Parsons Secures $514 Million Missile Defense Agency Contract Option

Parsons (NYSE: PSN) announced that it has secured a $514 million, two-year contract option from the Missile Defense Agency (MDA) under the existing TEAMS – Next Missile Defense System Engineering contract, originally awarded in 2021.

Rhea-AI Summary

Parsons (NYSE: PSN) announced that it has secured a $514 million, two-year contract option from the Missile Defense Agency (MDA) under the existing TEAMS – Next Missile Defense System Engineering contract, originally awarded in 2021.

This second option extends Parsons’ role providing engineering, technical, analytical, and oversight support for the integrated Missile Defense System. According to the company, it will continue delivering advanced systems engineering, systems integration, and mission-critical solutions, including studies, analysis, evaluation, and oversight to help protect U.S. citizens and critical infrastructure from ballistic and hypersonic threats across air, land, sea, space, and cyber domains.

Positive

• $514 million two-year contract option extends funded backlog with MDA
• Continuation of TEAMS – Next option two reinforces longstanding MDA partnership
• Contract covers advanced engineering, analysis, and oversight for integrated Missile Defense System
• Work spans multiple domains, including air, land, sea, space, cyber, and electromagnetic warfare

Negative

• None.

Argus Aug 24 session

-0.41% close to close Open Argus

Details

News Market Reaction – PSN

On Aug 24, the day this news came out, PSN closed 0.41% below the previous close.

Data tracked by StockTitan Argus for the Aug 24 session.

Key Figures

Contract option value: $514 million Option duration: two years Option number: Option two +2 more

Contract option value

$514 million

Missile Defense Agency TEAMS-Next contract option

Option duration

two years

Contract option period

Option number

Option two

Existing TEAMS-Next contract

Original contract award

2021

TEAMS-Next contract

Announcement date

August 24, 2026

Parsons contract announcement

Historical Context

5 past events · Latest: Aug 20

5 events

1. Aug 20

   Contract award

   24h Move

   -2.3%

   Selected for $350M Seabed to Space ISR multiple-award contract

2. Aug 19

   Space contract selection

   24h Move

   +1.4%

   Selected for Space Force NITE-STAR capability development IDIQ contract

3. Aug 18

   Airport contract award

   24h Move

   +1.6%

   Awarded program and construction management work for Knoxville airport terminal modernization

4. Aug 13

   Defense task order

   24h Move

   +0.7%

   Received $70M ceiling task order for air base defense capabilities

5. Aug 13

   Threat reduction task order

   24h Move

   -1.4%

   Secured first CTRIC IV task order supporting chemical threat reduction

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

hypersonic weapons, electromagnetic warfare, air base air defense

3 terms

hypersonic weapons technical

"including ballistic missiles and hypersonic weapons."

Hypersonic weapons are missiles or glide vehicles that fly at extremely high speeds—typically more than five times the speed of sound—and can change course while in flight. They matter to investors because they drive government defense budgets, create demand for advanced materials and electronics suppliers, and can shift geopolitical risk and export controls; think of them as ultra-fast delivery systems that make warning time and defense planning much harder.

electromagnetic warfare technical

"leveraging its advanced electromagnetic warfare (EW) expertise"

Electromagnetic warfare is the use of radio waves and other parts of the electromagnetic spectrum to disrupt, deceive, or defend against sensing, communications, and weapons systems—think of it as jamming, blinding or spoofing an opponent’s electronic “ears” and “eyes.” For investors, it matters because companies that make or sell these systems supply military and security customers, face regulatory and export rules, and can win or lose contracts based on performance and technological leadership, affecting revenue and risk.

air base air defense technical

"From its Air Base Air Defense (ABAD) work overseas"

Systems, tactics and equipment deployed to protect an airfield and its aircraft from aerial attack, including radar, surface-to-air missiles, fighter patrols, anti-aircraft guns, and electronic‑warfare measures. Think of it like a layered security system around a valuable facility that detects threats early, intercepts or jams hostile aircraft and missiles, and shields ground assets. Its scope and cost matter to investors because contracts, procurement cycles and battlefield performance drive revenue and risk for defense suppliers and insurers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Key Takeaways:

• Parsons secured a $514 million, two-year contract option of its existing Technical, Engineering, Advisory, and Management Support (TEAMS) – Next Missile Defense System Engineering contract from the Missile Defense Agency.
• The company will continue providing engineering, technical, analytical, and oversight support for the nation’s integrated Missile Defense System.
• Parsons is continuing to support the Missile Defense Agency in helping ensure the effectiveness and readiness of U.S. missile defense capabilities against rapidly evolving threats.
  

CHANTILLY, Va., Aug. 24, 2026 (GLOBE NEWSWIRE) -- Parsons Corporation announced today it has been awarded a $514 million contract option by the Missile Defense Agency (MDA) to continue providing engineering and technical support to the agency. This is option two of the company’s existing Technical, Engineering, Advisory, and Management Support (TEAMS) - Next Missile Defense System Engineering contract, which was originally awarded in 2021.

“As missile threats grow more advanced, the need for integrated, battle-ready air and missile defense capabilities has never been greater,” said Mike Kushin, president, Defense & Intelligence for Parsons. “Parsons is delivering the technologies, systems integration, and operational solutions that help ensure the nation maintains a decisive advantage against evolving adversary capabilities. We are proud to support the Missile Defense Agency in strengthening the nation’s missile defense system through resilient command and control, advanced systems engineering, and mission-critical solutions that enable warfighters to detect, track, and defeat threats before they reach our homeland.”

This option further continues Parsons’ partnership with MDA, underscoring the company’s position as a trusted provider of advanced systems engineering, integration, and technical expertise.
Under the contract, Parsons delivers advanced engineering and technical support for studies, analysis, evaluation, and oversight for the integrated Missile Defense System (MDS).

Parsons provides support to the MDA’s missile defense programs to protect citizens and critical infrastructure from existing and emerging threats, including ballistic missiles and hypersonic weapons. From its Air Base Air Defense (ABAD) work overseas to protect critical national security infrastructure to formidable non-kinetic missile defeat capabilities leveraging its advanced electromagnetic warfare (EW) expertise, the company continues to deliver integrated, mission-critical solutions across air, land, sea, space, and cyber domains.

To learn more about Parsons’ missile defense solutions, visit Parsons.com/missile-defense-C5ISR/.

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:                                        
Angie Benfield        
+1 803.334.5277
Angie.Benfield@parsons.com

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the value and duration of Parsons (PSN) new Missile Defense Agency contract option?

Parsons secured a $514 million contract option with a two-year period of performance. According to Parsons, this is the second option under its existing TEAMS – Next Missile Defense System Engineering contract, extending engineering, technical, analytical, and oversight support for the integrated Missile Defense System.

How does the new $514 million MDA contract option affect Parsons (PSN)?

The $514 million option provides Parsons with two additional years of funded work supporting the Missile Defense Agency. According to Parsons, the option underscores its role as a trusted provider of advanced systems engineering, integration, and technical expertise for the nation’s integrated Missile Defense System.

What work will Parsons perform under the TEAMS – Next Missile Defense System Engineering contract option?

Under this option, Parsons will continue providing engineering, technical, analytical, and oversight support to the Missile Defense Agency. According to Parsons, work includes studies, analysis, evaluation, and oversight for the integrated Missile Defense System, addressing threats such as ballistic missiles and hypersonic weapons.

When was Parsons originally awarded the TEAMS – Next Missile Defense System Engineering contract with MDA?

Parsons’ TEAMS – Next Missile Defense System Engineering contract was originally awarded in 2021. According to Parsons, the newly exercised option is the second under this contract and extends the company’s engineering and technical support for the Missile Defense Agency’s integrated Missile Defense System.

Which defense domains are covered by Parsons’ new Missile Defense Agency contract option?

The contract option supports solutions across air, land, sea, space, and cyber domains. According to Parsons, its work includes Air Base Air Defense activities overseas and non-kinetic missile defeat capabilities that leverage advanced electromagnetic warfare expertise to protect critical national security infrastructure.

Does the Parsons (PSN) MDA contract option include support against hypersonic threats?

Yes, the contract option includes support against hypersonic threats. According to Parsons, its engineering and technical work for the Missile Defense Agency helps protect citizens and critical infrastructure from existing and emerging threats, including both ballistic missiles and hypersonic weapons within the integrated Missile Defense System.