Core Insights - Parsons Corporation has been awarded a $13 million task order under the National Nuclear Security Administration (NNSA) Counter Nuclear Smuggling System Deployment (CNSSD) contract, focusing on counter-nuclear smuggling systems in the Indo-Pacific region [1][2] - This task order marks the fifth awarded to Parsons under the CNSSD MATOC, enhancing national security by preventing the trafficking of radioactive and nuclear materials [2] - The task order includes a one-year base performance period and six one-year option periods, indicating a long-term commitment to this project [1] Company Performance and Strategy - Parsons is recognized for its capability to deliver large-scale programs and critical technology solutions that advance national security [3] - The company aims to support U.S. nonproliferation and nuclear security goals by equipping international partners with the necessary capabilities to detect and disrupt illicit trafficking of nuclear materials [3] - Parsons' work with NNSA is expanding, which includes the Enterprise Construction Management Services contract, thereby growing its Indo-Pacific portfolio [3] Market Position and Future Outlook - In March 2024, Parsons secured one of two positions on the $1 billion ceiling value CNSSD MATOC, showcasing its proven experience and innovative approaches to security solutions [3] - The company continues to leverage its expertise in program and construction management, engineering, and advanced technology to enhance U.S. capabilities in deterring threats and maintaining regional stability [3][5]

Group 1 - Parsons Corporation has secured an $81 million C5ISR radar contract from the US Army Combat Capabilities Development Command/DEVCOM [1][2] - The contract includes a 12-month base period of performance and four 12-month option periods, focusing on radar engineering solutions for the Army's C5ISR division [2] - The project aims to enhance Army aerial and ground radar capabilities through advanced radio frequency technologies and artificial intelligence integration [3] Group 2 - Parsons Corporation operates in the defense, intelligence, and critical infrastructure markets, providing integrated solutions and services [4]

Core Insights - Parsons Corporation has opened a new facility in Redstone Gateway, enhancing its commitment to national security and the defense community in Huntsville [1][2] - The facility spans 27,000 square feet, with 21,000 square feet dedicated to high-bay space for advanced programs, and aims to improve collaboration with government and industry partners [2][3] - This investment aligns with the missions of Redstone Arsenal and the U.S. Department of Defense, emphasizing Parsons' role in delivering next-generation solutions in space and missile defense [3] Company Overview - The new facility is strategically located near Redstone Arsenal, allowing for seamless integration with ongoing defense programs and rapid development cycles [2][3] - Parsons aims to enhance its ability to deliver agile, mission-ready solutions to support the warfighter and national security priorities [2] - The expansion reflects Parsons' ongoing investment in technology, infrastructure, and personnel to meet evolving mission needs in the defense sector [3]

Core Insights - Parsons Corporation has been awarded an $81 million Task Order by the U.S. Army DEVCOM under the RS3 contract to provide radar engineering solutions [1][2] - The contract includes a 12-month base performance period with four additional 12-month option periods [1] - The focus is on enhancing Army aerial and ground radar capabilities through advanced radio frequency technologies and AI integration [2] Group 1 - The contract aims to address complex security challenges, including hypersonic threats and intelligence gathering [2][3] - Parsons will provide a range of services including operational support, program management, engineering, integration, prototype development, and fabrication [2] - The evolving missile defense landscape highlights the urgent need for innovative solutions and actionable intelligence [3]

Core Insights - Parsons Corporation has successfully launched the New Jersey Department of Transportation's (NJDOT) Statewide Advanced Traffic Management System (ATMS) utilizing its Intelligent NETworks (iNET) smart mobility solution [1][2] - The deployment of iNET represents NJDOT's first integrated statewide ATMS, moving away from legacy systems to a comprehensive suite of features for enhanced traffic management [2] - The ATMS project received the 2025 Excellence in Engineering Award, highlighting its innovative impact on transportation operations [3] Company Overview - Parsons Corporation is recognized as a leading disruptive technology provider in national security and global infrastructure markets, with expertise in various sectors including transportation and urban development [4] - The company emphasizes its commitment to leveraging innovative technology to improve transportation network management and safety [2][4]

Core Insights - Sealing Technologies has introduced Operator X, an AI-enabled cyber defense tool designed for tactical environments, marking a significant advancement in defensive cyber operations [1][2]. Group 1: Product Features - Operator X is designed for offline environments and can be integrated into SealingTech's Cyber-Fly-Away Kits, enhancing cyber mission capabilities while saving time and resources [2]. - The platform allows operators to correlate threat intelligence and interact with mission documentation using natural language, making it accessible for users with varying levels of expertise [2][3]. - Operator X serves as a command center for managing defensive tools, enabling tasks such as writing detection rules and generating customized metrics reports [3][4]. Group 2: Technological Advancements - The platform unifies various cyber tools and automates complex tasks across key network and security applications, enhancing operational efficiency [4]. - Operator X features a mission-aware AI engine that adapts to the operator's needs, promoting speed, precision, and continuous innovation in cyber operations [4]. Group 3: Company Background - Sealing Technologies, a subsidiary of Parsons Corporation, specializes in edge computing hardware and cybersecurity solutions, serving both federal government and private enterprises [6].

Core Insights - Parsons Corporation has been awarded a $30 million recompete contract by the U.S. Army DEVCOM's C5ISR Center, which includes a 12-month base performance period and four 12-month option periods for radar development engineering efforts [1][2] Group 1: Contract Details - The contract is aimed at delivering critical radar development engineering necessary for C5ISR Radar to meet mission needs [1] - Parsons has held this contract for three years and will continue to provide high-level engineering and prototyping support [2] Group 2: Program Objectives - The program enables the U.S. Army to anticipate threats from near-peer adversaries and provides advanced radar solutions that align with Department of Defense priorities [2] - The contract will focus on research, development, test, and evaluation (RDT&E) of technologies to improve performance, functionality, and survivability of radar systems [2] Group 3: C5ISR Capabilities - Parsons offers multiple C5ISR capabilities, including missile defense, command and control, and non-kinetic warfare solutions [3][5] - The company utilizes a digital engineering approach to modernize national security posture against sophisticated threats [5] Group 4: Company Overview - Parsons is a leading provider of disruptive technology in national security and global infrastructure markets, with capabilities across various sectors including cyber and intelligence, space and missile defense, and critical infrastructure protection [4]

Financial Data and Key Metrics Changes - The company reported total revenue of $1.6 billion, a decrease of 5% from the prior year period and down 9% on an organic basis. Excluding a confidential contract, total revenue grew 138% on an organic basis, driven by growth in transportation and cyber markets [28][29] - Adjusted EBITDA was $149 million, comparable to 2024, with an adjusted EBITDA margin expanding by 40 basis points to 9.4%, a second quarter record [29][30] - The company achieved a free cash flow conversion rate of 151% for the quarter and 125% on a trailing twelve-month basis [8][34] Business Line Data and Key Metrics Changes - In the Federal Solutions segment, total revenue decreased 19% from the prior year period but increased 88% on an organic basis when excluding the confidential contract, driven by growth in cyber and intelligence markets [30][15] - The Critical Infrastructure segment saw a revenue increase of $97 million or 14% from 2024, with organic growth of 8% and adjusted EBITDA increasing 73% [32][33] Market Data and Key Metrics Changes - Total infrastructure revenue grew 148% on an organic basis in the second quarter, with North America revenue growing 177% [10][11] - The Middle East infrastructure business is expected to grow over 10% in 2025, marking the fourth consecutive year of double-digit organic revenue growth in the region [12][13] Company Strategy and Development Direction - The company is focused on hard infrastructure projects, aligning with bipartisan support and administration priorities, particularly in North America and the Middle East [11][12] - The acquisition of Chesapeake Technology International is expected to enhance capabilities in electronic warfare, cyber, and autonomous systems, strengthening relationships with key customers [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a robust backlog of nearly $9 billion, with 70% funded, and a pipeline of $55 billion [26][37] - The company anticipates a stronger Q3, traditionally the strongest quarter for federal business, and expects to maintain a book-to-bill ratio of 1.0 or better [51][40] Other Important Information - The company won three contracts over $100 million in the second quarter, including a $176 million contract with the U.S. Army Corps of Engineers [10] - The reconciliation bill is expected to provide significant funding for defense and infrastructure projects, aligning with the company's capabilities [18][21] Q&A Session Summary Question: Opportunities regarding Golden Dome and FAA procurement - Management highlighted strong past performance with the FAA and readiness to pursue the integration contract, emphasizing their partnership with IBM and capabilities in system engineering [42][45] Question: Expectations for Q3 book-to-bill ratio - Management expects a robust Q3, with a book-to-bill ratio of 1.0 for the full year, driven by task orders and new large awards [50][51] Question: Impact of the One Big Beautiful Bill on infrastructure - Management noted a shift in funding priorities towards hard infrastructure, which aligns well with the company's portfolio [56][57] Question: Organic growth outlook and contributors - Excluding the confidential contract, management expects 18% organic growth in the second half, driven by existing contracts and strong hiring [64][65] Question: Unbooked backlog and funding environment - The unbooked backlog is over $11 billion, with strong funding alignment and cash flow [102][105] Question: Federal Solutions margin and performance - Management indicated that margins were impacted by lower volume on the confidential contract but expect improvements in the second half due to new business wins [83][84]

Financial Data and Key Metrics Changes - The company reported total revenue of $1.6 billion, a decrease of 5% from the prior year period and down 9% on an organic basis. Excluding the confidential contract, total revenue grew 138% on an organic basis, driven by growth in transportation and cyber markets [27][28] - Adjusted EBITDA was $149 million, with a margin expansion of 40 basis points to 9.4%, marking a second quarter record [28][29] - The company achieved a free cash flow conversion rate of 151% for the quarter and 125% on a trailing twelve-month basis [6][33] Business Line Data and Key Metrics Changes - Federal Solutions segment saw a total revenue decrease of 19% from the prior year, but excluding the confidential contract, revenue increased 88% on an organic basis [29] - Critical Infrastructure segment revenue increased by $97 million or 14% from the previous year, driven by organic growth of 8% and contributions from recent acquisitions [30][31] Market Data and Key Metrics Changes - In North America, total revenue grew 177% on an organic basis, reflecting strong demand and successful contract execution [9][10] - The Middle East infrastructure business is expected to grow over 10% in 2025, marking the fourth consecutive year of double-digit organic revenue growth in the region [11][12] Company Strategy and Development Direction - The company is focused on hard infrastructure projects, aligning with bipartisan support and government priorities, particularly in areas like roads, bridges, and airports [10][55] - The acquisition of Chesapeake Technology International is expected to enhance capabilities in electronic warfare, cyber, and autonomous systems, strengthening relationships with key customers [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a robust backlog of nearly $9 billion, with 70% funded, and a pipeline of $55 billion including 114 opportunities worth $100 million or more [25][26] - The company anticipates a stronger Q3, traditionally the strongest quarter for federal business, and expects to maintain a book-to-bill ratio of 1.0 or greater [50][51] Other Important Information - The company was recognized as the top program manager firm globally by Engineering News Record, reflecting its reputation for complex program delivery [7] - Significant contract wins in Q2 included a $176 million contract with the U.S. Army Corps of Engineers and a $138 million contract for cyber work with the Defense Threat Reduction Agency [8][9] Q&A Session Summary Question: Opportunities related to Golden Dome and FAA procurement - Management highlighted strong past performance with the FAA and readiness to pursue the integration contract, emphasizing a partnership with IBM [41][44] Question: Expectations for Q3 and industry trends - Management expects a robust Q3, with a strong pipeline and historical performance indicating a continuation of growth [49][50] Question: Impact of the One Big Beautiful Bill on infrastructure - Management noted a shift in funding priorities towards hard infrastructure, which aligns well with the company's portfolio [55] Question: Guidance increase and contributions from acquisitions - The guidance increase is primarily attributed to the acquisition of CTI, which is expected to contribute significantly to revenue and earnings [57][58] Question: Organic growth outlook and performance in Critical Infrastructure - Management anticipates 18% organic growth in the second half, driven by existing contracts and strong hiring [66][71] Question: Unbooked backlog and funding environment - The unbooked backlog is over $11 billion, with strong funding and cash flow expected to support growth [101][105]

Core Viewpoint - Parsons (PSN) reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, but down from $0.84 per share a year ago, indicating a +5.41% earnings surprise [1][2] Financial Performance - The company posted revenues of $1.58 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.34% and down from $1.67 billion year-over-year [2] - Over the last four quarters, Parsons has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Stock Performance - Parsons shares have declined approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $1.69 billion, and for the current fiscal year, it is $3.16 on revenues of $6.6 billion [7] - The trend of estimate revisions for Parsons was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Technology Services industry, to which Parsons belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]