AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Parsons Corporation's Q2 2025: Key Contradictions in Contract Performance, Revenue Outlook, and Growth Expectations
Generated by AI AgentEarnings Decrypt
Wednesday, Aug 13, 2025 3:56 am ET1min read
Aime SummaryContract performance and backlog dynamics, win rates and revenue outlook, confidential contract and revenue recognition, pipeline and book-to-bill ratios, and Federal Solutions organic growth expectations are the key contradictions discussed in Corporation's latest 2025Q2 earnings call.
Strong Financial Performance:
- reported cash flow from operations of $160 million and a free cash flow conversion rate of 151% for the quarter, with a trailing 12-month rate of 125%.
- The growth was driven by better collections in both segments and lower tax payments.
Revenue Growth and Margin Expansion:
- Excluding a confidential contract, Parsons' total and organic revenue growth rates were 13% and 8%, respectively, with a 40 basis points margin expansion to 9.4%.
- This expansion was due to strong hiring and retention, alignment with priority spending areas, and improved program performance.
Infrastructure Growth in North America and Middle East:
- Total infrastructure revenue grew 14% and 8% organically in North America, with significant wins such as Georgia State Route 400 and Newark AirTrain.
- The growth was fueled by large new programs, strong execution on existing contracts, and increased infrastructure spending from the IIJA.
Federal Solutions Expansion:
- Federal Solutions revenue increased by 8% and 8% organically, excluding a confidential contract, driven by growth in cyber and intelligence and aviation markets.
- The growth is attributed to the passage of the reconciliation bill, which provides additional investment accounts for fiscal year '26, aligning with major budget line items.
Strategic Acquisitions and Partnerships:
- Parsons acquired Chesapeake Technology International, enhancing its portfolio in electronic warfare, cyber, and autonomous systems.
- The acquisition aligns with Parsons' strategic business positioning and strengthens relationships with key research and development customers.
Strong Financial Performance:
- reported cash flow from operations of $160 million and a free cash flow conversion rate of 151% for the quarter, with a trailing 12-month rate of 125%.
- The growth was driven by better collections in both segments and lower tax payments.
Revenue Growth and Margin Expansion:
- Excluding a confidential contract, Parsons' total and organic revenue growth rates were 13% and 8%, respectively, with a 40 basis points margin expansion to 9.4%.
- This expansion was due to strong hiring and retention, alignment with priority spending areas, and improved program performance.
Infrastructure Growth in North America and Middle East:
- Total infrastructure revenue grew 14% and 8% organically in North America, with significant wins such as Georgia State Route 400 and Newark AirTrain.
- The growth was fueled by large new programs, strong execution on existing contracts, and increased infrastructure spending from the IIJA.
Federal Solutions Expansion:
- Federal Solutions revenue increased by 8% and 8% organically, excluding a confidential contract, driven by growth in cyber and intelligence and aviation markets.
- The growth is attributed to the passage of the reconciliation bill, which provides additional investment accounts for fiscal year '26, aligning with major budget line items.
Strategic Acquisitions and Partnerships:
- Parsons acquired Chesapeake Technology International, enhancing its portfolio in electronic warfare, cyber, and autonomous systems.
- The acquisition aligns with Parsons' strategic business positioning and strengthens relationships with key research and development customers.
Earnings Decrypt
Discover what executives don't want to reveal in conference calls
Latest Articles
Company's Q3 2026: Contradictions Emerge on Growth vs. Profitability, Sales Linearity, AI Adoption, and Deception Product Impact
Dec.05 2025
Sportsman's Warehouse Q3 2026: Contradictions Emerge on Inventory, Sales, Marketing, and Personal Protection Strategy
Dec.05 2025
Jewett-Cameron's Q4 2025 Earnings Call: Contradictions Revealed on Price Adjustments, Metal Fence Focus, Asset Sales Timeline, Strategic Financing, and Lumber Strategy
Dec.05 2025
UiPath's 2025–2026 Q3 Earnings Call: Contradictions Emerge on Agentic Automation Traction, Federal Shutdown Impact, and ARR Growth Sustainability
Dec.05 2025
Salesforce's Q3 2026 Earnings Call: Contradictions in Agentic Enterprise Adoption, Infrastructure Leverage, Data Cloud/Agentforce Growth, and Sales Capacity Confidence
Dec.05 2025
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet