Parsons (PSN) Q2 FY26 earnings call

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Jul 29, 2026

Source: earnings call transcript

Parsons delivered strong normalized Q2 FY26 results, with robust bookings and margin expansion in its core business, particularly Critical Infrastructure. However, the company adjusted its full-year guidance due to strategic portfolio reshaping actions, including divestitures and a JV charge, alongside federal contract timing delays and a slower infrastructure ramp. Management emphasized that these adjustments reflect portfolio composition and timing, not a decline in underlying demand.

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PSN operating KPIs by quarter

PSN operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Employees Middle East	7,500 Most importantly, I'm pleased to share that our 7,500 team members in the Middle East region have remained safe during the current regional conflict. Source: earnings call transcript	7,500 So our first concern in the Middle East is safety and security of our 7,500 employees in the region, and they are all very safe. Source: earnings call transcript	0%
Book-to-bill ratio Critical Infrastructure	1.4 ratio Our Critical Infrastructure segment reported a book-to-bill of 1.4 for the quarter, marking 22 consecutive quarters above 1.0. Source: earnings call transcript	1.1 ratio Critical infrastructure achieved 1.1x representing the 23rd consecutive quarter at or above 1.0x, demonstrating sustained demand. Source: earnings call transcript	-21.4%
Book-to-bill ratio Middle East	1.5 ratio Performance in the Middle East was outstanding with a book-to-bill ratio of 1.5. Source: earnings call transcript	1.1 ratio In the Middle East remains strong with a 1.1x book-to-bill. Source: earnings call transcript	-26.7%
Book-to-bill ratio Federal Solutions	1.4 ratio In Federal Solutions, contract awards increased 38% year-over-year, resulting in a book-to-bill ratio of 1.4x. Source: earnings call transcript	1.3 ratio Federal Solutions' bookings increased by a robust 51% year-over-year, delivering a 1.3x book-to-bill ratio. Source: earnings call transcript	-7.1%
Orders	$2B In the first quarter, we secured $2 billion in contract awards, a 17% increase year-over-year, driving a strong enterprise book-to-bill ratio of 1.4x. Source: earnings call transcript	$1.9B In the second quarter, we secured $1.9 billion in contract awards, a 24% increase year-over-year, driving a strong enterprise book-to-bill ratio of 1.2x. Source: earnings call transcript	-5%
Funded backlog	$6.6B Funded backlog of $6.6 billion remains the highest since our IPO and increased 7% year-over-year. Source: earnings call transcript	$6.6B Funded backlog of $6.6 billion increased 6% year-over-year. Source: earnings call transcript	0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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