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Acquisitions | 6 Months Ended
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Jun. 30, 2025
Business Combinations [Abstract] |
Acquisitions | 4. Acquisitions Chesapeake Technology International, Corp On June 30, 2025, the Company acquired a 100% ownership interest in Chesapeake Technology International, Corp ("CTI"), a privately owned company, for $89.2 million from cash on hand. CTI brings extensive capabilities as an all-domain technology solutions provider, powered by cutting-edge products that enhance the warfighters’ ability to sense, evaluate and deliver effects within the invisible battlespaces. CTI enhances our mission-ready solutions for the Department of Defense. In connection with this acquisition, the Company recognized $2.2 million of acquisition-related expenses in “Selling, general and administrative expense” in the consolidated statements of income for the three and six months ended June 30, 2025, including legal fees, consulting fees, and other miscellaneous direct expenses associated with the acquisition. The following table summarizes the acquisition date fair value of the purchase consideration transferred (in thousands):
|  | Amount |
Cash and cash equivalents |  | $ | 2,877 |
Accounts receivable |  |  | 28,315 |
Contract assets |  |  | 3,011 |
Inventory |  |  | 144 |
Income taxes receivable |  |  | 265 |
Right of use assets, operating leases |  |  | 484 |
Prepaid expenses and other current assets |  |  | 3,732 |
Property and Equipment |  |  | 929 |
Goodwill |  |  | 55,330 |
Intangible assets |  |  | 38,700 |
Accounts payable |  |  | (17,380 | )
Short-term lease liabilities, operating leases |  |  | (389 | )
Accrued expenses and other current liabilities |  |  | (10,701 | )
Contract liabilities |  |  | (8,523 | )
Deferred income taxes |  |  | (7,457 | )
Long-term lease liabilities, operating leases |  |  | (132 | )
Net assets acquired |  | $ | 89,205 |
Of the total purchase price, the following values were preliminarily assigned to intangible assets (in thousands, except for years):
|  | Gross Carrying Amount |  |  | Amortization Period
|  |  |  |  | (in years)
Customer relationships |  |  | 24,450 |  |  | 15
Backlog |  |  | 8,150 |  |  | 3
Developed technologies |  |  | 4,700 |  |  | 5
Other |  |  | 1,400 |  |  | 1 to 3
The entire value of goodwill was assigned to the Federal Solutions reporting unit and represents synergies expected to be realized from this business combination. $8.5 million of goodwill is deductible for tax purposes. CTI contributed a single day of revenue during Q2 2025. The Company will disclose the revenue contribution from CTI in subsequent filings. The Company has determined that the presentation of net income from the date of acquisition is impracticable due to the integration of general corporate functions upon acquisition. The Company is still in the process of finalizing its valuation of the assets and liabilities acquired. Supplemental Pro Forma Information (Unaudited) Supplemental information of unaudited pro forma operating results assuming the CTI acquisition had been consummated as of the beginning of fiscal year 2024 (in thousands) is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
Pro forma Revenue |  | $ | 1,604,441 |  |  | $ | 1,687,840 |  |  | $ | 3,194,243 |  |  | $ | 3,236,306 |
Pro forma Net Income including noncontrolling interests |  |  | 70,109 |  |  |  | 78,779 |  |  |  | 151,627 |  |  |  | 130,485 |
The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and reflects the pro forma impact of additional amortization related to the fair value of acquired intangible assets, and the pro forma impact of reflecting acquisition costs, which consisted of legal, advisory and due diligence fees and expenses. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been consummated during the periods for which pro forma information is presented. TRS Group, Inc. On January 31, 2025, the Company acquired a 100% ownership interest in TRS Group, Inc. ("TRS") a privately owned company, for $36.6 million from cash on hand (of which $3.8 million will be paid in July 2026). TRS is an environmental solutions firm that specializes in remediation technology. In connection with this acquisition, the Company recognized $0.4 million and $0.5 million of acquisition-related expenses in “Selling, general and administrative expense” in the consolidated statements of income for the three and six months ended June 30, 2025, including legal fees, consulting fees, and other miscellaneous direct expenses associated with the acquisition. The following table summarizes the acquisition date fair value of the purchase consideration transferred (in thousands):
|  | Amount |
Cash and cash equivalents |  | $ | 2,054 |
Accounts receivable |  |  | 3,390 |
Contract assets |  |  | 2,277 |
Income taxes receivable |  |  | 354 |
Prepaid expenses and other current assets |  |  | 2,414 |
Property and Equipment |  |  | 5,832 |
Goodwill |  |  | 22,972 |
Intangible assets |  |  | 6,100 |
Accounts payable |  |  | (1,095 | )
Accrued expenses and other current liabilities |  |  | (3,270 | )
Contract liabilities |  |  | (4,222 | )
Short-term lease liabilities, operating leases |  |  | (116 | )
Long-term lease liabilities, operating leases |  |  | (124 | )
Net assets acquired |  | $ | 36,566 |
Of the total purchase price, the following values were preliminarily assigned to intangible assets (in thousands, except for years):
|  | Gross Carrying Amount |  |  | Amortization Period
|  |  |  |  | (in years)
Backlog |  |  | 1,900 |  |  | 3
Developed technologies |  |  | 3,900 |  |  | 15
Trade name |  |  | 300 |  |  | 1
Amortization expense of $0.4 million and $0.7 million related to these intangible assets was recorded for the three and six months ended June 30, 2025, respectively. The entire value of goodwill was assigned to the Critical Infrastructure reporting unit and represents synergies expected to be realized from this business combination. The entire value of goodwill is deductible for tax purposes. The amount of revenue generated by TRS and included within consolidated revenue is $7.4 million and $11.5 million for the three and six months ended June 30, 2025, respectively. The Company has determined that the presentation of net income from the date of acquisition is impracticable due to the integration of general corporate functions upon acquisition. The Company is still in the process of finalizing its valuation of the assets and liabilities acquired. Supplemental Pro Forma Information (Unaudited) Supplemental information of unaudited pro forma operating results assuming the TRS acquisition had been consummated as of the beginning of fiscal year 2024 (in thousands) is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
Pro forma Revenue |  | $ | 1,584,323 |  |  | $ | 1,677,018 |  |  | $ | 3,140,706 |  |  | $ | 3,219,532 |
Pro forma Net Income including noncontrolling interests |  |  | 70,752 |  |  |  | 80,078 |  |  |  | 152,799 |  |  |  | 134,688 |
The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and reflects the pro forma impact of additional amortization related to the fair value of acquired intangible assets, and the pro forma impact of reflecting acquisition costs, which consisted of legal, advisory and due diligence fees and expenses. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been consummated during the periods for which pro forma information is presented. BCC Engineering, LLC On November 1, 2024, the Company acquired a 100% ownership interest in BCC Engineering, LLC ("BCC") a privately owned company, for $233.5 million from cash on hand. BCC is a full-service engineering firm that provides planning, design, and management services for transportation, civil and structural engineering projects in Florida, Georgia, Texas, South Carolina, and Puerto Rico. This acquisition strengthens Parsons’ position as an infrastructure leader while expanding the company’s reach in the southeastern United States. In connection with this acquisition, the Company recognized $4.2 million of acquisition-related expenses in “Selling, general and administrative expense” in the consolidated statements of income for the year ended December 31, 2024, including legal fees, consulting fees, and other miscellaneous direct expenses associated with the acquisition. The following table summarizes the acquisition date fair value of the purchase consideration transferred (in thousands):
|  | Amount |
Cash and cash equivalents |  | $ | 2,839 |
Accounts receivable |  |  | 24,142 |
Contract assets |  |  | 16,649 |
Prepaid expenses and other current assets |  |  | 2,483 |
Right of use assets, operating leases |  |  | 9,438 |
Property and Equipment |  |  | 1,586 |
Other noncurrent assets |  |  | 1,744 |
Goodwill |  |  | 175,680 |
Intangible assets |  |  | 32,400 |
Accounts payable |  |  | (8,668 | )
Accrued expenses and other current liabilities |  |  | (7,296 | )
Contract liabilities |  |  | (4,446 | )
Short-term lease liabilities, operating leases |  |  | (2,090 | )
Deferred income taxes |  |  | (2,299 | )
Long-term lease liabilities, operating leases |  |  | (7,462 | )
Other long-term liabilities |  |  | (1,183 | )
Net assets acquired |  | $ | 233,517 |
Of the total purchase price, the following values were assigned to intangible assets (in thousands, except for years):
|  | Gross Carrying Amount |  |  | Amortization Period
|  |  |  |  | (in years)
Customer relationships |  | $ | 6,500 |  |  | 4
Backlog |  |  | 23,400 |  |  | 4
Non-compete agreements |  |  | 1,700 |  |  | 3
Other |  | $ | 800 |  |  | 1
Amortization expense of $2.2 million and $4.4 million related to these intangible assets was recorded for the three and six months ended June 30, 2025, respectively. The entire value of goodwill was assigned to the Critical Infrastructure reporting unit and represents synergies expected to be realized from this business combination. $45.8 million of goodwill is deductible for tax purposes. The amount of revenue generated by BCC and included within consolidated revenue is $34.5 million and $63.4 million for the three and six months ended June 30, 2025, respectively. The Company has determined that the presentation of net income from the date of acquisition is impracticable due to the integration of general corporate functions upon acquisition. Supplemental Pro Forma Information (Unaudited) Supplemental information of unaudited pro forma operating results assuming the BCC acquisition had been consummated as of the beginning of fiscal year 2023 (in thousands) is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
Pro forma Revenue |  | $ | 1,584,323 |  |  | $ | 1,697,357 |  |  | $ | 3,138,683 |  |  | $ | 3,256,684 |
Pro forma Net Income including noncontrolling interests |  |  | 71,470 |  |  |  | 78,410 |  |  |  | 154,238 |  |  |  | 129,738 |
The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and reflects the pro forma impact of additional amortization related to the fair value of acquired intangible assets, and the pro forma impact of reflecting acquisition costs, which consisted of legal, advisory and due diligence fees and expenses. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been consummated during the periods for which pro forma information is presented. BlackSignal Technologies, LLC. On August 16, 2024, the Company acquired a 100% ownership interest in BlackSignal Technologies, LLC, ("BlackSignal") a privately-owned company, for $203.7 million from cash on hand. Headquartered in Chantilly, Virginia, BlackSignal is a next-generation digital signal processing, electronic warfare, and cyber security provider built to counter near peer threats. Parsons believes that the acquisition will expand Parsons' customer base across the Department of Defense and Intelligence Community and significantly strengthen Parsons' positioning within cyber warfare, while adding new capabilities in the counterspace radio frequency domain. In connection with this acquisition, the Company recognized $2.5 million of acquisition-related expenses in “Selling, general and administrative expense” in the consolidated statements of income for the year ended December 31, 2024, including legal fees, consulting fees, and other miscellaneous direct expenses associated with the acquisition. The following table summarizes the acquisition date fair value of the purchase consideration transferred (in thousands):
|  | Amount |
Cash and cash equivalents |  | $ | 4,917 |
Accounts receivable |  |  | 5,171 |
Contract assets |  |  | 3,209 |
Prepaid expenses and other current assets |  |  | 447 |
Right of use assets, operating leases |  |  | 5,370 |
Property and Equipment |  |  | 997 |
Goodwill |  |  | 116,849 |
Intangible assets |  |  | 97,600 |
Other assets |  |  | 145 |
Accounts payable |  |  | (951 | )
Accrued expenses and other current liabilities |  |  | (4,999 | )
Short-term lease liabilities, operating leases |  |  | (800 | )
Deferred income taxes |  |  | (19,647 | )
Long-term lease liabilities, operating leases |  |  | (4,570 | )
Net assets acquired |  | $ | 203,738 |
Of the total purchase price, the following values were assigned to intangible assets (in thousands, except for years):
|  | Gross Carrying Amount |  |  | Amortization Period
|  |  |  |  | (in years)
Customer relationships |  | $ | 73,900 |  |  | 14
Backlog |  |  | 11,700 |  |  | 3
Developed technologies |  |  | 5,200 |  |  | 5
Non-compete agreements |  |  | 6,100 |  |  | 3
Other |  | $ | 700 |  |  | 1
Amortization expense of $3.2 million and $6.4 million related to these intangible assets was recorded for the three and six months ended June 30, 2025, respectively. The entire value of goodwill was assigned to the Federal Solutions reporting unit and represents synergies expected to be realized from this business combination. $17.1 million of goodwill is deductible for tax purposes. The amount of revenue generated by BlackSignal and included within consolidated revenue is $16.7 million and $29.8 million for the three and six months June 30, 2025, respectively. The Company has determined that the presentation of net income from the date of acquisition is impracticable due to the integration of general corporate functions upon acquisition. Supplemental Pro Forma Information (Unaudited) Supplemental information of unaudited pro forma operating results assuming the BlackSignal acquisition had been consummated as of the beginning of fiscal year 2023 (in thousands) is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
Pro forma Revenue |  | $ | 1,584,323 |  |  | $ | 1,684,129 |  |  | $ | 3,138,683 |  |  | $ | 3,231,871 |
Pro forma Net Income including noncontrolling interests |  |  | 71,076 |  |  |  | 77,041 |  |  |  | 153,818 |  |  |  | 128,423 |
The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and reflects the pro forma impact of additional amortization related to the fair value of acquired intangible assets, and the pro forma impact of reflecting acquisition costs, which consisted of legal, advisory and due diligence fees and expenses. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been consummated during the periods for which pro forma information is presented.

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