| 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, 2026 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
760,868 |
|
|
$ |
814,999 |
|
|
$ |
1,575,867 |
|
Direct cost of contracts |
|
|
(667,668 |
) |
|
|
(612,961 |
) |
|
|
(1,280,629 |
) |
Selling, general and administrative expenses (a) |
|
|
(48,908 |
) |
|
|
(48,806 |
) |
|
|
(97,714 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
1,451 |
|
|
|
(35,199 |
) |
|
|
(33,748 |
) |
Other segment items (b) |
|
|
(59,529 |
) |
|
|
(77,026 |
) |
|
|
(136,555 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
(13,786 |
) |
|
$ |
41,007 |
|
|
|
27,221 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
14,999 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(36,637 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(15,821 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(4,222 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(10,077 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
7,126 |
|
Other (d) |
|
|
|
|
|
|
|
|
16,946 |
|
Net loss including noncontrolling interests |
|
|
|
|
|
|
|
|
(465 |
) |
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(14,754 |
) |
Net loss attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
(15,219 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (e) |
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, 2026 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
1,519,216 |
|
|
$ |
1,547,827 |
|
|
$ |
3,067,043 |
|
Direct cost of contracts |
|
|
(1,253,083 |
) |
|
|
(1,161,302 |
) |
|
|
(2,414,385 |
) |
Selling, general and administrative expenses (a) |
|
|
(95,250 |
) |
|
|
(96,265 |
) |
|
|
(191,515 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
3,243 |
|
|
|
(30,835 |
) |
|
|
(27,592 |
) |
Other segment items (b) |
|
|
(116,359 |
) |
|
|
(151,517 |
) |
|
|
(267,876 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
57,767 |
|
|
$ |
107,908 |
|
|
|
165,675 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
27,474 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(72,563 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(30,008 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(20,309 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(19,531 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(1,313 |
) |
Restructuring expense (e) |
|
|
|
|
|
|
|
|
- |
|
Other (d) |
|
|
|
|
|
|
|
|
15,321 |
|
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
64,746 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(27,039 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
37,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 earnings (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 (e) |
|
|
|
|
|
|
|
|
(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 |
|
(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 businesses and sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. (e)Reflects costs associated with and related to our corporate restructuring in initiatives.
|
| 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, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
1,275,127 |
|
|
$ |
1,309,098 |
|
|
$ |
2,487,711 |
|
|
$ |
2,593,330 |
|
Middle East |
|
|
297,146 |
|
|
|
270,687 |
|
|
|
569,388 |
|
|
|
535,770 |
|
Rest of World |
|
|
3,594 |
|
|
|
4,538 |
|
|
|
9,944 |
|
|
|
9,583 |
|
Total Revenue |
|
$ |
1,575,867 |
|
|
$ |
1,584,323 |
|
|
$ |
3,067,043 |
|
|
$ |
3,138,683 |
|
The geographic location of revenue is determined by the location of the customer.
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Property and Equipment, Net |
|
|
|
|
|
|
North America |
|
$ |
146,144 |
|
|
$ |
137,894 |
|
Middle East |
|
|
13,363 |
|
|
|
13,167 |
|
Total Property and Equipment, Net |
|
$ |
159,507 |
|
|
$ |
151,061 |
|
|
| Summary of Revenues by Business Lines |
The following table presents revenues by business units (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Defense and Intelligence |
|
$ |
530,007 |
|
|
$ |
457,576 |
|
|
$ |
1,033,754 |
|
|
$ |
900,897 |
|
Engineered Systems |
|
|
230,861 |
|
|
|
347,888 |
|
|
|
485,462 |
|
|
|
747,124 |
|
Federal Solutions revenues |
|
|
760,868 |
|
|
|
805,464 |
|
|
|
1,519,216 |
|
|
|
1,648,021 |
|
Infrastructure – North America |
|
|
515,684 |
|
|
|
506,248 |
|
|
|
974,096 |
|
|
|
951,156 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
299,315 |
|
|
|
272,611 |
|
|
|
573,731 |
|
|
|
539,506 |
|
Critical Infrastructure revenues |
|
|
814,999 |
|
|
|
778,859 |
|
|
|
1,547,827 |
|
|
|
1,490,662 |
|
Total Revenue |
|
$ |
1,575,867 |
|
|
$ |
1,584,323 |
|
|
$ |
3,067,043 |
|
|
$ |
3,138,683 |
|
|