Parsons delivered record Q1 adjusted EBITDA margin of 10.1% and achieved a total backlog of $9.3 billion. Federal Solutions grew 12% excluding a confidential contract, while Critical Infrastructure posted a record 10.8% margin supported by 22 consecutive quarters of book-to-bill ratios above 1.0.

Federal Solutions growth was fueled by cyber, electronic warfare and space capabilities, and Middle East operations remained resilient with no funding impacts and 7,500 employees safe. Net DSO increased by 14 days to 72 days due to timing on the confidential contract and Middle East collections.

The Altamira Technologies acquisition expanded Parsons’ signals intelligence and space market presence, and AI integration across federal wins is enhancing solution differentiation for national security clients. Management plans to close 2–4 M&A deals in 2026, targeting companies with over 10% growth and EBITDA margins above 10%.

Parsons reaffirmed full-year organic growth assumptions of 6.6% in Federal Solutions and 6.1% in Critical Infrastructure, based on a $54 billion pipeline and $11 billion of awarded but unbooked contracts. A significant second-half revenue ramp is expected from transitioning the Joint Cyber Hunt Kit to production and major infrastructure projects in Riyadh, alongside opportunities in the administration’s $1.5 trillion FY2027 defense budget.