Core Viewpoint - Parsons Corporation (PSN) is currently rated as a Zacks Rank 5 (Strong Sell) due to a recent earnings miss against the Zacks Consensus Estimate [1] Company Overview - Parsons Corporation provides technology-driven solutions focused on defense, intelligence, and critical infrastructure markets, offering services in cybersecurity, military training, and physical infrastructure [2] Earnings History - The company has beaten the Zacks Consensus Estimate in three of the last four quarters, but this alone does not justify a strong buy or sell rating [4] - The most recent earnings report showed an EPS of $0.75, missing the consensus estimate of $0.80, resulting in a 6.25% negative earnings surprise [5] Earnings Estimate Revisions - Recent revisions indicate a decline in annual earnings estimates, with the current fiscal year consensus dropping from $3.51 to $3.33 and the next fiscal year from $3.95 to $3.70 over the last 60 days [6] - The negative movement in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6] Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 [7]

Group 1 - The session features a discussion with representatives from Parsons, including Carey, Matt, and David [2] - Adam Seiden, the U.S. machinery and construction analyst from Barclays Bank, is moderating the session [1] - The format of the session is a fireside chat, followed by audience questions [2]

Parsons (NYSE:PSN) FY Conference February 18, 2026 03:35 PM ET Company ParticipantsCarey Smith - CEOMatt Ofilos - CFOConference Call ParticipantsAdam Seiden - Senior Equity Research AnalystAdam SeidenSo, thanks so much, guys, for joining us for the last session of the day, I believe. So joining us for this session is the Parsons folks. For those guys in the room, my name is Adam Seiden. I'm the U.S. Machinery and Construction Analyst. From Parsons, we have Carey, as well as Matt, joining us on stage, and of ...

Core Insights - Sealing Technologies (SealingTech), a subsidiary of Parsons Corporation, has received an Intent to Award notification from the United States Cyber Command for a sole-source contract to produce the Joint Cyber Hunt Kit solution, with a potential value of up to $500 million over three years [1][2]. Group 1: Company Developments - The contract marks a significant step in SealingTech's collaboration with the Department of War's Defense Innovation Unit and USCYBERCOM, focusing on advanced defensive cyber technologies [2]. - Parsons acquired SealingTech in 2023 to enhance its cyber operations capabilities for the Defense and Intelligence sectors, aiming to solidify its leadership in national security [2][3]. - SealingTech has a decade-long history of supporting the U.S. Department of War, having deployed over 500 Cyber Fly-Away Kits for critical national security missions [3]. Group 2: Strategic Vision - Parsons emphasizes its commitment to providing mission-ready solutions that ensure the U.S. military's operational superiority [3]. - The collaboration with DIU and USCYBERCOM aims to advance next-generation defensive cyber capabilities, enhancing the tactical advantage of warfighters [4]. - Parsons integrates various cyber capabilities, including offensive and defensive operations, to deliver transformative solutions that support multi-domain operations [4].

CHANTILLY, Va., Feb. 13, 2026 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that Carey Smith, chair, president, and chief executive officer, and Matt Ofilos, chief financial officer, will participate in a fireside chat question and answer session at the Barclays 43rd Annual Industrial Select Conference on Wednesday, February 18, 2026, at approximately 3:35 p.m. Eastern Time. The presentation will be available live via webcast on the investor relations section of Parsons’ website (https ...

Core Insights - Parsons reported a successful fiscal year 2025 with total revenue growth of 12% and organic revenue growth of 8% excluding a confidential contract, despite challenges from a government shutdown [1][4][7] - The company achieved a record adjusted EBITDA margin of 9.6% and 100% free cash flow conversion, surpassing three-year investor day targets set in March 2023 [2][3][7] Financial Performance - In Q4, revenue was below expectations but still increased by 11% year-over-year, with operating cash flow rising to $168 million, up 32% year-over-year [1] - For the full year, Parsons exceeded targets with a 52% increase in total revenue (over $2 billion) and a 73% increase in adjusted EBITDA [2] - Adjusted EBITDA for Q4 rose to $153 million, up 5%, with margin expanding to 9.6% [7] Segment Performance - Critical Infrastructure segment saw a 12% revenue increase in Q4, driven by 9% organic growth and acquisitions, with adjusted EBITDA increasing 87% year-over-year [8][10] - Federal Solutions segment faced headwinds from a confidential contract, with revenue declining 22% year-over-year including the contract, but grew 9% excluding it [10] Order and Backlog - Q4 contract awards totaled $1.5 billion, with a total backlog of $8.7 billion and a record funded backlog of $6.4 billion [5][12] - The company reported a $55 billion pipeline and a 61% win rate in 2025, with $11 billion of contract wins not yet booked [12] Capital Deployment and Acquisitions - Parsons completed three acquisitions in 2025 and repurchased approximately 1.8 million shares for $125 million [13][14] - The acquisition of Altamira Technologies Corporation for up to $375 million was highlighted, enhancing capabilities in the intelligence community [14] 2026 Outlook - For 2026, revenue is projected to be between $6.5 billion and $6.8 billion, with a forecasted $345 million revenue headwind from the confidential contract [16] - Adjusted EBITDA is expected to be between $615 million and $675 million, with a midpoint margin of about 9.7% [17]

Parsons (NYSE: PSN) stock got hit with a big pullback on Wednesday following the release of the company's fourth-quarter report. The government services and defense-technologies company's share price closed out the daily session down 14.4%. Parsons published its Q4 report before the market opened this morning, and investors weren't happy with the print. In addition to sales and earnings that missed Wall Street's targets, the company's forward guidance didn't do enough to assuage investors' concerns. Will AI ...

Financial Data and Key Metrics Changes - The company achieved a total revenue growth of 12% and an organic revenue growth of 8% for fiscal year 2025, excluding a confidential contract [4][24] - Adjusted EBITDA expanded by 60 basis points to a record margin of 9.6%, building on a previous expansion of 50 basis points in 2024 [4][25] - Free cash flow conversion reached 100%, exceeding the high end of the fiscal year 2025 cash flow guidance range [4][24] Business Line Data and Key Metrics Changes - Critical Infrastructure segment reported a 10% organic growth and a 15% increase in total revenue for the full year, with adjusted EBITDA increasing by 73% [4][27] - Federal Solutions segment experienced a 9% organic growth, but total revenue decreased by 20% due to the impact of a confidential contract [29][24] - The adjusted EBITDA margin for Critical Infrastructure reached 10.4%, while Federal Solutions saw a decrease to 8.7% [27][29] Market Data and Key Metrics Changes - The company reported strong demand in both North America and Middle East markets, with double-digit revenue growth in both regions for four consecutive years [17][18] - The backlog at the end of Q4 totaled $8.7 billion, with a funded backlog of $6.4 billion, representing a record high since the IPO [32] Company Strategy and Development Direction - The company aims to achieve mid-single digit or better annual organic revenue growth supplemented by accretive acquisitions, targeting double-digit adjusted EBITDA margins by 2028 [8][33] - The focus on integrated solutions and strategic contracts is expected to drive long-term shareholder value [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a robust pipeline of opportunities and alignment with government spending priorities [36][20] - The company anticipates a favorable procurement environment and expects to achieve a book-to-bill ratio of over 1.0 in Federal Solutions starting in the first half of 2026 [43][63] Other Important Information - The company completed three acquisitions during the year and increased share repurchases while maintaining a strong balance sheet [4][5] - The acquisition of Applied Sciences Consulting and Altamira Technologies Corporation is expected to enhance the company's capabilities and market presence [15][16] Q&A Session Summary Question: Will CI margins continue to exceed expectations? - Management confirmed that legacy adjustments are behind them and expects continued margin expansion in Critical Infrastructure [40] Question: How is the order activity in Federal Solutions post-government shutdown? - Management noted a positive procurement environment and anticipates a book-to-bill ratio of over 1.0 for Federal Solutions in the first half of 2026 [42][43] Question: What is the outlook for the DroneArmor system's addressable market? - Management expressed excitement about the DroneArmor solution and its potential applications across various government sectors [49] Question: What is the demand for mega projects in the Middle East? - Management highlighted ongoing growth in the Middle East, particularly in urban development and defense sectors, with a focus on key projects tied to upcoming global events [51][53] Question: What are the largest program movers for 2026? - Key contracts include the Joint Cyber Hunt Kit and several significant projects in the Middle East, which are expected to ramp up in 2026 [78][79]

Financial Data and Key Metrics Changes - In FY 2025, the company achieved a total revenue growth of 12% and an organic revenue growth of 8%, excluding a confidential contract [4][22] - Adjusted EBITDA expanded by 60 basis points to a record margin of 9.6%, building on a previous expansion of 50 basis points in 2024 [4][24] - Free cash flow conversion reached 100%, exceeding the high end of FY 2025 cash flow guidance [4][22] Business Line Data and Key Metrics Changes - Critical Infrastructure segment reported 10% organic growth, while Federal Solutions segment achieved 7% organic growth, both excluding the confidential contract [4] - In Q4, Critical Infrastructure revenue increased by 12% year-over-year, driven by organic growth of 9% and contributions from recent acquisitions [25] - Federal Solutions segment saw a 9% increase in revenue for Q4, with a 6% organic growth, but total revenue including the confidential contract decreased by 22% [27] Market Data and Key Metrics Changes - The company reported strong demand in both North America and Middle East markets, with double-digit revenue growth in both regions [16][19] - The backlog at the end of Q4 totaled $8.7 billion, with a funded backlog of $6.4 billion, representing the highest level since the IPO [31] Company Strategy and Development Direction - The company aims to achieve mid-single digit or better annual organic revenue growth supplemented by accretive acquisitions, targeting double-digit margins by 2028 [8][32] - The focus remains on integrated solutions to move up the value chain and win larger, more strategic programs [7][19] - The company is well-positioned to capitalize on unprecedented global infrastructure spending and a favorable federal budget environment [18][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a robust pipeline of opportunities and strong total and funded backlog [36][37] - The company anticipates a positive procurement environment in Federal Solutions, with expectations of achieving a book-to-bill ratio over 1.0 in H1 2026 [44][65] Other Important Information - The company completed three acquisitions in FY 2025 and has a strong balance sheet with a net debt leverage ratio of 1.3 times [29][30] - The acquisition of Applied Sciences Consulting and Altamira Technologies Corporation is expected to enhance the company's capabilities and market presence [14][15] Q&A Session Summary Question: Expectations for Critical Infrastructure margins - Management confirmed that legacy adjustments are behind them and expects continued margin expansion in Critical Infrastructure, with a focus on North America [40] Question: Order activity in Federal Solutions post-government shutdown - Management noted a positive trend in order activity and anticipates achieving a book-to-bill ratio over 1.0 in H1 2026 [44] Question: Addressable market for DroneArmor system - Management highlighted the unique capabilities of the DroneArmor solution and its potential applications across various federal departments [50] Question: Demand for mega projects in the Middle East - Management reported ongoing strong demand for major projects in the Middle East, particularly in Saudi Arabia, with a focus on key upcoming global events [54] Question: Federal Solutions revenue guidance adjustments - Management acknowledged previous revenue guidance revisions due to procurement delays and expressed confidence in a positive procurement environment moving forward [64] Question: Margin outlook and potential for upside - Management indicated that while there are headwinds from a confidential program, there are opportunities for margin expansion through product growth and accretive M&A [72]

Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a total revenue growth of 12% and an organic revenue growth of 8%, excluding a confidential contract [4][24] - Adjusted EBITDA increased by 1% to a record $609 million, with an adjusted EBITDA margin expansion of 60 basis points to 9.6% [25][33] - Free cash flow conversion reached 100%, exceeding the high end of the fiscal year 2025 cash flow guidance range [4][30] Business Line Data and Key Metrics Changes - Critical Infrastructure segment saw a revenue increase of 12% in Q4 2025, driven by 9% organic growth and contributions from recent acquisitions [26] - Federal Solutions segment reported a 9% revenue increase in Q4, excluding the confidential contract, but total revenue decreased by 22% including it [27][29] - For the full year, Critical Infrastructure revenue increased by 15%, while Federal Solutions revenue increased by 9% excluding the confidential contract [26][29] Market Data and Key Metrics Changes - The company reported strong demand in both North America and the Middle East, with double-digit revenue growth in both regions for four consecutive years [17][18] - The funded backlog reached a record $6.4 billion, representing 73% of total backlog, which is also a company record [32] Company Strategy and Development Direction - The company aims for mid-single digit or better annual organic revenue growth supplemented by accretive acquisitions, targeting double-digit adjusted EBITDA margins by 2028 [8][36] - The focus on integrated solutions and strategic contracts is expected to drive long-term shareholder value [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a robust pipeline of opportunities and alignment with government spending priorities [22][37] - The company anticipates challenges from domestic budget uncertainty and a competitive labor market but sees strong tailwinds from global infrastructure spending [34] Other Important Information - The company completed three acquisitions in 2025 and plans to continue strategic acquisitions to enhance its portfolio [5][15] - The company was recognized as the number one program management firm globally and received accolades for its ethical practices and leadership [5] Q&A Session Summary Question: Expectations for Critical Infrastructure margins - Management confirmed that legacy adjustments are behind them and expects continued margin expansion in Critical Infrastructure, with a focus on North America [38] Question: Order activity in Federal Solutions post-government shutdown - Management noted a positive procurement environment and anticipates a book-to-bill ratio over 1.0 for Federal Solutions in the first half of 2026 [39] Question: Addressable market for DroneArmor system - Management highlighted the broad market opportunities for DroneArmor, including potential contracts with the Department of Homeland Security and FAA [40] Question: Demand for mega projects in the Middle East - Management reported ongoing strong demand for major projects in the Middle East, particularly in Saudi Arabia, with a focus on urban development and defense sectors [42][43] Question: Changes in Federal Solutions revenue guidance - Management acknowledged previous downward revisions but expressed confidence in a strong procurement environment moving forward [46] Question: Outlook for FAA customer revenue - Management expects growth from the FAA technical support services contract, which was recently extended [60]