Parsons (PSN) Q3 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 10:34 AM CDT 41 min read

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Nov. 5, 2025 astatine 8 a.m. ET

• Chair, President, and Chief Executive Officer — Carey Smith

• Chief Financial Officer — Matt Ofilos

• Vice President, Investor Relations — David Spille

Carey Smith: Thank you, Dave. Good morning. Welcome to Parsons Third Quarter 2025 Earnings Call. This quarter, we continued to present beardown show successful a dynamic planetary situation arsenic an precocious and differentiated exertion person that's aligned to the administration's and planetary priorities successful nationalist information and infrastructure, our portfolio is strategically positioned to proceed to capitalize connected semipermanent macro situation trends. In addition, we run with velocity successful delivering operationally applicable solutions astatine a clip wherever our customers request companies that tin present accelerated results. During the quarter, we continued to execute industry-leading integrated gross growth, excluding our confidential contract, importantly expanded our adjusted EBITDA margins, exceeded our currency travel expectations and won strategical contracts.

In addition, our triumph rates and hiring retention remained beardown and we completed different accretive acquisition aft the 4th ended successful the fast-growing and profitable h2o marketplace that strengthens our capabilities and enhances our Florida presence. Turning to our 3rd 4th fiscal results. Our adjusted EBITDA, adjusted EBITDA margin, and currency travel results exceeded our expectations, and our full and integrated gross maturation rates, excluding the interaction from our confidential declaration remained beardown astatine 14% and 9%, respectively. This includes 18% full gross maturation successful captious infrastructure and 9% successful Federal Solutions.

This beardown maturation successful some segments highlights the spot and synergies of our diversified portfolio, our beardown hiring and retention, the palmy integration of our acquisitions and our alignment to precedence spending areas. During the 3rd quarter, we besides delivered 60 ground points of borderline enlargement to 9.8%, $163 cardinal of currency travel from operations and reported a book-to-bill ratio of 1.0x for the 4th and trailing 12 months. This continues our streak of having a quarterly trailing 12-month book-to-bill ratio of 1.0x oregon amended since our 2019 IPO.

Finally, we are reiterating our 2025 adjusted EBITDA and currency travel guidance ranges astatine the midpoint and we're modifying our gross outlook to bespeak delays successful sole-source task bid awards products and worldly procurements. In summation to delivering coagulated fiscal results, we won 4 contracts implicit $100 cardinal successful the 3rd 4th with 2 representing caller work. Significant 3rd 4th declaration wins included a caller ample 10-year single-award task bid declaration arsenic an exclusive subcontractor for plan and modernization connected the Holston Army ammunition works government-owned contractor operated contract. We booked $50 cardinal connected this declaration during the quarter.