| 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 |
|
|
|
September 30, 2026 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
804,553 |
|
|
$ |
845,995 |
|
|
$ |
1,650,548 |
|
Direct cost of contracts |
|
|
(621,008 |
) |
|
|
(647,473 |
) |
|
|
(1,268,481 |
) |
Selling, general and administrative expenses (a) |
|
|
(52,570 |
) |
|
|
(48,376 |
) |
|
|
(100,946 |
) |
Equity in earnings of unconsolidated joint ventures |
|
|
1,787 |
|
|
|
5,455 |
|
|
|
7,242 |
|
Other segment items (b) |
|
|
(58,636 |
) |
|
|
(75,347 |
) |
|
|
(133,983 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
74,126 |
|
|
$ |
80,254 |
|
|
|
154,380 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
13,463 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(34,118 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(15,437 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(20,446 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(11,518 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(16,180 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(2,733 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
67,411 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(13,258 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
54,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
September 30, 2025 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
788,607 |
|
|
$ |
833,141 |
|
|
$ |
1,621,748 |
|
Direct cost of contracts |
|
|
(612,500 |
) |
|
|
(649,393 |
) |
|
|
(1,261,893 |
) |
Selling, general and administrative expenses (a) |
|
|
(47,980 |
) |
|
|
(44,259 |
) |
|
|
(92,239 |
) |
Equity in earnings of unconsolidated joint ventures |
|
|
986 |
|
|
|
7,280 |
|
|
|
8,266 |
|
Other segment items (b) |
|
|
(56,612 |
) |
|
|
(78,966 |
) |
|
|
(135,578 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
72,501 |
|
|
$ |
67,803 |
|
|
|
140,304 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
17,833 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(29,849 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(11,696 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(16,035 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(11,568 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(5,074 |
) |
Restructuring expense (e) |
|
|
|
|
|
|
|
|
(292 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(1,829 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
81,794 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(17,671 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
64,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, 2026 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
2,323,769 |
|
|
$ |
2,393,822 |
|
|
$ |
4,717,591 |
|
Direct cost of contracts |
|
|
(1,874,091 |
) |
|
|
(1,808,775 |
) |
|
|
(3,682,866 |
) |
Selling, general and administrative expenses (a) |
|
|
(147,818 |
) |
|
|
(144,641 |
) |
|
|
(292,459 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
5,030 |
|
|
|
(25,380 |
) |
|
|
(20,350 |
) |
Other segment items (b) |
|
|
(174,997 |
) |
|
|
(226,864 |
) |
|
|
(401,861 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
131,893 |
|
|
$ |
188,162 |
|
|
|
320,055 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
40,937 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(106,681 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(45,445 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(40,755 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(31,049 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(17,493 |
) |
Restructuring expense (e) |
|
|
|
|
|
|
|
|
- |
|
Other (d) |
|
|
|
|
|
|
|
|
12,588 |
|
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
132,157 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(40,297 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
91,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, 2025 |
|
|
|
Federal
Solutions |
|
|
Critical
Infrastructure |
|
|
Total |
|
Revenue |
|
$ |
2,436,628 |
|
|
$ |
2,323,803 |
|
|
$ |
4,760,431 |
|
Direct cost of contracts |
|
|
(1,917,218 |
) |
|
|
(1,781,022 |
) |
|
|
(3,698,240 |
) |
Selling, general and administrative expenses (a) |
|
|
(136,604 |
) |
|
|
(138,938 |
) |
|
|
(275,542 |
) |
Equity in earnings of unconsolidated joint ventures |
|
|
983 |
|
|
|
5,954 |
|
|
|
6,937 |
|
Other segment items (b) |
|
|
(168,684 |
) |
|
|
(217,614 |
) |
|
|
(386,298 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
215,105 |
|
|
$ |
192,183 |
|
|
|
407,288 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
48,756 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(85,844 |
) |
Interest expense, net |
|
|
|
|
|
|
|
|
(33,301 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
(53,702 |
) |
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(30,190 |
) |
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(13,910 |
) |
Restructuring expense (e) |
|
|
|
|
|
|
|
|
(2,653 |
) |
Other (d) |
|
|
|
|
|
|
|
|
(2,374 |
) |
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
234,070 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(48,514 |
) |
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
185,556 |
|
(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 |
|
|
Nine Months Ended |
|
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
1,339,507 |
|
|
$ |
1,313,775 |
|
|
$ |
3,827,218 |
|
|
$ |
3,907,105 |
|
Middle East |
|
|
306,462 |
|
|
|
302,886 |
|
|
|
875,850 |
|
|
|
838,656 |
|
Rest of World |
|
|
4,579 |
|
|
|
5,087 |
|
|
|
14,523 |
|
|
|
14,670 |
|
Total Revenue |
|
$ |
1,650,548 |
|
|
$ |
1,621,748 |
|
|
$ |
4,717,591 |
|
|
$ |
4,760,431 |
|
The geographic location of revenue is determined by the location of the customer.
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
Property and Equipment, Net |
|
|
|
|
|
|
North America |
|
$ |
155,087 |
|
|
$ |
137,894 |
|
Middle East |
|
|
13,199 |
|
|
|
13,167 |
|
Total Property and Equipment, Net |
|
$ |
168,286 |
|
|
$ |
151,061 |
|
|
| Summary of Revenues by Business Lines |
The following table presents revenues by business units (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Defense and Intelligence |
|
$ |
536,542 |
|
|
$ |
468,935 |
|
|
$ |
1,570,296 |
|
|
$ |
1,369,832 |
|
Engineered Systems |
|
|
268,011 |
|
|
|
319,672 |
|
|
|
753,473 |
|
|
|
1,066,796 |
|
Federal Solutions revenues |
|
|
804,553 |
|
|
|
788,607 |
|
|
|
2,323,769 |
|
|
|
2,436,628 |
|
Infrastructure – North America |
|
|
537,663 |
|
|
|
528,564 |
|
|
|
1,511,759 |
|
|
|
1,479,720 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
308,332 |
|
|
|
304,577 |
|
|
|
882,063 |
|
|
|
844,083 |
|
Critical Infrastructure revenues |
|
|
845,995 |
|
|
|
833,141 |
|
|
|
2,393,822 |
|
|
|
2,323,803 |
|
Total Revenue |
|
$ |
1,650,548 |
|
|
$ |
1,621,748 |
|
|
$ |
4,717,591 |
|
|
$ |
4,760,431 |
|
|