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Parsons secures $27M DTRA task order in Eastern Europe

Published 10/24/2024, 06:34 AM
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CHANTILLY, Va. - Parsons Corporation (NYSE: NYSE:PSN), a disruptive technology provider in national security and infrastructure markets, has been awarded a task order by the Defense Threat Reduction Agency (DTRA) to counter weapons of mass destruction (WMD) proliferation in Eastern Europe. The task order, with a ceiling value of $27 million, falls under the DTRA Cooperative Threat Reduction Integrating Contract (CTRIC) III.

The company will embark on a two-year period of performance, with an option for three additional one-year periods, to deliver expertise, training, and resources to partner nations. This initiative is aimed at enhancing their capabilities to detect and intercept WMD-related trafficking. Parsons' role will encompass program management, procurement and delivery of equipment, training, sustainment, and design and construction management capabilities.

Jon Moretta, President of Engineered Systems at Parsons, commented on the company's commitment to advancing the DTRA's mission, reinforcing its long-standing relationship with the agency. Parsons has been instrumental in the DTRA's Cooperative Threat Reduction mission, partnering with countries to mitigate global WMD threats and related security concerns.

Since being named on the DTRA CTRIC III multiple award contract in June 2018, Parsons has secured seven task orders, contributing to the agency's global security efforts. The company's broad expertise spans across various domains including cyber and intelligence, space and missile defense, as well as environmental and urban development.

The information in this article is based on a press release statement from Parsons Corporation. The company's forward-looking statements indicate ongoing efforts to support national and global security, though they are subject to various risks and uncertainties that could affect future performance.

In other recent news, Parsons Corporation has seen notable developments in its business operations. Raymond James has shifted its rating for Parsons from a Strong Buy to Outperform, setting a new price target of $115.00, reflecting potential short-term challenges in the Government Services sector. Despite this, the firm maintains a positive long-term outlook. Parsons has also acquired BCC Engineering for $230 million, aiming to enhance its infrastructure capabilities in the Southeastern United States.

The company has secured a $225 million contract with the United States Army Corps of Engineers for environmental remediation projects, and two transport infrastructure contracts in the Middle East, totaling $25 million. Parsons has also been named as the design subcontractor for Tutor Perini (NYSE:TPC) Corporation's $1.66 billion Honolulu rail project.

In terms of financial performance, Parsons reported record revenue of $1.7 billion and adjusted EBITDA of $150 million. The company's current backlog stands at $8.8 billion, with $13 billion in recent contract wins. These recent developments underscore Parsons' active engagement with the Infrastructure Investment & Jobs Act, which is expected to provide more stable long-term support for its projects.

InvestingPro Insights

Parsons Corporation's recent $27 million task order from the Defense Threat Reduction Agency aligns with the company's strong financial performance and market position. According to InvestingPro data, Parsons has demonstrated impressive revenue growth, with a 28.35% increase in the last twelve months as of Q2 2023, reaching $6.12 billion. This growth trajectory is further supported by an InvestingPro Tip indicating that net income is expected to grow this year.

The company's focus on disruptive technology in national security markets appears to be paying off, as evidenced by its robust financial metrics. Parsons' EBITDA growth of 53.05% in the last twelve months showcases its operational efficiency and ability to capitalize on high-value contracts like the DTRA task order.

Investors have taken notice of Parsons' performance, with the stock showing a strong return of 85.3% over the past year. This aligns with another InvestingPro Tip highlighting the company's high return over the last year. The market's optimism is further reflected in the stock trading at 95.28% of its 52-week high.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Parsons Corporation, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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