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/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.60 $1.66

Revenue bln bln (10

Analysts

)

Q3 Beat $0.86 $0.75

Adjusted (10

EPS Analysts

)

Q3 Net $64 mln

Income

Q3 Beat $158 mln $153.24

Adjusted mln (8

EBITDA Analysts

)

Q3 $108 mln

Operatin

g income

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 ( PSN ) 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:

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(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.)