v3.25.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
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
iii.
Bad debt expense
iv.
Sublease income
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