contracts |
|
|
(789,153 |
) |
|
|
(529,778 |
) |
|
|
(1,318,931 |
) |
Selling, general and administrative expenses (a) |
|
|
(35,487 |
) |
|
|
(34,258 |
) |
|
|
(69,745 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
1,466 |
|
|
|
(18,303 |
) |
|
|
(16,837 |
) |
Other segment items (b) |
|
|
(62,648 |
) |
|
|
(63,913 |
) |
|
|
(126,561 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
102,781 |
|
|
$ |
35,612 |
|
|
|
138,393 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
11,837 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(24,440 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(9,183 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(22,415 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(10,647 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(2,302 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(524 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
80,719 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(11,547 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
69,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, 2025 |
|
|
|
Federal Solutions |
|
|
Critical Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
1,648,021 |
|
|
$ |
1,490,662 |
|
|
$ |
3,138,683 |
|
Direct cost of contracts |
|
|
(1,304,719 |
) |
|
|
(1,131,628 |
) |
|
|
(2,436,347 |
) |
Selling, general and administrative expenses (a) |
|
|
(88,617 |
) |
|
|
(94,646 |
) |
|
|
(183,263 |
) |
Equity in losses of unconsolidated joint ventures |
|
|
(3 |
) |
|
|
(1,326 |
) |
|
|
(1,329 |
) |
Other segment items (b) |
|
|
(112,078 |
) |
|
|
(138,682 |
) |
|
|
(250,760 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
142,604 |
|
|
$ |
124,380 |
|
|
|
266,984 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
30,923 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(55,995 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(21,605 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(37,667 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(18,622 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(8,836 |
) |
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(2,361 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(545 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
152,276 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(30,843 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
121,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, 2024 |
|
|
|
Federal Solutions |
|
|
Critical Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
1,898,211 |
|
|
$ |
1,307,932 |
|
|
$ |
3,206,143 |
|
Direct cost of contracts |
|
|
(1,513,038 |
) |
|
|
(1,016,720 |
) |
|
|
(2,529,758 |
) |
Selling, general and administrative expenses (a) |
|
|
(70,632 |
) |
|
|
(68,836 |
) |
|
|
(139,468 |
) |
Equity in losses of unconsolidated joint ventures |
|
|
997 |
|
|
|
(19,894 |
) |
|
|
(18,897 |
) |
Other segment items (b) |
|
|
(120,216 |
) |
|
|
(133,907 |
) |
|
|
(254,123 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
195,322 |
|
|
$ |
68,575 |
|
|
|
263,897 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
27,426 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(48,971 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(21,029 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(35,739 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(23,303 |
) |
Convertible debt repurchase loss |
|
|
|
|
|
|
|
|
(18,355 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(5,188 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(3,026 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
135,712 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(26,790 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
108,922 |
|
(a)The amount of selling, general and administrative expenses (“SG&A”) is total SG&A excluding allocations. (b)The amount of other segment items is the difference between segment revenue less direct cost of contracts, segment SG&A expenses, equity in earnings (losses) of unconsolidated joint ventures, and Adjusted EBITDA attributable to Parsons Corporation. Other segment items primarily include i.Corporate and shared segment SG&A (excluding Adjusted EBITDA items) ii.Noncontrolling interests attributable to operating income and other income/expense v.Foreign currency gain/loss, and vi.Certain other income/expense items (c)Reflects costs incurred in connection with acquisitions, and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (d)Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature.
|
Summary of Revenues and Property and Equipment, Net by Geographic Area |
The following tables present revenues and property and equipment, net by geographic area (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
1,309,098 |
|
|
$ |
1,419,327 |
|
|
$ |
2,593,330 |
|
|
$ |
2,691,577 |
|
Middle East |
|
|
270,687 |
|
|
|
246,063 |
|
|
|
535,770 |
|
|
|
504,984 |
|
Rest of World |
|
|
4,538 |
|
|
|
5,077 |
|
|
|
9,583 |
|
|
|
9,582 |
|
Total Revenue |
|
$ |
1,584,323 |
|
|
$ |
1,670,467 |
|
|
$ |
3,138,683 |
|
|
$ |
3,206,143 |
|
The geographic location of revenue is determined by the location of the customer.
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
Property and Equipment, Net |
|
|
|
|
|
|
North America |
|
$ |
111,813 |
|
|
$ |
101,044 |
|
Middle East |
|
|
10,924 |
|
|
|
10,531 |
|
Total Property and Equipment, Net |
|
$ |
122,737 |
|
|
$ |
111,575 |
|
|
Summary of Revenues by Business Lines |
The following table presents revenues by business units (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Defense and Intelligence |
|
$ |
457,576 |
|
|
$ |
420,396 |
|
|
$ |
900,897 |
|
|
$ |
828,784 |
|
Engineered Systems |
|
|
347,888 |
|
|
|
568,207 |
|
|
|
747,124 |
|
|
|
1,069,427 |
|
Federal Solutions revenues |
|
|
805,464 |
|
|
|
988,603 |
|
|
|
1,648,021 |
|
|
|
1,898,211 |
|
Infrastructure – North America |
|
|
506,248 |
|
|
|
434,163 |
|
|
|
951,156 |
|
|
|
799,445 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
272,611 |
|
|
|
247,701 |
|
|
|
539,506 |
|
|
|
508,487 |
|
Critical Infrastructure revenues |
|
|
778,859 |
|
|
|
681,864 |
|
|
|
1,490,662 |
|
|
|
1,307,932 |
|
Total Revenue |
|
$ |
1,584,323 |
|
|
$ |
1,670,467 |
|
|
$ |
3,138,683 |
|
|
$ |
3,206,143 |
|
|