Description

Parsons’s $269 Million Cash Flow Surprise — A New Profitability Milestone!

Parsons Corporation reported its third-quarter 2026 results with revenue growth of 2% year-over-year and a 5% increase excluding a confidential contract, driven by 2% organic growth. The company’s adjusted EBITDA rose 6%, reaching a record margin of 10.2%, and operating cash flow significantly exceeded prior commitments at $269 million. Both operating segments contributed to these results, with Critical Infrastructure delivering record third-quarter revenue of $846 million (up 2% organically) and a margin of 11.1%, while Federal Solutions revenue increased 2% including the confidential contract but declined 3% organically, with adjusted EBITDA up 2% and a stable margin of 9.2%. Bookings were strong, increasing 14% overall year-over-year, with Federal Solutions contracts up 53%, sustaining a book-to-bill ratio of 1.2x, and Critical Infrastructure maintaining its 24th consecutive quarter at or above 1.0x, underpinning a record backlog of $9.4 billion (73% funded) and a robust total pipeline exceeding $50 billion.