In FY25, Parsons generated $6.4B in revenue with record adjusted EBITDA of $609M and a 9.6% margin, demonstrating strong operational performance despite revenue headwinds. The company benefits from long-term government spending on defense modernization and infrastructure while winning critical contracts in emerging domains like counter-UAS and biometric systems.
Cyborg Score Rationale
Analysts maintain a Buy consensus with 62% strong buy ratings, reflecting confidence in government exposure and contract wins. However, the company faces headwinds including EBITDA multiple compression and labor retention challenges alongside geopolitical risks.
Top Insights
Record profitability in FY25 despite 6% revenue decline, indicating improving operational efficiency and margin expansion
Recently secured $91M OSIS II contract extension and deployed DroneArmor counter-UAS system for border security, demonstrating technology leadership in emerging security domains
Stock down 35% from November 2024 highs amid contract losses and analyst target reductions, creating potential valuation reset opportunity
Federal Solutions segment represents core business but vulnerable to government budget cycles and procurement changes
Named Competitors
Booz Allen Hamilton — Defense and intelligence consulting
Lockheed Martin — Aerospace and defense contractor
AECOM — Global infrastructure and design services
Jacobs — Engineering and infrastructure consulting
Recent Developments
(February 2026) Secured $91M contract extension for Overseas Security Installation Services across 265+ U.S. diplomatic facilities
(February 2026) DroneArmor counter-UAS system deployed by federal customer for southern border protection
(February 2026) Q4 2025 earnings reported with record EBITDA but 8% revenue decline YoY; management participating in Barclays Industrial Conference
(January 2026) Lost major FAA contract and terminated confidential contract, leading to analyst downgrades
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