Parsons Q2 revenue misses estimates on portfolio restructuring charges

Parsons

29/07/2026 11:42

Overview
US infrastructure and defense tech firm's Q2 revenue fell 1% and missed analyst expectations
Adjusted EPS for Q2 was negative and missed analyst expectations, impacted by portfolio and JV charges
Adjusted EBITDA for Q2 dropped 72% and missed analyst expectations

Outlook
Parsons lowers FY 2026 revenue guidance to $6.2 bln-$6.5 bln from $6.5 bln-$6.8 bln
Company cuts FY 2026 adjusted EBITDA guidance to $500 mln-$560 mln from $615 mln-$675 mln
Parsons expects FY 2026 operating cash flow of $430 mln-$490 mln, down from $470 mln-$530 mln prior

Result Drivers
PORTFOLIO AND JV CHARGES - Q2 results were heavily impacted by $118 mln in charges related to portfolio-shaping actions and a joint venture program, which reduced operating income, net income, and adjusted EBITDA
INFRASTRUCTURE MARGINS AND ACQUISITIONS - Excluding charges, adjusted EBITDA and margin improved due to higher infrastructure margins and contributions from accretive acquisitions
MIDDLE EAST GROWTH - Critical Infrastructure segment revenue rose, led by 10% organic growth in the Middle East, offsetting some declines elsewhere

Company press release: ID:nGNX1bKlB

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$1.60 bln
$1.62 bln (12 Analysts)
Q2 Adjusted EPS
Miss
-$0.06
$0.76 (13 Analysts)
Q2 Adjusted EBITDA
Miss
$42 mln
$154.99 mln (9 Analysts)
Q2 Operating income
 
$1.29 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "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 $71.00, about 14.5% above its July 28 closing price of $62.03
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
July 28 - Orion Group Q2 adjusted EPS and EBITDA miss estimates; lowers FY outlook
July 28 - Textron Q2 revenue meets estimates on military programs growth
July 27 - Germany's Hochtief H1 operational net profit rises on infrastructure demand; raises guidance

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