CHANTILLY, Va., May 28, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) chair, president, and chief executive officer, Carey Smith, will present at the William Blair 45th Annual Growth Stock Conference on Tuesday, June 3, 2025, at approximately 11:20 a.m. Central Time. This presentation will be available live via webcast on the investor relations section of Parsons’ website (https://investors.parsons.com/). A replay of the webcast also will be available on the website for 30 days. About Parsons Cor ...

Group 1 - Parsons Corporation (NYSE: PSN) has experienced a decline in share prices over the past six months, yet the company has sustained its net income and earnings growth, indicating a potential investment opportunity [1] - The stability in net income and earnings growth suggests that despite the share price drop, the underlying business fundamentals remain strong, which could attract investors looking for value [1] Group 2 - No relevant information regarding industry trends or broader market analysis is provided in the documents [2][3][4]

Core Insights - Parsons Corporation showcased its extensive Middle East portfolio during President Trump's visit, highlighting its role in infrastructure, defense, and security, with over $1 billion in annual revenue in 2024 and nearly 7,000 employees in the GCC [1][7] Group 1: Company Overview - Parsons has been operating in the Middle East for over six decades, completing thousands of projects since its first work in 1958 [4] - The company is recognized for its deep domain expertise in project management, urban development, transportation, and smart mobility [4][5] - With a global workforce of more than 20,000 employees, Parsons is positioned in six growing and profitable end markets [7] Group 2: Strategic Initiatives - The company is leveraging advanced technologies, including artificial intelligence, to meet regional demands for innovative infrastructure solutions [5][6] - Parsons is actively involved in Saudi Arabia's Vision 2030, contributing to 50 projects, including major urban development initiatives [6] - In Qatar, Parsons focuses on sustainable infrastructure and smart city projects, supporting key developments like the FIFA World Cup Qatar 2022 [6] Group 3: Recent Developments - During the President's visit, Parsons was selected as the Delivery Partner for the new King Salman International Airport, emphasizing its strong partnership with the U.S. [2][3] - The company participated in private CEO roundtables, discussing its global portfolio and national security capabilities with U.S. and host country officials [3] - Parsons has completed over 3,000 projects in the UAE, including significant infrastructure developments like the Dubai Metro and Hamad International Airport expansion [6]

Core Insights - Investors showed strong interest in Parsons due to a significant deal in the Middle East, resulting in a stock price increase of over 2%, outperforming the S&P 500's 0.1% rise [1] New Work in the Middle East - Following President Trump's visit, Parsons secured 30 projects in Qatar, collectively valued at up to $97 billion [2] Contracts in Saudi Arabia - Parsons was awarded two contracts by Saudi Arabia's King Salman International Airport Development Company for the expansion of King Salman International Airport, including infrastructure development and landside assets [4] - The airport in Riyadh is projected to have six runways and accommodate up to 120 million passengers by 2030, with expectations to rise to 185 million by 2050 [5] Investor Sentiment - Despite the positive news, investor reaction was somewhat muted due to concerns over the Trump administration's tendency to exaggerate deal values and the lack of financial details regarding the Saudi contracts [6]

Core Insights - Parsons Corporation has been awarded two Delivery Partner contracts by the King Salman International Airport Development Company, marking a significant expansion in its operations in Saudi Arabia [2][4] - The contracts cover airfield assets and landside infrastructure, with Parsons responsible for project management across all phases [3][4] - The new airport in Riyadh is set to be one of the largest globally, with a capacity of 120 million passengers by 2030 and 185 million by 2050 [4] Company Overview - Parsons has a long-standing presence in Saudi Arabia, dating back to 1958, and has been involved in various innovative projects since partnering with the Public Investment Fund in 2017 [4][5] - The company has extensive experience in aviation infrastructure, having worked on over 450 airports in 40 countries, including major airports in the Middle East [6] - Parsons aims to leverage cutting-edge technology to enhance operational efficiency and address the evolving needs of the aviation industry [6]

Core Insights - Parsons Corporation will showcase innovations for U.S. Special Operations Forces at SOF Week, emphasizing its commitment to enhancing operational capabilities [1][2] Group 1: Innovations and Technologies - The company will present a range of solutions aimed at transforming irregular warfare and improving autonomous search and rescue operations, including the AresNXT mobile identity and biometrics platform, Javelin mobile biometric collection kits, and DroneArmor counter-UAS system [2][4] - Additional technologies include the Peanut SDR, which offers high performance in a compact form, and TReX, a system for signal emulation and remote command-and-control [2][7] Group 2: National Security Initiatives - Parsons supports critical national security initiatives such as Golden Dome for America and Border Security, leveraging its expertise in integrated security solutions and advanced command and control systems [3][6] - The company has a long history of supporting U.S. Special Operations Command with modern intelligence capabilities, surveillance, reconnaissance solutions, and cyber operations [4][6] Group 3: Product Details - The Javelin line includes lightweight, modular devices for multi-modal biometric collection, while Ares software is FBI-certified and supports various operating systems [7] - DroneArmor provides a scalable counter-UAS solution, and BlueFly enhances search and rescue operations by detecting Bluetooth and Wi-Fi signals [7]

Core Insights - Parsons (PSN) reported revenue of $1.55 billion for the quarter ended March 2025, reflecting a 1.2% increase year-over-year, but a -3.45% miss against the Zacks Consensus Estimate of $1.61 billion [1] - The company's EPS was $0.78, up from $0.70 in the same quarter last year, resulting in a +5.41% surprise compared to the consensus estimate of $0.74 [1] Revenue Performance - Critical Infrastructure revenue was $711.80 million, exceeding the estimated $704.86 million, marking a +13.7% change from the previous year [4] - Federal Solutions revenue was $842.56 million, below the estimated $894.52 million, representing a -7.4% change year-over-year [4] EBITDA Analysis - Adjusted EBITDA for Critical Infrastructure was $73.19 million, surpassing the average estimate of $59.15 million from two analysts [4] - Adjusted EBITDA for Federal Solutions was $75.58 million, slightly below the estimated $79.70 million from two analysts [4] Stock Performance - Shares of Parsons have returned +15.3% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Parsons (PSN) reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing an increase from $0.70 per share a year ago, indicating a 5.41% earnings surprise [1] Financial Performance - The company posted revenues of $1.55 billion for the quarter ended March 2025, which was 3.45% below the Zacks Consensus Estimate, and slightly up from $1.54 billion year-over-year [2] - Over the last four quarters, Parsons has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Parsons shares have declined approximately 25.6% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current Zacks Rank for Parsons is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.76 billion, and for the current fiscal year, it is $3.62 on revenues of $7.16 billion [7] - The trend of estimate revisions for Parsons has been unfavorable ahead of the earnings release [6] Industry Context - The Technology Services industry, to which Parsons belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company achieved record first quarter results for total revenue of $1.6 billion, a 1% increase year-over-year, but a 2% decline on an organic basis [14][25] - Adjusted EBITDA reached $149 million, a 5% increase from the prior quarter, with an adjusted EBITDA margin of 9.6%, marking a first quarter record [27][15] - The company reported a book-to-bill ratio of 1.1 times, driven by strong win rates of 68% and large contract wins [17][33] Business Line Data and Key Metrics Changes - In the Federal Solutions segment, total revenue decreased by 7% year-over-year, but excluding the confidential contract, revenue increased by 86% on an organic basis [27][28] - The Critical Infrastructure segment saw a revenue increase of $86 million or 14% year-over-year, driven by organic growth of 8% and contributions from recent acquisitions [28][29] - Adjusted EBITDA for the Critical Infrastructure segment increased by 51% year-over-year, with a record adjusted EBITDA margin of 10.3% [29] Market Data and Key Metrics Changes - The company reported a record total backlog of $9.1 billion, with 69% funded, and a pipeline of $55 billion, including over 100 opportunities worth more than $100 million each [23][34] - The Middle East infrastructure business continues to excel, with significant growth driven by major projects aligned with Saudi Vision 2030 and other regional initiatives [11][12] Company Strategy and Development Direction - The company is focused on capitalizing on unprecedented spending in North America and Middle East infrastructure markets, with a strong emphasis on hard infrastructure projects [8][9] - The strategic direction includes being an advanced solutions integrator that differentiates with software, aligning with national security priorities and leveraging technology leadership in emerging markets [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial results, citing long-term tailwinds in both the Critical Infrastructure and Federal Solutions segments [22][23] - The company anticipates continued growth in the federal budget, particularly in defense spending, with expectations for a $1 trillion defense budget in fiscal year 2026 [12][61] Other Important Information - The company completed the acquisition of TRS Group for $37 million, enhancing its environmental remediation capabilities [21] - The company was named one of the world's most ethical companies for the sixteenth consecutive year, reflecting its commitment to ethics and integrity [21] Q&A Session Summary Question: Inquiry about Critical Infrastructure segment margins - Management confirmed that the strong margins in the Critical Infrastructure segment were due to underlying business performance without any favorable adjustments [41][43] Question: Expectations for the balance of the year regarding Critical Infrastructure - Management indicated that they expect the Critical Infrastructure margin to be around 9.1% for the full year, with strong performance anticipated in the upcoming quarters [45] Question: Clarification on the Middle East growth and contract ramp-up - Management noted that larger contracts in the Middle East experienced slower ramp-up due to holidays but expect double-digit growth for the full year [48][50] Question: Resilience of the federal solutions award environment - Management expressed optimism about the federal solutions segment, expecting a book-to-bill ratio over 1.0 for the full year [55] Question: Update on the confidential contract and its impact - Management confirmed that the confidential contract is currently at an 80% run rate and anticipates a surge in activity following a review period [66][95] Question: Hiring dynamics in light of Doge and federal workforce availability - Management reported strong employee retention and a positive hiring environment, with an emphasis on hiring cleared federal personnel [106] Question: Expectations for M&A activity - Management expects to complete two to three acquisitions this year, with a robust pipeline in both federal and critical infrastructure sectors [75]

Parsons (PSN) Q1 2025 Earnings Call April 30, 2025 08:00 AM ET Company Participants Dave Spille - SVP, IRCarey Smith - President, CEO & ChairwomanMatt Ofilos - CFOMariana Pérez Mora - DirectorTobey Sommer - Managing DirectorSheila Kahyaoglu - Aerospace & Defense and Airlines Equity ResearchAlex Dwyer - AVP - Equity Research Conference Call Participants Andrew Wittmann - Senior Research AnalystGautam Khanna - AnalystJosh Sullivan - Managing Director & Equity Research Analyst Operator Ladies and gentlemen, th ...