A Business at a Glance
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PARSONS CORP
PSN
$6.4B
Mkt Cap
$58.73
+0.46%
PARSONS CORP (PSN) has a current P/E ratio of 26.7, compared to its historical median P/E of 43.9. The stock is currently considered Cheap based on its historical valuation range.
PARSONS CORP (PSN) has a 5-year average return on invested capital (ROIC) of 7.7%. This is below average and may indicate limited pricing power.
PARSONS CORP (PSN) has a market capitalization of $3.3B. It is classified as a mid-cap stock.
PARSONS CORP (PSN) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 4.04%.
Based on historical P/E analysis, PARSONS CORP (PSN) appears cheap. The current P/E of 26.7 is 39% below its historical median of 43.9. The estimated fair value CAGR (P/E method) is 3.3%.
PARSONS CORP (PSN) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
PARSONS CORP (PSN) reported annual revenue of $6.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Parsons is a leading provider of integrated solutions and services across six growing end markets: cyber and electronic warfare, space and missile defense, critical infrastructure protection, transportation, water and environment, and urban development. The company operates through two reportable segments—Federal Solutions (51% of revenue, 46% of adjusted EBITDA) and Critical Infrastructure (49% of revenue, 54% of adjusted EBITDA)—serving a diverse global customer base including U.S. federal government agencies, state and local governments, and international clients. Federal Solutions delivers advanced technologies and mission-critical solutions to the U.S. government, including cyber, integrated air and missile defense, intelligence, aviation modernization, electronic warfare, space ground systems, geospatial intelligence, and border security. Critical Infrastructure provides program management, planning, design, engineering, and owners representative support for complex physical and digital infrastructure assets globally, leveraging sensors and data to drive smart sustainable infrastructure across aviation, rail and transit, bridges, roads and highways, and urban destinations. The company's business model combines organic growth with strategic acquisitions, supported by a strong backlog and funded backlog structure; it generates revenue through both fixed-price and cost-plus contracts with long-term frameworks, and maintains a reputation as the #1 program management company in the world by Engineering News Record. Parsons' competitive differentiation stems from its depth of experience, mission-focused workforce, technological capabilities in AI and digital transformation, and established relationships with government and infrastructure customers across North America, the Middle East, and other international markets.
【Strong backlog-driven growth】 Management expects mid-single digit or better organic revenue growth supplemented by accretive acquisitions, with a goal of achieving double-digit adjusted EBITDA margins by 2028 and maintaining free cash flow conversion of at least 100% of adjusted net income. The company benefits from unprecedented global infrastructure spending, a federal portfolio closely aligned with administration priorities, and a record $9.3 billion total backlog with $11 billion in awarded contracts not yet booked. Both Federal Solutions and Critical Infrastructure segments are expected to expand margins in 2026, with Federal targeting high 8s to low 9s and Critical Infrastructure targeting approximately 10.5% at the midpoint. Management anticipates continued growth in the second half of 2026 driven by ramp-ups on recent contract awards, particularly in the Middle East (Riyadh Metro, Qiddiya, King Salman International Airport), North America infrastructure projects, and federal programs including FAA, missile defense, and classified work.
| Metric | Target | Period |
|---|---|---|
| Revenue | $6.5–$6.8 billion | FY2026 |
| Adjusted EBITDA | $615 million–$675 million | FY2026 |
| Operating Cash Flow | $470 million–$530 million | FY2026 |
Revenue (FY2026): “For 2026, we expect revenue to be between $6.5-$6.8 billion.”
Adjusted EBITDA (FY2026): “Adjusted EBITDA is expected to be between $615 million-$675 million, with a margin of 9.7% at the midpoint of our revenue and Adjusted EBITDA guidance ranges.”
Operating Cash Flow (FY2026): “Cash flow from operating activities is expected to be between $470 million-$530 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.3B | 6.4B | 6.8B | 5.4B | 4.2B | 3.7B |
| Net Income | 228M | 241M | 235M | 161M | 97M | 64M |
| EPS | $3.57 | $2.20 | $4.46 | $3.51 | $2.36 | $1.92 |
| Free Cash Flow | 417M | 410M | 474M | 367M | 207M | 184M |
| ROIC | 7.9% | 9.3% | 10.2% | 8.3% | 5.8% | 4.9% |
| Gross Margin | - | 22.5% | 20.8% | 22.2% | 22.6% | 23.3% |
| Debt/Equity | 0.57 | 0.52 | 0.78 | 0.40 | 0.45 | 0.42 |
| Dividends/Share | $0.00 | - | - | - | - | $0.00 |
| Operating Income | 405M | 418M | 428M | 288M | 186M | 132M |
| Operating Margin | 6.4% | 6.6% | 6.3% | 5.3% | 4.4% | 3.6% |
| ROE | 8.6% | 9.5% | 10.0% | 7.4% | 4.9% | 3.4% |
| Shares Outstanding | 57M | 110M | 53M | 46M | 41M | 33M |
| Metric | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||
| Revenue | 3.0B | 3.6B | 4.0B | 3.9B | 3.7B | 4.2B | 5.4B | 6.8B | 6.4B | 6.3B |
| Gross Margin | 20.4% | 21.5% | 21.0% | 22.4% | 23.3% | 22.6% | 22.2% | 20.8% | 22.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 506M | 597M | 781M | 729M | 757M | 777M | 870M | 955M | 1.0B | 1.0B |
| EBIT | 151M | 205M | 92M | 178M | 132M | 186M | 288M | 428M | 418M | 405M |
| Op. Margin | 5.0% | 5.8% | 2.3% | 4.5% | 3.6% | 4.4% | 5.3% | 6.3% | 6.6% | 6.4% |
| Net Income | 97M | 222M | 121M | 99M | 64M | 97M | 161M | 235M | 241M | 228M |
| Net Margin | 3.2% | 6.2% | 3.0% | 2.5% | 1.8% | 2.3% | 3.0% | 3.5% | 3.8% | 3.6% |
| Non-Recurring | -1.2M | -780K | 2.4M | 2.1M | -338K | 164K | -206K | -948K | -639K | -639K |
| Returns on Capital | ||||||||||
| ROIC | N/A | 14.4% | 16.3% | 6.8% | 4.9% | 5.8% | 8.3% | 10.2% | 9.3% | 7.9% |
| ROE | -9.8% | -22.0% | 36.4% | 5.7% | 3.4% | 4.9% | 7.4% | 10.0% | 9.5% | 8.6% |
| ROA | N/A | 17.0% | 4.0% | 2.7% | 1.6% | 2.4% | 3.6% | 4.6% | 4.3% | 3.8% |
| Cash Flow | ||||||||||
| Op. Cash Flow | 265M | 285M | 220M | 289M | 206M | 238M | 408M | 524M | 478M | 486M |
| Free Cash Flow | 237M | 255M | 153M | 255M | 184M | 207M | 367M | 474M | 410M | 417M |
| Owner Earnings | 230M | 80M | -14M | 27M | -74M | -57M | 90M | 181M | 131M | 124M |
| CapEx | 28M | 29M | 68M | 34M | 21M | 31M | 40M | 49M | 68M | 69M |
| Maint. CapEx | 35M | 205M | 226M | 247M | 260M | 272M | 284M | 286M | 304M | 319M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 35M | 205M | 226M | 247M | 260M | 272M | 284M | 286M | 304M | 319M |
| CapEx/OCF | N/A | N/A | 30.7% | 11.8% | 10.3% | 12.9% | 9.9% | 9.4% | 14.2% | 14.3% |
| Capital Allocation | ||||||||||
| Dividends Paid | 0 | 0 | 52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | 6.7% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 6.3M | 0 | 22M | 22M | 11M | 25M | 125M | 135M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 0.6% | 0.4% | 0.2% | 0.2% | 1.8% | 4.0% |
| Stock-Based Comp | 0 | 0 | 8.3M | 15M | 20M | 23M | 34M | 56M | 43M | 43M |
| Debt Repayment | 1.9M | 545K | 286K | 0 | 0 | 862K | 0 | 19M | 2.6M | 2.6M |
| Balance Sheet | ||||||||||
| Net Debt | N/A | 149M | 320M | 343M | 454M | 653M | 652M | 1.4B | 911M | 1.2B |
| Cash & Equiv. | 446M | 280M | 183M | 484M | 343M | 263M | 273M | 454M | 466M | 284M |
| Long-Term Debt | N/A | 429M | 249M | 540M | 592M | 744M | 746M | 784M | 1.2B | 1.5B |
| Debt/Equity | N/A | -0.44 | 0.31 | 0.46 | 0.42 | 0.45 | 0.40 | 0.78 | 0.52 | 0.57 |
| Interest Coverage | 9.5 | 9.8 | 3.9 | 8.5 | 7.5 | 8.0 | 9.2 | 8.3 | 8.1 | 7.3 |
| Equity | -1.0B | -968M | 1.6B | 1.8B | 1.9B | 2.0B | 2.3B | 2.4B | 2.6B | 2.6B |
| Total Assets | N/A | 2.6B | 3.5B | 3.9B | 3.8B | 4.2B | 4.8B | 5.5B | 5.8B | 6.0B |
| Total Liabilities | N/A | 1.7B | 1.8B | 2.1B | 1.9B | 2.1B | 2.4B | 3.0B | 3.0B | 3.3B |
| Intangibles | N/A | 180M | 260M | 246M | 208M | 254M | 276M | 350M | 326M | 408M |
| Retained Earnings | N/A | 12M | -218M | -121M | -54M | 43M | 204M | 427M | 661M | 710M |
| Working Capital | N/A | 483M | 382M | 656M | 602M | 612M | 727M | 547M | 1.2B | 1.1B |
| Current Assets | N/A | 1.5B | 1.5B | 1.8B | 1.6B | 1.7B | 2.1B | 2.5B | 2.7B | 2.6B |
| Current Liabilities | 7.7M | 1.0B | 1.1B | 1.2B | 1.0B | 1.1B | 1.4B | 1.9B | 1.5B | 1.5B |
| Per Share Data | ||||||||||
| EPS | 1.16 | 2.78 | 5.54 | 3.83 | 1.92 | 2.36 | 3.51 | 4.46 | 2.20 | 3.57 |
| Owner EPS | 2.74 | 1.00 | -0.63 | 1.06 | -2.23 | -1.40 | 1.95 | 3.44 | 1.19 | 2.18 |
| Book Value | -12.51 | -12.10 | 74.86 | 70.52 | 57.03 | 49.89 | 49.77 | 45.89 | 24.10 | 46.55 |
| Cash Flow/Share | 3.16 | 3.56 | 10.12 | 11.24 | 6.17 | 5.80 | 8.87 | 9.94 | 4.36 | 9.61 |
| Dividends/Share | 0.00 | 0.00 | 2.39 | 0.00 | 0.00 | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 83.9M | 80.0M | 21.8M | 25.7M | 33.3M | 41.0M | 46.0M | 52.7M | 109.6M | 56.9M |
| Valuation | ||||||||||
| P/E Ratio | N/A | N/A | 31.6 | 36.9 | 58.3 | 52.2 | 44.3 | 43.9 | 28.4 | 16.4 |
| P/FCF | N/A | N/A | 5.9 | 3.6 | 6.2 | 9.0 | 7.9 | 10.3 | 16.7 | 8.0 |
| EV/EBIT | N/A | N/A | 40.2 | 18.6 | 27.5 | 28.4 | 25.4 | 26.0 | 17.1 | 11.3 |
| Price/Book | N/A | N/A | 2.3 | 2.0 | 2.0 | 2.5 | 3.1 | 4.3 | 2.6 | 1.3 |
| Price/Sales | N/A | N/A | 0.8 | 0.9 | 1.1 | 1.1 | 1.1 | 1.4 | 1.3 | 0.5 |
| FCF Yield | N/A | N/A | 4.0% | 7.0% | 4.9% | 4.1% | 5.1% | 4.6% | 6.0% | 12.5% |
| Market Cap | 0 | N/A | 3.8B | 3.6B | 3.7B | 5.0B | 7.1B | 10.3B | 6.9B | 3.3B |
| Avg. Price | 0.00 | N/A | 35.59 | 36.17 | 37.53 | 39.88 | 50.68 | 85.79 | 73.88 | 58.73 |
| Year-End Price | 0.00 | N/A | 41.14 | 35.76 | 34.40 | 45.43 | 62.87 | 93.13 | 62.56 | 58.73 |
PARSONS CORP passes 3 of 9 quality checks, indicating weak fundamentals.
PARSONS CORP trades at 26.7x trailing earnings, compared to its 15-year median P/E of 43.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.1x vs a median of 7.9x. The company's 5-year average ROIC is 7.7% with a gross margin of 22.3%. Total shareholder yield (buybacks) is 4.0%. At current prices, the estimated annualized return to fair value is +10.3%.
PARSONS CORP (PSN) has a net profit margin of 3.8%. This is a modest margin.
PARSONS CORP (PSN) generated $410 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PARSONS CORP (PSN) has a debt-to-equity ratio of 0.52. This indicates moderate leverage.
PARSONS CORP (PSN) reported earnings per share (EPS) of $2.20 in its most recent fiscal year.
PARSONS CORP (PSN) has a return on equity (ROE) of 9.5%. This indicates moderate shareholder returns.
PARSONS CORP (PSN) has a 5-year average gross margin of 22.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 9 years of financial data for PARSONS CORP (PSN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PARSONS CORP (PSN) has a book value per share of $24.10, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects mid-single digit or better organic revenue growth supplemented by accretive acquisitions, with a goal of achieving double-digit adjusted EBITDA margins by 2028 and maintaining free cash flow conversion of at least 100% of adjusted net income. The company benefits from unprecedented global infrastructure spending, a federal portfolio closely aligned with administration priorities, and a record $9.3 billion total backlog with $11 billion in awarded contracts not yet booked. Both Federal Solutions and Critical Infrastructure segments are expected to expand margins in 2026, with Federal targeting high 8s to low 9s and Critical Infrastructure targeting approximately 10.5% at the midpoint. Management anticipates continued growth in the second half of 2026 driven by ramp-ups on recent contract awards, particularly in the Middle East (Riyadh Metro, Qiddiya, King Salman International Airport), North America infrastructure projects, and federal programs including FAA, missile defense, and classified work.
Based on recent SEC filings and earnings calls, PARSONS CORP (PSN) has provided the following forward guidance: Revenue: $6.5–$6.8 billion (FY2026); Adjusted EBITDA: $615 million–$675 million (FY2026); Operating Cash Flow: $470 million–$530 million (FY2026).
No recent press releases.