Parsons Corporation reported its second quarter 2025 financial results on August 6, 2025, with revenue falling 5.2% year-over-year to $1.58 billion, missing Wall Street expectations. Despite the revenue miss, the company's non-GAAP profit of $0.78 per share exceeded analysts' consensus estimates by 5.7%. The full-year revenue guidance was set at $6.58 billion at the midpoint, which was close to analysts' estimates.
Management attributed the revenue decline primarily to the wind-down of a major confidential contract. CEO Carey Smith explained that, excluding this confidential contract, Parsons achieved double-digit growth across most business lines. The company highlighted recent large contract wins and ongoing strategic execution, which contributed to margin improvement and strong free cash flow despite the top-line challenge.
The Q2 2025 Adjusted EBITDA for the quarter was $148.8 million, up 5% year-over-year, resulting in a record first quarter Adjusted EBITDA margin of 9.6%. The Critical Infrastructure segment saw a robust 13.7% increase in revenue, driven by 8% organic growth and contributions from recent acquisitions. However, the Federal Solutions segment experienced a 7.4% revenue decrease, with a 9% organic decline, primarily due to the confidential contract operating at reduced volume.
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