PSN PARSONS CORP

Overview and Growth

PARSONS CORP generated $6.36B of revenue in fiscal 2025, with net income of $241.14M and an operating cash inflow of $478.38M. The $6.36B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 5.7% from $6.75B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of $2.20, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $2.12 in fiscal 2024, the current result was 3.8% higher. Revenue equaled 1.1x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $1.43B as gross profit before recognizing operating expenses and other items. Gross profit represented 22.5% of revenue, showing how much of the top line remained after direct costs. Operating income was $418.07M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 6.6% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $241.14M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 3.8% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $382.51M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 6.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $73.65M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 19.3%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $5.77B of assets against $3.00B of liabilities and $2.77B of equity, revealing how the asset base was financed. The near-term balance sheet paired $2.68B of current assets with $1.53B of current liabilities at the reporting date. At 1.75x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $466.39M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 30.4% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $1.24B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.45x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 21.5%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 52.0%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 8.1% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $478.38M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.98x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $67.97M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 14.2%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $410.41M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 6.4% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 7.1%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.