PARSONS CORP

Previous wording

Difference between our backlog of $8.9 billion and our remaining unsatisfied performance obligations, or RUPO, of $7.0 billion, each as of June 30, 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.

Current wording

Difference between our backlog of $8.8 billion and our remaining unsatisfied performance obligations, or RUPO, of $7.0 billion, each as of September 30, 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.

Previous wording

The increase in awards for the three and six months ended June 30, 2025 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 periods. The decrease in awards for the three and six months ended June 30, 2025 in our Federal Solutions segment when compared to the corresponding periods last year was primarily driven by a delay in the timing of awards of a number of contracts being pursued. The six months ended June 30, 2024 included significant option period awards from the confidential contract in the Federal Solutions segment.

Current wording

The increase in awards for the three and nine months ended September 30, 2025 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 periods. Critical Infrastructure awards for the three months ended September 30, 2024 included a significant design award. The decrease in awards for the three and nine months ended September 30, 2025 in our Federal Solutions segment when compared to the corresponding periods last year was primarily driven by a delay in the timing of awards of a number of contracts being pursued. Awards for the three and nine months ended September 30, 2024 included significant option period awards from the confidential contract in the Federal Solutions segment.

Previous wording

Difference between our backlog of $8.9 billion and our RUPO of $7.0 billion, each as of June 30, 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.

Current wording

Difference between our backlog of $8.8 billion and our RUPO of $7.0 billion, each as of September 30, 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.

Previous wording

We expect to recognize $4.3 billion of our funded backlog at June 30, 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 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, 2024.

Current wording

We expect to recognize $4.1 billion of our funded backlog at September 30, 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 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, 2024.

Previous wording

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. The financial results of CTI have been included in our consolidated results of operations from June 30, 2025 onward.

Current wording

On June 30, 2025, the Company acquired a 100% ownership interest in Chesapeake Technology International, Corp ("CTI"), a privately owned company, for $91.5 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. The financial results of CTI have been included in our consolidated results of operations from June 30, 2025 onward.

Previous wording

corresponding periods last year primarily relates to decreased business volume from a fixed price contract from a confidential contract in our Federal Solutions segment.

Current wording

The significant change in the contract mix for the three and nine months ended September 30, 2025 compared to the corresponding periods last year primarily relates to decreased business volume from a fixed price contract from a confidential contract in our Federal Solutions segment.

Previous wording

We conduct a portion of our business through joint ventures or similar partnership arrangements. For the joint ventures we control, we consolidate all the revenues and expenses in our consolidated statements of income (including revenues and expenses attributable to noncontrolling interests). For the joint ventures we do not control, we recognize equity in (losses) earnings of unconsolidated joint ventures. Our revenues included amounts related to services we provided to our unconsolidated joint ventures for the three months ended June 30, 2025 and June 30, 2024 of $42.0 million and $50.5 million, respectively and $87.5 million and $97.3 million for the six ended June 30, 2025 and June 30, 2024, respectively.

Current wording

We conduct a portion of our business through joint ventures or similar partnership arrangements. For the joint ventures we control, we consolidate all the revenues and expenses in our consolidated statements of income (including revenues and expenses attributable to noncontrolling interests). For the joint ventures we do not control, we recognize equity in (losses) earnings of unconsolidated joint ventures. Our revenues included amounts related to services we provided to our unconsolidated joint ventures for the three months ended September 30, 2025 and September 30, 2024 of $56.9 million and $47.6 million, respectively and $144.3 million and $144.9 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.

Previous wording

Operating costs and expenses primarily include direct costs of contracts and selling, general and administrative expenses. Costs associated with compensation-related expenses for our people and facilities, which includes ESOP contribution expenses, are the most significant component of our operating expenses. Total ESOP contribution expense for the three months ended June 30, 2025 and June 30, 2024 was $17.6 million and $15.1 million, respectively, and $35.4 million and $30.1 million for the six months ended June 30, 2025 and June 30, 2024 , respectively and is recorded in “Direct cost of contracts” and “Selling, general and administrative expenses.”

Current wording

Operating costs and expenses primarily include direct costs of contracts and selling, general and administrative expenses. Costs associated with compensation-related expenses for our people and facilities, which includes ESOP contribution expenses, are the most significant component of our operating expenses. Total ESOP contribution expense for the three months ended September 30, 2025 and September 30, 2024 was $18.6 million and $13.2 million, respectively, and $54.0 million and $43.4 million for the nine months ended September 30, 2025 and September 30, 2024, respectively and is recorded in “Direct cost of contracts” and “Selling, general and administrative expenses.”

Previous wording

The following table sets forth Adjusted EBITDA, Net Income Margin, and Adjusted EBITDA Margin for the three and six months ended June 30, 2025 and June 30, 2024.

Current wording

The following table sets forth Adjusted EBITDA, Net Income Margin, and Adjusted EBITDA Margin for the three and nine months ended September 30, 2025 and September 30, 2024.

Previous wording

The following table sets forth our results of operations for the three and six months ended June 30, 2025 and June 30, 2024 as a percentage of revenue.

Current wording

The following table sets forth our results of operations for the three and nine months ended September 30, 2025 and September 30, 2024 as a percentage of revenue.

Previous wording

Revenue decreased $86.1 million for the three months ended June 30, 2025 when compared to the corresponding period last year, due to a decrease in revenue in our Federal Solutions segment of $183.1 million, offset by an increase in revenue in our Critical Infrastructure Segment of $97.0 million. See “Segment Results” below for a further discussion of the changes in the Company's revenue.

Current wording

Revenue decreased $188.4 million for the three months ended September 30, 2025 when compared to the corresponding period last year, due to a decrease in revenue in our Federal Solutions segment of $317.0 million, offset by an increase in revenue in our Critical Infrastructure Segment of $128.6 million. See “Segment Results” below for a further discussion of the changes in the Company's revenue.

Previous wording

The decrease in revenue of $67.5 million for the six months ended June 30, 2025 when compared to the corresponding period last year, was due to a decrease in our Federal Solutions segment of $250.2 million offset by an increase in revenue in our Critical Infrastructure segment of $182.7 million, respectively.

Current wording

The decrease in revenue of $255.8 million for the nine months ended September 30, 2025 when compared to the corresponding period last year, was due to a decrease in our Federal Solutions segment of $567.2 million offset by an increase in revenue in our Critical Infrastructure segment of $311.3 million, respectively.

Previous wording

Direct cost of contracts decreased $83.0 million for the three months ended June 30, 2025 when compared to the corresponding period last year, primarily due to a decrease of $146.3 million in our Federal Solutions segment offset by an increase of $63.4 million in our Critical Infrastructure segment. The decrease in direct costs of contracts in the Federal Solutions segment is primarily related to reduced volume from our confidential contract, See “Segment Results” below for a further discussion. The increase in direct costs of contracts in the Critical Infrastructure segment is primarily related to increased volume from new and existing contracts.

Current wording

Direct cost of contracts decreased $187.9 million for the three months ended September 30, 2025 when compared to the corresponding period last year, primarily due to a decrease of $268.7 million in our Federal Solutions segment offset by an increase of $80.8 million in our Critical Infrastructure segment. The decrease in direct costs of contracts in the Federal Solutions segment is primarily related to reduced volume from our confidential contract, See “Segment Results” below for a further discussion. The increase in direct costs of contracts in the Critical Infrastructure segment is primarily related to increased volume from new and existing contracts.

Previous wording

The decrease in direct cost of contracts $93.4 million for the six months ended June 30, 2025 when compared to the corresponding period last year, was primarily due to a decrease of $208.3 million in our Federal Solutions segment offset by an increase of $114.9 million in our Critical Infrastructure segment. The changes in direct cost of contracts for the six months ended June 30, 2025 compared to the corresponding period last year were primarily impacted by the factors noted above for both segments for the three months ended June 30, 2025.

Current wording

The decrease in direct cost of contracts $281.3 million for the nine months ended September 30, 2025 when compared to the corresponding period last year, was primarily due to a decrease of $477.0 million in our Federal Solutions segment offset by an increase of $195.7 million in our Critical Infrastructure segment. The changes in direct cost of contracts for the nine months ended September 30, 2025 compared to the corresponding period last year were primarily impacted by the factors noted above for both segments for the three months ended September 30, 2025.

Previous wording

Equity in losses of unconsolidated joint ventures improved by $16.2 million for the three months ended June 30, 2025 compared to the corresponding period last year. The improvement in equity in losses of unconsolidated joint ventures was primarily driven by the Company winding down its participation in construction joint ventures.

Current wording

Equity in losses of unconsolidated joint ventures improved by $7.4 million for the three months ended September 30, 2025 compared to the corresponding period last year which included significant write-downs on certain joint ventures. The Company is winding down its participation in construction joint ventures.

Previous wording

Equity in losses of unconsolidated joint ventures improved by $17.6 million for the six months ended June 30, 2025 compared to the corresponding period last year. The improvement in equity in losses of unconsolidated joint ventures was primarily driven by the Company winding down its participation in construction joint ventures.

Current wording

Equity in earnings (losses) of unconsolidated joint ventures improved by $25.0 million for the nine months ended September 30, 2025 compared to the corresponding period last year which included significant write-downs on certain joint ventures. The Company is winding down its participation in construction joint ventures.

Previous wording

As a percentage of revenue, our SG&A increased by 2.5% to 15.9% for the three months ended June 30, 2025 compared to 13.4% for the corresponding period last year. The increase in SG&A was primarily due to an increase in segment level SG&A, in particular from business acquisitions, increased investments in bid and proposal activity, critical hires in support of our strong pipeline, and large strategic pursuits aligned to the Trump administration’s priorities. Partially offsetting these increases in SG&A was a decrease in incentive compensation cost. Partially driving the increase in SG&A as a percent of revenue, was the decrease in business volume in the Federal Solutions segment discussed below.

Current wording

As a percentage of revenue, our SG&A increased by 2.4% to 16.0% for the three months ended September 30, 2025 compared to 13.6% for the corresponding period last year. The increase in SG&A was primarily due to an increase in segment level SG&A, in particular from business acquisitions, increased investments in bid and proposal activity, critical hires in support of our strong pipeline, and large strategic pursuits aligned to the Trump administration’s priorities. Partially offsetting these increases in SG&A was a decrease in incentive compensation cost. Partially driving the increase in SG&A as a percent of revenue, was the decrease in business volume in the Federal Solutions segment discussed below.

Previous wording

As a percentage of revenue, SG&A increased by 2.0% to 15.8% for the six months ended June 30, 2025

Current wording

As a percentage of revenue, SG&A increased by 2.1% to 15.9% for the nine months ended September 30, 2025

Previous wording

compared to 13.9% for the corresponding period last year. The increase in SG&A was primarily due to the factors noted above for the three months ended June 30, 2025.

Current wording

compared to 13.8% for the corresponding period last year. The increase in SG&A was primarily due to the factors noted above for the three months ended September 30, 2025.

Previous wording

Interest expense for the three and six months ended June 30, 2024 is primarily due to debt related to our Convertible Senior Notes and Term Loan. Interest expense for the six months ended June 30, 2024 included a $3.2 million charge related to the March 2024 partial repurchase of the Company's Convertible Senior Notes due 2025 (discussed in more detail below).

Current wording

Interest expense for the three and nine months ended September 30, 2025 and September 30, 2024 is primarily due to debt related to our Convertible Senior Notes and Term Loan. Interest expense for the nine months ended September 30, 2024 included a $3.2 million charge related to the March 2024 partial repurchase of the Company's Convertible Senior Notes due 2025 (discussed in more detail below).

Previous wording

During the six months ended June 30, 2024, we paid $495.6 million in cash to repurchase $284.6 million aggregate principal amount of our Convertible Senior Notes due 2025 (the "Repurchase Transaction") concurrently with the offering of 2.625% Convertible Senior Notes due 2029. As a result of the Repurchase Transaction, we incurred a $18.4 million loss 1 on debt extinguishment. The Repurchase Transaction is a partial repurchase of our Convertible Senior Notes due 2025. See“Note 10 – Debt and Credit Facilities,” for a further discussion of this transaction.

Current wording

During the nine months ended September 30, 2024, we paid $495.6 million in cash to repurchase $284.6 million aggregate principal amount of our Convertible Senior Notes due 2025 (the "Repurchase Transaction") concurrently with the offering of 2.625% Convertible Senior Notes due 2029. As a result of the Repurchase Transaction, we incurred a $18.4 million loss 1 on debt extinguishment. The Repurchase Transaction is a partial repurchase of our Convertible Senior Notes due 2025. See“Note 10 – Debt and Credit Facilities,” for a further discussion of this transaction.

Previous wording

The amounts in other income (expense), net are primarily related to transaction gains and losses on foreign currency transactions and sublease income. Other income (expense), net for the six months ended June 30, 2024 included a $1.8 million change in the estimated fair value of contingent consideration which was settled in the prior fiscal year.

Current wording

The amounts in other income (expense), net are primarily related to transaction gains and losses on foreign currency transactions and sublease income. Other income (expense), net for the nine months ended September 30, 2024 included a $1.8 million change in the estimated fair value of contingent consideration which was settled in the prior fiscal year.

Previous wording

The Company’s effective tax rate was 21.0% and 21.7% and income tax expense was $18.7 million and $22.4 million for the three months ended June 30, 2025 and June 30, 2024, respectively. The decrease in tax expense for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due primarily to the tax impact of a decrease in pre-tax income, a change in jurisdictional mix of earnings and an increase in untaxed income attributed to noncontrolling interests, partially offset by decreases in the foreign-derived intangible income (FDII) deduction and the windfall tax benefit from equity-based compensation deduction.

Current wording

The Company’s effective tax rate was 16.4% and 20.8% and income tax expense was $16.0 million and $22.5 million for the three months ended September 30, 2025 and September 30, 2024, respectively. The decrease in tax expense for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due primarily to the tax impact of a decrease in pre-tax income, a discrete tax benefit related to the reduction of unrecognized tax benefits for various tax positions resulting from the expiration of the statute of limitations, a change in the jurisdictional mix of earnings and an increase in untaxed income attributed to noncontrolling interests, partially offset by a decrease in the foreign-derived intangible income (FDII) deduction and an increase in unrecognized tax benefits for foreign tax credits.

Previous wording

The Company’s effective income tax rate was 19.8% and 20.9% for the six months ended June 30, 2025 and June 30, 2024, respectively. Income tax expense was 37.7 million and $35.7 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The increase in tax expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due primarily to the tax impact of an increase in pre-tax income, decreases in the FDII deduction and windfall equity-based compensation deduction, partially offset by the change in jurisdictional mix of earnings and an increase in untaxed income attributed to noncontrolling interests.

Current wording

The Company’s effective income tax rate was 18.7% and 20.8% for the nine months ended September 30, 2025 and September 30, 2024, respectively. Income tax expense was $53.7 million and $58.3 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. The decrease in tax expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to a discrete tax benefit related to the reduction of unrecognized tax benefits for various tax positions resulting from the expiration of the statute of limitations, a change in the jurisdictional mix of earnings and an increase in untaxed income attributed to noncontrolling interests, partially offset by a decreases in the FDII deduction and the windfall equity-based compensation deduction, and an increase in unrecognized tax benefits for foreign tax credits.

Previous wording

The decrease in Federal Solutions revenue for the three months ended June 30, 2025 compared to the corresponding period last year was primarily driven by our confidential contract operating at a reduced volume as a result of the recent Department of State reorganization issued May 29, 2025 (the confidential contract was terminated for convenience on July 16, 2025 with close out activity to commence at month end). This decrease was partially offset by growth on existing contracts and the ramp-up of new task orders.

Current wording

The decrease in Federal Solutions revenue for the three months ended September 30, 2025 compared to the corresponding period last year was primarily driven by our confidential contract operating at a reduced volume as a result of the recent Department of State reorganization issued May 29, 2025. This decrease was offset by the recognition of incentive fees, growth on existing contracts, and the ramp-up of new task orders.

Previous wording

The decrease in Federal Solutions revenue for the six months ended June 30, 2024 compared to the corresponding period last year was primarily related to the factors impacting revenue discussed above for the three months ended June 30, 2025.

Current wording

The decrease in Federal Solutions revenue for the nine months ended September 30, 2025 compared to the corresponding period last year was primarily related to the factors impacting revenue discussed above for the three months ended September 30, 2025.

Previous wording

The decrease in Federal Solutions Adjusted EBITDA attributable to Parsons Corporation for the six months ended June 30, 2024 compared to the corresponding period last year was primarily due to the factors discussed above for Adjusted EBITDA attributable to Parsons Corporation for the three months ended June 30, 2025.

Current wording

The decrease in Federal Solutions Adjusted EBITDA attributable to Parsons Corporation for the nine months ended September 30, 2025 compared to the corresponding period last year was primarily related to the factors discussed above for Adjusted EBITDA attributable to Parsons Corporation for the three months ended September 30, 2025.

Previous wording

The increase in Critical Infrastructure revenue for the three months ended June 30, 2025 compared to the corresponding periods last year was primarily related to organic growth of 8% and $41.8 million from business acquisitions. Organic growth was primarily due to an increase in business volume from existing contracts and ramping up of recent awards.

Current wording

The increase in Critical Infrastructure revenue for the three months ended September 30, 2025 compared to the corresponding periods last year was primarily related to organic growth of 12.7% and $38.9 million from business acquisitions. Organic growth was primarily due to an increase in business volume from existing contracts and ramping up of recent awards.

Previous wording

The increase in Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation for the three months ended June 30, 2025 compared to the corresponding period last year was primarily due to the revenue impacts discussed above, recent business acquisitions, and improvement in equity in losses from unconsolidated joint ventures. These increases in Adjusted EBITDA, were partially offset by an increase in SG&A.

Current wording

The increase in Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation for the three months ended September 30, 2025 compared to the corresponding period last year was primarily related to the revenue impacts discussed above, recent business acquisitions, and improvement in equity in earnings (losses) from unconsolidated joint ventures. These increases in Adjusted EBITDA, were partially offset by an increase in SG&A.

Previous wording

Adjusted EBITDA for the three months ended June 30, 2025.

Current wording

The increase in Critical Infrastructure Adjusted EBITDA attributable to Parsons Corporation for the nine months ended September 30, 2025 compared to the corresponding period last year was primarily related to the factors discussed above for Adjusted EBITDA for the three months ended September 30, 2025.

Previous wording

Accounts receivable is the principal component of our working capital and includes billed and unbilled amounts. The total amount of our accounts receivable can vary significantly over time but is generally sensitive to revenue levels. We experience delays in collections from time to time from Middle East customers. Net days sales outstanding, which we refer to as Net DSO, is calculated by dividing (i) (accounts receivable plus contract assets) less (contract liabilities plus accounts payable) by (ii) average revenue per day (calculated by dividing trailing twelve months revenue by the number of days in that period). We focus on collecting outstanding receivables to reduce Net DSO and working capital. Net DSO was 60 days at June 30, 2025 unchanged from June 30, 2024. Our working capital (current assets less current liabilities) was $986.1 million at June 30, 2025 and $546.8 million at December 31, 2024.

Current wording

Accounts receivable is the principal component of our working capital and includes billed and unbilled amounts. The total amount of our accounts receivable can vary significantly over time but is generally sensitive to revenue levels. We experience delays in collections from time to time from Middle East customers. Net days sales outstanding, which we refer to as Net DSO, is calculated by dividing (i) (accounts receivable plus contract assets) less (contract liabilities plus accounts payable) by (ii) average revenue per day (calculated by dividing trailing twelve months revenue by the number of days in that period). We focus on collecting outstanding receivables to reduce Net DSO and working capital. Net DSO was 62 days at September 30, 2025 an 11 day increase from September 30, 2024. Impacting the change in DSO was lower volume from our confidential contract and delayed collections in the Middle East. Our working capital (current assets less current liabilities) was $1.1 billion at September 30, 2025 and $546.8 million at December 31, 2024.

Previous wording

Our cash and cash equivalents decreased by $42.2 million to $411.3 million at June 30, 2025 from $453.5 million at December 31, 2024.

Current wording

Our cash and cash equivalents decreased by $31.0 million to $422.6 million at September 30, 2025 from $453.5 million at December 31, 2024.

Previous wording

Net cash provided by operating activities increased $50.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The primary driver of the increase in cash flows provided by operating activities was a $61.1 million increase in cash inflows from our working capital accounts (primarily from accounts receivable, and accounts payable offset by accrued expenses and other current liabilities and contract assets) and an increase in other long-term liabilities of $6.6 million offset in part by a $17.5 million decrease in net income after adjusting for non-cash items.

Current wording

Net cash provided by operating activities decreased $86.0 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The primary driver of the decrease in cash flows provided by operating activities was a $103.8 million decrease in cash inflows from our working capital accounts (primarily from contract assets, prepaid expenses and other assets, accounts payable, and accrued expenses and other current liabilities offset by changes in accounts receivable and contract liabilities) offset by a change in other long-term liabilities of $18.3 million.

Previous wording

Net cash used in investing activities increased $75.6 million for the six months ended June 30, 2025, when compared to the six months ended June 30, 2024. This change was primarily driven by a $117.8 million increase in payments for acquisitions, net of cash acquired offset by a $34.5 million decrease in investments in unconsolidated joint ventures and a $11.9 million increase in return on investments in unconsolidated joint ventures.

Current wording

Net cash used in investing activities decreased $156.3 million for the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024. This change was primarily driven by a $80.6 million decrease in payments for acquisitions, net of cash acquired, a $53.1 million decrease in investments in unconsolidated joint ventures and a $28.3 million increase in return of investments in unconsolidated joint ventures.

Previous wording

Net cash used in financing activities increased $276.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The change in cash flows (used in) provided by financing activities is primarily driven by net cash inflows from our convertible bond transactions for the six months ended June 30, 2024 of $316.2 million. See “Note 10 – Debt and Credit Facilities,” for a further discussion of these transactions. Also impacting net cash (used in) provided by financing activities were $30.0 million of repurchase of common stock and a $29.8 million change in distributions to noncontrolling interest offset in part by net, proceeds from the term loan of $100 million.

Current wording

Net cash used in financing activities increased $390.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The change in cash flows (used in) provided by financing activities is primarily driven by net cash inflows from our convertible bond transactions for the nine months ended June 30, 2024 of $316.2 million. See “Note 10 – Debt and Credit Facilities,” for a further discussion of these transactions. Also impacting net cash (used in) provided by financing activities were $55.0 million of repurchase of common stock and a $33.8 million change in distributions to noncontrolling interest offset in part by net, proceeds from the term loan of $100 million.

Previous wording

We have in place several secondary bank credit lines for issuing letters of credit, principally for foreign contracts, to support performance and completion guarantees. Letters of credit commitments outstanding under these bank lines aggregated to $353.8 million as of June 30, 2025. Letters of credit outstanding under the Credit Agreement total $41.8 million as of June 30, 2025.

Current wording

We have in place several secondary bank credit lines for issuing letters of credit, principally for foreign contracts, to support performance and completion guarantees. Letters of credit commitments outstanding under these bank lines aggregated to $354.3 million as of September 30, 2025. Letters of credit outstanding under the Credit Agreement total $41.8 million as of September 30, 2025.