Parsons Corporation’s High-Stakes 2026 Setup—Backlog Conversion, Margin Mix, and Acquisition Execution in Focus!

Parsons Corporation reported a solid finish to 2025, delivering double-digit revenue growth excluding a large confidential contract that is winding down, continued margin expansion, and full free cash flow conversion. Total revenue grew 12% for the year, or 8% organically excluding the confidential program, while adjusted EBITDA margin expanded 60 basis points to a record 9.6%. Over the past three years, the company exceeded its previously stated financial targets, increasing revenue by more than 50%, expanding margins by 120 basis points, and more than doubling operating cash flow. These results reflect a portfolio shift toward higher-value integrated solutions, disciplined cost control, and accretive acquisitions. The confidential fixed-price contract created significant year-over-year headwinds, reducing revenue by approximately $1 billion in 2025 and creating an additional $345 million headwind entering 2026. Despite this, Parsons Corporation maintained growth in its core portfolio.