Core Insights - Parsons Corporation has been awarded a $593 million contract extension under the FAA's Technical Support Services Contract 5 (TSSC 5), which has a total ceiling value of $1.8 billion and extends performance through 2030 [1][2] Group 1: Contract Details - The contract extension exercises the first option period of TSSC 5, which supports the FAA's Aviation System Capital Investment Plan (CIP) [1][2] - TSSC 5 includes a four-year base period and two additional three-year option periods, allowing for significant infrastructure and systems upgrades across the National Airspace System (NAS) [1][2] Group 2: Parsons' Role and Expertise - Parsons has over five decades of experience supporting the FAA in modernizing the U.S. National Airspace System, providing a range of services including program management, engineering, and construction management [3][4] - The company is recognized as the number one program management firm by Engineering News-Record in 2025, emphasizing its capability in delivering large-scale programs through an agile and innovative approach [4] Group 3: Impact on Aviation Infrastructure - Under TSSC 5, Parsons manages upgrades to critical navigation, communications, power, radar, and surveillance systems, enhancing the FAA's ability to meet modernization schedules and reduce program risks [2][3] - The company operates across more than 600 FAA and stakeholder sites, showcasing its extensive reach and operational capacity in the aviation sector [3]

Core Thesis - Parsons Corporation is transitioning from a traditional engineering and infrastructure company to a defense and technology-focused business, targeting higher-margin segments with long-term growth potential [2] Financial Performance - Despite a 10% decline in Q3 2025 revenue, Parsons Corporation maintained gross profits and achieved significant margin expansion, with operating margins increasing from 1.7% to 7.7% and EBITDA margins growing to 8.2% [3] - The company's intrinsic value estimates suggest a total enterprise value of $9.2 billion, or $73.6 per share after net debt, with potential upside to $87 per share by 2026 as EBITDA expands through defense and software integration initiatives [4] Market Position and Strategy - Parsons Corporation has a strong project backlog, with a book-to-bill ratio above 1.0 for 20 consecutive quarters and a 1.4x backlog-to-revenue ratio, providing visibility into future revenue, especially as Middle East giga projects peak in 2027–2028 [4] - The company's competitive advantage lies in its specialized workforce with security clearances, long-term government relationships, and proprietary software solutions like iNET and iTwin, which create significant switching costs and recurring revenue through subscription models [3] Recent Developments - The stock price of Parsons Corporation has appreciated by approximately 8% since the previous bullish thesis coverage, reflecting the successful execution of its strategic pivot to defense and technology [5]

Core Insights - Parsons Corporation has acquired Altamira Technologies Corporation for a transaction valued up to $375 million, enhancing its defense and intelligence portfolio [1][4] - The acquisition is aimed at accelerating Parsons' national security growth strategy and expanding its capabilities in intelligence-driven solutions [2][3] Company Overview - Parsons is a leading provider of disruptive technology in national security and global infrastructure markets, with expertise in cyber warfare, space defense, and critical infrastructure protection [5] - Altamira, founded in 1999 and based in McLean, Virginia, specializes in advanced analytics, signals intelligence, cyber operations, and missile warning [2][3] Financial Details - The acquisition involved an initial cash payment of $330 million, with an additional $45 million contingent on meeting certain EBITDA targets in 2026 [4] - The base purchase price reflects a 12.8x multiple on anticipated 2026 EBITDA, with Altamira expected to generate over $200 million in revenue for the same year [4] Strategic Alignment - The acquisition aligns with Parsons' strategy of pursuing accretive acquisitions that enhance revenue growth and adjusted EBITDA margins of at least 10 percent [3][4] - Altamira's capabilities in missile warning, AI/ML analytics, and SIGINT operations complement Parsons' existing strengths and support the Department of War's acquisition transformation strategy [2][3]

Core Viewpoint - Parsons Corporation is set to release its fourth quarter and fiscal year 2025 financial results on February 11, 2026, along with guidance for 2026 [1] Group 1: Financial Results Announcement - The financial results will be announced before the markets open on February 11, 2026 [1] - A conference call will be held at 8:00 a.m. Eastern Time to discuss the earnings results and guidance [1] Group 2: Participation Details - Access to the live conference call can be obtained through the Investor Relations section of the company's website [2] - A replay of the conference call will be available on the company's website approximately two hours after the call and will continue for one year [2] Group 3: Company Overview - Parsons Corporation is a leading provider of disruptive technology in national security and global infrastructure markets [3] - The company has capabilities in various sectors including cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection [3]

Core Insights - Parsons Corporation has been awarded a 60-month contract by the New Murabba Development Company, owned by the Public Investment Fund (PIF), to provide design and construction technical support [1][2] Company Overview - Parsons will serve as the Infrastructure Lead Design Consultant (ILDC) for the New Murabba project, which encompasses design and engineering services for infrastructure, public buildings, and landscape [2][3] - The New Murabba development will cover approximately 14 million square meters, featuring a mixed-use environment that includes living, working, and entertainment spaces [2][4] Project Details - The centerpiece of the New Murabba project will be the Mukaab, an iconic cube-shaped skyscraper, which is set to be the largest built structure of its kind [2] - The project aims to redefine sustainable urban development at a giga scale, aligning with Saudi Vision 2030's "Quality of Life Program" [3][5] - New Murabba is designed to create a balanced live-work-play community, allowing residents to walk to various amenities within 15 minutes [3][4] Strategic Importance - The CEO of New Murabba emphasized that the agreement with Parsons is a significant step towards establishing the area as a world-class cultural and tourism destination [4][5] - Parsons has been a trusted partner in Saudi Arabia's urban development for over 65 years, currently managing more than 50 active projects, including several mega and giga projects [6] Industry Context - The collaboration with Parsons is part of a broader strategy to diversify Saudi Arabia's economy and position the country as a global leader in urban development, in line with the national Vision 2030 [5][6]

Core Insights - The article discusses the investment opportunities presented by corporate events such as earnings reports, mergers and acquisitions, and IPOs, emphasizing the importance of these events for investors [1][2]. Group 1: Company Analysis - Parsons (PSN) is highlighted as a company that has successfully navigated challenges related to DOGE, indicating resilience and potential for growth [1]. - The company has experienced significant momentum in its stock performance, particularly noted in 2024, suggesting a positive outlook for investors [1]. Group 2: Investment Strategy - The investment group "Value in Corporate Events" focuses on identifying actionable ideas from major corporate events, providing members with insights to capitalize on these opportunities [2]. - The group covers approximately 10 major events each month, aiming to find the best investment opportunities in the market [2].

Core Insights - Parsons Corporation has been awarded a ten-year, $392 million contract by a Federal customer, marking new work that utilizes the company's biometrics and network engineering capabilities [1] Company Overview - Parsons is a leading provider of disruptive technology in national security and global infrastructure markets, with expertise in areas such as cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection [4] Product and Service Offerings - The company offers advanced biometrics and identity management solutions, integrating hardware, software, and expertise to support federal, defense, and law enforcement missions [2] - Parsons has delivered over 3,500 mobile biometrics solutions that enhance real-time biometric data collection and analysis, facilitating faster identity verification and improved threat detection during critical missions [2]

Core Viewpoint - BofA Securities has lowered its price target on Parsons to $90 from $95 while maintaining a Buy rating due to the company's loss of a significant FAA contract to Peraton, highlighting a shift towards a "software-first" approach in government procurement [1] Group 1: Contract Loss and Market Reaction - Parsons lost the Brand New Air Traffic Control System (BNATCS) integration contract to Peraton, which surprised many observers [1] - BofA noted that the FAA emphasized Peraton's software and digital capabilities as a key differentiator in the contract award [1] - The stock's negative reaction to the contract loss was viewed as overdone, with BofA arguing that Parsons' fundamentals remain solid, particularly in defense and critical infrastructure [3] Group 2: Financial Implications - BofA highlighted that Peraton's bid for the contract totaled $1.5 billion, and mentioned a potential $200 million "Trump discount" that could impact early-year profitability for the contract [2] - The firm has adjusted its earnings per share (EPS) estimates for Parsons, forecasting adjusted EPS of $3.25 for 2025, $3.40 for 2026, and $3.85 for 2027, reflecting a slower appropriations environment following the government shutdown [3]

Core Insights - Parsons Corporation has been recognized six times in 2025 for its commitment to employing military veterans, guard and reserve members, and their families, highlighting its leadership in supporting the military community [1][4] - The company emphasizes the unique skills and dedication that veterans bring to the workforce, aiming to facilitate their transition to civilian life [1][4] Company Commitment - Parsons is dedicated to developing advanced solutions that enhance national security and support military personnel, ensuring they are equipped to address evolving threats [1] - The company’s MILVET program has received accolades for its effectiveness in veteran hiring, retention, and support [4] Awards and Recognition - The company received the 2025 Department of Labor HIRE Vets Gold Medallion Award for excellence in veteran hiring metrics [4] - It ranked 2nd in Virginia and 16th overall in the 2025 Military Times Best for Vets Rankings, marking its highest rankings to date [4] - Parsons was recognized as a Gold/Top 10 Military Friendly Employer in the 2026 GI Jobs rankings, achieving 9th place nationally in the $5B+ category [4] - The company earned the 2025 VET Indexes 5 Star Employer Award for its MILVET program [4] - Parsons was named a Champion by the National Veteran Small Business Coalition for its support of small disadvantaged business programs [4] - The company received nominations for the Employer Support of the Guard and Reserve, including three nominations for the Patriot Awards [4]

Core Insights - Parsons Corporation has been selected by VIA Metropolitan Transit Authority to complete the final design of the Advanced Rapid Transit program for the VIA Rapid Silver Line in San Antonio [1][2] Group 1: Project Overview - The VIA Rapid Silver Line will span 7.3 miles with an estimated project cost of $322 million, featuring 18 new or modified stations [2] - The project aims to enhance public transportation connectivity in the San Antonio region, supporting economic growth as the population expands [2] Group 2: Technical Features - The ART system will provide fast, frequent, and reliable public transit by implementing dedicated bus lanes, transit-friendly traffic signals, and off-board fare collection [2] - The Green Line, also supported by Parsons, will connect the San Antonio International Airport through Downtown to the historic Missions area, intersecting with the Silver Line in downtown San Antonio [3] Group 3: Company Expertise - Parsons has over 25 years of experience working with VIA and has a proven track record in delivering rapid transit projects across Texas and nationwide [2][3] - The company specializes in various sectors including national security, global infrastructure, and urban development, showcasing its capabilities in transportation and critical infrastructure protection [5]