Financial Data and Key Metrics Changes - Third quarter revenue was $1.87 billion, a decline of 5.6% year-over-year, impacted by a government shutdown which accounted for approximately one percentage point of the decline [6][7] - Adjusted EBITDA was $185 million, resulting in a margin of 9.9%, driven by strong program execution [7][8] - Adjusted diluted EPS was $2.58, reflecting strong margin performance and a favorable tax rate [7] - Free cash flow for the third quarter was $135 million, despite being affected by the government shutdown [8][19] Business Line Data and Key Metrics Changes - Net bookings for the third quarter were $2.2 billion, resulting in a book-to-bill ratio of 1.2x [15] - The civil business segment experienced a year-over-year decline of 7%, but margins improved significantly over the first nine months of the year [32][33] Market Data and Key Metrics Changes - The government shutdown slowed proposal submissions, but normalization is expected in the near term [15][22] - The company anticipates submitting bids totaling over $30 billion in FY 2027 [15][16] Company Strategy and Development Direction - The acquisition of SilverEdge is expected to enhance the company's capabilities and contribute positively to margins and EPS [5][31] - The company is focusing on improving execution, resource allocation, and prioritizing bid quality to drive growth [9][10] - There is a commitment to reinvest over $100 million in annual spending into higher ROI areas to improve profitability [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve execution and deliver sustained profitable growth despite market uncertainties [20] - The company is prepared to adapt to changes in procurement processes within the Department of War, aiming for greater speed and efficiency [37][39] - The outlook for FY 2026 and FY 2027 includes increased revenue guidance due to the acquisition of SilverEdge and reaffirmed organic growth expectations [17][19] Other Important Information - The company plans to repurchase approximately $500 million in shares for both FY 2026 and FY 2027, totaling $1 billion, which represents about 25% of its market value [19] - Management is actively seeking a permanent CEO to lead the company forward [13] Q&A Session Summary Question: What is the current procurement environment post-shutdown? - Management noted a slowdown in submit activity and RFPs due to the shutdown, but expects normalization in Q4 [22] Question: Any residual impact from DOGE and pricing environment? - Management indicated no material changes from previous disclosures regarding DOGE, and margins remained healthy with minimal pricing pressure [24][25] Question: Opportunities and integration of SilverEdge? - Management expressed enthusiasm about SilverEdge's integration, expecting it to enhance bid differentiation and contribute positively to margins and EPS [30][31] Question: Civil growth decline and future trajectory? - Management stated that the civil business has been roughly flat over nine months, with no specific program-related drivers for the recent decline [32][33] Question: Thoughts on Department of War's reforms? - Management is ready to assist with procurement changes and is focusing on execution to align with the Department's objectives [37][39] Question: How to allocate savings from cost efficiencies? - Management indicated that a substantial portion of the $100 million savings will be reinvested into business development and proposal improvement [44][45] Question: Expectations on federal civil spending? - Management anticipates continued pressure on civilian agency budgets, but remains optimistic about their positioning within key agencies [51][52] Question: Portfolio shaping and defense budget growth? - Management is open to portfolio shaping but is currently focused on organic growth, with expectations of upward pressure on the DoD budget [62][65]

Parsons (NYSE:PSN) 2025 Conference December 03, 2025 02:10 PM ET Company ParticipantsCarey Smith - CEOMatt Ofilos - CFOModeratorMaybe that's a little too much. The following session is not open to the press. Okay. Good to go? All right. All right. Good afternoon, everybody. We'll keep forging ahead in the aerospace and defense sector with our next presentation from Parsons, and with me on the stage here is Carey Smith, who is the CEO, and Matt Ofilos, who is the CFO. So, Carey and Matt, thanks so much for j ...

Core Viewpoint - Rosen Law Firm is encouraging KBR, Inc. investors who purchased securities between May 6, 2025, and June 19, 2025, to secure legal counsel before the November 18, 2025, deadline for a securities class action lawsuit [1][5]. Group 1: Class Action Details - Investors who purchased KBR securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by November 18, 2025 [3][6]. - The lawsuit alleges that KBR's defendants made materially false and misleading statements regarding the company's operations and prospects, particularly concerning the Global Household Goods Contract with the U.S. Department of Defense [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has been ranked highly for its number of securities class action settlements and has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4].

Core Insights - KBR has opened a new office in Rosslyn, Virginia, to enhance its engagement with government customers and stakeholders [1][2] - The new office is strategically located near key government buildings, facilitating closer collaboration with agencies such as the Department of War and the intelligence community [1][2] - KBR is committed to expanding its presence in the D.C. area, with plans to recruit new hires and create roles to support government projects [3] Company Expansion - The new office represents a significant step in KBR's commitment to the Washington, D.C. area, where it currently employs approximately 900 people across four offices [2] - KBR's President for Defense, Intel and Space emphasized the importance of private sector support for national security projects like the Golden Dome missile defense system [3] - The company is also planning to spin off its Mission Technology Solutions business into a new publicly traded entity, aligning with national security and space priorities [4] Workforce Development - KBR is actively recruiting to bolster its workforce in the D.C. area, aiming to enhance its capabilities in supporting government missions [3] - The new resources in the D.C. area are expected to play a critical role in operationalizing key defense projects [3]

Company Leadership Transition - Science Applications International Corporation (SAIC) has appointed James ("Jim") Reagan as Interim Chief Executive Officer, succeeding Toni Townes-Whitley [2][3] - The Board of Directors expressed gratitude for Townes-Whitley's contributions and confidence in Reagan's ability to lead the company during this transition [3][4] - Reagan has nearly two decades of senior leadership experience in the defense and government services industry, previously serving as Executive Vice President & Chief Financial Officer for Leidos Holdings [2][4] Company Performance and Guidance - SAIC is reaffirming its fiscal year 2026 guidance initially provided on September 4, 2025, although a prolonged federal government shutdown could impact this guidance [5] - The company has a strong customer-focused foundation, with a solid pipeline and backlog of pending awards, indicating potential for growth and shareholder value creation [4][5] Company Overview - SAIC is a premier Fortune 500 company with annual revenues of approximately $7.5 billion, focusing on technology and innovation across defense, space, civilian, and intelligence markets [6][7] - The company employs around 24,000 people and integrates emerging technology into mission-critical operations [7]

Core Viewpoint - KBR, Inc. is facing a class action lawsuit from investors who purchased securities during the specified class period, following a significant drop in stock price due to the termination of a key contract [1][3]. Group 1: Class Action Details - The Portnoy Law Firm is advising KBR investors of a class action for those who bought securities between May 6, 2025, and June 19, 2025 [1]. - Investors have until November 18, 2025, to file a lead plaintiff motion [1]. Group 2: Stock Price Impact - On June 20, 2025, KBR's stock price fell by $3.85 per share, or 7.29%, closing at $48.93 per share after the announcement of the termination of HomeSafe's role in a significant contract [3]. Group 3: Legal Representation - The Portnoy Law Firm offers complimentary case evaluations for investors to discuss their legal rights and options for recovering losses [2]. - The firm has a history of recovering over $5.5 billion for aggrieved investors [4].

Core Insights - Science Applications International Corporation (SAIC) reported mixed results for Q2, with a 3% year-on-year sales decline to $1.77 billion, missing the analyst consensus estimate of $1.86 billion, while adjusted EPS of $3.63 exceeded the consensus estimate of $2.24 [1] - The company revised its 2026 revenue outlook to $7.250 billion-$7.325 billion, down from a prior estimate of $7.60 billion-$7.75 billion, which is below the analyst consensus estimate of $7.65 billion [1] - SAIC updated its annual adjusted EPS outlook to $9.40-$9.60, an increase from the previous range of $9.10-$9.30, and above the analyst consensus estimate of $9.17 [2] Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for SAIC, with Stifel maintaining a Buy rating and lowering the price target from $130 to $128, while UBS maintained a Neutral rating and reduced the price target from $111 to $110 [5] - SAIC shares fell 1.7% to trade at $104.41 after the earnings report [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 declined by 2.7% year over year, primarily due to a 3% headwind from Cloud WAN compute and store revenue, not fully offset by new business volume [16][18] - Adjusted EBITDA for Q2 was $185 million, resulting in an adjusted EBITDA margin of 10.5%, reflecting an increase of 180 basis points quarter over quarter and 80 basis points year over year [17] - Free cash flow improved to $150 million in Q2, despite challenges related to the timing of invoice payments [17][20] Business Line Data and Key Metrics Changes - On contract revenue growth slowed to 3% in Q2 from 8% in Q1, impacting overall revenue performance [16][18] - The company experienced program disruptions that contributed to the revenue decline, particularly in areas with significant government transformation initiatives [8][16] Market Data and Key Metrics Changes - The company anticipates organic revenue to decline by approximately 5.54% in Q3 and Q4 of FY 2026, with revised revenue guidance for FY 2026 set between $7.25 billion and $7.325 billion [18][19] - The outlook for FY 2027 assumes a more subdued contribution from on contract growth of 2% to 3% and a modest benefit from new business [18] Company Strategy and Development Direction - The company is focusing on cost efficiency initiatives to align its cost structure with the challenging revenue environment, aiming to mitigate the impact on EBITDA and free cash flow [10][19] - There is a strong emphasis on leveraging artificial intelligence to drive efficiency across core operations, which is expected to provide incremental benefits in the coming years [13][46] Management's Comments on Operating Environment and Future Outlook - Management noted a more challenging environment than previously forecasted, citing slower conversion of on contract growth opportunities, increased program disruptions, and delays in new business awards [6][9] - Despite current market volatility, management remains optimistic about the execution of their strategy and the potential for normalization in revenue growth over time [11][12] Other Important Information - The company is increasing its FY 2026 adjusted EPS guidance to a range of $9.4 to $9.6, benefiting from a favorable tax settlement [19][20] - The capital deployment plans remain focused on driving long-term value for shareholders, with a commitment to share repurchases and capability-focused M&A [20] Q&A Session Summary Question: Can you comment on the impacts on on contract growth? - Management indicated that delays in government transformation initiatives, particularly in the Army and civilian sectors, have hindered on contract growth, attributing it to efficiency efforts by the government rather than a shift in market share [22][25] Question: How do you see the structure of the industry changing? - Management acknowledged the volatility in the market and the impact of reduced government personnel, suggesting that while it is too soon to determine structural changes, they expect normalization in FY 2027 [30][33] Question: What are your expectations for the government fiscal year end flush? - Management noted that the flush environment has been irregular and does not expect significant opportunities from it, while a continuing CR is anticipated [80][82] Question: How would a government shutdown impact the P&L? - Management indicated that a traditional shutdown would likely have a marginal impact on revenues but little to no impact on cash flow [82][83] Question: Has there been a change in customer attitudes towards procurement? - Management stated that while there hasn't been an incremental change in the last ninety days, delays in customer interactions and new business ramp-ups have been significant indicators for adjusting revenue guidance [88][92]