Parsons Q2 revenue misses estimates on portfolio restructuring charges
PSN•Charges and segment trends
Q2 results were heavily impacted by $118 million in charges related to portfolio-shaping actions and a joint venture program, which reduced operating income, net income, and adjusted EBITDA.
Excluding charges, adjusted EBITDA and margin improved due to higher infrastructure margins and contributions from accretive acquisitions.
Critical Infrastructure segment revenue rose, led by 10% organic growth in the Middle East, offsetting some declines elsewhere.
Guidance reduced for FY 2026
Parsons lowered its FY 2026 revenue guidance to $6.2 billion-$6.5 billion from $6.5 billion-$6.8 billion.
The company also cut FY 2026 adjusted EBITDA guidance to $500 million-$560 million from $615 million-$675 million.
Parsons now expects FY 2026 operating cash flow of $430 million-$490 million, down from $470 million-$530 million previously.
Analyst expectations and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell".
