Parsons Awarded $100 Million Contract to Expand Defense Industrial Base Munitions Capacity

Rhea-AI Summary

Parsons (NYSE: PSN) was awarded a task order exceeding $100 million by Nammo to provide design and program and construction management (PM/CM) for a new rocket motor manufacturing facility in Perry, Florida.

The contract supports the Department of War’s Acquisition Transformation Strategy, comprises a two-year construction period, and represents new work for Parsons. Parsons and Nammo broke ground on the project in October, and Parsons was ranked a top program management and construction management firm by Engineering News-Record in 2025.

Positive

• Task order exceeding $100 million
• Contract covers a two-year construction period
• Supports DOW acquisition strategy to expand U.S. munitions capacity
• Groundbreaking occurred in October
• Ranked top program management firm by Engineering News-Record 2025

Negative

• None.

News Market Reaction

+1.37%

1 alert

+1.37% News Effect

On the day this news was published, PSN gained 1.37%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Rocket motor facility contract: Exceeding $100 million Construction period: Two years Industry ranking year: 2025

3 metrics

Rocket motor facility contract Exceeding $100 million Task order from Nammo for Perry, Florida facility

Construction period Two years Duration of construction for new rocket motor facility

Industry ranking year 2025 Year Parsons ranked top in program management by Engineering News-Record

Market Reality Check

Price: $69.44 Vol: Volume 1,303,231 is below...

low vol

$69.44 Last Close

Volume Volume 1,303,231 is below the 20-day average of 2,163,702, suggesting muted pre-news activity. low

Technical Shares at 60.55 are trading below the 200-day MA of 73.11, reflecting a weaker longer-term trend.

Peers on Argus

Momentum scanner shows sector names like APLD and PONY up around 4% without news...

2 Up

Momentum scanner shows sector names like APLD and PONY up around 4% without news, while no clear common move or direction is indicated for PSN’s closest peers. This points to the Parsons move being company-specific rather than a broad sector rotation.

Historical Context

5 past events · Latest: Dec 17 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 17	Cyber contract update	Positive	-2.4%	Contract modification for Joint Cyber Hunt Kit prototype continuation.
Dec 10	Defense task order win	Positive	+2.9%	$88M task order for Air Base Air Defense mission support.
Dec 08	Space award recognition	Positive	-5.2%	TraCSS program honored with 2025 SpaceNews Icon Award.
Dec 05	Highway project selection	Positive	-5.2%	Lead designer role on $441M I-70 Rocheport–Columbia project.
Dec 05	Transit MATOC position	Positive	-5.2%	Position on Sound Transit’s $1B MATOC supporting $60B capital plan.

Pattern Detected

Recent contract and award announcements often saw divergent price reactions, with several positive defense and infrastructure wins followed by negative moves and only one clear alignment.

Recent Company History

Over the past months, Parsons reported multiple notable wins, including an $88M Air Base Air Defense task order lifting total ABAD value to $192M in 2025, major transportation work such as the $441M I-70 reconstruction, and a role on Sound Transit’s $1B-ceiling MATOC supporting a $60B capital program. Cyber and space recognition, like the TraCSS award, highlighted its technology capabilities. Against this backdrop of steady contract momentum, the new munitions facility award adds another defense-focused project to the pipeline.

Market Pulse Summary

This announcement details a task order exceeding $100 million for Parsons to provide design and prog...

Analysis

This announcement details a task order exceeding $100 million for Parsons to provide design and program/construction management for a new rocket motor facility, adding fresh defense-related work over a two-year construction period. It continues a stream of contract wins across defense, transportation, and space. In context of recent quarterly results and existing large frameworks, investors would watch backlog trends, margin performance, and execution on complex programs as key indicators of how such awards translate into long-term value.

Key Terms

rocket motor, munitions, pyrotechnic products, Defense Industrial Base

4 terms

rocket motor technical

"new rocket motor manufacturing facility in Perry, Florida"

A rocket motor is the engine that produces thrust by rapidly expelling gas or burning propellant to push a vehicle into space or change its flight path; think of it as the car’s engine for spacecraft and missiles. For investors, performance, reliability, cost and production capacity of rocket motors determine whether aerospace firms can win contracts, meet launch schedules and control expenses, directly affecting revenue, margins and risk.

munitions technical

"expanding the United States’ munitions production capacity"

Munitions are weapons and the consumable items that make them work—such as bullets, shells, bombs, rockets and explosive charges—used by armed forces or security forces. For investors, munitions matter because they are a core product in defense supply chains: demand can surge or fall with geopolitical events, government budgets and export controls, affecting company revenues, production capacity and regulatory or reputational risks much like a factory’s key product line.

pyrotechnic products technical

"Nammo’s Perry site serves as a center of excellence for munitions and pyrotechnic products"

Pyrotechnic products are devices and materials that produce heat, light, gas, smoke or a shock through controlled combustion or small detonations—think of items ranging from consumer fireworks and flares to tiny gas generators and igniters used in airbags or military flares. Investors care because these products are tightly regulated for safety, can carry high liability and insurance costs, depend on specialized supply chains, and their demand shifts with consumer leisure trends, automotive safety cycles, and defense spending.

Defense Industrial Base regulatory

"As the Department of War revitalizes the Defense Industrial Base"

A network of companies, suppliers, research centers and skilled workers that design, build, supply and maintain military equipment, technologies and services. It matters to investors because its health determines how reliably defense contracts turn into revenue, how exposed firms are to supply disruptions or policy shifts, and where long-term demand and government spending will flow — like the utility grid that keeps a city running, disruptions affect everyone served.

AI-generated analysis. Not financial advice.

Effort directly supports the DOW’s acquisition strategy by expanding the U.S. munitions production

CHANTILLY, Va., Dec. 19, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was awarded a task order exceeding $100 million by Nammo to provide design and program and construction management (PM/CM) for a new rocket motor manufacturing facility in Perry, Florida. This project directly supports the Department of War’s (DOW’s) Acquisition Transformation Strategy by expanding the United States’ munitions production capacity, strengthening supply chain resilience, and accelerating delivery of critical capabilities to the warfighter. The contract comprises a two-year construction period and represents new work for the company.

“Parsons is committed to fueling the arsenal of freedom and rapidly tackling the strategic challenges facing our nation,” said Jon Moretta, president, Engineered Systems for Parsons. “As the Department of War revitalizes the Defense Industrial Base, we are proud to leverage our technical design, engineering, and PM/CM expertise to accelerate production and strengthen supply chain resilience. By delivering increased capacity at the speed of combat, we ensure the warfighter has what they need when they need it.”

Parsons was ranked as the world’s top program management and a leading construction management firm by Engineering News-Record in 2025. Earlier this year, Nammo, an international aerospace and defense company, selected Parsons to help advance construction of the rocket motor facility in Perry, Florida. Together with industry partners, the two companies broke ground on the project in October, marking a critical step toward expanding the U.S. munitions industrial base. Nammo’s Perry site serves as a center of excellence for munitions and pyrotechnic products, from which the company provides energetic systems to the DOW. Parsons brings decades of experience managing complex military construction projects, including ammunition plants, arsenals, and depots.

To learn more about Parsons’ industrial base modernization solutions, visit Parsons.com/industrial-base-modernization/.

About Nammo
Nammo is an international aerospace and defense company headquartered in Raufoss, Norway. With more than 4000 employees, 27 production sites and a presence in 12 allied countries, Nammo is one of the world’s leading providers of specialty ammunition, shoulder-fired systems and rocket motors.

About Parsons
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn to learn how we’re making an impact.

Media Contact:
Bernadette Miller
+1 980.253.9781
bernadette.miller@parsons.com

Investor Relations Contact:
Dave Spille
+1 703.775.6191
Dave.Spille@parsons.us

FAQ

What did Parsons (PSN) announce on December 19, 2025?

Parsons announced a task order exceeding $100 million to provide PM/CM for a rocket motor facility in Perry, Florida.

How long is the Parsons (PSN) Perry, Florida construction contract?

The contract comprises a two-year construction period.

Who awarded Parsons (PSN) the task order for the Perry rocket motor facility?

The task order was awarded by Nammo to Parsons.

How does the Parsons (PSN) contract affect U.S. munitions production?

The effort is described as expanding U.S. munitions production capacity and strengthening supply chain resilience under the DOW acquisition strategy.

When did Parsons and Nammo break ground on the Perry facility?

Parsons and Nammo broke ground on the project in October.

What industry recognition does Parsons (PSN) cite in the announcement?

Parsons was ranked as a top program management and construction management firm by Engineering News-Record in 2025.