Parsons Q4 Revenue Drops 8% to $1.6B, Adjusted EBITDA Hits $153M Record
Parsons reported fourth quarter revenue of $1.6 billion, down 8% year-over-year (10% organically), with record adjusted EBITDA of $153 million rising 5% and expanded margin to 9.6%. For fiscal year 2025, revenue fell 6% to $6.4 billion while net income reached $241 million and adjusted EBITDA set a $609 million record.
1. Fourth Quarter 2025 Results
Parsons generated $1.6 billion in Q4 revenue, an 8% decrease year-over-year and 10% decline on an organic basis. Excluding its confidential contract, total revenue grew 11% and organic revenue rose 8%, while net income increased 3% to $56 million, and adjusted EBITDA climbed 5% to $153 million, yielding a 9.6% margin.
2. Fiscal Year 2025 Highlights
For the full year, Parsons posted $6.4 billion in revenue, down 6% year-over-year and 9% organically. The company achieved record net income of $241 million and adjusted EBITDA of $609 million with a 9.6% margin, converted 100% of operating cash flow to free cash flow, and secured fifteen contracts valued at over $100 million each.
3. Strategic Actions and Capital Deployment
During 2025, Parsons executed three accretive acquisitions, increased share repurchases, and sustained a strong balance sheet. Cash flow from operations rose 32% in Q4 to $168 million, offsetting a 9% annual decline to $478 million, while maintaining a book-to-bill ratio near parity since its IPO.
4. Outlook and Portfolio Strength
The company outlined fiscal 2026 guidance and long-term financial targets, leveraging its diversified Critical Infrastructure and Federal Solutions portfolio across six end-markets. Strong hiring, top program management recognition, and record retention rates position Parsons to outpace industry growth in 2026.