On July 31, 2024, Parsons Corp (PSN, Financial) released its 8-K filing for the second quarter of 2024, showcasing record-breaking financial results since its IPO. Parsons Corp, a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets, operates through its Federal Solutions and Critical Infrastructure segments.
Q2 2024 Financial Highlights
Parsons Corp reported a record revenue of $1.7 billion, marking a 23% year-over-year increase, driven by strong organic growth of 22%. The company also achieved a record net income of $69 million, a 60% increase from the previous year. Adjusted EBITDA rose by 27% to $150 million, and cash flow from operations surged by $138 million to $161 million.
Segment Performance
In the Federal Solutions segment, revenue increased by 30% to $989 million, with adjusted EBITDA rising by 20% to $103 million. The Critical Infrastructure segment saw a 15% revenue increase to $682 million, with adjusted EBITDA growing by 46% to $47 million.
Key Metrics and Achievements
Parsons Corp's book-to-bill ratio stood at 0.9x for the quarter, with a trailing twelve-month ratio of 1.0x. The company's total backlog reached $8.8 billion. Significant contract wins included a $460 million option period under the Technical Engineering, Advisory, and Management Support contract and over $160 million in awards in Saudi Arabia.
CEO Commentary
"We are very pleased with our second quarter results and what the entire Parsons’ team continues to accomplish. Over the last three years, we have transformed the company into a high-value solutions provider that differentiates by leveraging software and cutting-edge technology," said Carey Smith, chair, president, and chief executive officer.
Financial Summary
| Metric | Q2 2024 | Q2 2023 | Growth |
|---|---|---|---|
| Revenue | $1.7 billion | $1.386 billion | 23% |
| Net Income | $69 million | $43 million | 60% |
| Adjusted EBITDA | $150 million | $118 million | 27% |
| Cash Flow from Operations | $161 million | $23 million | 600% |
Analysis
Parsons Corp's robust performance in Q2 2024 underscores its strategic transformation into a high-value solutions provider. The significant revenue and earnings growth, coupled with strong cash flow and strategic acquisitions, position the company well for future growth. The increase in fiscal year 2024 guidance further reflects the company's confidence in sustaining its momentum.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Parsons Corp for further details.
