Parsons Corp Reports Q3 2025 Financial Results

Parsons Corp ( (PSN) ) has released its Q3 earnings. Here is a breakdown of the information Parsons Corp presented to its investors.

Parsons Corporation is a leading technology provider in the national security and global infrastructure markets, specializing in areas such as cyber and electronic warfare, space and missile defense, and critical infrastructure protection. In its third quarter of 2025, Parsons reported a decrease in total revenue to $1.6 billion, a 10% drop year-over-year, but highlighted a 14% revenue growth excluding a confidential contract. The company achieved a net income of $64 million, down $8 million from the previous year, and an adjusted EBITDA of $158 million, representing a 5% decrease. Despite these declines, Parsons expanded its adjusted EBITDA margin by 60 basis points to 9.8% and maintained a book-to-bill ratio of 1.0x, with a total backlog reaching $8.8 billion, the highest level since its IPO.

Parsons’ Critical Infrastructure segment saw an 18% increase in revenue, driven by organic growth and recent acquisitions, while its Federal Solutions segment experienced a 29% revenue decline, primarily due to lower volumes on a confidential contract. The company secured several significant contracts, including a $665 million extension for the Hudson Tunnel Project and multiple defense and security contracts in the Middle East. Parsons also completed an acquisition to enhance its water management capabilities in Florida, aligning with its strategic growth initiatives.

Looking forward, Parsons remains optimistic about its financial metrics and strategic positioning, with expectations of continued industry-leading organic growth rates. The company has adjusted its fiscal year 2025 revenue guidance while reiterating its adjusted EBITDA and cash flow guidance ranges, reflecting confidence in its long-term shareholder value creation strategy.