Parsons posted $1.6 billion in fiscal year 2025 second-quarter revenue, down 5 percent from the prior-year period, and ended the quarter with a total backlog of $8.9 billion with a book-to-bill ratio of 1.1x on net bookings of $1.5 billion.
In an earnings release published Wednesday, the Chantilly, Virginia-based defense and infrastructure engineering company said Q2 net income dropped 20 percent to $55 million.
Excluding the company’s confidential contract, Parsons reported total revenue growth of 13 percent and organic revenue increase of 8 percent.
Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter was $149 million, down 1 percent from the prior-year period. Adjusted EBITDA margin increased 40 basis points to 9.4 percent.
“We are pleased with our second quarter results as we delivered strong total and organic revenue growth across our core business, 40 basis points of margin expansion and exceptional free cash flow. In addition, we continued to leverage our balance sheet to close another strategic accretive acquisition,” said Carey Smith, chair, president and CEO of Parsons.
Carey Smith on Golden Dome
At an earnings call Wednesday, Smith, a seven-time Wash100 awardee, discussed the company’s capabilities and how it could support the Golden Dome missile defense shield initiative.
In relation to Golden Dome, she cited the $2.2 billion TEAMS-Next Systems Engineering contract the company secured from the Missile Defense Agency in 2021. Through the contract, Parsons provides systems engineering and integration support for MDA.
“Under this contract, we deliver capabilities that are directly aligned to Golden Dome such as engineering analysis and modeling and simulation on a vendor-agnostic basis. These solutions enable the development of an integrated and layered missile defense system to protect the United States and allied forces against ballistic hypersonic cruise missile and unmanned aircraft system threats,” said Smith, chair of Executive Mosaic’s 4×24 Group 1 Leadership.
Parsons CEO on CTI Acquisition
During the call, Smith highlighted the company’s acquisition of Chesapeake Technology International, which she said meets Parsons’ “financial M&A criteria.”
In July, Parsons acquired CTI, a Bluestone Investment Partners portfolio company, for about $89 million as part of efforts to expand its electromagnetic warfare and all-domain offerings for the U.S. defense market.
“CTI is a developer of multi-domain technologies across the invisible battle space in areas of electronic warfare, cyber and autonomous systems. They enhance our position in the INDOPACOM region and strengthen our relationships with special operations forces and key research and development customers, including the Defense Threat Reduction Agency,” Smith told analysts.
“CTI’s team awareness kit and Tactical Assault Kit, or TAKX situational awareness tool has been applied for border security, disaster relief, counter unmanned air systems and other applications,” she added.
Q2 Financial Results of Parsons Federal Solutions, Critical Infrastructure Segments
Parsons’ federal solutions segment reported $805 million in Q2 revenue, down 19 percent from the same period the previous year. Excluding the confidential contract, the segment’s revenue rose 11 percent and 8 percent on an organic basis.
The critical infrastructure business segment logged $779 million in Q2 revenue, up 14 percent from the year-ago quarter. The segment’s Q2 adjusted EBITDA increased 73 percent, driven by the ramp-up of recent awards and growth and margin synergies from the company’s BCC Engineering acquisition.
