Company Overview - Parsons Corporation is a leading provider of advanced solutions for defense, intelligence, and critical infrastructure, leveraging expertise in cybersecurity, geospatial analytics, and complex systems integration [6] - The company has a workforce of 20,000 and operates globally, addressing mission-critical challenges for government and commercial clients [6] - Parsons generates revenue primarily through long-term government contracts and specialized services for public and private sector clients in high-security and infrastructure domains [8] Recent Developments - Kettle Hill Capital Management has significantly increased its stake in Parsons Corporation, acquiring an additional 278,919 shares, bringing its total holdings to 373,180 shares valued at approximately $30.94 million as of September 30, 2025 [2][9] - This position now represents 6.96% of Kettle Hill's total reportable U.S. equity holdings, making Parsons the firm's second-largest holding [2][3] Financial Metrics - As of December 5, 2025, Parsons shares were priced at $67.22, with a market capitalization of $7.02 billion [4] - The company's revenue for the trailing twelve months (TTM) is reported at $6.49 billion, with a net income of $450.54 million [4] Stock Performance - Parsons' stock has experienced a decline of approximately 30.8% over the past year, underperforming the S&P 500 by 45.67 percentage points [3] - The stock has recently faced challenges due to the FAA selecting a competitor for a multi-billion contract, leading to analyst downgrades and a 24% decline in stock price over the last month [10] Valuation Insights - Currently, Parsons trades at a price-to-earnings (P/E) multiple of 19x, significantly below its three-year average of 41x, indicating a potential investment opportunity for opportunistic investors [11]

Core Viewpoint - Parsons Corporation is a significant player in the defense and infrastructure sectors, focusing on technology-driven solutions and competing for government contracts [1] Group 1: Company Overview - Parsons Corporation trades under the symbol NYSE:PSN and has a market capitalization of approximately $6.99 billion [1] - The company specializes in defense, intelligence, and critical infrastructure solutions [1] Group 2: Recent Developments - On December 11, 2025, Jefferies adjusted its rating for Parsons to "Hold," with the stock priced at around $65.50 and a revised price target lowered from $90 to $75 [2][6] - Parsons secured an $88 million task order to enhance air defense systems at the USAFE-AFAFRICA in Germany, increasing the total value under the ABAD program to approximately $192 million for 2025 [3][6] - The three-year contract includes hardware procurement, system integration, and specialized training to ensure operational readiness and enhanced security capabilities [4] Group 3: Stock Performance - Currently, NYSE:PSN is priced at $65.44, experiencing a 2.36% decrease today, with a trading range between $65.32 and $67 [5] - Over the past year, the stock has seen a high of $99.04 and a low of $54.56, with a trading volume of 823,157 shares [5]

Core Insights - Parsons Corporation has been awarded an $88 million contract to support the U.S. Air Forces in Europe - Air Forces Africa at Ramstein Air Base, bringing the total value under the Air Base Air Defense contract to $192 million in 2025 [1][2] Group 1: Contract Details - The awarded contract is a single-award Task Order contract over three years [1] - The total value of Parsons' work under the Air Base Air Defense contract has reached $192 million in 2025 [1] Group 2: Company Commitment and Capabilities - Parsons emphasizes its commitment to delivering advanced technology solutions and expert support for air base security [2] - The scope of work includes advanced equipment procurement, systems integration, operator training, technical support, and maintenance to ensure mission readiness and operational excellence [2] Group 3: Historical Context - In 2021, Parsons received a 10-year Indefinite Delivery Indefinite Quantity contract valued at $953 million, highlighting its leadership in national security operations [3] - This new contract reinforces Parsons' ongoing commitment to safeguarding military operations and enhancing air defense systems across Europe and Africa [3] Group 4: Company Overview - Parsons is recognized as a leading disruptive technology provider in national security and global infrastructure markets, with capabilities in various sectors including cyber warfare, space defense, and critical infrastructure protection [4]

Core Insights - Parsons operates in two segments: 51% Federal Solutions and 49% Critical Infrastructure [1] - The company has six end markets, with a significant focus on cyber and electronic warfare, contributing 20% to Parsons' revenue [1] - Parsons has a long-standing role in space and missile defense, serving as the system engineering and integration contractor for the Missile Defense Agency for four decades [1] Segment Overview - In the cyber and electronic warfare market, Parsons is recognized as a leader in offensive cyber capabilities and the integration of cyber with electronic warfare [1] - The company has developed over 170 different ground systems for the space domain and operates large satellite vehicles commercially [2] - Parsons is involved in assured position, navigation, and timing, as well as space domain awareness, recently receiving the Space Icon award [2]

Summary of Parsons Conference Call - December 09, 2025 Company Overview - **Company**: Parsons Corporation (NYSE: PSN) - **Segments**: 51% Federal Solutions, 49% Critical Infrastructure - **Revenue Breakdown**: - Cyber and Electronic Warfare: 20% - Space and Missile Defense: 10% - Critical Infrastructure Protection: 10% - Transportation: 28% - Water and Environment: 15% - Urban Development: 13% [3][4][5] Core Insights and Arguments - **Growth Performance**: - Anticipated total growth of 14% for the year, with 9% organic growth [7] - Excluding the Confidential Contract, Parsons has been the industry organic growth leader for three consecutive years [7][28] - The Confidential Contract contributed $355 million in revenue, expected to diminish to $20 million in Q4 and $10-$15 million in early 2026 [6][8] - **FAA Contract**: - Parsons has a long-standing relationship with the FAA, having supported them for five decades [10] - Awarded a $1.8 billion contract in April 2023, running until April 2033, with $1 billion ceiling remaining [12][14] - **Growth Areas for 2026**: 1. **Critical Infrastructure**: Expected double-digit growth in North America and the Middle East, driven by the Infrastructure Investment and Jobs Act [15] 2. **Border Security**: $160 billion allocated in the reconciliation bill, with Parsons involved in various international border security programs [16] 3. **Golden Dome Initiative**: Focus on missile defense integration, with a $1 billion ceiling remaining [17] 4. **Cybersecurity**: Addressing national security challenges, particularly concerning China [18] - **Emerging Contaminants**: - PFOS/PFAS market is estimated at $40 billion, with patented HOT ESCO technology for on-site remediation [20][48] - **International Projects**: - Significant involvement in major projects in Saudi Arabia, including preparations for the 2030 Expo and 2034 World Cup [35] - Growth in the UAE and Qatar, focusing on urban development and infrastructure [36] Additional Important Points - **M&A Activity**: - Parsons has acquired 16 companies since 2017, with a focus on enhancing capabilities in critical infrastructure and federal sectors [28][39] - Plans for continued M&A activity, with an active pipeline and a focus on share repurchases due to stock dislocation [39] - **Financial Performance**: - Consistent margin expansion, with a 50 basis point increase in margins over the past two years [30][32] - Book-to-bill ratio greater than 1.0 for 20 consecutive quarters in critical infrastructure [34] - **Capital Allocation**: - Authorized for $250 million in share repurchases, with $185 million remaining as of Q3 [39] - **Regulatory Environment**: - Federal MCO levels remain unchanged, but implementation timelines have been extended, with expectations for market peak around 2032 [49] This summary encapsulates the key points discussed during the Parsons conference call, highlighting the company's strategic focus, growth areas, and financial performance.

Core Insights - Parsons Corporation has been awarded the 2025 SpaceNews Icon Award for Civil Space Achievement for its work on the Traffic Coordination System for Space (TraCSS) program, highlighting its commitment to safe and efficient space operations [1][2] Company Achievements - The award reflects the efforts of Parsons' Space Operations Team, which successfully transitioned the TraCSS program from concept to operational capability in less than two years [2] - The development of TraCSS enhances collision avoidance measures and promotes a cooperative framework for satellite operators globally [2] Industry Context - The number of satellites in orbit has increased significantly, creating a more complex space environment that necessitates effective traffic coordination solutions [3] - Parsons, in collaboration with the Office of Space Commerce (OSC), is focused on delivering essential solutions to support safe operations in the burgeoning space industry [3]

Core Insights - Parsons Corporation (NYSE:PSN) experienced a significant decline of 21.29% week-on-week due to losing a $1 billion air traffic control system contract to Peraton [1] - The Federal Aviation Administration (FAA) awarded a $12.5 billion contract to Peraton for overseeing and overhauling the US air traffic control system, citing Peraton's capabilities in integrating complex technology and collaborating with federal agencies [1] Company Response - Parsons Corporation acknowledged the air traffic control system as a critical priority for national air travel safety and security, emphasizing its long-standing support for the FAA [2] - The company expressed readiness to support the FAA on existing contracts and expand its role as an implementation partner [2] Market Reaction - Following the FAA's decision, investment firm Raymond James downgraded Parsons Corporation from strong buy to market perform, indicating a shift in investment sentiment [2] - The firm noted that while Parsons has potential, it believes that certain AI stocks may offer better returns with limited downside risk [2]

Core Points - Parsons Corporation has been selected by the Missouri Highways and Transportation Commission for the Interstate 70 Rocheport to Columbia Design-Build project, valued at $441 million [1][2] - The project aims to enhance a critical segment of I-70 by adding a third lane in each direction, modernizing infrastructure, and improving interchange operations to facilitate safer freight and passenger movement [2][3] - Construction is scheduled to commence in mid-2026 and is expected to be completed by December 2029 [2] Company Expertise - Parsons and Emery Sapp & Sons (ESS) have a strong track record with a combined portfolio of 69 design-build projects and 15 I-70 rehabilitation efforts completed or in progress over the last five years [3] - The team has extensive experience with Missouri Department of Transportation programs, including previous I-70 modernization projects, which positions them well to meet budget, schedule, and mobility objectives [3] Industry Impact - The project is part of Missouri's initiative to strengthen its transportation corridors, which is crucial for regional economic development and infrastructure reliability [3] - Parsons is recognized as a leading provider of disruptive technology in national security and global infrastructure markets, with capabilities spanning various sectors including transportation and critical infrastructure protection [4]

Core Insights - Parsons Corporation has secured a position on Sound Transit's $1 billion ceiling Multiple Award Task Order Contract (MATOC) for design services, supporting a $60 billion capital program in North America [1][2] - The contract spans five years with two potential one-year extensions, focusing on architecture, engineering, and related services for various transportation projects [2][3] Company Background - Parsons Corporation is recognized as a leading provider of disruptive technology in national security and global infrastructure markets, with expertise in areas such as cyber warfare, transportation, and critical infrastructure protection [6] - The company has extensive experience in designing and delivering infrastructure, including over 10,000 miles of roadways and 4,500 bridges, contributing to improved safety and efficiency in urban environments [4] Project Details - Under the MATOC, Parsons will engage in projects that include light rail extensions, system resiliency improvements, and state of good repair initiatives [2] - The company has a history of collaboration with Sound Transit, including significant projects like the Federal Way Link Extension and the Everett Link Extension [3][8]

Group 1 - Parsons Corporation will participate in a fireside chat at the Raymond James TMT and Consumer Conference on December 9, 2025, at approximately 10:40 a.m. Eastern Time [1] - The presentation will be available live via webcast on the investor relations section of Parsons' website, with a replay available for 30 days following the presentation [2] Group 2 - Parsons Corporation is a leading disruptive technology provider in national security and global infrastructure markets, with capabilities in cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection [3]