Parsons Reports Third Quarter 2026 Results
Key Highlights
- ➤Q3 revenue $1.7 billion, up 2% year-over-year and above commitments
- ➤Adjusted EBITDA rose 6% to record $168 million; margin reached record 10.2%
- ➤Total and funded backlog hit records of $9.4 billion and $6.8 billion
- ➤Net bookings $1.8 billion produced a 1.1x quarterly book-to-bill ratio
- ➤FY2026 revenue and adjusted EBITDA guidance ranges narrowed around reiterated midpoints
Expert Statements
Carey Smith, Chair, president, and chief executive officer of Parsons
“We delivered a strong third quarter, exceeding our commitments with record adjusted EBITDA and adjusted EBITDA margin, and robust operating cash flow and bookings across both Federal Solutions and Critical Infrastructure.”
Carey Smith, Chair, president, and chief executive officer of Parsons
“This performance highlights the resilience of our diversified portfolio and the strength of our differentiated solutions and products.”
Carey Smith, Chair, president, and chief executive officer of Parsons
“Strong awards, record total and funded backlog, and a robust pipeline provide a solid foundation for continued organic growth”
Carey Smith, Chair, president, and chief executive officer of Parsons
“We also continued to strengthen our portfolio, making meaningful progress on the strategic initiatives we outlined last quarter.”
Carey Smith, Chair, president, and chief executive officer of Parsons
“While we continue to navigate procurement timing and geopolitical uncertainty, the alignment of our differentiated capabilities with our customers’ most critical national security and infrastructure needs reinforces our confidence in Parsons’ outlook.”
Carey Smith, Chair, president, and chief executive officer of Parsons
“We remain focused on disciplined execution, converting our strong pipeline and recent awards into profitable growth, and delivering long-term value for our customers, employees, and shareholders.”
Q3 2026 Key Takeaways * Revenue, profitability, and cash flow exceeded commitments, with adjusted EBITDA and margin reaching record levels * Continued strong demand across both segments, with contract awards increasing 14% year-over-year and a 1.1x consolidated book-to-bill ratio, including a 53% increase in Federal Solutions contract awards * Record total and funded backlog * Third-quarter financial results, combined with growing backlog, strong bookings, and a robust pipeline, underscore the resilience of the company’s portfolio and provide a solid foundation for sustained organic growth across both segments Q3 2026 Highlights * Achieved a 1.1x book-to-bill ratio, maintaining a TTM ratio of at least 1.0x in every quarter since 2019 IPO; both segments delivered a third-quarter ratio of 1.0x or greater * Q3 revenue of $1.7 billion increased 2% year-over-year and decreased 1% on an organic basis, exceeding commitments * Revenue growth of 5% excluding confidential contract; 2% on an organic basis * Net income of $54 million decreased $10 million. Net income was impacted by transaction-related expenses * Adjusted EBITDA increased 6% to a record $168 million; margin expanded 40 basis points to a record 10.2% * Total and funded backlog increased 6% and 7%, respectively, both reaching record levels of $9.4 billion and $6.8 billion * Signed a definitive purchase agreement and finalizing novation for the divestiture of the remote-location contracts; made measurable progress on the Critical Infrastructure joint venture program * Narrowing and reiterating mid-point of fiscal year 2026 revenue and adjusted EBITDA guidance ranges; reiterating operating cash flow guidance range CHANTILLY, Va., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) today announced financial results for the third quarter ended September 30, 2026.
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