Parsons Awarded $250 Million Classified Contract

Rhea-AI Summary

Parsons Corporation (PSN) secures a single award classified contract worth over $250 million to continue supporting the U.S. Government, with a base period of one year and four one-year option periods.

Defense Contracting Analyst

Parsons Corporation's recent contract, exceeding $250 million, is a notable affirmation of its entrenched relationship with the U.S. Government. This contract is not only a substantial revenue source but also a testament to Parsons' expertise and reliability in the defense sector. Given the contract has a potential duration of five years, it provides a stable financial outlook, which is particularly valuable in an industry that is often subject to the ebbs and flows of government spending.

Investors should note that long-term government contracts can lead to predictable cash flows, which are beneficial for financial planning and investment in future projects. However, reliance on government contracts can also pose risks, including exposure to changes in government priorities and budget constraints. It is crucial for Parsons to maintain performance excellence to ensure contract renewals and to explore diversification strategies to mitigate sector-specific risks.

Risk Management Specialist

The announcement of Parsons Corporation's classified contract with the U.S. Government carries implications for risk assessment. The classification of the contract suggests that Parsons is handling sensitive projects, which may involve heightened security measures and adherence to strict compliance protocols. While this can enhance Parsons' reputation as a trusted government contractor, it also introduces the potential for increased scrutiny and operational challenges.

From a risk management perspective, the contract's classified nature may limit the amount of information available to shareholders, complicating the task of accurately evaluating the company's risk profile. Investors should consider the balance between the benefits of a steady income stream against the opacity of operations and the associated security risks. Diversification of contracts across different levels of classification and agencies could help mitigate these risks.

Investment Strategist

For investors, Parsons Corporation's $250 million contract is a significant indicator of the company's competitive position within the defense contracting market. The contract's duration and options for extension suggest a long-term revenue commitment, which can be attractive for investors looking for stability in their portfolio. Additionally, the fact that Parsons has been entrusted with this task for over a decade indicates a strong track record and could signal future contract wins.

However, investors should also consider the broader market context. The defense sector is often at the mercy of political shifts and budgetary allocations. It is important for investors to monitor the political landscape and defense spending trends, as these can have direct implications for Parsons' future contract opportunities and financial performance.

CHANTILLY, Va., Dec. 19, 2023 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today a single award classified contract for continued work in support of the U.S. Government, valued at over $250 million. This award represents a critical task that the corporation and its acquired companies have been performing for over a decade and has a base period of one year with four one-year option periods.

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

Forward-Looking Statements:
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our Registration Statement on Form S-1 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

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

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

What did Parsons Corporation announce on Dec. 19, 2023?

Parsons Corporation announced a single award classified contract for continued work in support of the U.S. Government, valued at over $250 million.

What is the value of the contract secured by Parsons Corporation?

The contract secured by Parsons Corporation is valued at over $250 million.

How long is the base period of the contract?

The base period of the contract is one year.

How many one-year option periods are included in the contract?

The contract includes four one-year option periods.