Hudson tunnel project extension awarded to MPA Delivery Partners

NEW YORK - MPA Delivery Partners, a joint venture of Mace, Parsons Corporation (NYSE:PSN), and Arcadis (EURONEXT:ARCAD), has secured a $665 million contract extension to continue managing the Hudson Tunnel Project (HTP), according to a press release issued Tuesday. Parsons Corporation, with a market capitalization of $8.86 billion and according to InvestingPro analysis, maintains a "GREAT" financial health score, positioning it well for this significant project.

The 4.5-year extension from the Gateway Development Commission (GDC) will support the ongoing development of what is described as one of the most urgent rail infrastructure projects in the United States. With a solid current ratio of 1.61 and moderate debt levels, InvestingPro data shows Parsons is financially equipped to handle such large-scale projects. InvestingPro subscribers have access to 9 additional key insights about Parsons’ financial position and growth prospects.

The Hudson Tunnel Project involves constructing a new two-tube rail tunnel under the Hudson River and rehabilitating the existing 115-year-old tunnel, along with adding nine miles of passenger rail track between New York and New Jersey.

According to the announcement, the project remains on schedule, with the new Gateway Tunnel expected to be completed by 2035 and the existing tunnel’s rehabilitation finished by 2038.

The project is reportedly creating economic activity across multiple states, with suppliers from North Carolina, Texas, Pennsylvania, Ohio, Alabama, Colorado, and Tennessee providing materials including steel, aggregates, rail components, and ventilation systems. This aligns with Parsons’ strong revenue growth of 9.22% over the last twelve months, as reported by InvestingPro. Discover comprehensive analysis and Fair Value estimates for Parsons and 1,400+ other stocks with an InvestingPro subscription.

Joe Marie, project executive for MPA Delivery Partners, called it "a once-in-a-generation project and a true collaboration between the public and private sectors."

MPA Delivery Partners was initially selected as the delivery partner in February 2024. The project aims to improve passenger rail service and enhance reliability of the Northeast Corridor for NJ TRANSIT and Amtrak.

The announcement indicates the project is expected to create more than 95,000 jobs throughout the United States and generate over $19 billion in economic activity.

In other recent news, Parsons Corporation has secured an $81 million contract with the U.S. Army Combat Capabilities Development Command to provide radar engineering solutions. The contract includes a 12-month base period with four optional 12-month extensions, continuing Parsons’ work under the Responsive Strategic Sourcing for Services contract vehicle. Parsons has also opened a new 27,000-square-foot facility near Redstone Arsenal in Huntsville, Alabama, to support its defense operations. This facility features 21,000 square feet of high-bay space for advanced programs and additional space for offices and secure environments.

In terms of analyst activity, KeyBanc has raised its price target for Parsons to $87, maintaining an Overweight rating due to discussions on growth opportunities with company executives. Conversely, Goldman Sachs downgraded Parsons from Buy to Neutral, citing concerns about the company’s ability to meet its fiscal year 2025 guidance and potential growth challenges into 2026. Additionally, Parsons has been involved in launching New Jersey’s first integrated Statewide Advanced Traffic Management System, developed in collaboration with HNTB Corporation. These developments highlight Parsons’ ongoing efforts in defense, infrastructure, and technology sectors.

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