Parsons Corporation Investigation
Company: Parsons Corporation
Ticker: (NYSE) PSN
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Investigation Details
Parsons Corporation lowered its full-year 2026 adjusted EBITDA guidance to $500-$560 million from $615-$675 million on July 29, 2026 -- a reduction of as much as $115 million -- and cut revenue guidance to $6.2-$6.5 billion from $6.5-$6.8 billion, and the stock dropped 35%.
The guidance cut was disclosed via Form 8-K. Management attributed the shortfall to ""planned divestitures,” “lower pass-through costs,” and “federal contract timing,” as well as a confidential fixed-price contract that was ”canceled by the administration.”
That confidential program was described by Chair, President and CEO Carey Smith on the November 5, 2025 earnings call as follows: "The program is in a wind-down state, so we're basically demobilizing." The program generated $50 million of revenue in that quarter. It was later cited among the primary drivers of the fiscal 2026 shortfall. Reported adjusted EBITDA for the latest quarter was approximately $42 million, down roughly 72% year over year, alongside a net loss of about $15 million.