Revenue has been broadly flat to down, with 2025Q4 falling 7.5% and 2026Q2 at -0.5%, while operating margin ranged from 0.1% to 7.1% and gross margin from 16.9% to 24.0%, indicating meaningful project-level volatility.
Parsons Corporation (PSN) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 6.32B | 6.36B | 6.75B | 5.44B | 4.2B | 3.66B | 3.92B | 3.95B | 3.56B | 3.02B |
| Revenue Growth % | -2.67% | -5.72% | 24.03% | 29.74% | 14.6% | -6.59% | -0.91% | 11.07% | 18.01% | - |
| Cost of Goods Sold | 4.95B | 4.93B | 5.34B | 4.24B | 3.25B | 2.81B | 3.04B | 3.12B | 2.8B | 2.4B |
| COGS % of Revenue | - | 77.51% | 79.17% | 77.84% | 77.43% | 76.7% | 77.63% | 78.97% | 78.5% | 79.55% |
| Gross Profit | 1.38B | 1.43B | 1.41B | 1.21B | 946.72M | 852.82M | 876.86M | 831.75M | 765.5M | 616.87M |
| Gross Margin % | 21.76% | 22.49% | 20.83% | 22.16% | 22.57% | 23.3% | 22.37% | 21.03% | 21.5% | 20.45% |
| Gross Profit Growth % | - | 1.79% | 16.62% | 27.39% | 11.01% | -2.74% | 5.42% | 8.65% | 24.09% | - |
| Operating Expenses | 1.07B | 1.01B | 978.36M | 917.66M | 761.06M | 720.38M | 699.04M | 739.69M | 560.5M | 466.17M |
| OpEx % of Revenue | - | 15.92% | 14.49% | 16.86% | 18.14% | 19.68% | 17.84% | 18.7% | 15.74% | 15.45% |
| Selling, General & Admin | 1.07B | 1.01B | 955M | 869.9M | 777.4M | 757.24M | 729.1M | 781.41M | 597.41M | 506.25M |
| SG&A % of Revenue | - | 15.92% | 14.15% | 15.98% | 18.53% | 20.69% | 18.6% | 19.76% | 16.78% | 16.78% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 0 | 23.36M | 47.75M | -16.35M | -36.86M | -30.06M | -41.72M | -36.91M | -40.09M |
| Operating Income | 309.21M | 418.19M | 428.07M | 288.36M | 185.67M | 132.45M | 177.81M | 92.06M | 205.01M | 150.7M |
| Operating Margin % | 4.89% | 6.57% | 6.34% | 5.3% | 4.43% | 3.62% | 4.54% | 2.33% | 5.76% | 5% |
| Operating Income Growth % | - | -2.31% | 48.45% | 55.31% | 40.18% | -25.51% | 93.14% | -55.09% | 36.04% | - |
| EBITDA | 446.53M | 534.68M | 527.32M | 408.33M | 306.17M | 276.65M | 305.8M | 217.76M | 274.88M | 185.9M |
| EBITDA Margin % | 7.06% | 8.4% | 7.81% | 7.5% | 7.3% | 7.56% | 7.8% | 5.51% | 7.72% | 6.16% |
| EBITDA Growth % | -13.29% | 1.4% | 29.14% | 33.37% | 10.67% | -9.53% | 40.43% | -20.78% | 47.86% | - |
| D&A (Non-Cash Add-back) | 137.32M | 116.49M | 99.25M | 119.97M | 120.5M | 144.21M | 127.98M | 125.7M | 69.87M | 35.2M |
| EBIT | 329.29M | 433.81M | 419.23M | 295.55M | 189.41M | 130.28M | 182.37M | 90.97M | 174.29M | 110.62M |
| Net Interest Income | -56.57M | -44.42M | -40.15M | -29.31M | -22.22M | -17.3M | -20.17M | -22.43M | -18.13M | -13.33M |
| Interest Income | 5.07M | 6.88M | 11.43M | 2.19M | 966K | 396K | 787K | 1.3M | 2.71M | 2.46M |
| Interest Expense | 61.64M | 51.3M | 51.58M | 31.5M | 23.18M | 17.7M | 20.96M | 23.73M | 20.84M | 15.8M |
| Other Income/Expense | -41.56M | -35.68M | -60.41M | -24.3M | -19.44M | -19.86M | -16.4M | -24.82M | 54.8M | -17.7M |
| Pretax Income | 267.65M | 382.51M | 367.65M | 264.05M | 166.22M | 112.59M | 161.41M | 67.24M | 259.8M | 133M |
| Pretax Margin % | 4.23% | 6.01% | 5.45% | 4.85% | 3.96% | 3.08% | 4.12% | 1.7% | 7.3% | 4.41% |
| Income Tax | 60.7M | 73.65M | 76.99M | 56.14M | 39.66M | 23.64M | 42.49M | -69.89M | 74.75M | 21.46M |
| Effective Tax Rate % | 22.68% | 19.25% | 20.94% | 21.26% | 23.86% | 20.99% | 26.33% | -103.93% | 28.77% | 16.14% |
| Net Income | 147.44M | 241.14M | 235.05M | 161.15M | 96.66M | 64.07M | 98.54M | 120.53M | 167.95M | 97.33M |
| Net Margin % | 2.33% | 3.79% | 3.48% | 2.96% | 2.3% | 1.75% | 2.51% | 3.05% | 4.72% | 3.23% |
| Net Income Growth % | -61.89% | 2.59% | 45.86% | 66.71% | 50.87% | -34.98% | -18.25% | -28.23% | 72.56% | - |
| Net Income (Continuing) | 206.95M | 308.86M | 290.67M | 207.91M | 126.56M | 88.95M | 118.92M | 137.13M | 239.44M | 111.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 110.51M | 125.65M | 118.1M | 89.5M | 52.37M | 36.34M | 47.65M | 30.87M | 46.46M | 27.49M |
| EPS (Diluted) | 1.38 | 2.20 | 2.12 | 1.42 | 0.85 | 0.59 | 0.97 | 1.30 | 2.10 | 1.22 |
| EPS Growth % | -37.16% | 3.77% | 49.3% | 67.06% | 44.07% | -39.18% | -25.38% | -38.1% | 72.13% | - |
| EPS (Basic) | - | 2.26 | 2.21 | 1.56 | 0.93 | 0.62 | 0.98 | 1.30 | 2.10 | 1.22 |
| Diluted Shares Outstanding | 106.75M | 109.69M | 111.09M | 115.08M | 113.48M | 112.13M | 101.2M | 92.75M | 80.01M | 80.01M |
| Basic Shares Outstanding | 105.97M | 106.83M | 106.29M | 104.99M | 103.76M | 102.54M | 100.85M | 92.42M | 80.01M | 80.01M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 43.22% | - | - |
Quick answers to the most common questions about buying PSN stock.
For fiscal year 2025, Parsons Corporation (PSN) reported total revenue of $6.36B. This represents a 110.9% increase compared to $3.02B in 2017.
Parsons Corporation (PSN) is profitable, generating $241.1M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
Parsons Corporation (PSN) reported an operating income of $418.2M, resulting in an operating profit margin of 6.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Parsons Corporation (PSN) generated $1.43B in gross profit for the year, representing a gross profit margin of 22.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue contraction and EPS volatility
Metrics are mathematically derived from official filings.
Top-Line Contraction Signals Contract Transition
According to reported quarterly figures, Parsons' revenue has declined year over year in recent periods, with 2026Q2 showing growth of -0.5% and 2025Q4 falling 7.5%, after a double-digit expansion in 2024Q3 of 27.6%.
The sequence suggests growth has decelerated sharply from the 2024 peak rather than stabilizing, which may indicate contract timing gaps or a deliberate exit from lower-margin legacy work. The reported data does not isolate volume from pricing or organic from acquired growth, so the durability of the current trend cannot be fully assessed. Investors should monitor backlog conversion to determine whether the slowdown is transitory.
Gross Margin Volatility Within a Narrow Band
Based on reported figures, Parsons' gross margin moved from 19.9% in 2024Q3 to 24.0% in 2026Q1 and 16.9% in 2026Q2, indicating meaningful quarter-to-quarter variability in project economics.
The wide swing in gross margin, particularly the 2026Q2 dip to 16.9%, suggests sensitivity to contract mix, fixed-price execution, or estimate-at-completion adjustments. Recovery to 23.1% in 2026Q3 implies the compression may have been partially timing-related. Without disclosure of cost-to-complete revisions, the underlying structural margin level remains uncertain.
EPS Swings Warrant Scrutiny of One-Time Items
As reported in financial statements, Parsons posted diluted EPS of -$0.14 in 2026Q2 against a much stronger 0.51 in 2026Q3, with net income moving from -$15.2M to $54.2M in a single quarter.
A swing of this magnitude relative to operating income of only $1.3M in the weak quarter suggests non-operating or one-time items contributed materially to net income. Stock-based compensation of roughly $11-12M per quarter is modest relative to these swings, so it does not explain the volatility. Analysts should examine tax and non-operating line items before treating either quarter as representative.
Operating Income Tracks Revenue Rather Than Expanding
Based on reported figures, Parsons' operating margin ranged from 0.1% in 2026Q2 to 7.1% in 2025Q1, with SG&A holding near $260-285M per quarter while revenue stayed around $1.5-1.8B.
Operating income has not clearly scaled faster than gross profit, as the 2026Q2 collapse in operating margin occurred with gross profit still above $266M. SG&A has risen steadily from $223M to $285M over the period, suggesting overhead growth has absorbed gross profit gains. This pattern implies limited operating leverage at current volumes.
Margin Recovery May Prove Non-Recurring
Based on reported quarterly data, the 2026Q3 rebound to a 6.3% operating margin follows a 0.1% quarter, and the strongest recent operating margins have not been sustained, raising questions about durability.
The bear case would argue the 2026Q3 recovery reflects favorable timing rather than a durable step-up, given that operating margin has oscillated between 5.8% and 7.1% in most quarters except the 2026Q2 outlier. Combined with revenue decline and a lowered forward outlook, the trajectory may not support the premium implied by peer-relative positioning. Investors should weigh whether the recent EPS miss reflects a transient charge or an underlying deterioration in project profitability.