Overview

• Disruptive tech provider's Q4 revenue fell 8%, missing analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company achieved record adjusted EBITDA despite lower revenue volume

Outlook

• Parsons sees 2026 revenue between $6.5 bln and $6.8 bln

• Parsons expects 2026 adjusted EBITDA of $615 mln to $675 mln

• Parsons projects 2026 cash flow from operations at $470 mln to $530 mln

Result Drivers

• REVENUE DECLINE - Q4 revenue fell 8% due to lower volume on a confidential contract, but excluding this, revenue grew in key markets

• COST MANAGEMENT - Improved adjusted EBITDA margin driven by effective cost management and accretive contracts

• CONTRACT WINS - Parsons won four single-award contracts worth more than $100 million each in Q4

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "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 is $88.00, about 25.3% above its February 10 closing price of $70.21

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX9h9H3f

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