Parsons expands water capabilities in Florida with acquisition

CHANTILLY, Va. - Parsons Corporation (NYSE:PSN), a $9.1 billion market cap engineering firm with strong financial health according to InvestingPro analysis, has acquired Tampa-based Applied Sciences Consulting, Inc., an engineering firm specializing in water and stormwater solutions across Florida, the company announced Thursday.

The all-cash transaction brings Applied Sciences’ expertise in water infrastructure resilience under Parsons’ North America Infrastructure business unit. Founded in 2005, Applied Sciences has established relationships with cities, counties, and water management districts throughout Florida. Parsons enters this deal from a position of financial strength, with InvestingPro data showing liquid assets exceeding short-term obligations and a moderate debt level.

"Especially as Florida continues to make significant investments to enhance the state’s water infrastructure, this acquisition expands our global expertise and our ability to advance community health and development in the Southeast and across the United States," said Carey Smith, chair, president, and chief executive officer of Parsons Corporation.

The acquisition aligns with Parsons’ strategy of completing purchases with revenue growth and adjusted EBITDA margins of at least 10%. The company has demonstrated solid execution, generating $6.68 billion in revenue over the last twelve months, with an EBITDA of $540.5 million. Get deeper insights into Parsons’ financial health and growth potential with InvestingPro’s comprehensive research report, available along with 8 additional key ProTips.

Elie Araj, founder and president of Applied Sciences, said: "When I founded Applied Sciences 20 years ago, I believed that engineering—done right—could help cities and counties solve their toughest challenges and build stronger, more resilient communities."

The deal positions Parsons to capitalize on Florida’s multi-billion dollar commitments to water infrastructure, resilience, and quality initiatives, which are further supported by federal programs aimed at environmental stability and economic growth.

Parsons, which has previously transformed complex water and wastewater projects globally, expects the acquisition to strengthen its presence in Florida while expanding capabilities to existing and new clients worldwide.

Morrissey Goodale advised Applied Sciences in this transaction, according to the press release statement.

In other recent news, Parsons Corporation has been awarded a $665 million contract extension as part of the MPA Delivery Partners joint venture to continue managing the Hudson Tunnel Project. This 4.5-year extension from the Gateway Development Commission supports one of the United States’ critical rail infrastructure projects. Additionally, Parsons secured an $81 million task order from the U.S. Army Combat Capabilities Development Command for radar engineering solutions, featuring a 12-month base period and four option periods. In terms of infrastructure advancements, Parsons has also implemented a new Statewide Advanced Traffic Management System for the New Jersey Department of Transportation, marking the first integrated system of its kind for the state.

In corporate developments, Parsons has opened a 27,000-square-foot facility near Redstone Arsenal in Huntsville, Alabama, to enhance its defense capabilities. KeyBanc has raised its price target for Parsons to $87 from $84, maintaining an Overweight rating, following discussions with the company’s CEO and CFO about growth opportunities. These recent developments highlight Parsons Corporation’s ongoing expansion and involvement in significant projects across various sectors.

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