Parsons CorporationPSN
NYSE•Technology•Information Technology Services
Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide. It operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment offers critical technologies, such as cyber; air and missile defense; intelligence; aviation modernization; electronic warfare; space ground systems, cislunar, A-PNT, and classified sensors; geospatial and signals intelligence; environmental remediation; border security and counter-drug, critical infrastructure protection; counter unmanned air systems; biometrics; and bio surveillance solutions. This segment also provides software and hardware, and technical expertise; satellite ground systems support and operations, flight dynamics, data fusion and analytics, platform system integration, directed energy, joint all-domain operations, and command and control systems; digital landscape, including full-spectrum cyber, defensive cyber operations, information operations, and analytics; and electronic warfare, multi-domain operations, mission support and national to tactical operations, as well as cyber solutions and products. The Critical Infrastructure segment develops digital solutions for aviation, rail and transit, bridges, roads, highways, and urban destinations. This segment also provides planning, engineering, and management services for complex infrastructure comprising bridges, tunnels, roads and highways, and water and wastewater systems; intelligent transportation systems, utilities, environmental remediation, emerging contaminants, aviation, and rail and transit, as well as ParsonsX, a digital transformation organization; and multi-disciplinary design, technical, and management solutions. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
Parsons Corporation (PSN) reported trailing twelve months revenue of $6.30B as of March 2026, a 6.9% decline year-over-year. Quarterly revenue reached $1.49B, reflecting a contraction in sales.
Parsons Corporation generated $227.86M in TTM net income, with quarterly EBITDA of $131.60M. The operating margin contracted from 7.0% to 6.4%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (6.4%) and net margin (3.5%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 4.3% a year ago, reflecting increased costs or interest expense.
PSN trades at a P/E of 26.3x (in line with broad market averages) and a P/S of 1.0x. The price-to-book ratio of 2.3x reflects a moderate premium to book value.
The company reported negative free cash flow of $-18.62M, indicating cash consumption over the period. The balance sheet shows $6.01B in total assets with $1.51B in long-term debt against $2.65B in stockholders equity for a debt-to-equity ratio of 0.6. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~6.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~10.1% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has grown modestly overall (~3.0%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~6.4% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
Debt-to-equity has risen 78.4% recently — increasing financial risk even if the current ratio is manageable.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.