CHANTILLY, Va. - Parsons Corporation (NYSE: NYSE:PSN) has been awarded 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, as announced today. This contract, which spans three years, marks new work for the company with the United States Army Corps of Engineers (USACE) Honolulu District.
Under the terms of the agreement, Parsons will be responsible for the design-bid-build delivery of the new army housing units. This project follows a previous $44 million contract awarded to Parsons in October 2023 for similar work, demonstrating the company's ongoing support of the U.S. Army's modernization efforts.
The USACE Honolulu District also selected Parsons for its Pre-Qualified Source Listing (PQSL), positioning the company to receive future task orders valued at $50 million or more. Jon Moretta, President of Engineered Systems at Parsons, highlighted the importance of the company's role in supporting the U.S. Indo-Pacific Command's objectives, particularly given the unique challenges of developing infrastructure in the remote and environmentally harsh conditions of the Kwajalein Atoll.
Since 2019, Parsons has secured over $400 million in contracts related to the Indo-Pacific Command (INDOPACOM), leveraging its expertise in program and construction management, engineering and planning, and complex infrastructure. The company's work in the region aligns with its broader capabilities in national security and global infrastructure markets, including cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure.
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 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. Furthermore, Parsons secured a nearly $46 million contract to provide Operations Technology Maintenance Services for an unspecified East Coast transportation client, a move aimed at enhancing its service delivery in transportation technology.
The company also completed the acquisition of BlackSignal Technologies for $200 million, a strategic initiative expected to boost its cyber operations and electronic warfare capabilities. Additionally, Parsons has been chosen as the lead designer for Tutor Perini (NYSE:TPC) Corporation's $1.66 billion Honolulu rail project, a development that could contribute to future revenue projections.
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) continues to expand its presence in the Indo-Pacific region with the latest $68.5 million contract, its financial metrics and market sentiment provide a broader picture of the company's performance and prospects. According to InvestingPro data, Parsons has a market capitalization of $9.76 billion and a high Price/Earnings (P/E) ratio of 178.75, which adjusts to a lower 70.12 when considering the last twelve months as of Q2 2024. The company has demonstrated robust revenue growth of 28.35% over the same period, underscoring its successful expansion efforts.
The InvestingPro Tips highlight several positives for Parsons, including an expectation for net income growth this year and a consensus among analysts who have revised their earnings upwards for the upcoming period. This optimism is reflected in the company's share price, with a strong return of 67.41% over the past year and a notable 23.31% increase over the last three months. These figures suggest that investors have confidence in Parsons' growth trajectory and operational efficiency. It's worth noting that Parsons does not currently pay a dividend to shareholders, which could be a consideration for income-focused investors.
For those interested in a deeper dive into Parsons Corporation's financials and market predictions, InvestingPro offers an extensive list of additional tips, including insights on the company's debt levels, liquidity, and profitability. With 11 more InvestingPro Tips available, investors can access a comprehensive analysis to inform their investment decisions.
Parsons' strong returns and favorable analyst revisions, coupled with its strategic contracts, indicate that the company is well-positioned to capitalize on opportunities within the national security and global infrastructure markets. Investors looking to understand the full scope of Parsons' potential can find further valuable insights by visiting https://www.investing.com/pro/PSN.
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