Parsons (PSN) investor relations material

Executive summary

• Q1 2026 revenue was $1.5 billion, down 4% year-over-year and 8% organically; excluding a confidential contract, revenue grew 8% and organic revenue 3%.

• Adjusted EBITDA reached a record $151 million, up 1% year-over-year, with margin expanding 50 bps to 10.1%.

• Book-to-bill ratio was 1.4x in both segments, with total backlog at a record $9.3 billion and funded backlog at $6.6 billion (71% of total backlog).

• Strategic contract wins in aviation modernization, cyber, and transportation, and accretive acquisitions, including Altamira, expanded national security and intelligence capabilities.

• Middle East operations remained resilient despite regional conflict, with no disruptions to contract awards or funding.

Financial highlights

• Q1 total revenue was $1.5 billion, up 8% year-over-year and 3% organically, both excluding a confidential contract.

• Adjusted EBITDA margin hit a record 10.1%, up from 9.6% year-over-year.

• SG&A expenses rose about 10% due to acquisitions and transaction costs.

• Net DSO at 72 days, up 14 days year-over-year, mainly due to timing in the Middle East and confidential contract.

• Cash and cash equivalents at quarter-end were $283.9 million, down from $466.4 million at year-end 2025.

Outlook and guidance

• Fiscal year 2026 guidance reiterated: revenue $6.5–$6.8 billion, adjusted EBITDA $615–$675 million, operating cash flow $470–$530 million.

• Mid-point guidance implies 4.5% total revenue growth (0.6% organic), or 10.5% growth (6% organic) excluding the confidential contract.

• Adjusted EBITDA expected to grow 6% with 10 bps margin expansion.

• Sequential revenue and EBITDA growth expected each quarter through FY26.

• Liquidity and capital resources are considered adequate to fund operations and acquisition strategy for at least the next twelve months.