Parsons Corporation announced on February 19, 2025, its financial results for the fourth quarter and fiscal year ended December 31, 2024. For Q4 2024, total revenue increased 16% to $1.7 billion, driven by 14% organic growth, primarily from critical infrastructure protection and cyber markets. Operating income rose 29% to $100 million, and net income increased 21% to $54 million. GAAP diluted EPS was $0.49, and Adjusted EPS was $0.78, which did not meet Wall Street expectations of $0.92.
Adjusted EBITDA for the fourth quarter was $147 million, a 14% increase, but was negatively impacted by $29 million of adjustments on two programs, which would have resulted in a normalized margin of 10.0%. For the full fiscal year 2024, total revenue increased 24% to $6.8 billion, with 22% organic growth. Adjusted EBITDA was $605 million, up 30%, and Adjusted diluted EPS was $3.26. Federal Solutions revenue grew 33% to $4.0 billion (30% organic), with Adjusted EBITDA margin at 10.4%. Critical Infrastructure revenue grew 13% to $2.7 billion (almost all organic), with Adjusted EBITDA margin at 6.9% (10.1% excluding adjustments).
Parsons provided fiscal year 2025 guidance, projecting total revenue between $7.0 billion and $7.5 billion, and Adjusted EBITDA between $640 million and $710 million. This guidance was slightly below Street forecasts for revenue. The company noted that 2024 was an exceptional year with record results across key metrics, but the Q4 adjustments and guidance outlook led to a stock price fall of $8.42, or 11.5%, to close at $65.08 per share on February 19, 2025.
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