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/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.60 $1.60

Revenue bln bln (10

Analysts

)

Q2 Beat $0.78 $0.74

Adjusted (10

EPS Analysts

)

Q2 Net $55 mln

Income

Q2 Beat $149 mln $148.30

Adjusted mln (8

EBITDA Analysts

)

Q2 $96 mln

Operatin

g income

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 ( PSN ) 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:

(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.)