Parsons Corporation (PSN): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the strategy of a major government services contractor, and honestly, Parsons Corporation's business model is a fascinating study in dual focus, built on technology and strategic buying. As someone who spent a decade leading analyst teams, I see a firm that expertly marries high-margin Federal Solutions-like cyber and space-with complex Critical Infrastructure projects. With a backlog already at $8.8 billion by Q3 2025 and full-year revenue guidance projected between $6.4 billion and $6.5 billion, their approach is clearly working. Keep reading below to see the nine building blocks that explain exactly how Parsons Corporation turns these specialized capabilities into reliable revenue streams.

Parsons Corporation (PSN) - Canvas Business Model: Key Partnerships

You're mapping out Parsons Corporation's strategic alliances, which are critical for securing large, complex government and infrastructure work. These partnerships aren't just handshake deals; they are quantified, multi-billion dollar vehicles that drive revenue and technology integration. Honestly, this is where the real scale of Parsons Corporation is unlocked.

Joint ventures for large infrastructure projects (e.g., MPA Delivery Partners)

Parsons Corporation actively uses joint ventures to bid on and manage massive infrastructure programs. A prime example is MPA Delivery Partners, a joint venture where Parsons serves as the managing partner. This entity secured a significant contract extension with the Gateway Development Commission.

• Contract extension value: $665 million.
• Contract duration: 4.5-year extension.
• Project scope: Successful delivery of the Hudson Tunnel Project, including building a new two-tube rail tunnel and rehabilitating the existing 115-year old tunnel.

This structure lets Parsons Corporation combine its expertise with partners like Mace and Arcadis to tackle projects requiring diverse, large-scale management capabilities.

Technology collaborations (e.g., IBM for Air Traffic Control modernization)

For technology integration, especially in regulated sectors like air traffic control (ATC), Parsons Corporation partners with major tech players. While a specific dollar amount for the IBM collaboration isn't public, the underlying work is anchored by existing large vehicles. Parsons is in year three of a potential 10-year, $1.8 billion contract with the Federal Aviation Administration (FAA) for engineering work, including ATC modernization.

The company reported that roughly $306.9 million in order volume has flowed through that FAA contract to date. The collaboration with IBM, announced in June 2025, focuses on designing new ATC solutions, which directly feeds into this existing infrastructure modernization pipeline.

Strategic M&A targets that add accretive technology and margin (e.g., Applied Sciences Consulting)

Parsons Corporation's M&A strategy is explicitly focused on acquiring accretive technology and margin, targeting companies with revenue growth and adjusted EBITDA margins of at least 10%. The company completed two such acquisitions in 2025 alone.

Here's a look at recent, relevant technology and margin-accretive deals:

Acquired Company	Acquisition Date	Transaction Type/Value	Strategic Benefit
Applied Sciences Consulting, Inc.	October 2, 2025	All-cash transaction	Expands water expertise in Florida; aligns with 10%+ adjusted EBITDA margin strategy
Chesapeake Technology International (CTI)	July 1, 2025	$89 million, all-cash	Enhances all-domain technology solutions for Special Operations Forces; expected to be accretive to adjusted EBITDA margin
TRS Group, Inc.	February 4, 2025	$36 million	Strengthens environmental remediation capabilities, including PFAS solutions
BCC Engineering	October 1, 2024	$230 million	Contributed to Q2 2025 adjusted EBITDA margin increase of 350 basis points

CTI, for instance, is projected to generate revenue of approximately $89 million in fiscal year 2026.

Subcontractors for specialized labor and material procurement

While specific financial breakdowns of subcontracting spend are proprietary, Parsons Corporation's role as a prime contractor on massive IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles necessitates a broad network of specialized subcontractors for labor and materials. The company's total backlog stood at $8.9 billion as of Q2 2025, with 70% of the $6.4 billion funded backlog representing work that will flow through various execution methods, including subcontracting. For example, on a recent $176 million Army Corps of Engineers contract, Parsons is the managing partner, implying significant subcontracting for design-build delivery services.

Defense industry primes for large, multi-award contract vehicles

Parsons Corporation secures work by being a key partner on large, multi-award vehicles administered by government agencies or prime contractors. These vehicles provide a pipeline for task orders across defense priorities.

• Pacific Deterrence Initiative: Parsons is part of a joint venture awarded a contract vehicle up to $15 billion by NAVFAC to support infrastructure projects in the Indo-Pacific region.
• Defense Threat Reduction Agency (DTRA): Parsons is an awardee on the CTRIC IV IDIQ MATOC, which has a ceiling value of $3.5 billion over a potential ten-year period.
• Missile Defense Agency (MDA): Parsons is in year three of a potential seven-year, $2.2 billion contract covering broad systems engineering and support work.
• General Services Administration (GSA): Parsons secured an $88 million follow-on task order under the Air Base, Air Defense contract vehicle, booking $82 million in Q3 2025, and has been awarded over $190 million across this IDIQ in the first nine months of 2025.
• Alliant 2 GWAC: Parsons is a participant in this premier multiple-award IDIQ for IT solutions, which carries a total program ceiling of $50 billion.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Key Activities

You're looking at the core engine room of Parsons Corporation, the activities they focus on daily to generate revenue and build that backlog. Honestly, it's a dual focus: high-end national security tech and massive infrastructure work. Here's the quick math on what they're actually doing as of late 2025.

Program Management and Systems Engineering for Complex Projects

Parsons Corporation is definitely leaning into its reputation here. They aren't just doing the design; they are running the whole show for some of the world's toughest builds. This activity is validated by their top industry ranking.

• Ranked #1 on Engineering News-Record's (ENR) Top 50 Program Management Firms for 2025.
• Overseeing programs with a total constructed value exceeding $1 trillion across defense and urban development.
• Secured a position on Sound Transit's Multiple Award Task Order Contract (MATOC) with a ceiling of $1 billion for design services.

Advanced Digital Engineering and Software Analytics Development

This is where the high-tech, non-kinetic work lives, often overlapping with Federal Solutions. The growth here is strong, showing they are successfully pivoting toward software and data-driven defense capabilities. You can see this reflected in their segment performance.

The Federal Solutions segment, despite revenue dips from a confidential contract wind-down, still showed underlying strength in key tech markets. Excluding that specific contract, Federal Solutions revenue increased 9% in Q3 2025. The company's cyber & intelligence end market has seen growth exceeding 20% for two consecutive years.

Strategic Acquisitions to Expand Capabilities

Parsons Corporation is actively using its balance sheet to buy capabilities, aiming for accretive deals that boost margins. They completed 2 acquisitions in 2025, matching the pace of 2024 and 2023. Their stated strategy is to complete accretive acquisitions with revenue growth and adjusted EBITDA margins of at least 10%.

The acquisition of Chesapeake Technology International (CTI) in July 2025 for $89M is a prime example, strengthening their all-domain technology solutions for defense. After Q3 2025, they also closed the purchase of Applied Sciences Consulting, Inc., expanding water expertise.

Acquisition Target	Year/Date of Close (2025)	Stated Purpose/Capability Added	Reported Price
Chesapeake Technology International (CTI)	July 2025	All-domain technology solutions, 'invisible battlespace'	$89 million
TRS Group, Inc.	February 2025	Environmental remediation, PFAS solutions	Approximately $36.6 million
Applied Sciences Consulting, Inc.	Post-Q3 2025	Water and stormwater solutions expertise	Not explicitly stated (Accretive deal)

Cybersecurity, Electronic Warfare, and Intelligence Operations

These capabilities are central to the Federal Solutions segment, aligning directly with national security priorities. The integration of acquired tech is key here. The BlackSignal acquisition in 2024 bolstered electronic warfare and cyber security, and CTI in 2025 further enhanced their position in cyber and intelligence. They are actively winning work in this space, such as a $138 million task order for cyber operations from DTRA in Q2 2025.

Environmental Remediation and Critical Infrastructure Design/Construction

This is the growth engine for the Critical Infrastructure segment. The segment's revenue growth in Q3 2025 was 18% year-over-year, with Adjusted EBITDA soaring 83% and margin improving by 360 basis points. This performance is fueled by organic growth and acquisitions like BCC Engineering (Oct 2024 for about $233.5 million).

They are securing major environmental work, including a seat on a $1.5 billion IDIQ for environmental services like PFAS remediation. Plus, they booked a $176 million single-award contract from the USACE for design-build services at the Holston Army Ammunition Plant in Q2 2025. For the nine months ended September 30, 2025, their total backlog stood at $8.8 billion, with $6.4 billion funded.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Key Resources

You're looking at the core assets Parsons Corporation (PSN) relies on to execute its strategy in late 2025. These aren't just line items; they are the deep capabilities that lock in their competitive position, defintely.

The sheer volume of committed future work is a massive resource. As of Q3 2025, Parsons Corporation reported a total backlog of $8.8 billion. That's a substantial pipeline of revenue visibility. Critically, 72% of that backlog is funded, amounting to $6.4 billion in secured funding. This funded level is noted as the highest since the company's initial public offering in 2019, signaling strong near-term revenue assurance.

The human capital is another pillar. Parsons Corporation fields a specialized workforce. While reports from late 2024 cited over 19,600 professionals, more recent data from October 2025 suggests the headcount is approximately 21K employees globally. A significant portion of this team possesses the necessary security clearances to operate on sensitive national security contracts, which is a non-negotiable barrier to entry for competitors.

Proprietary intellectual property drives differentiation, especially in high-tech defense areas. Consider the ZEUS® Directed Energy Weapon system. This is the first ground-based Directed Energy Weapon (DEW) system approved for production and holds an ACAT III program of record status within the Department of Defense acquisition framework. In testing, ZEUS has demonstrated an effectiveness rate of over 100 percent against more than 5,000 ordnance items, operating at standoff ranges between 25 and 300 meters. The latest iteration, ZEUS 4, integrates artificial intelligence for rapid target identification.

Trust with the U.S. Federal government is an intangible but vital resource. Parsons Corporation's Federal Solutions segment relies on long-standing, high-trust relationships with agencies across the national security spectrum. This is evidenced by recent activity, such as the Cooperative Research and Development Agreement (CRADA) signed in March 2025 with the U.S. Air Force Civil Engineer Center to integrate the next-generation ZEUS 4 system onto the Joint Light Tactical Vehicle (JLTV).

Operationally, the company maintains a broad global footprint. This includes deep penetration across North America, where much of the federal work resides, and significant ongoing operations in the Middle East, including major projects in Saudi Arabia. This geographic spread mitigates risk associated with over-reliance on a single market.

Here's a quick look at some of the hard numbers underpinning these resources as of the Q3 2025 reporting period:

Metric	Value	Context/Date
Total Backlog	$8.8 billion	As of Q3 2025
Funded Backlog	$6.4 billion	72% of Total Backlog, Q3 2025
Total Employees (Approximate)	21,000	As of October 2025
ZEUS Ordnance Neutralized (Cumulative)	Over 5,000 items	Demonstrated Capability
ZEUS Effectiveness Rate	100 percent	Demonstrated Capability
ZEUS Standoff Range	25 to 300 meters	Operational Parameter

The company also points to a robust pipeline of $58 billion, which includes over 115 opportunities valued at $100 million or more, alongside approximately $11 billion in contract wins not yet booked into the formal backlog. These figures represent potential future resources being actively cultivated.

You can see the talent pool is actively engaged in high-value areas. For instance, the Federal Solutions segment saw revenue growth of 9% organically when excluding one confidential contract, driven by wins in Critical Infrastructure Protection, Transportation, and Space and Missile Defense markets in Q3 2025.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Value Propositions

You're looking at the core promises Parsons Corporation (PSN) is making to its customers, which are clearly backed by some serious contract wins as of late 2025. These aren't just vague statements; they are tied to specific, large-scale government commitments.

Delivering national security solutions in cyber, space, and missile defense.

Parsons Corporation is delivering on its national security promise, even while navigating the wind-down of a specific confidential contract. When you look at the Federal Solutions segment excluding that contract, the story changes to one of growth. For the third quarter of 2025, revenue growth, excluding that contract, was 14%, with organic growth at 9%. This growth is clearly hitting the priority areas you'd expect, driven by wins in cyber, intelligence, and space and missile defense markets. To give you a sense of the scale they are positioning for, Parsons secured a position on the $15 billion Pacific Deterrence Initiative MACC and, more recently, on the $3.5 billion DTRA CTRIC IV IDIQ contract vehicle. That's significant capability positioning.

End-to-end critical infrastructure protection and modernization.

This is where the growth story is really shining through in the financials. The Critical Infrastructure segment is delivering for PSN, showing robust expansion. In the third quarter of 2025, this segment's revenue jumped 18% year-over-year, with organic growth hitting 13%. This performance is supported by recent acquisitions and strong execution in North America and the Middle East. Here's a quick look at how the segments stacked up in Q3 2025:

Metric	Critical Infrastructure Segment	Federal Solutions Segment
Q3 2025 Revenue Change (YoY)	Increased 18%	Decreased 29% (including confidential contract)
Q3 2025 Organic Revenue Change	Increased 13%	Increased 5% (excluding confidential contract)
Q3 2025 Adjusted EBITDA Margin	10.3%	9.0%

Expertise in complex environmental remediation, including PFAS solutions.

Parsons Corporation is actively translating its environmental expertise into tangible contract value, especially around emerging contaminants like PFAS. They were recently awarded a seat on a massive $1.5 billion multiple-award task order contract from the Air Force Civil Engineering Center specifically for environmental work, including PFAS. On the contract wins front, they reported year-to-date PFAS awards totaling nearly $70 million as of the Q3 2025 reporting period, including three contracts totaling $23 million in that quarter alone. Plus, they secured a $176 million design-build contract with the Army Corps of Engineers for a new tank farm at Holston Army Ammunition Plant, showing breadth beyond just cleanup.

Program management for multi-billion dollar transportation projects (e.g., Hudson Tunnel Project).

The value proposition here is managing mega-projects using the delivery partner model. The most concrete example is the Hudson Tunnel Project (HTP). In September 2025, the MPA Delivery Partners joint venture, which includes Parsons, was awarded a $665 million, 4.5-year contract extension by the Gateway Development Commission (GDC) to continue managing the delivery. This project is forecast to create more than 95,000 jobs and generate over $19 billion in economic activity nationwide. The new Gateway Tunnel is slated for completion in 2035.

High-margin, technology-enabled services and digital engineering.

The focus on technology-enabled services is reflected in the margin expansion across the company, despite some revenue headwinds from the confidential contract. The overall Adjusted EBITDA margin for the third quarter of 2025 was 9.8%, which is an expansion of 60 basis points year-over-year. The company's full-year 2025 Adjusted EBITDA guidance is set between $600 million and $630 million. The fact that the Critical Infrastructure segment, which leans heavily on these modern services, posted a segment margin of 10.3% in Q3 2025 shows where the profitability is concentrated. It's all about driving that margin profile upward.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Customer Relationships

You're looking at how Parsons Corporation locks in its business, and it's heavily reliant on deep, long-term partnerships, especially with government clients. This isn't about one-off sales; it's about becoming an indispensable part of the customer's mission structure.

Dedicated, consultative engagement for long-term, multi-year contracts.

Parsons Corporation cultivates relationships through dedicated, consultative support, which translates directly into long-term revenue visibility. This approach is evident in their contract structures, which frequently include base periods followed by multiple option years. For instance, the Air Force Civil Engineering Center (AFCEC) environmental services contract is an indefinite-delivery, indefinite-quantity (IDIQ) award with a five-year base period and five one-year options, plus an additional six-month extension option. Similarly, the Defense Threat Reduction Agency (DTRA) contract has a five-year base and a one five-year option period. This structure ensures Parsons is engaged for substantial durations, often spanning a decade or more on key programs.

Relationship-driven contract recompetes and extensions (e.g., $665 million extension).

The success of initial performance directly fuels relationship-driven recompetes and extensions. A prime example is the contract extension secured by the MPA Delivery Partners joint venture, which includes Parsons, for the Hudson Tunnel Project (HTP). This was a $665 million, 4.5-year contract extension awarded by the Gateway Development Commission (GDC). This single extension provides substantial revenue visibility through approximately 2029. This continuation signals client satisfaction and execution capability on what's described as the most urgent rail infrastructure project in the United States. The company also secured a six-year, $133 million contract extension for Georgia's State Route 400 Express Lanes.

Here's a look at the duration and value associated with some of these long-term relationship anchors:

Contract/Program	Value (Ceiling/Award)	Base Period	Option/Extension Length	Relationship Driver
Hudson Tunnel Project Extension (MPA JV)	$665 million	N/A (Extension)	4.5 years	Successful initial performance/Delivery Partner Model
Air Force Environmental Services (AFCEC)	$1.5 billion (Ceiling)	Five years	Five one-year options + six months	Proven capability in environmental remediation (PFAS)
DTRA CWMD Support (IDIQ MATOC)	$4 billion (Ceiling)	Five years	One five-year option	Decades-long support of DTRA mission
Georgia State Route 400 Lanes	$133 million (Extension)	N/A (Extension)	Six years	Continued role as lead designer

The total backlog for Parsons Corporation stood at $8.8 billion as of the third quarter of 2025, with 72 percent funded, which represents the highest funded level since the company's 2019 Initial Public Offering (IPO). That backlog is the direct result of these long-term engagements.

Embedded teams providing continuous support and systems integration.

The consultative nature means Parsons often places teams directly within client operations. This is more than just having staff on site; it involves continuous support and deep systems integration, making Parsons' presence integral to daily mission success. For example, a recent $88 million task order under the Air Base Air Defense (ABAD) IDIQ contract vehicle involved providing equipment procurement, systems integration, training, technical support, and ongoing maintenance for U.S. Air Forces in Europe and Africa. This level of integration requires sustained, embedded expertise.

Key relationship indicators tied to continuous support include:

• Securing a 10-year task order for design and modernization at the Holston Army Ammunition Plant.
• Providing architecture, engineering, and related services for Sound Transit's $60 billion capital program, building on existing design partnerships.
• The company's stated strategy includes completing two to three acquisitions annually to expand capabilities and better serve existing customer needs through enhanced offerings.

High-level executive engagement with government and military leadership.

Maintaining relationships at the highest levels is crucial for securing and sustaining large government contracts. Parsons Corporation's leadership is actively involved in these top-tier discussions. The CEO participated in private CEO roundtables with the U.S. President and regional leaders during a presidential visit to the Middle East. This level of access helps align Parsons' capabilities with national security and infrastructure priorities, which is key when competing for large, strategic awards.

Solution-based selling for mission-critical, bespoke requirements.

Parsons focuses on selling tailored solutions for unique, mission-critical needs rather than off-the-shelf products. This is evident across both segments. In Federal Solutions, they compete for task orders involving research, development, testing and evaluation, and systems engineering to meet specific Department of Defense Countering Weapons Of Mass Destruction (CWMD) objectives under the $4 billion DTRA contract. In Critical Infrastructure, they won three contracts in the PFAS market totaling $23 million in Q3 2025, demonstrating an ability to address emerging environmental contaminants with specialized, bespoke remediation technology, often leveraging recent acquisitions like TRS Group Inc. The company's Q3 2025 adjusted EBITDA margin rose to 9.8 percent, partly driven by stronger program performance, suggesting that these complex, solution-based contracts are delivering profitable results.

Parsons Corporation (PSN) - Canvas Business Model: Channels

You're looking at how Parsons Corporation moves its services to market as of late 2025. The channels are heavily weighted toward direct government contracting, which is typical for a firm of this size in the defense and infrastructure spaces. The data shows a clear focus on securing large, multi-year contract vehicles that provide a steady stream of potential work.

Direct bidding on federal IDIQ (Indefinite Delivery, Indefinite Quantity) contracts

Direct bidding on federal IDIQ contracts remains a cornerstone channel for Parsons Corporation, particularly within the Federal Solutions segment. These vehicles allow Parsons to compete for task orders over an extended period, securing future revenue visibility. The company has been highly successful in this area recently, evidenced by several large-ceiling awards.

Parsons Corporation was selected as an awardee for the Defense Threat Reduction Agency (DTRA) Cooperative Threat Reduction Integration Contract (CTRIC) IV, an IDIQ Multiple Award Task Order Contract (MATOC) with a ceiling value of $3.5 billion, which includes a five-year base period and a five-year option period. Furthermore, Parsons secured prime positions on four multiple-award IDIQ contracts by federal customers, which have a combined ceiling value of $43.5 billion year-to-date through Q3 2025. Another key win includes a seat on a $1.5 billion IDIQ multiple award task order contract from the Air Force Civil Engineer Center.

The conversion of these large vehicles into booked revenue is key. For example, in Q3 2025, Parsons booked $82 million on an $88 million task order awarded under the Air Base Air Defense (ABAD) IDIQ contract vehicle. Still, the channel faces timing risks; Federal Solutions revenue, including a confidential contract, decreased 29% in Q3 2025 year-over-year, though excluding that contract, revenue increased 9% total.

Direct sales to state and local transportation/water authorities

The Critical Infrastructure segment relies on direct engagement with state and local authorities, capitalizing on infrastructure spending tailwinds. This channel saw strong performance in Q3 2025, with revenue increasing 18% year-over-year to $833 million, up from $705 million in Q3 2024. The segment's adjusted EBITDA saw an 83% increase in the same period.

Major contract wins illustrate this direct channel success:

• Secured a six-year authorization for Georgia's State Route 400 Express Lanes, valued at $133 million.
• Won three contracts in the PFAS market totaling $23 million in Q3 2025, booking nearly $70 million year-to-date in PFAS awards.
• Acquired Applied Sciences Consulting, Inc., to expand water and stormwater solutions expertise for cities and districts in Florida.

Joint venture structures for large-scale, complex infrastructure bids

Parsons Corporation uses joint venture (JV) structures to pursue massive, complex projects that require combined expertise and bonding capacity. This is a critical channel for securing marquee infrastructure work.

A notable example is MPA Delivery Partners, a JV of three companies including Parsons, which was awarded a $665 million, 4.5-year contract extension to continue managing the Hudson Tunnel Project. This structure allows Parsons to participate in projects like the multi-billion dollar tunnel build and rehabilitation between New York and New Jersey.

The company also secured a position on Sound Transit's 2025 Multiple Award Task Order Contract (MATOC) for design services, which has a $1 billion ceiling and supports Sound Transit's overall $60 billion capital program.

Direct engagement with Middle Eastern government customers for defense and infrastructure

Direct engagement in the Middle East is a significant, established channel for Parsons Corporation, spanning over six decades of operation in the region. This channel supports both Federal Solutions (defense/security) and Critical Infrastructure.

Financial scale in this region is substantial:

Metric	Value (Late 2025 Data)	Source Context
Annual Revenue Generated (2024)	More than $1 billion	Showcasing stability and experience in the region.
Employees in GCC Countries (as of May 2025)	Nearly 7,000	Reflecting a large, established operational footprint.
Current Projects in Saudi Arabia	50 projects	Aligning with the Kingdom's Vision 2030 development initiatives.
Q3 2025 Defense/Security Contract Bookings	Over $100 million	Two multiyear contracts booked for Middle East government clients.

The Critical Infrastructure segment's organic growth in Q3 2025 was explicitly driven by growth in the Middle East. The company also secured a position on the $15 billion Pacific Deterrence Initiative MACC, which has relevance to the broader Indo-Pacific security environment.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Customer Segments

You're looking at the core clients Parsons Corporation serves, which really breaks down into two main buckets: Federal Solutions and Critical Infrastructure. Honestly, the Federal side has been a bit volatile recently, but the infrastructure pipeline looks strong.

U.S. Federal Government (DoD, Intelligence Community, DTRA, FAA)

This group is your bread and butter for the Federal Solutions segment, which made up about 59% of Parsons Corporation's 2024 revenue. You saw some noise in the 2025 numbers, though. For instance, in the third quarter of 2025, Federal Solutions revenue dropped 29% year-over-year, but if you exclude that confidential State Department contract, revenue actually grew 9%. That confidential program, by the way, is essentially zeroed out for the rest of 2025 due to customer reorganization, though it was expected to contribute about $350 million total for the year. On the defense side, Parsons maintains a significant role with the Missile Defense Agency (MDA), holding a $2.26 billion contract with over $1 billion ceiling remaining, running until January 2029.

The FAA relationship is deep, spanning over four decades. Parsons was competing for the Brand New Air Traffic Control System (BNATCS) contract, which Congress funded initially with $12.5 billion, but that award went to Peraton. Still, Parsons has a potential 10-year, $1.8 billion contract with the FAA, part of a combined $4.1 billion in prior Technical Support Services Contracts (TSSC III, IV, V).

Here's a snapshot of where the Federal Solutions segment stood in Q3 2025:

Metric	Value (Q3 2025)	Comparison/Context
Total Federal Solutions Revenue	$1.6 billion (Total Q3 Revenue)	Decreased 10% year-over-year
Federal Solutions Revenue (Excl. Confidential Contract)	Increased 9%	Organic growth was 5%
Federal Solutions Adjusted EBITDA Contribution (FY 2024)	59%	Of total Adjusted EBITDA of $605.0 million
MDA Contract Ceiling Remaining	Over $1 billion	Runs until January 2029

State and Local Governments (DOTs, water management districts)

These customers fall squarely into the Critical Infrastructure segment, which is showing solid momentum. In Q3 2025, Critical Infrastructure revenue jumped 18% year-over-year, driven by 13% organic growth. This segment is capitalizing on infrastructure spending, like the Infrastructure Investment and Jobs Act funding, which is expected to peak around 2028. You see this focus in specific wins, such as securing authorization for the Georgia State Route 400 Express Lanes. Plus, the acquisition of Applied Sciences Consulting, Inc. bolsters their water expertise in places like Florida.

International Governments, primarily in the Middle East (defense and urban development)

Parsons Corporation has a long history here, operating for over six decades, and this region accounts for about 19% of their focus. They generate more than $1 billion in annual revenue from the Middle East, employing over 6,000 people across the GCC countries. They are actively involved in Saudi Arabia's Vision 2030, with 50 current projects there. Just in Q4 2024, they locked down major contracts worth $475 million across Saudi Arabia and the UAE.

Large-scale transportation and infrastructure authorities (e.g., Gateway Development Commission)

While the search results didn't specifically name the Gateway Development Commission, the focus on large authorities is clear through the FAA and state DOT work mentioned above. The Critical Infrastructure segment is geared toward these massive projects. They are leveraging their engineering and program management expertise for modernization efforts. For example, the Q2 2025 organic growth in this segment was 8%, fueled by transportation and environmental remediation markets.

You should track the Critical Infrastructure segment's margin expansion; it hit 10.3% in Q3 2025, a 360 basis point increase year-over-year.

• Critical Infrastructure revenue grew 18% in Q3 2025.
• The segment delivered over 10% margin for 3 consecutive quarters.
• The company has completed over 3,000 projects in the UAE alone.

Finance: draft 13-week cash view by Friday.

Parsons Corporation (PSN) - Canvas Business Model: Cost Structure

You're looking at the expense side of Parsons Corporation's operations as of late 2025. For a company heavily reliant on specialized labor and government contracts, the cost structure is dominated by people and the necessary overhead to secure and execute that work. Honestly, personnel costs are the engine here, even if the exact dollar figure isn't broken out in the latest filings.

High personnel costs for specialized, cleared engineers and scientists are inherent. While direct salary figures aren't public, you can infer the scale from the revenue base. For the trailing twelve months ending September 30, 2025, Parsons generated approximately $331,365 in revenue per employee. This figure reflects the high value, but also the high cost, of maintaining a workforce with the necessary security clearances and deep technical expertise for federal solutions.

Significant investments in bid and proposal (B&P) activity and strategic hiring are essential to maintain the backlog. Parsons reported a strong book-to-bill ratio of 1.0x on net bookings of $1.5 billion in Q2 2025, and a trailing twelve-month book-to-bill ratio of 1.0x on net bookings of $6.7 billion. This constant flow of new business requires substantial, non-recoverable B&P spending, which is baked into the operating expenses.

Costs associated with strategic acquisitions and integration are a notable component. For example, Q2 2025 net income of $55 million included $2 million of M&A transaction-related expenses associated with the CTI acquisition. Furthermore, the fiscal year 2025 Depreciation and Amortization (D&A) guidance of approximately $111 million includes approximately $67 million specifically attributed to acquisition-related amortization. This amortization represents the write-off of intangible assets from past deals.

Operating expenses for technology development and proprietary systems are capitalized and then expensed over time through D&A. The total D&A guidance for FY2025 is approximately $111 million. The company also guides for approximately $43 million in Equity-based compensation expenses for FY2025.

Costs of materials and subcontractors for large fixed-price infrastructure projects are managed within the Cost of Revenue, impacting margins. While specific subcontractor costs aren't itemized, the overall profitability metrics give you a sense of cost control. For Q3 2025, the Adjusted EBITDA margin was 9.8%, and the FY2025 guidance mid-point targets an Adjusted EBITDA margin of approximately 9.5%. The Critical Infrastructure segment, which handles many of these projects, saw its Adjusted EBITDA margin improve by 360 basis points in Q3 2025.

Here's a look at the key cost-related guidance figures Parsons Corporation provided for the full fiscal year 2025:

Cost/Expense Category (FY2025 Guidance)	Amount (Millions USD)	Source Context
Total Revenue (Mid-Point)	$6,550	Target for full-year revenue.
Adjusted EBITDA (Mid-Point)	$610	Indicates operating costs relative to revenue.
Net Interest Expense	~ $45	Cost of debt financing.
Equity-based Compensation	~ $43	Non-cash personnel-related expense.
Total Depreciation & Amortization (D&A)	~ $111	Includes depreciation of assets and amortization of intangibles.
Acquisition-Related Amortization (within D&A)	~ $67	Cost related to past M&A, often tied to systems/IP.
Transaction and Other Expenses (Excluding Future M&A)	~$17	One-time integration/deal costs included in guidance.

The company is not providing a full Net Income guidance for FY2025 due to volatility from interest, taxes, D&A, and M&A impact. This lack of a bottom-line target underscores the variability in these cost components.

Parsons Corporation (PSN) - Canvas Business Model: Revenue Streams

The revenue streams for Parsons Corporation (PSN) are primarily derived from its two operating segments: Federal Solutions and Critical Infrastructure, through various contract mechanisms.

The full-year 2025 financial outlook, as revised following the third quarter results, provides the following expected top-line and profitability metrics:

Metric	Guidance Range (FY 2025)
Revenue	$6.4 billion to $6.5 billion
Adjusted EBITDA	$600 million to $630 million

The Federal Solutions segment revenue is heavily influenced by the mix of contract types. As of late 2025, the company indicated that its work is structured with just north of 60% cost-plus work, which structurally limits margin expansion opportunities compared to fixed-price arrangements. Revenue generation is supported by large vehicles, such as the Defense Threat Reduction Agency (DTRA) Cooperative Threat Reduction Integration Contract IV (CTRIC IV), which carries a ceiling value of $3.5 billion over its ten-year term. Furthermore, Parsons competes for task orders under the $15 billion Pacific Deterrence Initiative Multiple Award Construction Contract (PDI MACC) for design and engineering services.

The Critical Infrastructure segment shows strong growth momentum, with third quarter 2025 revenue increasing 18% year-over-year, including 13% organic growth. This segment's revenue is generated through various vehicles, including Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, Blanket Purchase Agreements (BPAs), and General Service Administration (GSA) schedules. The margin performance in this segment has improved, moving from a 7% margin in the prior year to a 10.3% adjusted EBITDA margin year-to-date for Critical Infrastructure.

Revenue is increasingly sourced from high-growth market areas, which demonstrated strong performance in the first half of 2025:

• Double-digit revenue growth in the cyber market in Q1 2025 (excluding the confidential contract).
• Double-digit revenue growth in the transportation market in Q1 2025 (excluding the confidential contract).
• Organic revenue growth of 8% in Q2 2025 driven by the transportation and cyber markets.

The company utilizes various contract vehicles to secure this revenue, including:

• Indefinite Delivery/Indefinite Quantity (IDIQ) contracts.
• Blanket Purchase Agreements (BPAs).
• General Service Administration (GSA) schedules, such as the GSA Multiple Award Schedule.
• The Alliant 2 Governmentwide Acquisition Contract (GWAC) with a $50 billion program ceiling.