Parsons Corporation Reports Increased Q4 Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy PSN?
Source: NASDAQ.COM
- Profit Growth: Parsons Corporation reported a fourth-quarter net profit of $55.58 million, translating to earnings per share of $0.51, which is an increase from last year's $54.18 million and $0.49 per share, indicating sustained improvement in profitability.
- Adjusted Earnings: Excluding special items, the adjusted earnings stood at $81.53 million, or $0.75 per share, demonstrating strong performance in core operations despite a decline in overall revenue.
- Revenue Decline: The company's revenue for the fourth quarter fell to $1.603 billion, a 7.6% decrease from $1.734 billion last year, reflecting challenges in the market environment and increased competition.
- Market Outlook: Despite the revenue decline, the improvement in profitability may provide financial support for future investments and expansions, enhancing the company's competitive position in the industry.
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Analyst Views on PSN
Wall Street analysts forecast PSN stock price to rise
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 62.670
Low
70.00
Averages
84.00
High
107.00
Current: 62.670
Low
70.00
Averages
84.00
High
107.00
About PSN
Parsons Corporation is a disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Its Federal Solutions segment provides advanced technical solutions to the United States government. This segment provides advanced technologies, supporting national security missions in cyber operations, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. Its Critical Infrastructure segment offers integrated engineering and management services for complex physical and digital infrastructure around the globe. This segment is a technology innovator focused on next-generation digital systems and complex structures. It also develops advanced, warfighter-focused solutions for military and security applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Outstanding Cash Flow Performance: The company achieved a 100% free cash flow conversion for fiscal year 2025, exceeding the high end of its cash flow guidance range, reflecting a healthy financial position that supports future investments and acquisitions.
- Strategic Contract Wins: In Q4, Parsons secured several key contracts, including a $392 million ten-year federal customer contract, showcasing its strong competitiveness in critical infrastructure and defense sectors, which is expected to drive future revenue growth.
- Acquisitions and Expansion: The company acquired Applied Sciences Consulting and Altamira Technologies, enhancing its capabilities in national security and intelligence, indicating Parsons' strategic decisions in technology and market expansion aimed at boosting long-term growth potential.
See More
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- Cash Flow and Order Status: Operating cash flow surged 32% to $168 million, yet net bookings decreased by 10% to $1.5 billion, resulting in a book-to-bill ratio of 0.9 times, signaling signs of weakening market demand.
- Future Outlook: Parsons forecasts revenue between $6.5 billion and $6.8 billion for 2026, with adjusted EBITDA projected at $615 million to $675 million, indicating optimism about future contract opportunities despite uncertainties.
See More
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