Parsons beats Q2 estimates, raises FY outlook

Parsons

06/08/2025 11:39

Overview

Parsons Q2 2025 revenue declines 5%, but beats analysts' expectations

Adjusted EPS beats estimates despite a 7% year-over-year decrease

Adjusted EBITDA decreases 1% but exceeds expectations; margin rises by 40 bps

Company raises FY 2025 guidance for revenue, adjusted EBITDA and cash flow from operations

Outlook

Parsons raises FY 2025 revenue guidance to $6.48 bln-$6.68 bln

Company increases FY 2025 adjusted EBITDA guidance to $595 mln-$635 mln

Parsons boosts FY 2025 cash flow from operations guidance to $400 mln-$440 mln

Company cites global infrastructure spending as a growth driver

Result Drivers

CONFIDENTIAL CONTRACT IMPACT - Revenue decline attributed to decreased revenue from a confidential contract

TRANSPORTATION AND CYBER GROWTH - Excluding the confidential contract, revenue growth driven by transportation and cyber markets

ACQUISITIONS AND PROGRAM PERFORMANCE - Adjusted EBITDA margin improved due to accretive acquisitions and enhanced program performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.60 bln
$1.60 bln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.78
$0.74 (10 Analysts)
Q2 Net Income
$55 mln
Q2 Adjusted EBITDA
Beat
$149 mln
$148.30 mln (8 Analysts)
Q2 Operating income
$96 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Parsons Corp is $82.00, about 6.1% above its August 5 closing price of $77.00

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX2BGv2j

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)