CHANTILLY, Va. - Parsons Corporation (NYSE: NYSE:PSN), a technology provider in national security and infrastructure markets, has been selected for a $225 million multiple award task order contract by the United States Army Corps of Engineers (USACE) Kansas City District. The company will participate in environmental remediation projects with a one-year base period and four one-year options, marking new work for Parsons.
The contract is part of efforts funded by the Infrastructure Investment and Jobs Act and supports Environmental Protection Agency (EPA) cleanup initiatives aimed at safeguarding public health and safety. Parsons will compete for task orders that involve remediation and investigation of hazardous, toxic, and radioactive waste, along with environmental studies such as wetlands delineation, habitat mitigation, and pollution prevention.
Jon Moretta, president of Engineered Systems at Parsons, emphasized the company's commitment to delivering environmental solutions and its long-standing partnership with the federal government, including USACE and EPA. Parsons' expertise in environmental remediation is expected to contribute to the projects under the Northwestern (NASDAQ:NWE) Division of USACE and EPA Region 2.
Previously in April, Parsons announced securing a position on a $464 million contract for similar remediation services, highlighting its ongoing involvement in addressing environmental concerns like hazardous toxic waste and substances like PFAS.
Parsons, recognized for its disruptive technologies across various sectors, including cyber and intelligence, space and missile defense, and urban development, continues to support the USACE mission to provide essential engineering solutions.
The information in this article is based on a press release statement from Parsons Corporation.
In other recent news, Parsons Corporation has been making significant strides in securing contracts and increasing its revenue. The engineering firm has landed two new transport infrastructure contracts in the Middle East, totaling $25 million. Additionally, Parsons has been named as the design subcontractor for Tutor Perini (NYSE:TPC) Corporation's $1.66 billion Honolulu rail project. The company also reported record revenue of $1.7 billion and adjusted EBITDA of $150 million.
Parsons has been chosen to manage a PFAS treatment project at the Burlington (NYSE:BURL) Air National Guard Base and secured a position on a $4 billion contract supporting the U.S. Defense Threat Reduction Agency's counter-WMD efforts. Analyst firms KeyBanc and Benchmark have revised their price targets for Parsons to $99 and $101 respectively, indicating increased estimates for future earnings and growth potential.
These are among the recent developments for Parsons, which also include the acquisition of BlackSignal Technologies for $200 million and the company's inclusion in the S&P MidCap 400 Index. Parsons' engagement with the Infrastructure Investment & Jobs Act is expected to provide more stable long-term support for its projects, and the company's backlog currently stands at $8.8 billion, with $13 billion in recent contract wins.
InvestingPro Insights
Parsons Corporation's recent $225 million contract win with the U.S. Army Corps of Engineers aligns well 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 2024, 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 stock has shown remarkable strength, with a one-year price total return of 86.42% as of the latest data. This performance is reflected in another InvestingPro Tip, which notes that Parsons is trading near its 52-week high, currently at 98.72% of that peak. The market's positive sentiment towards Parsons is further evidenced by 9 analysts revising their earnings upwards for the upcoming period, as highlighted in an additional InvestingPro Tip.
While Parsons' P/E ratio of 82.53 (adjusted for the last twelve months as of Q2 2024) suggests a high earnings multiple, it's worth noting that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations. These factors, combined with the recent contract win, may contribute to the company's ability to capitalize on growth opportunities in the environmental remediation sector.
For investors seeking a deeper understanding of Parsons Corporation's financial health and market position, InvestingPro offers 15 additional tips, providing a comprehensive analysis to inform investment decisions.
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