# PARSONS CORP (PSN)

Informational only - not investment advice.

CIK: 0000275880
SIC: 7373 Services-Computer Integrated Systems Design
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7373 Services-Computer Integrated Systems Design](/industry/7373/)
Latest 10-K filed: 2026-02-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=275880
Filing source: https://www.sec.gov/Archives/edgar/data/275880/000119312526045495/psn-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-11 · accession 0001193125-26-045495 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000275880.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 6,364,245,000 USD | 2025 | verified |
| Net income | 241,139,000 USD | 2025 | verified |
| Assets | 5,769,534,000 USD | 2025 | verified |
| Free cash flow | 410,412,000 USD | 2025 | computed |
| Net margin | 3.79% | 2025 | computed |
| Operating margin | 6.57% | 2025 | computed |
| Revenue YoY | -5.72% | 2025 | computed |
| ROE | 9.13% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | PSN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 3.8% | 4.9% | 38 | 17 |
| Operating margin | 6.6% | 8.4% | 40 | 16 |
| Revenue growth | -5.7% | 6.8% | 0 | 18 |
| FCF margin | 6.4% | 9.5% | 33 | 19 |
| ROE | 9.1% | 8.8% | 56 | 19 |
| ROA | 4.2% | 2.6% | 63 | 20 |
| Liabilities / equity | 1.14 | 0.73 | 61 | 19 |
| Current ratio | 1.75 | 1.52 | 68 | 20 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7373 Services-Computer Integrated Systems Design, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 6364245000 | USD | 2025 | 2026-02-11 |
| Net income | 241139000 | USD | 2025 | 2026-02-11 |
| Assets | 5769534000 | USD | 2025 | 2026-02-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000275880.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 3,017,011,000 | 3,560,508,000 | 3,954,812,000 | 3,918,946,000 | 3,660,771,000 | 4,195,272,000 | 5,442,749,000 | 6,750,576,000 | 6,364,245,000 |
| Net income | 97,326,000 | 222,337,000 | 120,534,000 | 98,541,000 | 64,072,000 | 96,664,000 | 161,149,000 | 235,053,000 | 241,139,000 |
| Operating income | 150,702,000 | 205,008,000 | 92,063,000 | 177,815,000 | 132,446,000 | 185,666,000 | 288,358,000 | 428,066,000 | 418,074,000 |
| Diluted EPS | 1.16 | 2.78 | 1.30 | 0.97 | 0.59 | 0.87 | 1.42 | 2.12 | 2.20 |
| Operating cash flow | 265,029,000 | 284,634,000 | 220,240,000 | 289,161,000 | 205,574,000 | 237,526,000 | 407,699,000 | 523,606,000 | 478,382,000 |
| Capital expenditures | 27,939,000 | 29,283,000 | 67,597,000 | 34,036,000 | 21,105,000 | 30,593,000 | 40,396,000 | 49,213,000 | 67,970,000 |
| Share buybacks |  |  | 6,272,000 | 0.00 | 21,701,000 | 22,000,000 | 11,000,000 | 25,000,000 | 124,994,000 |
| Assets |  |  | 3,450,368,000 | 3,937,704,000 | 3,830,940,000 | 4,198,142,000 | 4,804,061,000 | 5,487,962,000 | 5,769,534,000 |
| Liabilities |  |  | 1,789,612,000 | 2,076,287,000 | 1,893,828,000 | 2,102,207,000 | 2,427,346,000 | 2,953,473,000 | 3,001,862,000 |
| Stockholders' equity |  |  | 1,629,890,000 | 1,813,772,000 | 1,900,768,000 | 2,043,570,000 | 2,287,211,000 | 2,416,389,000 | 2,642,020,000 |
| Cash and cash equivalents |  | 280,221,000 | 182,688,000 | 483,609,000 | 342,608,000 | 262,539,000 | 272,943,000 | 453,548,000 | 466,388,000 |
| Free cash flow | 237,090,000 | 255,351,000 | 152,643,000 | 255,125,000 | 184,469,000 | 206,933,000 | 367,303,000 | 474,393,000 | 410,412,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 3.23% | 6.24% | 3.05% | 2.51% | 1.75% | 2.30% | 2.96% | 3.48% | 3.79% |
| Operating margin | 5.00% | 5.76% | 2.33% | 4.54% | 3.62% | 4.43% | 5.30% | 6.34% | 6.57% |
| Return on equity |  |  | 7.40% | 5.43% | 3.37% | 4.73% | 7.05% | 9.73% | 9.13% |
| Return on assets |  |  | 3.49% | 2.50% | 1.67% | 2.30% | 3.35% | 4.28% | 4.18% |
| Liabilities / equity |  |  | 1.10 | 1.14 | 1.00 | 1.03 | 1.06 | 1.22 | 1.14 |
| Current ratio |  | 1.48 | 1.33 | 1.55 | 1.58 | 1.55 | 1.52 | 1.29 | 1.75 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000275880.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 0.17 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.27 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.23 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 1,356,486,000 | 43,241,000 | 0.38 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,418,571,000 | 47,447,000 | 0.42 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,494,226,000 | 44,908,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,535,676,000 | -107,355,000 | -1.01 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,670,467,000 | 69,172,000 | 0.63 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,810,116,000 | 71,951,000 | 0.65 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,734,317,000 | 201,285,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,554,360,000 | 66,203,000 | 0.60 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,584,323,000 | 55,230,000 | 0.50 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,621,748,000 | 64,123,000 | 0.59 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,603,814,000 | 55,583,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,491,176,000 | 52,926,000 | 0.49 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from PSN's latest 10-K: [/company/PSN/business/](/company/PSN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from PSN's latest 10-K: [/company/PSN/risk-factors/](/company/PSN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/275880/000119312526322066/psn-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis is intended to help investors understand our business, financial condition, results of operations, liquidity and capital resources. You should read this discussion together with our consolidated financial statements and related notes thereto included elsewhere in this Form 10-Q and in conjunction with the Company’s Form 10-K for the year ended December 31, 2025. Certain amounts may not foot due to rounding.

The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Risk Factors” and “Special Note Regarding Forward-Looking Statements” in the Company’s Form 10-K for the year ended December 31, 2025. We undertake no obligation to revise publicly any forward-looking statements. Actual results may differ materially from those contained in any forward-looking statements.

PARSONS CORPORATION Enabling a safer, smarter, and more interconnected world. Engineered solutions for complex physical and digital infrastructure challenges SEGMENTS KEY FACTS AND FIGURES Technology-driven solutions for defense and intelligence customers FINANCIAL SNAPSHOT $4B Total Revenue Trailing 12-Months (Q2 2020) $4B Contract Awards Trailing 12-Months (Q2 2020) 75+ Years Of History Federal Solutions 49% Critical Infrastructure 51% Federal Solutions 58% Critical Infrastructure 42% Federal Solutions Critical Infrastructure ~16K Employees 6% Revenue Growth Trailing 12-Months (Q2 2020) 1.0X Book-To-Bill Ratio Trailing 12-Months (Q2 2020) $7.7B Backlog As Of 6/30/2020 PARSONS CORPORATION.

Overview

We are a leading provider of the integrated solutions and services required in today’s complex security environment and a world of digital transformation. We deliver innovative technology-driven solutions to customers worldwide. We have developed significant expertise and differentiated capabilities in key areas of cyber and electronic warfare, space and missile defense, critical infrastructure protection, transportation, water and environment, and urban development. By combining our talented team of professionals and advanced technology, we solve complex technical challenges to enable a safer, smarter, more secure and more connected world.

We operate in two reporting segments, Federal Solutions and Critical Infrastructure. Our Federal Solutions business is an advanced technology provider to the U.S. government. Our Critical Infrastructure business provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

Our employees provide services pursuant to contracts that we are awarded by the customer and specific task orders relating to such contracts. These contracts are often multi-year, which provides us backlog and visibility on our revenues for future periods. Many of our contracts and task orders are subject to renewal and rebidding at the end of their term, and some are subject to the exercise of contract options and issuance of task orders by the applicable government

34

entity. In addition to focusing on increasing our revenues through increased contract awards and backlog, we focus our financial performance on margin expansion and cash flow.

Key Metrics

We manage and assess the performance of our business by evaluating a variety of metrics. The following table sets forth selected key metrics (in thousands, except Book-to-Bill):

[[GREPCENT_TABLE]]
[["","","June 30, 2026","","","June 30, 2025"],["Awards (year to date)","","$","3,927,375","","","$","3,272,551"],["Backlog (1)","","$","9,256,893","","","$","8,943,038"],["Book-to-Bill (year to date)","","","1.3","","","","1.0"]]
[[/GREPCENT_TABLE]]

(1)
Difference between our backlog of $9.3 billion and our remaining unsatisfied performance obligations, or RUPO, of $6.9 billion, each as of June 30, 2026, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

Awards

Awards generally represent the amount of revenue expected to be earned in the future from funded and unfunded contract awards received during the period. Contract awards include both new and re-compete contracts and task orders. Given that new contract awards generate growth, we closely track our new awards.

The following table summarizes the year to-date value of new awards for the periods presented below (in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","","Six Months Ended"],["","","June 30, 2026","","","June 30, 2025","","","June 30, 2026","","","June 30, 2025"],["Federal Solutions","","$","985,300","","","$","650,770","","","$","2,016,634","","","$","1,395,479"],["Critical Infrastructure","","$","883,666","","","","855,275","","","","1,910,741","","","","1,877,072"],["Total Awards","","$","1,868,966","","","$","1,506,045","","","$","3,927,375","","","$","3,272,551"]]
[[/GREPCENT_TABLE]]

The change in new awards from year to year is primarily due to ordinary course fluctuations in our business. The volume of contract awards can fluctuate in any given period due to win rate and the timing and size of the awards issued by our customers.

The increase in awards for the three and six months ended June 30, 2026 in our Critical Infrastructure segment when compared to the corresponding period last year was primarily driven by an overall increase in awards in the current year period. The increase in awards for the three and six months ended June 30, 2026 in our Federal Solutions segment when compared to the corresponding period last year was primarily driven by significant awards. The comparable period included a delay in the timing of awards of a number of contracts being pursued.

Backlog

We define backlog to include the following two components:

•
Funded—Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts.

•
Unfunded—Unfunded backlog represents the revenue value of orders for services under existing contracts for which funding has not been appropriated or otherwise authorized less revenue previously recognized on these contracts. Unfunded backlog does not include potential task orders expected to be awarded under multiple awards IDIQ (indefinite delivery, indefinite quantity) contract vehicles, where task orders are competitively awarded and separately priced.

35

Backlog includes (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

The following table summarizes the value of our backlog at the respective dates presented below (in thousands):

[[GREPCENT_TABLE]]
[["","","June 30, 2026","","","June 30, 2025"],["Federal Solutions:"],["Funded","","$","1,868,875","","","$","1,816,590"],["Unfunded","","","2,636,203","","","","2,656,547"],["Total Federal Solutions","","","4,505,078","","","","4,473,137"],["Critical Infrastructure:"],["Funded","","","4,712,089","","","","4,421,015"],["Unfunded","","","39,726","","","","48,886"],["Total Critical Infrastructure","","","4,751,815","","","","4,469,901"],["Total Backlog (1)","","$","9,256,893","","","$","8,943,038"]]
[[/GREPCENT_TABLE]]

(1)
Difference between our backlog of $9.3 billion and our RUPO of $6.9 billion, each as of June 30, 2026, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

Our backlog includes orders under contracts that in some cases extend for several years. For example, the U.S. Congress generally appropriates funds for our U.S. federal government customers on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete. As a result, our federal contracts typically are only partially funded at any point during their term. All or some of the work to be performed under the contracts may remain unfunded unless and until the U.S. Congress makes subsequent appropriations and the procuring agency allocates funding to the contract.

We expect to recognize $3.8 billion of our funded backlog at June 30, 2026 as revenues in the following twelve months. However, our U.S. federal government customers may cancel their contracts with us at any time through a termination for convenience or may elect to not exercise option periods under such contracts. In the case of a termination for convenience, we would not receive anticipated future revenues, but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed. See “Risk Factors—Risk Relating to Our Business—We may not realize the full value of our backlog, which may result in lower-than-expected revenue” in the Company’s Form 10-K for the year ended December 31, 2025.

The increase in backlog in the Critical Infrastructure segment was primarily from ordinary course fluctuations in our business and an overall increase in awards. The decrease in Federal Solutions backlog was primarily related to a reduction in work on our confidential contract as a result of the Department of State reorganization issued May 29, 2025, partially offset by an overall increase in awards.

Book-to-Bill

Book-to-bill is the ratio of total awards to total revenue recorded in the same period. Our management believes our book-to-bill ratio is a useful indicator of our potential future revenue growth in that it measures the rate at which we are generating new awards compared to the Company’s current revenue. To drive future revenue growth, our goal is for the level of awards in a given period to exceed the revenue booked. A book-to-bill ratio greater than 1.0 indicates that awards generated in a given period exceeded the revenue recognized in the same period, while a book-to-bill ratio of less than 1.0 indicates that awards generated in such period were less than the revenue recognized in such period. The following table sets forth the book-to-bill ratio for the periods presented below:

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","","Six Months Ended"],["","","June 30, 2026","","","June 30, 2025","","","June 30, 2026","","","June 30, 2025"],["Federal Solutions","","","1.3","","","","0.8","","","","1.3","","","","0.8"],["Critical Infrastructure","","","1.1","","","","1.1","","","","1.2","","","","1.3"],["Overall","","","1.2","","","","1.0","","","","1.3","","","","1.0"]]
[[/GREPCENT_TABLE]]

36

Factors and Trends Affecting Our Results of Operations

We believe that the financial performance of our business and our future success are dependent upon many factors, including those highlighted in this section. Our operating performance will depend upon many variables, including the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake, as well as market growth and other factors that are not within our control.

Government Spending

Changes in the relative mix of government spending and areas of spending growth, with shifts in priorities on homeland security, intelligence, defense-related programs, infrastructure and urbanization, and continued increased spending on technology and innovation, including cyber, artificial intelligence, connected communities and physical infrastruc

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/275880/000119312526045495/psn-20251231.htm
Complete FY 2025 MD&A: /company/PSN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-11
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis is intended to help investors understand our business, financial condition, results of operations, liquidity and capital resources. You should read this discussion together with our consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K. Certain amounts may not foot due to rounding.

The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Actual results may differ materially from those contained in any forward-looking statements.

PARSONS CORPORATION Enabling a safer, smarter, and more interconnected world. Federal Solutions Technology-driven solutions for defense and intelligence customers SEGMENTS Critical Infrastructure Engineered solutions for complex physical and digital infrastructure challenges FINANCIAL SNAPSHOT $4B FY 2019 Revenue Critical Infrastructure52% Federal Solutions48% $4.3BFY 2019 Contract Awards Critical Infrastructure41% Federal Solutions59% KEY FACTS AND FIGURES 75Years of History ~ 16KEmployees 11%Revenue Growth (FY 2019) 1.1XTTM Book-to-Bill $8.0BBacklog as of 12/31/2019

z

Overview

We are a leading provider of the integrated solutions and services required in today’s complex security environment and a world of digital transformation. We deliver innovative technology-driven solutions to customers worldwide. We have developed significant expertise and differentiated capabilities in key areas of cyber and intelligence, space and missile defense, critical infrastructure protection, transportation, environmental remediation and urban development. By combining our talented team of professionals and advanced technology, we solve complex technical challenges to enable a safer, smarter, more secure and more connected world.

57

We operate in two reporting segments, Federal Solutions and Critical Infrastructure. Our Federal Solutions business is an advanced technology provider to the U.S. government. Our Critical Infrastructure business provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

Our employees provide services pursuant to contracts that we are awarded by the customer and specific task orders relating to such contracts. These contracts are often multi-year, which provides us backlog and visibility on our revenues for future periods. Many of our contracts and task orders are subject to renewal and rebidding at the end of their term, and some are subject to the exercise of contract options and issuance of task orders by the applicable government entity. In addition to focusing on increasing our revenues through increased contract awards and backlog, we focus our financial performance on margin expansion and cash flow.

Key Metrics

We manage and assess the performance of our business by evaluating a variety of metrics. The following table sets forth selected key metrics (in thousands, except Book-to-Bill):

[[GREPCENT_TABLE]]
[["","","December 31, 2025","","","December 31, 2024","","","December 31, 2023"],["Awards","","$","6,371,950","","","$","7,039,272","","","$","5,996,780"],["Backlog (1)","","$","8,716,788","","","$","8,893,915","","","$","8,592,271"],["Book-to-Bill","","","1.0","","","","1.0","","","","1.1"]]
[[/GREPCENT_TABLE]]

(1)
Difference between our backlog of $8.7 billion and our remaining unsatisfied performance obligations, or RUPO, of $7.1 billion, each as of December 31, 2025, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

Awards

Awards generally represent the amount of revenue expected to be earned in the future from funded and unfunded contract awards received during the period. Contract awards include both new and re-compete contracts and task orders. Given that new contract awards generate growth, we closely track our new awards each year.

The following table summarizes the total value of new awards for the periods presented below (in thousands):

[[GREPCENT_TABLE]]
[["","","Fiscal Year Ended"],["","","December 31, 2025","","","December 31, 2024","","","December 31, 2023"],["Federal Solutions","","$","2,686,461","","","$","3,880,290","","","$","3,259,052"],["Critical Infrastructure","","","3,685,489","","","","3,158,982","","","","2,737,728"],["Total Awards","","$","6,371,950","","","$","7,039,272","","","$","5,996,780"]]
[[/GREPCENT_TABLE]]

The change in new awards from year to year is primarily due to ordinary course fluctuations in our business. The volume of contract awards can fluctuate in any given period due to win rate and the timing and size of the awards issued by our customers.

The change in new awards in our Critical Infrastructure segment for the year ended December 31, 2025 when compared to the corresponding period last year was primarily due to an overall increase in awards in the current year. The decrease in awards for the year ended December 31, 2025 in our Federal Solutions segment when compared to the corresponding period last year was primarily driven by a delay

58

in the timing of awards of a number of contracts being pursued. Awards in the Federal Solutions segment for the year ended December 31, 2024 included $1.5 billion from the confidential contract compared to $293 million for the year ended December 31, 2025.

Backlog

We define backlog to include the following two components:

•
Funded—Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts.

•
Unfunded—Unfunded backlog represents the revenue value of orders for services under existing contracts for which funding has not been appropriated or otherwise authorized less revenue previously recognized on these contracts. Unfunded backlog does not include potential task orders expected to be awarded under multiple awards IDIQ contract vehicles, where task orders are competitively awarded and separately priced.

Backlog includes (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

The following table summarizes the value of our backlog at the respective dates presented (in thousands):

[[GREPCENT_TABLE]]
[["","","As of"],["","","December 31, 2025","","","December 31, 2024","","","December 31, 2023"],["Federal Solutions:"],["Funded","","$","1,853,658","","","$","1,712,627","","","$","1,454,581"],["Unfunded","","","2,298,073","","","","2,961,356","","","","3,490,781"],["Total Federal Solutions","","","4,151,731","","","","4,673,983","","","","4,945,362"],["Critical Infrastructure:"],["Funded","","","4,523,891","","","","4,167,611","","","","3,578,902"],["Unfunded","","","41,166","","","","52,321","","","","68,007"],["Total Critical Infrastructure","","","4,565,057","","","","4,219,932","","","","3,646,909"],["Total Backlog (1)","","$","8,716,788","","","$","8,893,915","","","$","8,592,271"]]
[[/GREPCENT_TABLE]]

(1)
Difference between our backlog of $8.7 billion and our RUPO of $7.1 billion, each as of December 31, 2025, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.

Our backlog includes orders under contracts that in some cases extend for several years. For example, the U.S. Congress generally appropriates funds for our U.S. federal government customers on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete. As a result, our federal contracts typically are only partially funded at any point during their term. All or some of the work to be performed under the contracts may remain unfunded unless and until the U.S. Congress makes subsequent appropriations and the procuring agency allocates funding to the contract.

We expect to recognize $4.1 billion of our funded backlog at December 31, 2025 as revenues in the following twelve months. However, our U.S. federal government customers may cancel their contracts with us at any time through a termination for convenience or may elect to not exercise option periods under such contracts. In the case of a termination for convenience, we would not receive anticipated

59

future revenues, but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed. See “Risk Factors—Risks Relating to Our Business—We may not realize the full value of our backlog, which may result in lower than expected revenue.”

The changes in backlog in both the Federal Solutions and Critical Infrastructure segments were primarily from ordinary course fluctuations in our business and the impacts related to the Company’s awards discussed above. Our backlog will fluctuate in any given period based on the volume of awards issued and the rate of revenue generated from our existing contracts.

Book-to-Bill

Book-to-bill is the ratio of total awards to total revenue recorded in the same period. Our management believes our book-to-bill ratio is a useful indicator of our potential future revenue growth in that it measures the rate at which we are generating new awards compared to the Company’s current revenue. To drive future revenue growth, our goal is for the level of awards in a given period to exceed the revenue booked. A book-to-bill ratio greater than 1.0 indicates that awards generated in a given period exceeded the revenue recognized in the same period, while a book-to-bill ratio of less than 1.0 indicates that awards generated in such period were less than the revenue recognized in such period. The following table sets forth the book-to-bill ratio for the periods presented below:

[[GREPCENT_TABLE]]
[["","","Fiscal Year Ended"],["","","December 31, 2025","","","December 31, 2024","","","December 31, 2023"],["Federal Solutions","","","0.8","","","","1.0","","","","1.1"],["Critical Infrastructure","","","1.2","","","","1.2","","","","1.1"],["Overall","","","1.0","","","","1.0","","","","1.1"]]
[[/GREPCENT_TABLE]]

Factors and Trends Affecting Our Results of Operations

We believe that the financial performance of our business and our future success are dependent upon many factors, including those highlighted in this section. Our operating performance will depend upon many variables, including the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake, as well as market growth and other factors that are not within our control.

Government Spending

Changes in the relative mix of government spending and areas of spending growth, with shifts in priorities on homeland security, intelligence, defense-related programs, infrastructure and urbanization, and continued increased spending on technology and innovation, including cyber, artificial intelligence, connected communities and physical infrastructure, could impact our business and results of operations. Cost-cutting and efficiency initiatives, current and future budget restrictions, spending cuts and other efforts to reduce government spending could cause our government customers to reduce or delay funding or inves

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/PSN/mda/fy2025/
All MD&A years: /company/PSN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/PSN/mda/fy2024/): filed 2025-02-19; accession 0000950170-25-022754 (https://www.sec.gov/Archives/edgar/data/275880/000095017025022754/psn-20241231.htm)
- [FY 2023 MD&A](/company/PSN/mda/fy2023/): filed 2024-02-14; accession 0000950170-24-014927 (https://www.sec.gov/Archives/edgar/data/275880/000095017024014927/psn-20231231.htm)
- [FY 2022 MD&A](/company/PSN/mda/fy2022/): filed 2023-02-17; accession 0001564590-23-002040 (https://www.sec.gov/Archives/edgar/data/275880/000156459023002040/psn-10k_20221231.htm)
- [FY 2021 MD&A](/company/PSN/mda/fy2021/): filed 2022-02-23; accession 0001564590-22-006026 (https://www.sec.gov/Archives/edgar/data/275880/000156459022006026/psn-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7373 Services-Computer Integrated Systems Design) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/PSN.md · JSON record: /company/PSN.json · verified financials: /company/PSN/financials.json / /company/PSN/financials.csv · machine TOC for the whole site: /llms.txt