Education
About Us
Working with TipRanks
Follow Us
Parsons (PSN)
NYSE:PSN
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.69Last Year’s EPS
0.78Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong multi-year growth, record adjusted EBITDA margins, full-year 100% free cash flow conversion, robust funded backlog and a large pipeline, alongside strategic M&A and continued share repurchases. However, material challenges remain in the Federal Solutions segment driven by a large confidential fixed‑price contract, execution issues on a remote program, elevated DSO, and a near‑term organic growth headwind reflected in 2026 guidance. Overall the company presented stronger operational and financial momentum in critical infrastructure and a clear strategy to expand margins and capabilities, while acknowledging specific federal execution and timing headwinds.Company Guidance
Full-Year Revenue Growth (Excluding Confidential Contract)
Total revenue for fiscal year 2025 increased 12% year-over-year and was up 8% on an organic basis excluding the confidential contract; three-year total revenue increased 52% (CAGR ~10% organic; 9% CAGR excluding confidential).
Record Adjusted EBITDA and Margin Expansion
Fiscal 2025 adjusted EBITDA reached a record $609 million (up 1% vs. 2024) and adjusted EBITDA margin expanded 60 basis points to a company record of 9.6%; Q4 margin expanded 110 basis points to 9.6%.
Strong Free Cash Flow Conversion and Operating Cash Flow
Delivered 100% free cash flow conversion for fiscal 2025 and exceeded the high end of cash flow guidance; reported operating cash flow of $168 million in Q4, up 32% year-over-year.
Backlog, Funded Backlog and Pipeline Strength
Total backlog of $8.7 billion; funded backlog $6.4 billion (up 8% YoY) representing a company record 73% of total backlog. Management cites a $55 billion pipeline and $11 billion of awarded but not yet booked contracts.
Large Contract Wins and Booking Activity
Won 15 contracts >$100 million in the year (matching prior year). Notable Q4 awards: $392M 10-year biometric contract (booked $36M), $200M 5-year classified single-award (booked $23M), $125M 5-year HPC program (booked $44M), >$100M rocket motor manufacturing program (booked full). Post-quarter: FAA option exercised early ($593M) and intent to award up to $500M sole-source (booked $13M).
Critical Infrastructure Outperformance
Critical Infrastructure (CI) Q4 revenue up $89M (+12% YoY), organic growth 9%; CI adjusted EBITDA $87M in Q4 (up 87% YoY) with margin of 10.6% (up 420 bps). CI recorded 21 consecutive quarters with book-to-bill ≥1.0 and full-year CI adjusted EBITDA up 73% with margin expansion of 350 bps to 10.4%.
Disciplined Capital Deployment and Share Repurchases
Completed three acquisitions in 2025 (Applied Sciences among them) and increased share repurchases (Q4 repurchase ~856k shares for $60M; full year ~1.8M shares for $125M). Deployed over $1.1B on acquisitions, CapEx and buybacks since 2023 while maintaining a strong balance sheet.
Strategic M&A to Expand Capabilities
Closed Altamira acquisition post-quarter (all-cash transaction up to $375M incl. $45M earn-out) to expand signals intelligence, space, and multi‑intelligence capabilities; management emphasizes accretive acquisition strategy targeting >10% adjusted EBITDA margins.
Guidance and Long-Term Targets
2026 guidance: revenue $6.5–$6.8B (midpoint +4.5% YoY; +0.5% organic at midpoint with a disclosed $345M headwind from the confidential contract), adjusted EBITDA $615–$675M (midpoint margin ~9.7%), operating cash flow $470–$530M. Long-term targets reiterated: mid-single-digit+ organic growth, goal of double-digit margins by 2028, and ≥100% free cash conversion.
PSN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PSN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $70.21 | $60.25 | -14.19% |
Nov 05, 2025 | $79.56 | $82.91 | +4.21% |
Aug 06, 2025 | $77.00 | $75.92 | -1.40% |
Apr 30, 2025 | $68.66 | $66.86 | -2.62% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Parsons (PSN) report earnings?
Parsons (PSN) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is Parsons (PSN) earnings time?
Parsons (PSN) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PSN EPS forecast?
PSN EPS forecast for the fiscal quarter 2026 (Q1) is 0.69.