PARSONS CORP Segments Disclosure
The Company operates in two reportable segments: Federal Solutions and Critical Infrastructure.
The Federal Solutions segment provides advanced technical solutions to the U.S. government, delivering timely, cost-effective hardware, software and services for mission-critical projects. The segment provides advanced technologies, supporting national security missions in cyber operations, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services.
The Critical Infrastructure segment provides integrated engineering and management services for complex physical and digital infrastructure around the globe. The Critical Infrastructure segment is a technology innovator focused on next generation digital systems and complex structures. Industry leading capabilities in engineering and project management allow the Company to deliver significant value to customers by employing cutting-edge technologies, improving timelines and reducing costs.
The Company defines its reportable segments based on the way the chief operating decision maker (“CODM”), its , evaluates the performance of each segment and manages the operations of the Company for purposes of allocating resources among the segments. The CODM evaluates segment operating performance using segment Revenue, segment direct cost of contracts, segment Selling, General and Administrative expense and segment Adjusted EBITDA attributable to Parsons Corporation.
The Company defines Adjusted EBITDA attributable to Parsons Corporation as Adjusted EBITDA excluding Adjusted EBITDA attributable to noncontrolling interests. The Company defines Adjusted EBITDA as net income (loss) attributable to Parsons Corporation, adjusted to include net income (loss) attributable to noncontrolling interests and to exclude interest expense (net of interest income), provision for income taxes, depreciation and amortization and certain other items that are not considered in the evaluation of ongoing operating performance. These other items include net income (loss) attributable to noncontrolling interests, asset impairment charges, income and expense recognized on litigation matters, expenses incurred in connection with acquisitions and other non-recurring transaction costs and expenses related to our prior restructuring.
Adjusted EBITDA is the measure of our operating performance used by the CODM to assess our segments’ financial performance. The CODM uses Adjusted EBITDA for business planning purposes, including to manage our segments against internal projected results of operations and measure the performance of our segments generally.
The following tables present segment information provided to the CODM, as of each fiscal year presented, along with a reconciliation of segment adjusted EBITDA attributable to Parsons Corporation to net income attributable to Parsons Corporation for the periods presented (in thousands):
|
|
Year Ended |
|
|||||||||
|
|
December 31, 2025 |
|
|||||||||
|
|
Federal |
|
|
Critical |
|
|
Total |
|
|||
Revenue |
|
$ |
3,220,797 |
|
|
$ |
3,143,448 |
|
|
$ |
6,364,245 |
|
Direct cost of contracts |
|
|
(2,530,560 |
) |
|
|
(2,402,151 |
) |
|
|
(4,932,711 |
) |
Selling, general and administrative expenses (a) |
|
|
(179,032 |
) |
|
|
(186,893 |
) |
|
|
(365,925 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
4,107 |
|
|
|
(1,524 |
) |
|
|
2,583 |
|
Other segment items (b) |
|
|
(234,196 |
) |
|
|
(292,774 |
) |
|
|
(526,970 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
281,116 |
|
|
$ |
260,106 |
|
|
|
541,222 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
68,084 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
(116,486 |
) |
||
Interest expense, net |
|
|
|
|
|
|
|
|
(44,424 |
) |
||
Income tax expense |
|
|
|
|
|
|
|
|
(73,647 |
) |
||
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(40,225 |
) |
||
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(18,205 |
) |
||
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(2,653 |
) |
||
Other (e) |
|
|
|
|
|
|
|
|
(4,802 |
) |
||
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
308,864 |
|
||
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(67,725 |
) |
||
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
241,139 |
|
||
|
|
Year Ended |
|
|||||||||
|
|
December 31, 2024 |
|
|||||||||
|
|
Federal |
|
|
Critical |
|
|
Total |
|
|||
Revenue |
|
$ |
4,007,114 |
|
|
$ |
2,743,462 |
|
|
$ |
6,750,576 |
|
Direct cost of contracts |
|
|
(3,187,829 |
) |
|
|
(2,156,325 |
) |
|
|
(5,344,154 |
) |
Selling, general and administrative expenses (a) |
|
|
(157,442 |
) |
|
|
(146,744 |
) |
|
|
(304,186 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
3,254 |
|
|
|
(26,615 |
) |
|
|
(23,361 |
) |
Other segment items (b) |
|
|
(249,759 |
) |
|
|
(280,877 |
) |
|
|
(530,636 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
415,338 |
|
|
$ |
132,901 |
|
|
|
548,239 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
56,714 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
(99,251 |
) |
||
Interest expense, net |
|
|
|
|
|
|
|
|
(40,154 |
) |
||
Income tax expense |
|
|
|
|
|
|
|
|
(76,986 |
) |
||
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(61,492 |
) |
||
Convertible debt repurchase loss |
|
|
|
|
|
|
|
|
(18,355 |
) |
||
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(17,138 |
) |
||
Other (e) |
|
|
|
|
|
|
|
|
(912 |
) |
||
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
290,665 |
|
||
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(55,612 |
) |
||
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
235,053 |
|
||
|
|
Year Ended |
|
|||||||||
|
|
December 31, 2023 |
|
|||||||||
|
|
Federal |
|
|
Critical |
|
|
Total |
|
|||
Revenue |
|
$ |
3,020,701 |
|
|
$ |
2,422,048 |
|
|
$ |
5,442,749 |
|
Direct cost of contracts |
|
|
(2,375,350 |
) |
|
|
(1,861,385 |
) |
|
|
(4,236,735 |
) |
Selling, general and administrative expenses (a) |
|
|
(129,507 |
) |
|
|
(129,747 |
) |
|
|
(259,254 |
) |
Equity in earnings (losses) of unconsolidated joint ventures |
|
|
4,190 |
|
|
|
(51,941 |
) |
|
|
(47,751 |
) |
Other segment items (b) |
|
|
(230,784 |
) |
|
|
(251,190 |
) |
|
|
(481,974 |
) |
Adjusted EBITDA attributable to Parsons Corporation |
|
$ |
289,250 |
|
|
$ |
127,785 |
|
|
|
417,035 |
|
Reconciliation: Segment Adjusted EBITDA to Net Income Attributable to Parsons Corporation |
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA attributable to non-controlling interests |
|
|
|
|
|
|
|
|
47,638 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
(119,973 |
) |
||
Interest expense, net |
|
|
|
|
|
|
|
|
(29,306 |
) |
||
Income tax expense |
|
|
|
|
|
|
|
|
(56,138 |
) |
||
Equity-based compensation expense |
|
|
|
|
|
|
|
|
(36,151 |
) |
||
Transaction related costs (c) |
|
|
|
|
|
|
|
|
(12,013 |
) |
||
Restructuring expense (d) |
|
|
|
|
|
|
|
|
(1,244 |
) |
||
Other (e) |
|
|
|
|
|
|
|
|
(1,933 |
) |
||
Net income including noncontrolling interests |
|
|
|
|
|
|
|
|
207,915 |
|
||
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
(46,766 |
) |
||
Net income attributable to Parsons Corporation |
|
|
|
|
|
|
|
$ |
161,149 |
|
||
Asset information by segment is not a key measure of performance used by the CODM.
The following table presents revenues and property and equipment, net by geographic area (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
North America |
|
$ |
5,182,232 |
|
|
$ |
5,677,933 |
|
|
$ |
4,481,492 |
|
Middle East |
|
|
1,162,213 |
|
|
|
1,052,509 |
|
|
|
943,175 |
|
Rest of World |
|
|
19,800 |
|
|
|
20,134 |
|
|
|
18,082 |
|
Total revenues |
|
$ |
6,364,245 |
|
|
$ |
6,750,576 |
|
|
$ |
5,442,749 |
|
Property and equipment, net |
|
|
|
|
|
|
|
|
|
|||
North America |
|
$ |
137,894 |
|
|
$ |
101,044 |
|
|
$ |
91,766 |
|
Middle East |
|
|
13,167 |
|
|
|
10,531 |
|
|
|
7,191 |
|
Total property and equipment, net |
|
$ |
151,061 |
|
|
$ |
111,575 |
|
|
$ |
98,957 |
|
North America revenue includes $4.7 billion, $5.2 billion and $4.1 billion of United States revenue for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively. North America property and equipment, net includes $130.5 million, $94.0 million and $83.9 million of property and equipment, net in the United States at December 31, 2025, December 31, 2024 and December 31, 2023, respectively.
The geographic location of revenue is determined by the location of the customer.
The following table presents revenues by business lines (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|||
Defense & Intelligence |
|
$ |
1,872,635 |
|
|
$ |
1,772,481 |
|
|
$ |
1,539,968 |
|
Engineered Systems |
|
|
1,348,162 |
|
|
|
2,234,633 |
|
|
|
1,480,733 |
|
Federal Solutions revenues |
|
|
3,220,797 |
|
|
|
4,007,114 |
|
|
|
3,020,701 |
|
Infrastructure – North America |
|
|
1,973,356 |
|
|
|
1,683,664 |
|
|
|
1,472,768 |
|
Infrastructure – Europe, Middle East and Africa |
|
|
1,170,092 |
|
|
|
1,059,798 |
|
|
|
949,280 |
|
Critical Infrastructure revenues |
|
|
3,143,448 |
|
|
|
2,743,462 |
|
|
|
2,422,048 |
|
Total revenues |
|
$ |
6,364,245 |
|
|
$ |
6,750,576 |
|
|
$ |
5,442,749 |
|
Effective October 1, 2023, the Company reorganized its Critical Infrastructure business units from Mobility Solutions and Connected Communities to Infrastructure – North America and Infrastructure – Europe, Middle East and Africa. The 2023 information in the table above has been reclassified to conform to the business unit changes.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.