Parsons Beats on Q3 Revenue, EPS and EBITDA; Narrows FY26 Guidance
PSN sits 35% above its 52-week low of $36.26.
Summary
Parsons beat on all three key lines: Q3 revenue of $1.65 bln versus $1.63 bln consensus, adjusted EPS of $0.89 versus $0.79, and adjusted EBITDA of $168 mln versus $161.93 mln. Net income fell by $10 mln on higher transaction-related expenses, and the company also announced a CFO transition in which its CFO resigned and a former CFO was named interim. Demand looks solid — contract awards rose 14% year-over-year with Federal Solutions up 53%, and total and funded backlog hit records, up 6% and 7% respectively. Management narrowed FY26 revenue guidance to $6.25 bln-$6.45 bln and set adjusted EBITDA at $510 mln-$550 mln, while keeping operating cash flow at $430 mln-$490 mln. The 10-Q filed this morning shows $82.1 mln of loss-contract catch-up charges and two Federal programs held for sale, so the headline beat carries some balance-sheet noise worth reading through.
At the time of this announcement, PSN was trading at $48.95 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $36.26 to $88.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.