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]

CHANTILLY, Va., May 02, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) will showcase its latest innovations supporting the operational imperatives of United States Special Operations Forces at SOF Week, May 5-8, in Tampa, Florida. The company will present a dynamic range of solutions designed to transform irregular warfare and enhance autonomous search and rescue operations. Highlights include the powerful, next-generation mobile identity and biometrics platform, AresNXT, along with key technologi ...

For the quarter ended March 2025, Parsons (PSN) reported revenue of $1.55 billion, up 1.2% over the same period last year. EPS came in at $0.78, compared to $0.70 in the year-ago quarter.The reported revenue represents a surprise of -3.45% over the Zacks Consensus Estimate of $1.61 billion. With the consensus EPS estimate being $0.74, the EPS surprise was +5.41%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next m ...

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 ...

Financial Highlights - Q1 2025 total revenue reached $1.554 billion, a 1% increase compared to $1.536 billion in Q1 2024[8, 13, 16] - Net income increased by 67% to $66 million in Q1 2025[8, 11] - Adjusted EBITDA increased by 5% to $149 million in Q1 2025 from $141 million in Q1 2024[8, 15, 16] - Adjusted EBITDA margin expanded by 40 basis points to 9.6% in Q1 2025[7, 11, 14, 16] - Record backlog increased by $42 million to $9.1 billion, with 69% funded[7, 11] Business Segment Performance - Federal Solutions revenue decreased by 7% to $843 million in Q1 2025[18, 20] - Critical Infrastructure revenue increased by 14% to $712 million in Q1 2025[19, 20] - Critical Infrastructure adjusted EBITDA increased by 51% to $73 million in Q1 2025[19, 20] - Critical Infrastructure book-to-bill ratio was strong at 1.4x[7, 20] Strategic Moves and Outlook - The company acquired TRS Group for approximately $37 million to enhance environmental remediation capabilities[7, 42] - The board approved a $250 million share repurchase authorization[44]

Acquisitions - The Company acquired TRS Group, Inc. for $36.6 million, with $3.8 million to be paid in July 2026, and generated $4.1 million in revenue for the three months ended March 31, 2025[37][38]. - The acquisition of BCC Engineering, LLC was completed for $233.5 million, with $27.6 million in revenue generated for the three months ended March 31, 2025[41][44]. - BlackSignal Technologies, LLC was acquired for $203.7 million, contributing $13.1 million in revenue for the three months ended March 31, 2025[46][48]. - The Company recognized $4.2 million of acquisition-related expenses for BCC and $2.5 million for BlackSignal in the consolidated statements of income for the year ended December 31, 2024[41][46]. Pro Forma Financials - Pro forma revenue for the three months ended March 31, 2025, assuming TRS acquisition was consummated at the beginning of fiscal year 2024, was $1,556.4 million[40]. - Pro forma net income for the same period, including noncontrolling interests, was $82.0 million[40]. - Pro forma revenue for the three months ended March 31, 2025, assuming BCC acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[45]. - Pro forma net income for the same period, including noncontrolling interests, was $82.8 million[45]. - Pro forma revenue for the three months ended March 31, 2025, assuming BlackSignal acquisition was consummated at the beginning of fiscal year 2023, was $1,554.4 million[49]. - Pro forma net income for the same period, including noncontrolling interests, was $82.7 million[49]. Revenue and Growth - Total revenue for the three months ended March 31, 2025, was $1,554,360 thousand, a slight increase from $1,535,676 thousand in the same period of 2024, representing a growth of 1.1%[51]. - The company recognized revenue of $117.3 million during the three months ended March 31, 2025, from contract liabilities that were recorded as of December 31, 2024[52]. - Revenue from consolidated joint ventures for the three months ended March 31, 2025 was $196.4 million, a decrease of 2.3% from $202.0 million in the same period of 2024[120]. - Revenue from unconsolidated joint ventures increased to $524.6 million for the three months ended March 31, 2025, up 10.8% from $473.5 million in the same period of 2024[122]. - Basic earnings per share for the three months ended March 31, 2025 was $0.62, an increase from $0.37 in the same period of 2024[134]. - Total revenue for the three months ended March 31, 2025, was $1,554,360, compared to $1,535,676 for the same period in 2024, representing a year-over-year increase of 1.2%[148]. - Adjusted EBITDA attributable to Parsons Corporation for Q1 2025 was $133,719, up from $125,504 in Q1 2024, reflecting a growth of 6.0%[145][152]. - Net income attributable to Parsons Corporation for Q1 2025 was $66,203, compared to $39,750 in Q1 2024, indicating a significant increase of 66.7%[145][146]. - Federal Solutions revenue decreased to $842,557 in Q1 2025 from $909,608 in Q1 2024, a decline of 7.4%[152]. - Critical Infrastructure revenue increased to $711,803 in Q1 2025 from $626,068 in Q1 2024, marking an increase of 13.7%[152]. - North America revenue for Q1 2025 was $1,284,232, slightly up from $1,272,250 in Q1 2024, a growth of 0.5%[148]. Assets and Liabilities - Contract assets increased to $822,781 thousand as of March 31, 2025, compared to $741,504 thousand at December 31, 2024, reflecting a growth of 10.9%[52]. - Remaining unsatisfied performance obligations (RUPO) amounted to $6.8 billion as of March 31, 2025, indicating the total dollar value of work to be performed on awarded contracts[56]. - The company expects to satisfy $4,334,583 thousand of RUPO within one year, with an additional $1,498,923 thousand expected to be satisfied in the following two years[59]. - Total accounts receivable, net, increased to $1,124,951 thousand as of March 31, 2025, from $1,100,396 thousand as of December 31, 2024, marking a growth of 2.2%[54]. - Goodwill increased from $2,082,680 thousand as of December 31, 2024, to $2,107,072 thousand as of March 31, 2025, primarily due to acquisitions[62]. - Consolidated joint ventures reported total assets of $505.9 million and total liabilities of $322.7 million as of March 31, 2025[120]. - Unconsolidated joint ventures had total assets of $1.9 billion and total liabilities of $1.4 billion as of March 31, 2025[122]. Expenses - The aggregate amortization expense of intangible assets for the three months ended March 31, 2025, was $16.4 million, compared to $13.7 million for the same period in 2024, reflecting an increase of 19.7%[63]. - The company reported total lease costs of $20,245 thousand for the three months ended March 31, 2025, slightly higher than $20,081 thousand for the same period in 2024[60]. - Depreciation expense for the three months ended March 31, 2025, was $9.1 million, a decrease from $9.4 million in the same period of 2024[65]. - The Company’s selling, general and administrative expenses for Q1 2025 totaled $91,536, compared to $69,725 in Q1 2024, reflecting a rise of 31.2%[145][146]. Debt and Financing - Total debt as of March 31, 2025, was $1,220.1 million, a decrease of 2.2% from $1,247.5 million on December 31, 2024[66]. - Short-term debt decreased from $463.4 million on December 31, 2024, to $434.9 million as of March 31, 2025, primarily due to a reduction in convertible senior notes[66]. - The company incurred $0.9 million in debt issuance costs related to the $350 million Delayed Draw Term Loan, which remains fully drawn as of March 31, 2025[67]. - Interest expense for the Delayed Draw Term Loan was $4.9 million for the three months ended March 31, 2025, down from $6.0 million for the same period in 2024[67]. - The company issued $800 million of 2.625% Convertible Senior Notes due 2029 in February 2024, with net proceeds of $781.1 million after transaction fees[82]. - The carrying value of the Convertible Senior Notes due 2029 was $785.4 million as of March 31, 2025, compared to $784.3 million on December 31, 2024[89]. - Interest expense for the Convertible Senior Notes due 2029 was $6.3 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024[89]. - The company recorded a deferred tax liability of $16.2 million related to the Convertible Senior Notes debt discount and capitalized debt issuance costs[81]. - The Company entered into capped call transactions with a cap price of $131.7575 per share, representing a 75% premium over the last reported sale price of $75.29 per share on February 21, 2024[91]. - The cost of the capped call transactions was $88.4 million, recorded as a reduction to additional paid-in capital[91]. - The Company used $391.8 million of net proceeds from the issuance of Convertible Senior Notes due 2029 to repurchase approximately $228.1 million of Convertible Senior Notes due 2025[93]. - A partial repurchase during the three months ended March 31, 2024, resulted in a $18.4 million repurchase loss and a $3.2 million charge to interest expense[94]. Tax and Commitments - The Company's effective tax rate decreased to 18.8% for the three months ended March 31, 2025, down from 19.5% for the same period in 2024[100]. - As of March 31, 2025, the Company's deferred tax assets were subject to a valuation allowance of $45.8 million[101]. - The Company has letters of credit commitments outstanding aggregating approximately $335.6 million as of March 31, 2025[99]. - The Company has a $650 million unsecured revolving credit facility, with interest rates at 5.7% as of March 31, 2025[97]. - The Company recorded a $211.0 million loss on debt extinguishment associated with the 0.25% Convertible Senior Notes due 2025[95]. Share Repurchase and Equity - The company repurchased 423,980 shares of common stock at an average price of $58.95 per share during the three months ended March 31, 2025[138]. - The company’s board authorized a share repurchase program with a capacity of $250 million as of March 2025, increasing from previous authorizations[135]. - The total joint venture equity for consolidated joint ventures decreased from $230.3 million as of December 31, 2024 to $183.1 million as of March 31, 2025[120]. - The company’s maximum exposure to loss from unconsolidated joint ventures is typically limited to the carrying value of the investment and future funding commitments[121].