Q4 2025 Parsons Corp Earnings Call Transcript

Feb 11, 2026 / 01:00PM GMT

Release Date Price: $60.25 (-14.19%)

Transcript 10-K8-K

Key Points

Positve

Parsons Corp (PSN) achieved a 12% total revenue growth and 8% organic revenue growth in 2025, excluding confidential contracts.
The company expanded its adjusted EBITDA margin by 60 basis points to a record 9.6%, building on previous margin expansions.
Parsons Corp (PSN) delivered a free cash flow conversion of 100% and exceeded its fiscal year 2025 cash flow guidance.
The company completed three strategic acquisitions in 2025, enhancing its portfolio and maintaining a strong balance sheet.
Parsons Corp (PSN) won significant contracts, including a $392 million contract for advanced biometrics and identity management solutions, and a $593 million FAA contract extension.

Negative

Fourth quarter revenue was below expectations, despite achieving 11% year-over-year growth.
Federal Solutions segment faced challenges with a 22% revenue decrease in Q4, impacted by lower volume on a fixed-price confidential contract.
The company experienced a 12-day increase in net DSO at the end of Q4 2025, driven by lower volume on the confidential contract.
Parsons Corp (PSN) faced execution challenges on a program in a remote region, impacting Federal Solutions adjusted EBITDA.
The company anticipates a $345 million revenue headwind in 2026 due to the completion of a confidential contract.

Operator

Good day, and thank you for standing by. Welcome to the Parsons Corporation fourth quarter 2025 earnings conference call. (Operator Instructions) Please note that today's conference is being recorded. I will now hand the conference over to your speaker host for today, Dave Spille, Vice President of Investor Relations. Please go ahead.

Dave Spille

Parsons Corp - Senior Vice President, Investor Relations

Thank you. Good morning, and thank you for joining us today to discuss our fourth quarter and f iscal year 2025 financial results. Please note that we provided presentation slides on the Investor Relations section of our website. On the call with me today are Carey Smith, Chair President and CEO; and Matt Ofilos,CFO.

Today, Carey will discuss our corporate strategy and operational highlights, and then Matt will provide an overview of our fourth quarter and fiscal year 2025 financial results as well as a review of our 2026 guidance and long-term growth rates. We then will close with a question-and-answer session. Management may also make forward looking

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