Parsons Corporation Reports Q4 and FY 2025 Financial Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy PSN?
Source: Newsfilter
- Revenue Performance: Q4 2025 revenue reached $1.6 billion, an 8% year-over-year decline, yet total revenue excluding confidential contracts grew by 11%, indicating strong performance in sectors like Transportation and Critical Infrastructure Protection despite a challenging market environment.
- Net Income Growth: The fiscal year 2025 net income hit $241 million, a 3% increase year-over-year, marking a quarterly record that reflects the company's success in effective cost management and strategic investments, thereby strengthening its foundation for future growth.
- Record Adjusted EBITDA: Q4 adjusted EBITDA stood at $153 million, a 5% increase, with an EBITDA margin rising to 9.6%, primarily driven by improved project execution and growth from accretive contracts, showcasing enhanced profitability.
- Contract Wins: The company secured 15 contracts each worth over $100 million in FY 2025, matching last year's record, demonstrating Parsons' competitiveness and sustained market share growth in key sectors.
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Analyst Views on PSN
Wall Street analysts forecast PSN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSN is 84.00 USD with a low forecast of 70.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 69.480
Low
70.00
Averages
84.00
High
107.00
Current: 69.480
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.
Parsons Corporation Reports Increased Q4 Profit
- 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.
See More
Parsons Corporation to Announce Q4 Earnings on February 11
- Earnings Announcement: Parsons Corporation is set to release its Q4 earnings on February 11 before market open, with a consensus EPS estimate of $0.79, reflecting a 1.3% year-over-year increase, indicating stable profitability.
- Revenue Decline Expected: The anticipated revenue for Q4 is $1.67 billion, representing a 3.5% year-over-year decline, which highlights revenue pressures the company faces amidst market challenges, potentially affecting investor confidence.
- Strong Performance Record: Over the past two years, Parsons has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, demonstrating relative stability in financial performance that may attract investor interest.
- Revision Trends: In the last three months, there have been no upward revisions for EPS estimates and four downward revisions, while revenue estimates also saw no upward revisions and five downward adjustments, suggesting a cautious market outlook on the company's future performance.
See More
Parsons Q4 Earnings Miss Expectations
- Earnings Performance: Parsons reported a Q4 Non-GAAP EPS of $0.75, missing expectations by $0.04, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company’s Q4 revenue of $1.6 billion represents a 7.5% year-over-year decline, missing estimates by $70 million, reflecting weak market demand that could pose challenges for future performance.
- Net Income Growth: Despite the revenue drop, Parsons achieved a net income of $56 million, a 3% year-over-year increase, setting a fourth-quarter record and demonstrating effective cost control measures.
- Strong Cash Flow: Operating cash flow increased by 32% to $168 million, indicating strong cash management and enhancing financial flexibility to navigate future uncertainties.
See More
Parsons Corporation Reports Q4 and FY 2025 Financial Highlights
- Revenue Performance: Q4 2025 revenue reached $1.6 billion, an 8% year-over-year decline, yet total revenue excluding confidential contracts grew by 11%, indicating strong performance in sectors like Transportation and Critical Infrastructure Protection despite a challenging market environment.
- Net Income Growth: The fiscal year 2025 net income hit $241 million, a 3% increase year-over-year, marking a quarterly record that reflects the company's success in effective cost management and strategic investments, thereby strengthening its foundation for future growth.
- Record Adjusted EBITDA: Q4 adjusted EBITDA stood at $153 million, a 5% increase, with an EBITDA margin rising to 9.6%, primarily driven by improved project execution and growth from accretive contracts, showcasing enhanced profitability.
- Contract Wins: The company secured 15 contracts each worth over $100 million in FY 2025, matching last year's record, demonstrating Parsons' competitiveness and sustained market share growth in key sectors.
See More
Parsons Secures Five-Year U.S. Army Contract
- Contract Value: Parsons has secured a single-award task order contract over five years to support the U.S. Army Combat Capabilities Development Command, with the contract value undisclosed but expected to positively impact the company's revenue.
- Scope of Services: The contract includes a wide array of services such as research, development, testing and evaluation, infrastructure operations, and comprehensive project management, showcasing the company's capabilities and demand in the defense sector.
- Strategic Implications: By winning this contract, Parsons further solidifies its market position in defense and high-performance computing modernization, which is expected to enhance its competitiveness in future government projects.
- Industry Context: Given the ongoing growth in defense budgets, securing such contracts not only improves the company's business outlook but may also attract more investor interest in its long-term growth potential.
See More
Parsons Corporation Secures $125 Million Military Contract
- Significant Contract Value: Parsons Corporation has been awarded a $125 million contract over five years to support the U.S. Army's High Performance Computing Modernization Program, showcasing the company's strong capabilities and market position in military R&D.
- Long-Term Partnership: This contract continues a partnership with the U.S. Army Research Laboratory that has lasted over 20 years, reflecting Parsons' ongoing commitment to innovation and leadership in defense technology.
- Broad Range of Technical Services: Under the contract, Parsons will provide a wide array of services including research, development, testing and evaluation, and infrastructure operations, aimed at enhancing capabilities in key areas such as information processing, network communications, and computational sciences.
- Far-Reaching Strategic Implications: The initiative will advance research in AI, machine learning, and cybersecurity, further enhancing the operational capabilities of the U.S. Army and ensuring that modern national security needs are met.
See More
Parsons Corporation Reports Increased Q4 Profit
- 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.
See More
Parsons Corporation to Announce Q4 Earnings on February 11
- Earnings Announcement: Parsons Corporation is set to release its Q4 earnings on February 11 before market open, with a consensus EPS estimate of $0.79, reflecting a 1.3% year-over-year increase, indicating stable profitability.
- Revenue Decline Expected: The anticipated revenue for Q4 is $1.67 billion, representing a 3.5% year-over-year decline, which highlights revenue pressures the company faces amidst market challenges, potentially affecting investor confidence.
- Strong Performance Record: Over the past two years, Parsons has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, demonstrating relative stability in financial performance that may attract investor interest.
- Revision Trends: In the last three months, there have been no upward revisions for EPS estimates and four downward revisions, while revenue estimates also saw no upward revisions and five downward adjustments, suggesting a cautious market outlook on the company's future performance.
See More
Parsons Q4 Earnings Miss Expectations
- Earnings Performance: Parsons reported a Q4 Non-GAAP EPS of $0.75, missing expectations by $0.04, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company’s Q4 revenue of $1.6 billion represents a 7.5% year-over-year decline, missing estimates by $70 million, reflecting weak market demand that could pose challenges for future performance.
- Net Income Growth: Despite the revenue drop, Parsons achieved a net income of $56 million, a 3% year-over-year increase, setting a fourth-quarter record and demonstrating effective cost control measures.
- Strong Cash Flow: Operating cash flow increased by 32% to $168 million, indicating strong cash management and enhancing financial flexibility to navigate future uncertainties.
See More
Parsons Corporation Reports Q4 and FY 2025 Financial Highlights
- Revenue Performance: Q4 2025 revenue reached $1.6 billion, an 8% year-over-year decline, yet total revenue excluding confidential contracts grew by 11%, indicating strong performance in sectors like Transportation and Critical Infrastructure Protection despite a challenging market environment.
- Net Income Growth: The fiscal year 2025 net income hit $241 million, a 3% increase year-over-year, marking a quarterly record that reflects the company's success in effective cost management and strategic investments, thereby strengthening its foundation for future growth.
- Record Adjusted EBITDA: Q4 adjusted EBITDA stood at $153 million, a 5% increase, with an EBITDA margin rising to 9.6%, primarily driven by improved project execution and growth from accretive contracts, showcasing enhanced profitability.
- Contract Wins: The company secured 15 contracts each worth over $100 million in FY 2025, matching last year's record, demonstrating Parsons' competitiveness and sustained market share growth in key sectors.
See More
Parsons Secures Five-Year U.S. Army Contract
- Contract Value: Parsons has secured a single-award task order contract over five years to support the U.S. Army Combat Capabilities Development Command, with the contract value undisclosed but expected to positively impact the company's revenue.
- Scope of Services: The contract includes a wide array of services such as research, development, testing and evaluation, infrastructure operations, and comprehensive project management, showcasing the company's capabilities and demand in the defense sector.
- Strategic Implications: By winning this contract, Parsons further solidifies its market position in defense and high-performance computing modernization, which is expected to enhance its competitiveness in future government projects.
- Industry Context: Given the ongoing growth in defense budgets, securing such contracts not only improves the company's business outlook but may also attract more investor interest in its long-term growth potential.
See More
Parsons Corporation Secures $125 Million Military Contract
- Significant Contract Value: Parsons Corporation has been awarded a $125 million contract over five years to support the U.S. Army's High Performance Computing Modernization Program, showcasing the company's strong capabilities and market position in military R&D.
- Long-Term Partnership: This contract continues a partnership with the U.S. Army Research Laboratory that has lasted over 20 years, reflecting Parsons' ongoing commitment to innovation and leadership in defense technology.
- Broad Range of Technical Services: Under the contract, Parsons will provide a wide array of services including research, development, testing and evaluation, and infrastructure operations, aimed at enhancing capabilities in key areas such as information processing, network communications, and computational sciences.
- Far-Reaching Strategic Implications: The initiative will advance research in AI, machine learning, and cybersecurity, further enhancing the operational capabilities of the U.S. Army and ensuring that modern national security needs are met.
See More
