Hello Everyone! It feels so good to be retired.! Just letting you know I sent the HF the Buy order on our last idea Parsons. I'm in there right now. Parsons outlines 17% revenue growth target amid strong infrastructure wins and expanded federal pipeline Aug. 06, 2025 1:48 PM ET Parsons Corporation (PSN) Earnings Call Insights: Parsons Corporation (PSN) Q2 2025 Management View Carey A. Smith, President, CEO & Chairwoman, reported that cash flow exceeded forecast with revenue and adjusted EBITDA in line with expectations and prior guidance. Smith highlighted "double-digit total revenue growth in 3 of our 4 business unitswith the fourth business unit growing 9% year-over-year" and "8% organic growth for Parsons in both segments." Margin expansion to 9.4% and $160 million of cash flow from operations were delivered, with a free cash flow conversion rate of 151% for the quarter and 125% on a trailing 12-month basis. Smith noted the book-to-bill ratio of 1.0x for the quarter and trailing 12 months, extending the streak since the 2019 IPO. Full-year revenue, adjusted EBITDA, and cash flow guidance were increased, reflecting the Chesapeake Technology International acquisition and the updated outlook. Parsons was recognized as the top program manager firm globally and announced three contract wins over $100 million, including a $176 million contract for the U.S. Army Corps of Engineers, a $138 million cyber contract with the Defense Threat Reduction Agency, and a $134 million follow-on contract in Canada. Smith reported strong growth in both North America and the Middle East infrastructure businesses, with significant contract wins such as Georgia State Route 400, Newark AirTrain, Hawaii City Center rail and transit, Hudson River Tunnel, and the I-55 Bridge replacement. Parsons expanded into new sectors in the Middle East and participated in high-level regional visits, including a signing ceremony for King Salman International Airport awards. Smith explained that in the Federal Solutions segment, growth was driven by aviation, cyber, and electronic warfare solutions. The passage of the reconciliation bill increased defense spending and Parsons' portfolio aligns with major budget line items. Smith stated, "We are laser-focused on the budget line items that align with our core competencies and where our portfolio is well positioned with domain knowledge and leap ahead solutions." She emphasized the company’s readiness for large federal opportunities, mentioning the FAA and Golden Dome initiatives and highlighting the acquisition of Chesapeake Technology International. Matthew M. Ofilos, Chief Financial Officer, stated, "Q2 financials were highlighted by strong free cash flow, adjusted EBITDA margins and total and organic revenue growth, excluding our confidential contract." Ofilos reported total revenue of $1.6 billion, a decrease from the prior year due to the confidential contract, but "excluding our confidential contract, total revenue grew 13% and 8% on an organic basis." Adjusted EBITDA was $149 million, with a 9.4% margin, a quarter record. Ofilos noted a 73% increase in Critical Infrastructure adjusted EBITDA and a 350 basis point margin increase to 10.5%. The company repurchased $15 million in shares during the quarter. Outlook Parsons updated full-year guidance, now expecting total revenue between $6.48 billion and $6.68 billion, which represents "total revenue growth of 17% and 13% on an organic basis, excluding the confidential contract," according to Ofilos. Adjusted EBITDA is projected at $595 million to $635 million, with a margin of 9.3% at the midpoint. Operating cash flow guidance was raised to $400 million–$440 million. Smith added, "We expect growth to accelerate in the second half of the year as we ramp on recent contract wins, existing contracts expand, strong hiring and retain continues, and we realize the contributions from CTI." Financial Results Parsons reported total revenue of $1.6 billion for Q2 2025. Excluding the confidential contract, total revenue grew 13% and 8% on an organic basis. Adjusted EBITDA was $149 million with a 9.4% margin. Cash flow from operations totaled $160 million for the quarter, and $574 million on a trailing 12-month basis. Critical Infrastructure revenue increased by $97 million or 14% year-over-year, with adjusted EBITDA margin rising to 10.5%. The backlog at quarter-end was $8.9 billion, with funded backlog at $6.2 billion, a 14% year-over-year increase. Q&A Tobey O'Brien Sommer, Truist Securities: Questioned the path for Golden Dome and FAA opportunities. Carey A. Smith responded that Parsons has "put together a very strong team to pursue the FAA integration contract," and discussed the $12.5 billion FAA funding and $25 billion for Golden Dome, emphasizing readiness and existing contract vehicles. Andrew John Wittmann, Baird: Asked about the impact of the One Big Beautiful Bill on infrastructure and the guidance increase. Smith said, "There's going to be a shift from soft infrastructure areas like climate change, renewables, electrification over to hard infrastructure which road and highways, bridges, airports," confirming strong alignment. Ofilos noted, "CTI is a big contributor, $30 million to the top line and then $5 million in the bottom line." Sheila Karin Kahyaoglu, Jefferies: Asked about organic growth outlook and margin performance. Smith said, "excluding the confidential contract, we're going to grow 18% organic in the second half." Ofilos clarified, "About 13% within CI on an organic basis and then north of 20% on Fed." Noah Poponak, Goldman Sachs: Inquired about Federal Solutions' margin and risks tied to slower contracting. Ofilos indicated, "Fed organic growth in the second half is expected to be just north of 20%...really strong growth on programs." Smith confirmed, "July results were favorable and demonstrate that we're on track to achieve the back half acceleration." Sentiment Analysis Analyst questions reflected a neutral to slightly positive tone, probing the sustainability of growth, margin trajectory, and the impact of federal funding cycles, with some pressing for specifics on contract timing and organic growth drivers. Management maintained a confident and optimistic stance during prepared remarks and Q&A. Smith frequently emphasized alignment with federal priorities and contract wins, and Ofilos provided detailed breakdowns of growth and margin drivers. The tone remained consistent with the previous quarter, but with increased confidence about the acceleration of growth in the second half of the year. Quarter-over-Quarter Comparison Parsons raised its full-year revenue, adjusted EBITDA, and cash flow guidance in Q2, while Q1 maintained prior guidance. Strategic focus shifted to accelerating contract ramp-ups and leveraging the Chesapeake Technology International acquisition. Analysts in Q2 focused more on the impact of the reconciliation bill and the sustainability of growth versus Q1, when attention was on the confidential contract and early-year budget cycles. Management’s confidence increased in Q2, with more detailed forward-looking growth commentary. Analysts’ tone remained neutral but probed for risks tied to contract delays and margin sustainability, similar to Q1. Risks and Concerns Management cited the termination for convenience of the confidential contract as anticipated and disclosed ongoing negotiation of a demobilization contract line item, expected to be immaterial. Analysts raised concerns about the slower federal contracting environment and the sustainability of organic growth rates. Ofilos and Smith emphasized that most second-half growth is backed by already awarded contracts, strong funded backlog, and ongoing hiring momentum. No major funding or execution risks were identified by management.
I'm not entirely sold on VPL report. /// Van if you could start a thread to buy some time it would be great. I'll add to it when I can. I have started my sports writing. And am out of stock ideas. I like the last one's I gave you all but little else. I'm kicking around the concept of which companies can LOWER prices because it is a small list and a distinctive investment angle nobody is considering. One name for that list-- McDonalds. Yup/// These guys are perfectly set up now. It's a bit boring-- certainly IRA worthy... the drawback the lower income set they just can't afford to eat out very much even McDonalds. The ironic thing: High income types have returned to the stores. A sign of the economy I fear.. but lets assume some soft landing is achieved.. if you could hold 1/2 of the higher income new adds and bring back fully the lower income- wham- Huge earn. McDonalds is experimenting with pricing-- lowering pricing on some items and they have a new bigger burger... Plus more emphasis on drinks. This is a company that can and will lower prices.~si
owch- ! NasdaqGS - Nasdaq Real Time Price•USD Fortinet, Inc.(FTNT)- 72.46 -24.12 (-24.97%) ///////////////////////////// What the heck happened here- first day I'm not around the children have been hurt.
Welcome to the real world: While pricing talks have never been easy, tariffs are escalating already high food inflation since the pandemic, making grocery bills more contentious and political as consumers grapple with a cost-of-living crisis. "We all should be very well aware of consumer budgets," Frans Muller, CEO of supermarket company Ahold Delhaize, which owns U.S. chains Food Lion, Hannaford, and Stop & Shop, told Reuters on Wednesday. Reuters' global tariff tracker shows at least 102 out of nearly 300 companies monitored by the tracker have announced price hikes in response to the trade war, with about 41 of them in the consumer sector. Supermarkets are developing more own-brand alternatives to big-name brands. Ahold has introduced 300 new own-brand products this year in its U.S. chains, and sales growth in those has outpaced the rest of the store, it said. Big brands have taken note, with P&G's Chief Financial Officer Andre Schulten saying last week that retailers have been implementing "more aggressive pricing" on own-brand products. "We see some level of pressure to drive trade down because of price promotional behaviour," he said, referring to consumers swapping to lower-priced products, adding the market would remain "volatile and challenging".