PARSONS & ROBINSON, PA

quirements do not apply to amounts credited to the participant’s account attributable to allocated cash dividends on Parsons common stock, which are not subject to forfeiture. The vesting schedule in the Parsons ESOP was amended effective January 1, 2020. For participant accounts which were not 100% vested, the vested account balance increased according to the new schedule if the participant worked one (1) hour of service on or after January 1, 2020. The vested percentage increases one level on the vesting schedule for each Plan Year in which a participant worked at least 1,000 hours. If a participant did not work at least one (1) hour of service on or after January 1, 2020, their vested account balance will remain unchanged and their account is subject to the vesting schedule in effect at

tions to participants. Certain administrative functions are performed by the officers and employees of Parsons. No such officer or employee receives compensation from the Plan. No administrative expenses were paid by the Plan for the year ended December 31, 2022. 5. Fair Value Measurements The Plan accounts for investments in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurement . ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure f

IT PLANS. We offer a defined contribution plan, which qualifies under section 401(k) of the Internal Revenue Code and covers all eligible U.S. employees. We can also elect to make matching contributions to the plan. Annual discretionary contributions may also be made to the plan. Defined contribution plan expense, including matching contributions, is as follows (in thousands): 2025 $ 45,787 2024 47,017 2023 45,854 We contributed a defined contribution match of six percent in 2025, 2024, and 2023. LEASE COMMITMENTS. We maintain operating leases for office space, warehouses, office equipment, trailers, and a small number of intermodal containers. See Note 10, Leases , for further information. 60 Table of Contents LITIGATION. We are not subject to any pending or threatened litigation other th

he Plan as of December 31, 2025. STOCK OPTIONS. We have awarded stock options to certain key employees that vested primarily based on their continued employment. These awards were fully vested in 2024 and there is no remaining unrecognized compensation expense related to stock options as of December 31, 2025. The outstanding options have expiration dates between 2026 and 2030. Although participants can exercise options via a stock swap exercise, we do not issue reloads (restoration options) on the grants. The following schedule summarizes stock option activity in the plans. Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Average Remaining Life (years) Outstanding as of December 31, 2024 3,491,998 $ 79.83 $ 82,024 3.6 Exercised ( 1,803,369 ) 79.83 Forfeiture

.2) % Purchased products sourced for resale 1,268,190 1,240,007 2.3 % 1,105,811 12.1 % Personnel expenses 1,370,158 1,456,249 (5.9) % 1,465,735 (0.6) % Other selling, general, and administrative expenses 564,291 639,624 (11.8) % 624,266 2.5 % Total costs and expenses 15,437,802 17,055,815 (9.5) % 17,081,836 (0.2) % Income from operations 794,961 669,141 18.8 % 514,607 30.0 % Interest and other expense (72,504) (89,937) (19.4) % (105,421) (14.7) % Income before provision for income taxes 722,457 579,204 24.7 % 409,186 41.6 % Provision for income taxes 135,376 113,514 19.3 % 84,057 35.0 % Net income $ 587,081 $ 465,690 26.1 % $ 325,129 43.2 % Diluted net income per share $ 4.83 $ 3.86 25.1 % $ 2.72 41.9 % Average employee headcount 12,733 14,386 (11.5) % 16,041 (10.3) % Adjusted gross profit