Parsons Corporation announced on June 2, 2025, that it has cut its revenue outlook and removed the financial effects of a confidential contract from its 2025 guidance. The company lowered its fiscal year 2025 revenue guidance to a range of $6.45 billion to $6.65 billion, a significant reduction from its previous guidance of $7.0 billion to $7.5 billion. This change follows the State Department's statement regarding a reorganization.
The State Department's decision created uncertainty around the confidential contract, leading Parsons to remove anticipated financial effects from the contract after June. The company stated it cannot accurately estimate the size or scope of its potential work on this program beyond that point. This represents a material headwind for Parsons' revenue growth projections for the current fiscal year.
Raymond James analyst Brian Gesuale noted that Wall Street will likely need to recalibrate its modeling of the stock, as the State Department's reorganization appears to be a more significant headwind than anticipated. The reorganization plan, submitted to Congress by Secretary of State Marco Rubio, is designed to cut down on bureaucracy and potentially eliminate positions and close offices, impacting government contractors.
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