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CHANTILLY, Va. - Parsons Corporation (NYSE:PSN), a technology provider in the defense and infrastructure sectors with a market capitalization of $8.2 billion, has acquired TRS Group, Inc., an environmental remediation specialist, for $36 million in cash. The company, which has demonstrated robust revenue growth of 29% over the last twelve months according to InvestingPro data, announced today this strategic move to enhance its capabilities in addressing environmental concerns such as per and polyfluoroalkyl substances (PFAS) contamination.
TRS Group, established in 2000, is recognized for its expertise in thermal remediation, having completed over 160 projects that treat hazardous substances in soil, groundwater, and other media. The firm is also the exclusive North American licensee of the PerfluorAd™ technology, a method used to remove PFAS compounds from various systems, including firefighting equipment and wastewater streams. Parsons maintains a strong financial position with a healthy current ratio of 1.55 and operates with moderate debt levels, positioning it well for strategic acquisitions like this one.
The acquisition is expected to bolster both of Parsons’ key segments: Federal Solutions and Critical Infrastructure. Carey Smith, Parsons’ President and CEO, emphasized the alignment of the companies’ innovative cultures and the potential for creating sustainable projects that serve communities and preserve natural resources.
With increasing state regulations on hazardous substances like PFAS, TRS has been instrumental in helping clients comply with these evolving standards. Currently, 34 states have introduced PFAS restrictions, highlighting the growing need for effective remediation technologies.
Parsons, recognized for its contributions to national security and global infrastructure, anticipates that the integration of TRS will lead to advanced solutions for their clients’ complex environmental challenges.
This news article is based on a press release statement.
In other recent news, Parsons Corp . experienced a mix of analyst downgrades and contract concerns. Jefferies reduced Parsons’ stock price target from $110 to $100, maintaining a Buy rating despite anticipated challenges in sustaining the company’s recent growth rates. Meanwhile, William Blair and Raymond (NSE:RYMD) James downgraded Parsons’ stock rating from Outperform to Market Perform due to potential risks related to a significant U.S. State Department contract.
The company has been experiencing robust revenue growth, reaching $6.51 billion in the last twelve months, but is projected to slow down to 5% in 2025-26. However, Parsons is not expected to have a significant gap in sales, with contracts like the Department of State Humanitarian contract secure through 2032.
In other developments, government service companies including Booz Allen (NYSE:BAH) Hamilton and Science Applications (NASDAQ:SAIC) International Corp saw a drop in shares following a 45% decrease in CACI International’s quarterly bookings. Despite these concerns, Jefferies and Truist analysts offered a mix of caution and optimism, highlighting CACI’s alignment with government efficiency initiatives.
Lastly, government service stocks, including Parsons, saw an increase following Elon Musk’s expression of doubt over achieving $2 trillion in cuts to the US federal budget. These are the most recent developments impacting Parsons Corp. and the broader market.
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