CHANTILLY, Va. - Parsons Corporation (NYSE: NYSE:PSN), a technology provider in national security and infrastructure, announced its inclusion in the S&P MidCap 400 Index effective prior to trading on September 23, 2024. The company, celebrating its 80th anniversary this year, has seen significant growth with record organic revenue increases and has been recognized for its ethical business practices.
The addition to the index comes after Parsons reported over 20% organic revenue growth in both of its business segments for the first and second quarter of 2024, continuing the momentum from 2023. This growth aligns with the company's record results since its initial public offering in terms of total revenue, net income, adjusted EBITDA, operating cash flow, and contract awards.
Carey Smith, Parsons' Chair, President, and CEO, stated that joining the S&P MidCap 400 Index marks an important milestone for Parsons, reflecting the company's progress and its role in shaping the future of global infrastructure and national security.
Parsons has also been recognized as one of the World’s Most Ethical Companies by Ethisphere for the 15th consecutive year in 2024, among other accolades for its hiring practices and workforce culture.
The company's capabilities span various sectors, including cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection.
The information in this article is based on a press release statement.
In other recent news, Parsons Corporation has been making significant strides in its business operations. The company reported a record revenue of $1.7 billion and adjusted EBITDA of $150 million in the second quarter of 2024. Parsons secured a $68.5 million contract to design and build new housing for the U.S. Army in the Kwajalein Atoll, Republic of the Marshall Islands, and a nearly $46 million contract to provide Operations Technology Maintenance Services for an unspecified East Coast transportation client.
Further, Parsons completed the acquisition of BlackSignal Technologies for $200 million, a strategic initiative expected to boost its cyber operations and electronic warfare capabilities. Parsons has also been chosen as the lead designer for Tutor Perini (NYSE:TPC) Corporation's $1.66 billion Honolulu rail project.
Financial analysis firms KeyBanc and Benchmark have revised their price targets for Parsons Corporation to $99 and $101 respectively, indicating increased estimates for the company's future earnings and growth potential. These revisions come after a series of investor meetings where Parsons' executive team discussed various strategic aspects of the business.
In more recent developments, Parsons' engagement with the Infrastructure Investment & Jobs Act is expected to provide more stable long-term support for its projects. The company's financial guidance for 2024 has been revised upwards due to strong performance and a robust pipeline. The company's backlog currently stands at $8.8 billion, with $13 billion in recent contract wins.
InvestingPro Insights
As Parsons Corporation (NYSE: PSN) joins the S&P MidCap 400 Index, the company's financial health and market performance continue to be areas of interest for investors. According to the latest data from InvestingPro, Parsons boasts a substantial market capitalization of $10.19 billion, underscoring its significant presence in the industry. The company's revenue growth has been impressive, with a 28.35% increase over the last twelve months as of Q2 2024, which aligns with the organic revenue growth mentioned in their recent inclusion in the index.
InvestingPro Tips highlight that analysts are optimistic about Parsons' future earnings, with 9 analysts revising their earnings estimates upwards for the upcoming period. This suggests a positive outlook on the company's financial trajectory. Additionally, Parsons' liquid assets have been reported to exceed its short-term obligations, indicating a strong liquidity position that could support ongoing operations and strategic initiatives.
Despite trading at a high earnings multiple with a P/E ratio of 188.11, reflecting a premium valuation, the company has demonstrated a strong return over the past year, with the stock price yielding a 67.41% return. This performance is indicative of investor confidence and the company's robust market position. For those interested in further insights, there are 12 additional InvestingPro Tips available for Parsons Corporation, which can be found at https://www.investing.com/pro/PSN.
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