Parsons Lands $350M Navy Contract Amid Guidance Cut and Analyst Upgrade
On July 29, 2026, Parsons Corporation (NYSE:PSN) cut its full-year adjusted EBITDA guidance to between $500–$560 million from a prior range of $615–$675 million. This led to a sharp decline in the stock price by about 35%. However, sentiment shifted later in August when Parsons secured a $350 million Navy contract for its Seabed-to-Space ISR program and received an upgrade from Baird with a new Outperform rating and a $57 price target. The firm argued that the selloff was due to timing issues rather than structural problems. Despite soft first-half results, including a 1% year-over-year revenue decline and a net loss of $15 million in Q2, leading indicators such as contract awards up 24%, Federal Solutions bookings rising by 51%, and a strong book-to-bill ratio of 1.2x suggest underlying strength. Baird analyst Andrew Wittman highlighted second-half drivers including Other Transaction Agreements (OTAs) worth around $400 million, the JCHK program ramping up to ~$750 million in value over five years, and seasonal mining projects. Parsons currently trades at a forward P/E of 15x and an EV/EBITDA multiple of 14x. While hedge fund ownership has declined slightly from Q1 to Q2 2026, short interest remains low at just under 6% as of July's end.
Tickers: $PSN
Topics: AI defense seabed-to-space ISR contract stock upgrade