Parsons has reported $1.49 billion in first quarter 2026 revenue, down 4 percent year over year, while setting a quarterly record in adjusted EBITDA.
What Were Parsons’ First Quarter Results?
Excluding a confidential contract, the Chantilly, Virginia-based company said Wednesday that total revenue increased 8 percent and organic revenue rose 3 percent. Adjusted EBITDA rose 1 percent to a record $151 million, while net income totaled $53 million, down $13 million from the prior year. The adjusted EBITDA margin expanded 50 basis points to a record 10.1 percent, while total backlog hit $9.3 billion and funded backlog reached $6.6 billion. The company also posted a record $4 million in cash flow used in operating activities.
How Did Parsons’ Segments Perform?
The first quarter results were driven by growth in critical infrastructure, space and missile defense, and transportation markets. The critical infrastructure segment posted revenue growth of about $733 million, a 3 percent increase from the first quarter of 2025. The segment’s adjusted EBITDA was also up 8 percent to $79 million, while its margin reached 10.8 percent. This increase was driven by 2 percent organic growth in the global transportation markets, along with additional revenue from the company’s acquisitions of TRS Group and Applied Sciences.
Parsons also acquired Altamira Technologies in Q1 2026, expanding its signals intelligence, missile warning, cyber and space capabilities portfolio.
Federal solutions revenue declined 10 percent to $758 million. Excluding the confidential contract, the segment posted growth tied to demand across protection, missile defense and transportation. Adjusted EBITDA slipped 5 percent to $71.6 million, while margin improved to 9.4 percent.
Parsons Chair, President and CEO Carey Smith, an eight-time winner of Executive Mosaic‘s Wash100 Award, noted that the first quarter results highlighted the company’s resilience and high level of execution.
“Revenue performance was in line with our expectations, and we continued to complement our organic growth with strategic, accretive acquisitions that enhance our differentiation and drive long-term shareholder value,” said Smith.
What Major Contracts Did Parsons Win in Q1 FY26?
Parsons secured significant new business across both segments in the first quarter of 2026, including four single-award contracts exceeding $100 million each. Key wins included a $593 million Federal Aviation Administration contract extension under the Technical Support Services Contract 5, a $500 million award from U.S. Cyber Command for the Joint Cyber Hunt Kit and a $340 million transportation program management contract in the Middle East.
The company also booked a $145 million task order under the Global Application Research, Development, Engineering and Maintenance, or GARDEM, contract; a $150 million deal to support the Faro Mine and Giant Mine programs in Canada; a $60 million contract to provide design services for the Foothill Gold Line project; and $400 million in previously unannounced other transaction agreements, each with a three-year period of performance.
What Indicators Highlight Future Demand?
Parsons reported a book-to-bill ratio of 1.4x on $2.1 billion in net bookings and a trailing 12-month ratio of 1.1x. The company secured two contracts, potentially valued at $184 million and $87 million, after the first quarter, further strengthening its growth outlook.
“Our ability to deliver operationally relevant solutions with speed, digitally transform our offerings, and leverage non-traditional commercial business models enables us to uniquely meet our customers’ critical needs. We have a unique and synergistic Critical Infrastructure and Federal Solutions portfolio, consisting of six growing, profitable, and enduring endmarkets. With our record total and funded backlog, robust pipeline of large opportunities, strong win rates, and $11 billion in awarded contracts not yet booked, we believe we are well positioned to deliver for our customers and shareholders,” Smith said.
