PARSONS CORP Earnings Per Share Disclosure
Basic earnings per share (“EPS”) is computed using the weighted average number of shares outstanding during the period and income available to shareholders. Diluted EPS includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for Convertible Debt and the treasury stock method for all other instruments.
Under the treasury stock method, the weighted average number of shares outstanding is adjusted to reflect the dilutive effects of stock-based awards and shares underlying the warrants related to the convertible senior notes due 2025.
Under the if-converted method:
The following table reconciles the numerator and denominator used to compute basic and diluted EPS for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 (in thousands):
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2025 |
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2024 |
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2023 |
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Numerator for Basic and Diluted EPS: |
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Net income attributable to Parsons Corporation - basic |
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$ |
241,139 |
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$ |
235,053 |
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$ |
161,149 |
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Convertible senior notes if-converted method interest adjustment |
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135 |
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2,932 |
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2,291 |
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Net income attributable to Parsons Corporation - diluted |
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$ |
241,274 |
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$ |
237,985 |
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$ |
163,440 |
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Denominator for Basic and Diluted EPS: |
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Basic weighted average number of shares outstanding |
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106,828 |
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106,274 |
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104,992 |
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Dilutive effect of stock-based awards |
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1,418 |
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1,778 |
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1,173 |
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Dilutive effect of warrants |
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286 |
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494 |
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— |
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Dilutive effect of convertible senior notes |
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1,161 |
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3,628 |
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8,917 |
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Diluted weighted average number of shares outstanding |
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109,693 |
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112,174 |
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115,082 |
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Earnings per share: |
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Basic |
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$ |
2.26 |
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$ |
2.21 |
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$ |
1.53 |
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Diluted |
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$ |
2.20 |
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$ |
2.12 |
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$ |
1.42 |
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Anti-dilutive stock-based awards excluded from the calculation of earnings per share for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 were 14,571, 4,562, and 5,423, respectively.
Share Repurchases
On August 9, 2021, the Company’s Board of Directors authorized the Company to acquire a number of shares of Common Stock having an aggregate market value of not greater than $100 million from time to time, commencing on August 12, 2021. The Board further amended this authorization in August 2022 to remove the prior expiration date and grant executive leadership the discretion to determine the price for such share repurchases. The Board further amended this authorization in March 2025 to increase and reset the repurchase capacity to $250 million. Any purchases made by the Company during Q1 of 2025 were deducted from the reset capacity.
Under prior authorizations, the Company had repurchased shares with an aggregate market value of $79.7 million. The aggregate market value of shares of Common Stock the Company is authorized to acquire from prior authorizations and the March 2025 authorization is not greater than $329.7 million.
As of December 31, 2025, the Company has $125.0 million remaining under the stock repurchase program.
Repurchased shares of common stock are retired and included in “Repurchases of common stock” in cash flows from financing activities in the Consolidated Statements of Cash Flows. The primary purpose of the Company’s share repurchase program is to reduce the dilutive effect of shares issued under the Company’s ESOP and other stock benefit plans. The timing, amount and manner of share repurchases may depend upon market conditions and economic circumstances, availability of investment
opportunities, the availability and costs of financing, the market price of the Company's common stock, other uses of capital and other factors.
The following table summarizes the repurchase activity under the stock repurchase program.
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2025 |
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2024 |
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Total shares repurchased |
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1,822,368 |
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287,005 |
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Total shares retired |
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1,822,368 |
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287,005 |
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Average price paid per share |
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$ |
68.59 |
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$ |
87.10 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 10, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.