Parsons Stock Price, News & Analysis

Parsons (NYSE:PSN) has completed the acquisition of BCC Engineering, for $230 million in an all-cash transaction. BCC, previously owned by Trivest Partners, is a leading transportation engineering firm providing planning, design, and management services across Florida, Georgia, Texas, South Carolina, and Puerto Rico. The acquisition enhances Parsons' infrastructure capabilities in the Southeast U.S., where the Infrastructure Investment and Jobs Act allocated approximately $100 billion in Federal Highway Administration formula dollars for 2022-2026. BCC will be integrated into Parsons' North America Infrastructure business unit.

Parsons (NYSE: PSN) reported record Q3 2024 results with revenue increasing 28% to $1.8 billion, driven by 26% organic growth. Net income rose 52% to $72 million, while adjusted EBITDA grew 31% to $167 million. The company achieved strong performance in both Federal Solutions and Critical Infrastructure segments, with Federal Solutions revenue up 42% and Critical Infrastructure revenue increasing 10%. Contract awards increased 24% to $1.8 billion. The company completed the BlackSignal Technologies acquisition and announced plans to acquire BCC Engineering. Based on strong performance, Parsons raised its full-year 2024 guidance for all financial metrics.

Parsons (NYSE: PSN) has secured a new $27 million Defense Threat Reduction Agency (DTRA) task order focused on preventing weapons of mass destruction proliferation in Eastern Europe. The contract includes a two-year performance period with three one-year option periods under the DTRA Cooperative Threat Reduction Integrating Contract (CTRIC) III.

Parsons will provide expertise, training, resources, program management, equipment procurement, and construction management capabilities to help partner nations address security risks. This marks the company's seventh task order under CTRIC III since June 2018, furthering DTRA's mission to reduce global WMD threats.

Parsons (NYSE:PSN) has announced its agreement to acquire BCC Engineering, for $230 million in an all-cash transaction. BCC, a leading transportation engineering firm, provides services in Florida, Georgia, Texas, South Carolina, and Puerto Rico. This acquisition aligns with Parsons' strategy to expand its infrastructure capabilities in the Southeast U.S., an area benefiting from significant federal highway funding.

The acquisition is expected to strengthen Parsons' position as an infrastructure leader and enhance its service offerings. BCC will be integrated into Parsons' North America Infrastructure business unit. The net transaction value of $221 million represents approximately 13.0x BCC's estimated 2025 EBITDA. For 2025, Parsons anticipates BCC to generate about $110 million in gross revenue and contribute positively to Parsons' revenue growth and adjusted EBITDA margins.

Parsons (NYSE: PSN) has secured a position on a $225 million multiple award task order contract (MATOC) with the U.S. Army Corps of Engineers (USACE) Kansas City District. This new contract, focused on environmental remediation activities, has a one-year base period with four one-year options. It includes projects funded by the Infrastructure Investment and Jobs Act to support EPA cleanup initiatives.

Under this contract, Parsons will compete for task orders related to hazardous, toxic, and radioactive waste remediation, as well as environmental studies. The work will support USACE Northwestern Division and USEPA Region 2. This award follows Parsons' recent win of a seat on a $464 million MATOC with the U.S. Army Environmental Command for similar remediation services.

Parsons (NYSE:PSN) has been awarded two contracts worth $25 million for design engineering projects in the Middle East transportation sector. These contracts are part of over $90 million in awards from the same customer in the past 9 months. The scope includes:

• Design engineering and construction supervision for transportation infrastructure enhancements
• Development of mobility solutions and dedicated corridors
• Roadway capacity upgrades and public transit initiatives
• Strategic study for a new corridor to alleviate traffic
• Planning and design to minimize disruption to existing traffic

Parsons aims to create sustainable, eco-friendly mobility solutions that align with the region's vision for a greener future. These projects are part of broader strategic initiatives in Gulf member states, including Saudi Vision 2030 and Dubai 2040 Urban Master Plan.

Tutor Perini (NYSE: TPC) has announced the execution of a contract and receipt of Notice to Proceed for the $1.66 billion City Center Guideway and Stations Project in Honolulu, Hawaii. The project, awarded by the Honolulu Authority for Rapid Transportation, involves:

- Design and construction of six rail stations
- Approximately three miles of elevated rail guideway
- Scope extends from east of Middle Street Transit Center Station to Civic Center Station

Project timeline:
- Design to begin immediately
- Construction expected to start in second half of 2025
- Substantial completion anticipated by 2030

Parsons (NYSE: PSN) will serve as Tutor Perini's design subcontractor. The contract value has been added to the Company's backlog in the third quarter of 2024.

Parsons (NYSE: PSN) has been selected by the National Guard Bureau to manage the operation and maintenance of a PFAS groundwater treatment system at Burlington Air National Guard Base, Vermont. The two-year task order involves optimizing the existing granular activated carbon treatment system using Parsons' Water Treatability Lab in Syracuse, New York.

Jon Moretta, president of Engineered Systems at Parsons, emphasized the significance of addressing PFAS as a widespread environmental issue. Parsons, a global leader in water and wastewater treatment, has completed nearly 2,000 PFAS investigations for various clients and designed and installed 7,000 PFAS point-of-entry treatment systems. The company's expertise spans hydrogeology, human health, ecological risk assessment, remediation, and modeling.

Parsons (NYSE: PSN) has been awarded a position on a $4 billion Defense Threat Reduction Agency (DTRA) contract to support Countering Weapons Of Mass Destruction (CWMD) objectives. The indefinite-delivery, indefinite-quantity (IDIQ) multiple award task order contract (MATOC) includes a five-year base period and one five-year option period.

Under this contract, Parsons will compete for task orders to perform various services including research, development, testing and evaluation, procurement, maintenance, and systems engineering. The company aims to deliver scientific and technological solutions meeting the Department of Defense's priority CWMD objectives.

This contract continues Parsons' long-standing support of DTRA, which includes global projects addressing chemical weapons destruction, nuclear security, and non-proliferation of weapons of mass destruction. In 2023, Parsons also announced two task order awards under DTRA's Assessment, Exercise, Modeling and Simulation, and Support (AEMSS) IDIQ MATOC.