Parsons (NYSE:PSN) Posts Earnings Results, Beats Expectations By $0.09 EPS
by Amy Steele · The Cerbat GemParsons (NYSE:PSN – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.09, FiscalAI reports. Parsons had a return on equity of 11.81% and a net margin of 3.79%.The company had revenue of $1.49 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter in the previous year, the company posted $0.60 earnings per share. The business’s revenue was down 4.1% on a year-over-year basis.
Here are the key takeaways from Parsons’ conference call:
- Parsons reported a record adjusted EBITDA margin of 10.1% (driven by a 10.8% CI margin), citing improved execution and contributions from accretive acquisitions.
- Total backlog reached a record $9.3 billion with funded backlog of $6.6 billion, a robust enterprise book-to-bill of 1.4x and an additional $11 billion of awarded contracts not yet booked.
- Management closed the acquisition of Altamira (up to $375M) to expand signals‑intelligence, space and missile‑warning capabilities and said M&A remains the primary capital deployment tool with 2–4 deals expected this year.
- The company reaffirmed 2026 guidance but trimmed Q2 expectations due to award timing; meanwhile, SG&A rose ~10% from acquisition/transaction costs and DSO increased by 14 days, reflecting some short‑term working capital pressure.
- Parsons emphasized resilience in the Middle East—all 7,500 regional employees are safe, the region delivered solid results and management expects continued post‑conflict demand for defense, infrastructure and reconstruction work.
Parsons Price Performance
Shares of PSN stock traded down $1.19 during trading on Wednesday, hitting $50.66. The company had a trading volume of 2,616,457 shares, compared to its average volume of 1,273,107. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.75 and a current ratio of 1.75. The firm has a market capitalization of $5.36 billion, a P/E ratio of 23.03, a price-to-earnings-growth ratio of 1.61 and a beta of 0.73. The stock’s 50-day moving average price is $57.24 and its 200 day moving average price is $67.87. Parsons has a one year low of $49.38 and a one year high of $89.50.
Analyst Upgrades and Downgrades
A number of equities research analysts have recently issued reports on the company. Barclays reduced their price objective on Parsons from $78.00 to $70.00 and set an “overweight” rating for the company in a report on Tuesday, March 31st. Truist Financial reduced their price objective on Parsons from $85.00 to $75.00 and set a “buy” rating for the company in a report on Monday, April 20th. KeyCorp cut Parsons from an “overweight” rating to a “sector weight” rating in a report on Tuesday, April 14th. UBS Group reduced their price objective on Parsons from $104.00 to $95.00 and set a “buy” rating for the company in a report on Thursday, February 12th. Finally, Jefferies Financial Group restated a “hold” rating on shares of Parsons in a report on Thursday, January 15th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $78.58.
View Our Latest Stock Report on PSN
Institutional Investors Weigh In On Parsons
Several institutional investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio boosted its stake in shares of Parsons by 0.9% in the third quarter. Public Employees Retirement System of Ohio now owns 17,029 shares of the company’s stock valued at $1,412,000 after buying an additional 144 shares during the period. Kennedy Capital Management LLC boosted its stake in shares of Parsons by 0.4% in the fourth quarter. Kennedy Capital Management LLC now owns 47,680 shares of the company’s stock valued at $2,947,000 after buying an additional 194 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Parsons by 38.0% in the first quarter. NewEdge Advisors LLC now owns 959 shares of the company’s stock valued at $57,000 after buying an additional 264 shares during the period. Bank of Montreal Can boosted its stake in shares of Parsons by 5.4% in the fourth quarter. Bank of Montreal Can now owns 7,003 shares of the company’s stock valued at $433,000 after buying an additional 360 shares during the period. Finally, UMB Bank n.a. boosted its stake in shares of Parsons by 59.6% in the fourth quarter. UMB Bank n.a. now owns 972 shares of the company’s stock valued at $60,000 after buying an additional 363 shares during the period. 98.02% of the stock is currently owned by institutional investors.
About Parsons
Parsons Corporation (NYSE: PSN) is a technology-driven engineering, construction, technical and professional services firm. The company delivers end-to-end solutions that span feasibility studies, design and engineering, construction management, system integration and ongoing operations support. Parsons serves both government and commercial clients and focuses on critical infrastructure, defense, security, intelligence and environmental programs.
Core services include program and construction management for transportation systems, water and environmental infrastructure, cybersecurity and advanced systems integration.