Parsons Corporation reported significant financial performance improvements in its third quarter and year-to-date results for 2024, driven by robust growth in its Federal Solutions and Critical Infrastructure segments. For the three months ended September 30, 2024, total revenue reached $1,810.1 million, a 27.6% increase from $1,418.6 million in the same period of 2023. Year-to-date revenue for the nine months ended September 30, 2024, was $5,016.3 million, reflecting a 27.0% increase from $3,948.5 million in the prior year.
Operating income for the third quarter was $115.0 million, up from $83.3 million in 2023, while operating income for the nine months increased to $328.3 million from $210.9 million. Net income attributable to Parsons Corporation for the third quarter was $72.0 million, compared to $48.0 million in the same quarter of 2023. However, net income for the nine months decreased to $33.8 million from $116.2 million in the previous year, primarily due to a significant loss on debt extinguishment of $211.0 million.
The company’s strategic acquisitions have played a crucial role in its growth. Notably, Parsons acquired BlackSignal Technologies, LLC for $203.8 million in August 2024, enhancing its capabilities in digital signal processing and cybersecurity. This acquisition is expected to expand Parsons' customer base within the Department of Defense and Intelligence Community. Additionally, Parsons completed the acquisition of I.S. Engineers, LLC for $12.2 million and Sealing Technologies, Inc. for $176.0 million in 2023, further strengthening its market position.
Despite the revenue growth, Parsons faced challenges, including a $21.6 million contract write-down and losses from unconsolidated joint ventures. The company reported a decrease in equity in earnings from these joint ventures, totaling a loss of $18.0 million for the nine months ended September 30, 2024, compared to earnings of $4.5 million in the same period of 2023.
Financially, Parsons showed improved liquidity, with cash and cash equivalents increasing to $558.8 million as of September 30, 2024, up from $272.9 million at the end of 2023. The company’s total liabilities rose to $3,028.9 million from $2,427.3 million, largely due to increased debt levels associated with its acquisitions and financing activities.
Overall, Parsons Corporation's performance in 2024 reflects a strong revenue trajectory, bolstered by strategic acquisitions, despite facing challenges in net income and joint venture performance.
About PARSONS CORP
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