Parsons Corp Q3 revenue misses estimates

Parsons

05/11/2025 11:40

Overview

Parsons Q3 2025 revenue declined 10% yr/yr, missing analyst expectations

Adjusted EPS for Q3 2025 beats analyst expectations

Adjusted EBITDA for Q3 2025 beats analyst expectations

Company's backlog increased to $8.8 bln, highest funded level since IPO

Outlook

Parsons modifies fiscal year 2025 revenue outlook to $6.4 bln - $6.5 bln

Company reiterates adjusted EBITDA guidance at $600 mln - $630 mln

Parsons maintains cash flow guidance at $380 mln - $460 mln

Result Drivers

CONTRACT IMPACT - Revenue decline attributed to decreased revenue from a confidential contract, but excluding this, revenue grew 14%

CRITICAL INFRASTRUCTURE GROWTH - Critical Infrastructure segment saw 18% revenue increase driven by organic growth and acquisitions

ADJUSTED EBITDA MARGIN - Improved program performance and acquisitions led to a 60 basis point increase in adjusted EBITDA margin

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.60 bln
$1.66 bln (10 Analysts)
Q3 Adjusted EPS
Beat
$0.86
$0.75 (10 Analysts)
Q3 Net Income
$64 mln
Q3 Adjusted EBITDA
Beat
$158 mln
$153.24 mln (8 Analysts)
Q3 Operating income
$108 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $90.26, about 11.8% above its November 4 closing price of $79.56

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX9sxWbc

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)