Slides
Page 1
FEBRUARY 11, 2025 FOURTH QUARTER AND FISCAL YEAR 2025 Earnings Conference Call Presentation
Page 2
Parsons Corporation This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward- looking statements, including, among others: the impact of COVID- 19; any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings including litigation, audits, reviews and investigations, which may result in material adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors including under the caption “Risk Factors” in our Annual Report with the Securities and Exchange Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2025, on Form 10-K, filed on February 11, 2026, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws. Parsons Corporation FORWARD LOOKING STATEMENTS 2
Page 3
Parsons Corporation KEY MESSAGES ▪ Delivered strong financial results for Q4 and fiscal year 2025, despite a dynamic federal government environment ▪ Double-digit total revenue growth for Q4 and FY25 and organic growth of 8% for Q4 and FY25 (excluding confidential contract) ▪ Record adjusted EBITDA margin for 2025 with 60 bps of margin expansion; 110 bps over the last 2-years ▪ Outperformed cash flow expectations for Q4 and 2025, surpassed the high-end of 2025 cash flow guidance ▪ 15 contract wins valued at $100M+, matching company record set last year ▪ Significantly exceeded high-end of all March 2023 investor day financial targets ▪ Solid performance from 2023 to 2025 demonstrates strategic growth plan is working and validates the strength and resiliency of our complementary portfolio ▪ Consistently delivering mid- single-digit or better organic revenue growth, while expanding margins and delivering strong free cash flow ▪ 2026 guidance and long-term growth targets supported by strength of portfolio and end markets 3
Page 4
Parsons Corporation EXCEEDED HIGH-END OF ALL 2023 INVESTOR DAY TARGETS Exceptional Growth For Key Financial Metrics * 2025 Investor Day Targets established on March 15, 2023. 4 2022 Actuals High-End of 2025 Investor Day Targets* 2025 Actuals 3-Year Highlights Total Revenue $4,195M $5,000M $6,364M CAGR of 15% total revenue growth and organic growth of 10% ▪ Excluding confidential contract CAGR of 13% for total revenue growth and 9% organic growth Adjusted EBITDA $353M $465M $609M 20% CAGR from 2023-2025 Adjusted EBITDA Margin 8.4% 9.3% 9.6% 120 basis points of margin expansion Cash Flow from Operations $238M $390M $478M 26% CAGR from 2023-2025
Page 5
Parsons Corporation ▪ Successful year despite a dynamic federal government macroenvironment ▪ Delivered double-digit revenue growth (excluding confidential contract), record adjusted EBITDA and adjusted EBITDA margin, and exceeded high- end of cash flow guidance. Funded backlog (73% of total) at the highest level since the IPO ▪ 12% total revenue growth and 8% organic growth excluding confidential contract ▪ Adjusted EBITDA margin expands 60 basis points to a record 9.6% ▪ Cash flow from operations of $478M, Free Cash Flow conversion of 100% ▪ Book-to-bill ratio of 1.0x continued streak of TTM book-to-bill ratio of 1.0x or greater in every quarter since IPO ▪ Completed three accretive acquisitions during 2025 and acquired Altamira after Q4 2025 ended ▪ High win rates of 61%; record recompete win rates of approx. 100% ▪ Maintained strong hiring and record retention rates 5 2025 HIGHLIGHTS
Page 6
Parsons Corporation FY25 FINANCIAL SUMMARY Total Revenue Strong total and organic revenue growth (excluding confidential contract) and adjusted EBITDA margins; cash flow from operations exceeded high-end of guidance 0 3,500 7,000 2024 2025 $5,362M $6,007M Millions $6,364M Adjusted EBITDAAdjusted EBITDA Margin 0% 5% 10% 2024 2025 9.0% 9.6% Percentage 0 350 700 2024 2025 $605M $609M Millions +12% Ex-confidential $6,751M -6% +1%+60 bps 6 ▪ Total revenue excluding the company’s confidential contract increased 12% and 8% organically ▪ Total revenue of $6,364M decreased 6% from 2024 ▪ Book-to-bill ratio of 1.0x ▪ Adjusted EBITDA margin expands 60 bps to a record 9.6% ▪ Record adjusted EBITDA of $609M increased 1% from 2024 ▪ Cash flow from operations of $478 million decreased 9% from 2024 and included a one-time impact of $33M in additional 401-K payments due to a change in the company’s match benefit
Page 7
Parsons Corporation FY25 BUSINESS SEGMENT SUMMARY ▪ Revenue increased 15% and 10% organically driven by strength in North America and EMEA markets ▪ Record adjusted EBITDA of $328M increased 73% from prior year period ▪ Record adjusted EBITDA margin of 10.4% expanded 350 bps ▪ Book-to-bill ratio of 1.2x Critical Infrastructure Federal Solutions ▪ Revenue growth of 9% and 7% on an organic basis excluding the company’s confidential contract ▪ Total revenue decreased 20% and 21% organically from prior year period ▪ Adjusted EBITDA margin of 8.7%; impacted by lower volume on the fixed price confidential contract 0 2,200 4,400 2024 2025 $2,618M $2,864M Millions Total RevenueAdjusted EBITDA Margin +9% Ex-Confidential $4,007M $3,221M -20% 0% 6% 12% 2024 2025 6.9% 10.4% Percent +350 bps Adjusted EBITDA Margin 0% 6% 12% 2024 2025 10.4% 8.7% Percent -170 bps 0 1,800 3,600 2024 2025 +15% $2,743M $3,143M Millions Total Revenue 7
Page 8
Parsons Corporation Q4 2025 REVENUE $1.6 Billion CASH FLOW FROM OPERATIONS $168 Million BOOK-TO-BILL RATIO 0.9x Trailing 12-months of 1.0x STRONG BALANCE SHEET ADJUSTED EBITDA $153 Million Net Debt Leverage Ratio 1.3x NET INCOME $56 Million Q4 2025 KEY HIGHLIGHTS Strong revenue growth ex. confidential contract and significant margin expansion ▪ Total revenue of $1.6B and record Q4 net income of $56M ▪ Total revenue growth of 11% and 8% organically, excluding confidential contract ▪ Adjusted EBITDA margin expanded 110 basis points to 9.6% Continuing to win significant contracts and positioned for growth ▪ Four contract wins in Q4 2025 and two after quarter end valued at over $100M in Q4 2025; all in Federal Solutions ▪ Quarterly and trailing 12-month book-to-bill ratio of 0.9x and 1.0x, respectively ▪ Backlog decreased 2% to $8.7B; 73% is funded, highest level since IPO ▪ Approximately $11B worth of contract wins that have not yet been booked into backlog ▪ $55B pipeline includes more than 120 opportunities of contracts worth $100M or more and 15 opportunities worth $500M or more Leveraging strong balance sheet to continue accretive acquisitions ▪ Net debt leverage ratio of 1.3x will enable Parsons to continue to make internal investments and accretive acquisitions to drive additional growth and margin expansion ▪ Closed important acquisition of Applied Sciences Consulting during the fourth quarter. Closed strategic acquisition of Altamira Technologies after Q4 2025 ended that enhances Parsons’ market presence in SIGINT, missile warning, space, and foreign military exploitation, and adds critical depth with key customers 8
Page 9
Parsons Corporation Q4 2025 FINANCIAL SUMMARY ▪ Total revenue increased 11% and 8% organically excluding the confidential contract ▪ Total revenue of $1,604M decreased 8% from Q4 2024 ▪ Book-to-bill ratio of 0.9x ▪ Adjusted EBITDA margin expands 110 bps to 9.6% ▪ Adjusted EBITDA of $153M increased 5% from prior year period ▪ Cash flow from operations of $168 million exceeded expectations for Q4 Strong total and organic revenue growth (excluding confidential contract) and adjusted EBITDA margins; cash flow from operations exceeded high-end of guidance 9 Total Revenue 0 1,000 2,000 Q4 2024 Q4 2025 $1,430M $1,581M Millions $1,604M Adjusted EBITDAAdjusted EBITDA Margin 0% 5% 10% Q4 2024 Q4 2025 8.5% 9.6% Percentage 0 90 180 Q4 2024 Q4 2025 $147M $153M Millions +11% Ex-confidential $1,734M -8% +5% +110 bps
Page 10
Parsons Corporation BUSINESS SEGMENT SUMMARY ▪ Q4 2025 revenue increased 12% and 9% organically from Q4 2024 ▪ Record adjusted EBITDA of $87M increased 87% from prior year period driven by strong performance execution ▪ Q4 2025 adjusted EBITDA margin of 10.6% increased 420 bps from prior year period, a Q4 record ▪ Book-to-bill ratio of 1.1x Critical Infrastructure Federal Solutions ▪ Q4 2025 revenue growth of 9% and 6% on an organic basis excluding the company’s confidential contract ▪ Q4 2025 total revenue decreased 22% and 24% organically from prior year period ▪ Adjusted EBITDA margin of 8.4% compressed 160 bps from prior year period; impacted by lower volume on the fixed price confidential contract 0 600 1,200 Q4 2024 Q4 2025 $699M $761M Millions Total RevenueAdjusted EBITDA Margin +9% Ex-Confidential $1,003M $784M -22% 0% 6% 12% Q4 2024 Q4 2025 6.4% 10.6% Percent +420 bps Adjusted EBITDA Margin 0% 6% 12% Q4 2024 Q4 2025 10.0% 8.4% Percent -160 bps 0 500 1,000 Q4 2024 Q4 2025 +12% $731M $820M Millions Total Revenue 10
Page 11
Parsons Corporation 11 Awarded $392M Awarded a new large ten-year, $392M single-award contract by a federal customer that represents new work and leverages the company’s biometrics and network engineering capabilities. The company booked $36M on this contract during the fourth quarter. Awarded $200M Awarded a new five-year, single-award contract with a ceiling value of $200M. The company booked $23M on this contract during the fourth quarter. Awarded $125M Awarded a five-year, $125 million single-award task order contract to support the U.S. Army Combat Capabilities Development Command Army Research Laboratory, High Performance Computing Modernization Program, and Defense Research and Engineering Network. Under this recompeted award, Parsons will deliver an array of services including research, development, test and evaluation, infrastructure operations, and comprehensive project management. The company booked $44 million on this contract during the fourth quarter. Awarded $100M+ Awarded a new single-award task order contract valued at over $100M by Nammo to provide design and program and construction management for a new rocket motor manufacturing facility in Perry, Florida. The two-year industrial base modernization contract represents new work for the company. The company booked the full value of the contract during the fourth quarter. SIGNIFICANT CONTRACT WINS During Q4 2025, Parsons won four single-award contracts worth more than $100M each, matching our record of 15 contract wins worth more than $100M for the full year. After Q4 ended, won two additional contracts worth more than $100M each.
Page 12
Parsons Corporation 12 Awarded $91M Awarded a $91 million contract extension for the Overseas Security Installation Services contract by the U.S. Department of State. The scope of services encompasses technical security installation and support services, and a range of integrated security solutions, including operations support, state-of-the-art access control systems, counter-unmanned aircraft systems (CUAS), and cutting-edge biometric security technologies. The company booked $80 million on this contract during the fourth quarter. Awarded $593M After the fourth quarter of 2025 ended, Parsons was awarded $593 million contract extension under the Federal Aviation Administration’s (FAA) Technical Support Services Contract (TSSC 5) to provide program and construction management, engineering, technical services, health and environmental safety, fire protection, equipment installation and testing, and logistics. This award exercises the first option period, extends performance through 2030, and supports the FAA's Aviation System Capital Investment Plan. TSSC 5 has a $1.8 billion ceiling value and a four-year base period and two three-year option periods. Awarded $500M After the fourth quarter of 2025 ended, Parsons received an Intent to award notification for a sole-source contract from a national security customer. The contract is new work for the company with a ceiling value of up to $500 million. The company booked $13 million on this contract for the low-rate initial production which was awarded during the fourth quarter. SIGNIFICANT CONTRACT WINS
Page 13
Parsons Corporation 13 ADDITIONAL CORPORATE HIGHLIGHTS Acquired Altamira Technologies Parsons closed its acquisition of Altamira Technologies Corporation, a Northern Virginia-based signals intelligence and space solutions provider, in an all-cash transaction valued at up to $375M. Altamira expands Parsons’ market presence in SIGINT, missile warning, space, and foreign military exploitation, and adds critical customer depth with key customers. The transaction is consistent with Parsons’ strategy of completing accretive acquisitions with revenue growth and adjusted EBITDA margins of at least 10%. Acquired Applied Sciences Consulting Parsons announced and closed its acquisition of Applied Sciences Consulting, Inc., a Florida-based engineering firm that specializes in water and stormwater solutions for cities, counties, and water management districts across the state. The acquisition expands Parsons’ water expertise, strengthens its presence in Florida, and is consistent with the company’s strategy of completing accretive acquisitions with revenue growth and adjusted EBITDA margins of at least 10%. This acquisition closed after the third quarter ended. Excellence in Supporting the Military Community Parsons was recognized by several organizations for continued excellence and industry leadership in supporting the military community. Notable awards include the 2025 Department of Labor HIRE Vets Gold Medallion Award, the 2025 Military Times Best for Vets Rankings for overall strength of the MILVET program, and the 2026 GI Jobs Military Friendly Employer Award Gold/Top 10 for overall strength of the MILVET program. SpaceNews Icon Award for Civil Space Achievement Honored with the esteemed 2025 SpaceNews Icon Award for Civil Space Achievement in recognition of groundbreaking advancements in space traffic coordination by the Traffic Coordination System for Space program, where the company serves as systems integrator.
Page 14
Parsons Corporation 14 ▪ Revenue diversification • Largest contract only expected to generate 4% of 2026 revenue • Largest EMEA contract approx. 1.4% of 2026 revenue • Revenue projected to be evenly split between the Critical Infrastructure and Federal Solutions segments in 2026 ▪ Low recompete risk • ~5% recompete rate in 2026 • Secured top 4 contract recompetes at least through 2028 (each ~$2 billion in contract value) • Large funded backlog: $8.7 billion of backlog, 73% is funded, highest level since IPO • $11 billion of contract wins awarded but not booked • Pipeline of $55B and historically strong win rates (61% in FY25) Diversified revenue streams, coupled with low recompete risk and a substantial funded backlog, offer stability, reduce risk, and strengthen confidence in achieving financial targets ENTERING 2026 WITH A SOLID FOUNDATION Largest Contract 4% Top 10 21% Top 25 33%Other 67% Top Contracts % of 2026 Total Revenue
Page 15
Parsons Corporation 2025 Actuals 2026 Guidance Highlights at Mid-point Total Revenue $6,364M $6,500 - $6,800M +4.5% growth and +0.5% organically; +10.5% growth and +6% organically excluding confidential contract Adjusted EBITDA $609M $615 - $675M +6% growth (10 bps expansion) Cash Flow from Operations $478M $470 - $530M +5% growth* 15 Top Line Drivers Bottom Line Drivers ▪ Ramp-up of recent contract wins ▪ $8.7B of total backlog (73% funded) ▪ $11B in contract wins not included in total backlog ▪ Both segments poised for increased industry spending ▪ Hiring and retention momentum ▪ Strong contract win rates ▪ On-contract growth ▪ Growth on margin accretive contracts ▪ Accretive M&A ▪ Accelerated growth on products and OTA’s ▪ Growth in high margin markets ▪ Operating leverage – revenue outpacing cost growth ▪ Supply vs. Demand in a growing global infrastructure spend ▪ Bid discipline Net income guidance is not presented as the company believes volatility associated with interest, taxes, depreciation, amortization and other matters affecting net income, including but not limited to one-time and nonrecurring events and impact of M&A, will preclude the company from providing accurate net income guidance for fiscal year 2026. *2026 free cash flow conversion is expected to be 100% of adjusted net income FISCAL YEAR 2026 GUIDANCE
Page 16
Parsons Corporation 16 ▪ ~ 50% of total revenue to be generated from Federal Solutions segment at the mid-point ▪ Adjusted EBITDA margin of ~ 9.7% at the mid-point of the revenue guidance, up 10bps from 2025 ▪ Net interest expense of ~ $56M ▪ GAAP effective tax rate of ~ 23% ▪ Net income attributable to noncontrolling interests of ~ $65M ▪ Tax effect on adjustments ~ ($36M) for full-year ▪ Adjusted net income diluted share count of ~ 109.0M shares ▪ GAAP diluted share count of ~ 109.0M shares ▪ CapEx of ~ $90M (approximately 1.5% of total revenue) ▪ Equity-based compensation expenses of ~ $45M ▪ D&A expenses of ~ $130M, which includes ~ $77M of acquisition-related amortization ▪ FY26 guidance includes ~$27M of transaction and other expenses - does not include future acquisitions FISCAL YEAR 2026 GUIDANCE ASSUMPTIONS Revenue: approximately 3.5% year-over-year decline in Q1 2026 (vs. Q1 2025) and then y/y increases of approximately in 5%-8% in quarters Q2, Q3 and Q4 of 2026 to arrive at FY26 guidance mid-point of $6,650M Adjusted EBITDA $: expect Q1 2026 to be ~ 22% of 2026’s full-year AEBITDA. In quarters Q2, Q3 and Q4 of 2026, AEBITDA is expected to be 25%-26% of 2026’s full-year AEBITDA Operating Cash Flow: expect typical seasonality with negative operating cash flow in Q1 of approximately $60M and then positive cash flow throughout the year to arrive at guidance mid-point of $500M PATTERNS
Page 17
Parsons Corporation Revenue Growth Adjusted EBITDA Margin Expansion Free Cash Flow Conversion Acquisitions 17 THREE-YEAR GROWTH TARGETS (2026 - 2028) Mid- Single- Digit or Better Organically Double-digits By 2028 >100% Organic Growth Supplemented w/ Accretive Acquisitions
Page 18
Parsons Corporation Strong, stable, and funded backlog with significant awarded not booked Unique, synergistic, and diverse portfolio Distinguished national security portfolio positioned to deliver solutions that outpace near-peer threats Unprecedented global infrastructure spending Strong position in six growing, enduring, and profitable end markets Favorable financial outlook and proven, effective capital deployment strategy 18 INVESTMENT THESIS
Page 19
Parsons Corporation $28.2B Cyber and Electronic Warfare Critical Infrastructure Protection Transportation Water and Environment Urban Development Space and Missile Defense PROJECTED CAGR TOTAL ADDRESSABLE MARKETEMEANorth America Infrastructure Engineered Systems Defense & Intelligence $23.5B $32.2B $37.5B $28.1B $30.7B 1 Sources: Bloomberg, Oliver Wyman, MarketsandMarkets, Research and Markets, Environmental Business Journal, MEED and internal analysis 2 2025 revenue; Other Revenue represents 5% of PSN Total 6-8% 9-11% 8-9% 7-9% 5-7% 4-6% % of PSN TOTAL REVENUE2 27% 20% 10% 13% 13% 12% 19 PORTFOLIO ALIGNED FOR GROWTH
Page 20
Parsons Corporation 20 Two Strong & Growing Segments with Complementary, Synergistic “One Parsons” Opportunities ALIGNMENT TO ADMINISTRATION & GLOBAL PRIORITIES ▪ Cyber ▪ Critical Infrastructure Protection ▪ PFOS/PFAS ▪ Re-build: Israel-Gaza, Syria, Ukraine, California Wildfire ▪ Events Management ▪ Energy Resiliency ▪ Aviation Modernization ▪ Global Dome For North America ▪ Industrial Base Modernization (Sentinel, INDOPACOM, munitions/ammunition, energetics) ▪ Border Security/Counter-drug ▪ Space (cislunar, A-PNT, ground mission mgmt., classified sensors) ▪ “Hard” US Infrastructure (roads & highways, bridges, airports, rail & transit) ▪ MEA Transportation, Urban Development, Defense & Security ▪ Europe Infrastructure Expansion ▪ Advanced Manufacturing PM/CM (e.g., critical minerals, data centers, semiconductor facilities) BothFederal Solutions Critical Infrastructure
Page 21
Parsons Corporation BALANCED AND STABLE PORTFOLIO Synergistic And Diversified Portfolio Creating Global Opportunities 21 Sub 15% Prime 85% United States 74% Canada 8% MEA 18% Balanced Portfolio Contract MixGlobal Footprint Federal Solutions 51%Critical Infrastructure 49% Fixed Price 34% Cost Reimbursable 42% Time and Materials 24% Priming Contracts Based on 2025 actual financial results
Page 22
Parsons Corporation M&A SUPPORTS AN INTEGRATED SOLUTIONS STRATEGY Polaris Alpha Braxton Science & Technology Group QRC® Technologies OGSystems Williams Electric Industrial Control Systems Space Solutions Cyber AI/ML Command And Control Advanced Sensing Big Data Analytics Geospatial Intelligence Threat Analytics Radio Frequency Signals Intelligence Space Ground Systems Space Mission Products BlackHorse Solutions Assured Position, Navigation, & Timing (PNT) Cyber Electronic Warfare Information Dominance Echo Ridge Xator Corporation Critical Infrastructure Protection Identity Management Counter Unmanned Aircraft Systems IPKeys Power & Cyber Partners SealingTech Cyber Operations Integrated Mission Solutions Secure Data Management Transportation Engineering I.S. Engineers BCC Engineering Digital Signal Processing Electronic Warfare Cyber BlackSignal Transportation Engineering 20202017 2019 2021 2022 2023 2024 2025 20262018 TRS Group Multi-Domain Electromagnetic Warfare Solutions CTI PFAS Removal Thermal Remediation Applied Sciences Water Resiliency, Stormwater Solutions Altamira SIGINT, Missile Warning, Space Foreign Military Exploitation 22 Critical Infrastructure Protection Cyber for Utility and Water
Page 23
23Parsons Corporation APPENDIX: SUPPLEMENTAL MATERIALS
Page 24
24 ADJUSTED EBITDA RECONCILIATION PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income to Adjusted EBITDA (in thousands) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income attributable to Parsons Corporation $55,583 $54,180 $241,139 $235,053 Interest expense, net 11,123 10,323 44,424 40,154 Income tax expense 19,945 18,729 73,647 76,986 Depreciation and amortization (a) 30,642 25,738 116,486 99,251 Net income attributable to noncontrolling interests 19,211 15,184 67,725 55,612 Equity-based compensation 10,035 16,938 40,225 61,492 Convertible debt repurchase loss - - - 18,355 Transaction-related costs (b) 4,295 8,180 18,205 17,138 Restructuring (c) - - 2,653 - Other (d) 2,428 (2,653) 4,802 912 Adjusted EBITDA $153,262 $146,619 $609,306 $604,953 (a) Depreciation and amortization for the three and twelve months ended December 31, 2025, is $20.8 million and $81.5 million, respectively in the Federal Solutions Segment, and $9.8 million and $34.9 million, respectively in the Critical Infrastructure Segment. Depreciation and amortization for the three and twelve months ended December 31, 2024, is $18.9 million and $77.5 million, respectively in the Federal Solutions Segment and $6.9 million and $21.7 million, respectively in the Critical Infrastructure Segment. (b) Reflects costs incurred in connection with acquisitions and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (c) Reflects costs associated with and related to our corporate restructuring initiatives. (d) Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. Three Months Ended Twelve Months Ended
Page 25
25 ADJUSTED EBITDA ATTRIBUTABLE TO NCI PARSONS CORPORATION Non-GAAP Financial Information Computation of Adjusted EBITDA Attributable to Noncontrolling Interests (in thousands) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Federal Solutions Adjusted EBITDA attributable to Parsons Corporation $66,011 $99,925 $281,116 $415,338 Federal Solutions Adjusted EBITDA attributable to noncontrolling interests 21 35 94 160 Federal Solutions Adjusted EBITDA including noncontrolling interests 66,032 99,960 281,210 415,498 Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation 67,923 31,319 260,106 132,901 Critical Infrastructure Adjusted EBITDA attributable to noncontrolling interests 19,307 15,340 67,990 56,554 Critical Infrastructure Adjusted EBITDA including noncontrolling interests 87,230 46,659 328,096 189,455 Total Adjusted EBITDA including noncontrolling interests $153,262 $146,619 $609,306 $604,953 Three Months Ended Twelve Months Ended
Page 26
26 ADJUSTED NET INCOME ATTRIBUTABLE TO PARSONS PARSONS CORPORATION Non-GAAP Financial Information Reconciliation of Net Income Attributable to Parsons Corporation to Adjusted Net Income Attributable to Parsons Corporation (in thousands, except per share information) (a) Reflects costs incurred in connection with acquisitions and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (b) Reflects costs associated with and related to our corporate restructuring initiatives. (c) Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. (d) Excludes dilutive effect of convertible senior notes due 2025 due to bond hedge. December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income attributable to Parsons Corporation $55,583 $54,180 $241,139 $235,053 Acquisition related intangible asset amortization 18,137 14,814 69,568 55,591 Equity-based compensation 10,035 16,938 40,225 61,492 Convertible debt repurchase loss - - - 18,355 Transaction-related costs (a) 4,295 8,180 18,205 17,138 Restructuring (b) - - 2,653 - Other (c) 2,428 (2,653) 4,802 912 Tax effect on adjustments (8,946) (6,429) (33,181) (35,842) Adjusted net income attributable to Parsons Corporation 81,532 85,030 343,411 352,699 Adjusted earnings per share: Weighted-average number of basic shares outstanding 106,719 106,465 106,828 106,274 Weighted-average number of diluted shares outstanding (d) 108,221 108,355 108,246 108,052 Adjusted net income attributable to Parsons Corporation per basic share $0.76 $0.80 $3.21 $3.32 Adjusted net income attributable to Parsons Corporation per diluted share $0.75 $0.78 $3.17 $3.26 Three Months Ended Twelve Months Ended