Parsons Posts Record Q1 EBITDA Margin at 10.1%, Backlog Hits $9.3B
Parsons delivered Q1 revenue of $1.5 billion, down 4% year-over-year but up 8% excluding a confidential contract, and achieved record adjusted EBITDA of $151 million with margin expanding 50 basis points to 10.1%. Total backlog rose to $9.3 billion and funded backlog to $6.6 billion, with book-to-bill at 1.4x.
1. Q1 Financial Results
Parsons reported first-quarter revenue of $1.5 billion, a 4% year-over-year decrease and an 8% organic decline. Net income fell to $53 million, down $13 million, while adjusted EBITDA reached a Q1 record $151 million and margin expanded 50 basis points to 10.1%.
2. Segment Performance
Critical Infrastructure revenue grew 3% to $732.8 million, driving an 8% increase in adjusted EBITDA to $79.4 million and a record 10.8% margin. Federal Solutions revenue declined 10% to $758.3 million (17% organically), but excluding a fixed-price confidential contract revenue rose 12% with adjusted EBITDA margin up 40 basis points to 9.4%.
3. Backlog and Book-to-Bill
Total backlog climbed $235 million year-over-year to $9.3 billion, while funded backlog reached a record $6.6 billion, representing 71% of total. Net bookings of $2.1 billion delivered a book-to-bill ratio of 1.4x for the quarter and 1.1x on a trailing twelve-month basis.
4. Outlook and Guidance
Management reiterated fiscal 2026 guidance, citing strong global demand for defense and infrastructure solutions, strategic accretive acquisitions, and an $11 billion pipeline of awarded but unbooked contracts as key drivers for future growth and shareholder value.