Parsons (NYSE: PSN) reported top and bottom-line results in the third quarter of 2023. In the three months that ended Sept. 30, 2023, total revenue rose 25 percent year-over-year to $1.4 billion, a new company record, and net income climbed 60 percent to $47 million versus Q3 2022. The shares of the technology provider popped 7.99 percent to $61.07 following the earnings release.
“We also achieved over 20 percent organic growth in [the federal solutions and critical infrastructure segments] for the second consecutive quarter, adjusted EBITDA growth of nearly 25 percent, a double-digit increase in contract awards, and over $200 million in quarterly cash flow for the first time in our company’s history,” Carey Smith, chair, president and CEO of Parsons, said in a statement published Wednesday.
Smith, recent Wash100 awardee and chair of Executive Mosaic’s 4×24 Group 1 Leadership, added that a strategic acquisition during the quarter strengthened Parson’s defensive cyber capabilities. She also announced the acquisition of consulting engineering firm I.S. Engineers for $11.5 million and its addition to the critical infrastructure portfolio.
Parsons raised its guidance for revenue, EBITDA and cash flow for 2023. The company forecast a total revenue from $5.18 billion to $5.33 billion and expects adjusted EBITDA between $440 million and $460 million. The estimated operating cash flow by year-end is from $300 million to $340 million.
In closing, Smith said Parsons has the appetite to continue pursuing M&A, a key part of the game plan and critical to business growth.
