| 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 |
|
|
|
March 31, 2026 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
758,348 |
|
|
$ |
732,828 |
|
|
$ |
1,491,176 |
|
Direct cost of contracts |
|
|
(585,415 |
) |
|
|
(548,341 |
) |
|
|
(1,133,756 |
) |
Selling, general and administrative expenses (a) |
|
|
(46,342 |
) |
|
|
(47,458 |
) |
|
|
(93,800 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
1,792 |
|
|
|
4,364 |
|
|
|
6,156 |
|
Other segment items (b) |
|
|
(56,830 |
) |
|
|
(74,492 |
) |
|
|
(131,322 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
71,553 |
|
|
$ |
66,901 |
|
|
|
138,454 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
12,475 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(35,926 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(14,187 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(16,087 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(9,454 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(8,439 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(1,625 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
65,211 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(12,285 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
52,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2025 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
842,557 |
|
|
$ |
711,803 |
|
|
$ |
1,554,360 |
|
Direct cost of contracts |
|
|
(661,912 |
) |
|
|
(538,465 |
) |
|
|
(1,200,377 |
) |
Selling, general and administrative expenses (a) |
|
|
(45,409 |
) |
|
|
(46,127 |
) |
|
|
(91,536 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
(992 |
) |
|
|
305 |
|
|
|
(687 |
) |
Other segment items (b) |
|
|
(58,712 |
) |
|
|
(69,329 |
) |
|
|
(128,041 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
75,532 |
|
|
$ |
58,187 |
|
|
|
133,719 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
15,057 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(27,403 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(10,104 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(18,977 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(7,103 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(3,701 |
) |
Other (d) |
|
|
|
|
|
|
|
|
299 |
|
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
81,787 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(15,584 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
66,203 |
|
(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 |
|
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
Revenue |
|
|
|
|
|
|
North America |
|
$ |
1,212,584 |
|
|
$ |
1,284,232 |
|
Middle East |
|
|
272,242 |
|
|
|
265,083 |
|
Rest of World |
|
|
6,350 |
|
|
|
5,045 |
|
Total Revenue |
|
$ |
1,491,176 |
|
|
$ |
1,554,360 |
|
The geographic location of revenue is determined by the location of the customer.
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Property and Equipment, Net |
|
|
|
|
|
|
North America |
|
$ |
140,868 |
|
|
$ |
137,894 |
|
Middle East |
|
|
13,718 |
|
|
|
13,167 |
|
Total Property and Equipment, Net |
|
$ |
154,586 |
|
|
$ |
151,061 |
|
|
| Summary of Revenues by Business Lines |
The following table presents revenues by business units (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2026 |
|
|
March 31, 2025 |
|
Revenue |
|
|
|
|
|
|
Defense and Intelligence |
|
$ |
503,747 |
|
|
$ |
443,323 |
|
Engineered Systems |
|
|
254,601 |
|
|
|
399,234 |
|
Federal Solutions revenues |
|
|
758,348 |
|
|
|
842,557 |
|
Infrastructure – North America |
|
|
458,412 |
|
|
|
444,908 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
274,416 |
|
|
|
266,895 |
|
Critical Infrastructure revenues |
|
|
732,828 |
|
|
|
711,803 |
|
Total Revenue |
|
$ |
1,491,176 |
|
|
$ |
1,554,360 |
|
|