Parsons Corporation announced on October 30, 2024, record third quarter 2024 financial results, with total revenue increasing by $392 million, or 28%, to $1.8 billion. This growth was primarily driven by 26% organic growth due to the ramp-up of recent contract wins and growth on existing contracts in critical infrastructure protection and cyber and intelligence markets. Net income increased 52% to $72 million, with GAAP diluted earnings per share (EPS) attributable to Parsons at $0.65, up from $0.42 in the prior year period.
Adjusted EBITDA, including noncontrolling interests, for the third quarter of 2024 was $167 million, a 31% increase over the prior year period, with the Adjusted EBITDA margin expanding 20 basis points to 9.2%. Federal Solutions segment revenue increased $325 million, or 42%, with 39% organic growth, and its adjusted EBITDA margin increased 260 basis points to 10.9%. Critical Infrastructure revenue increased 10%, but its adjusted EBITDA decreased by $16 million, or 25%, to $47 million due to a write-down on a legacy program expected to complete in Q4 2024.
As a result of its strong operating performance and the BlackSignal acquisition, Parsons increased its fiscal year 2024 revenue guidance to $6.6 billion - $6.8 billion, up from $6.35 billion - $6.55 billion. Adjusted EBITDA guidance was raised to $590 million - $620 million, from $555 million - $595 million, and cash flow from operating activities guidance was increased to $425 million - $465 million, from $395 million - $455 million.
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