Parsons Corporation reported first‑quarter 2026 results on April 29, 2026, with total revenue of $1.49 billion, a 4 % decline year‑over‑year and below analyst estimates of $1.5 billion. Adjusted EBITDA reached $151 million, giving the company a record 10.1 % margin, up 50 basis points from 9.6 % in Q1 2025. Adjusted diluted earnings per share were $0.79, beating the consensus estimate of $0.70 by $0.09, or roughly 13 %.
The revenue miss was largely driven by the winding down of a confidential contract that had previously contributed significant volume. When the contract is excluded, total revenue actually grew 8 % and organic revenue increased 3 %. This underlying growth demonstrates that the core business remains healthy, but the contract’s decline has weighed on the headline figure.
Margin expansion to 10.1 % was achieved through improved execution, cost discipline, and the contribution of recent acquisitions. The company also reported a record backlog of $9.3 billion and a book‑to‑bill ratio of 1.4× in both the Critical Infrastructure and Federal Solutions segments, underscoring strong future revenue visibility.
Segment performance varied: the Critical Infrastructure segment grew 3 % organically and 8 % in adjusted EBITDA, while the Federal Solutions segment saw a 10 % decline in revenue but maintained a 9.4 % adjusted EBITDA margin. The margin improvement in Federal Solutions reflects a favorable mix shift and disciplined cost management, even as revenue contracted.
Management reiterated full‑year 2026 guidance—revenue of $6.5‑$6.8 billion and adjusted EBITDA of $615‑$675 million—expressing confidence in the company’s trajectory. "Our first quarter results highlighted the resilience of our business and our team's high level of execution, as we delivered our highest adjusted EBITDA margin ever, reached record levels for both total and funded backlog, achieved a robust book‑to‑bill ratio of 1.4x in both segments, and generated record first‑quarter cash flow," said CEO Carey Smith. "Looking at our first quarter financials in more detail, total revenue increased by 8% and organic revenue grew 3%, excluding our confidential contract." The market reacted positively, with investors focusing on the record margins and strong backlog despite the revenue decline.
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