Q1 2026 Parsons Corp Earnings Call Transcript
Key Points
- Parsons Corp (PSN) achieved record adjusted EBITDA margin of 10.1% in the first quarter, marking the highest first-quarter performance in the Critical Infrastructure segment.
- The company reported a strong book-to-bill ratio of 1.4 times in both segments, with contract awards increasing 17% year-over-year.
- Parsons Corp (PSN) secured significant contract wins, including a $593 million contract extension with the Federal Aviation Administration and a $500 million contract with the United States Cyber Command.
- The company closed the acquisition of Altamira Technologies Corporation, enhancing its market presence in signals intelligence and other critical areas.
- Parsons Corp (PSN) was named one of the world's most ethical companies by Ethisphere for the 17th consecutive year, highlighting its commitment to ethical business practices.
- Total revenue, including the confidential contract, decreased by 4% from the prior-year period, indicating challenges in certain areas.
- SG&A expenses increased by 10% from the prior-year period, driven by costs related to recent acquisitions and higher transaction expenses.
- The Federal Solutions segment saw a decrease in total revenue by 10% from the prior-year period, impacted by lower volume on the fixed-price confidential contract.
- The company experienced a 14-day increase in net DSO, primarily driven by lower volume on the confidential contract and timely collections in the Middle East.
- Parsons Corp (PSN) lowered second-quarter expectations due to the timing of recent wins, indicating potential short-term challenges in revenue realization.
Thank you for standing by and welcome to Parsons Corporation's first-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, David Spille, Vice President, Investor Relations. Please go ahead, sir.
Good morning, and thank you for joining us today to discuss our first-quarter 2026 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 Ofilis, CFO.
Today, Carey will discuss our corporate strategy and operational highlights, and then Matt will provide an overview of our first-quarter financial results, as well as a review of our 2026 guidance. We then will close with a question-and-answer session. Management may also make forward-looking statements during the call regarding future events, anticipated future trends, and the
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