Parsons Corporation announced its financial results for the third quarter ended September 30, 2026, reporting that revenue, profitability, and cash flow exceeded commitments. Total revenue for the quarter was $1.7 billion, which increased 2% year-over-year and decreased 1% on an organic basis. Net income for the quarter was $54 million, a decrease of $10 million compared to the prior year, primarily due to transaction-related expenses.
Adjusted EBITDA increased 6% to a record $168 million, with a margin expanding 40 basis points to a record 10.2%. Adjusted diluted earnings per share were $0.89 for the quarter. The company reported a book-to-bill ratio of 1.1x, with net bookings of $1.8 billion. Total backlog reached a record $9.4 billion, while funded backlog reached a record $6.8 billion.
Both segments contributed to the record performance. The Critical Infrastructure segment reported revenue of $846 million and adjusted EBITDA of $94 million, with a margin of 11.1%. The Federal Solutions segment reported revenue of $805 million and adjusted EBITDA of $74 million, with a margin of 9.2%.
During the quarter, Parsons received several significant contract actions valued at more than $100 million each. These included an increase in the ceiling value of a five-year Other Transaction Agreement with U.S. Cyber Command to $750 million, a 66-month, $495 million contract for a national security customer, and a 75-month, $86 million Other Transaction Agreement to serve as the Owner's Advisor for the development of U.S. Space Command's new headquarters.
The company also announced that Chief Financial Officer Matt Ofilos has resigned effective November 6, 2026. George Ball, a former CFO and current board member, has been appointed interim CFO.
Regarding fiscal year 2026 guidance, Parsons narrowed the mid-point of its revenue guidance to $6.35 billion and adjusted EBITDA guidance to $530 million, while maintaining its operating cash flow guidance range of $430 million to $490 million.
