Parsons lands spot on $1.5 billion Air Force contract

CHANTILLY, Va. - Parsons Corporation (NYSE: PSN), a technology provider in the defense and infrastructure sectors, has secured a position on a $1.5 billion contract with the Air Force Civil Engineering Center (AFCEC). The contract, which includes a five-year base period with options to extend up to an additional five and a half years, will allow Parsons to compete for task orders to provide architect-engineer services focused on environmental issues at U.S. Air Force installations globally. The company, currently valued at $6.9 billion, has demonstrated strong revenue growth of 24% over the last twelve months, according to InvestingPro data.

The services outlined in the contract encompass environmental restoration and compliance, conservation, planning and programming, as well as addressing emerging contaminants such as per- and polyfluoroalkyl substances (PFAS). These efforts are critical to maintaining the safety and sustainability of military and federal agency operations. With a solid financial health score rated as "GOOD" by InvestingPro analysts and operating with a moderate debt-to-equity ratio of 0.59, Parsons appears well-positioned to execute on this contract.

Jon Moretta, President of Engineered Systems at Parsons, emphasized the company’s commitment to delivering advanced and cost-effective environmental solutions. Leveraging over 50 years of experience in environmental engineering for the Department of Defense, Parsons aims to utilize its expertise and innovative technologies to address environmental challenges, including PFAS contamination.

The contract win builds on Parsons’ track record in environmental remediation, including a recent project managing a PFAS groundwater treatment system at Burlington Air National Guard Base in Vermont. The company’s capabilities were further enhanced by the acquisition of TRS Group, Inc., an environmental remediation technology provider, in February 2025.

Parsons, listed on the New York Stock Exchange, is recognized for its contributions to national security and infrastructure, offering services across various domains including cyber intelligence, space and missile defense, and urban development. The company maintains a healthy current ratio of 1.29 and has generated $474 million in levered free cash flow over the past twelve months. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, Parsons currently appears undervalued based on its Fair Value calculation.

This announcement contains forward-looking statements regarding Parsons’ future performance and the potential impact of this contract. These statements are based on current expectations and are subject to risks and uncertainties that could affect the company’s actual results. Analysts maintain a positive outlook, with earnings forecasted to reach $3.61 per share in fiscal year 2025.

The information in this article is based on a press release statement from Parsons Corporation.

In other recent news, Parsons Corporation has secured a $24 million contract with the Naval Medical Research Command to enhance biodefense research, focusing on rapid detection of infectious diseases. This contract underscores Parsons’ ongoing relationship with the NMRC and its commitment to advancing national security efforts. Additionally, Parsons has increased its stock repurchase program authorization to $250 million, reflecting its strong operating results and strategic growth initiatives. In another development, Sealing Technologies, a subsidiary of Parsons, has been awarded a Department of Defense prototype agreement to develop the Joint Cyber Hunt Kit, furthering its role in national security cyber operations.

On the financial front, Benchmark analyst Josh Sullivan has adjusted Parsons’ stock price target from $130 to $90, maintaining a Buy recommendation. Sullivan noted Parsons’ resilience to Department of Defense maneuvers and highlighted potential catalysts in international relations and infrastructure projects. Conversely, TD Cowen downgraded Parsons’ stock rating from Buy to Hold, reducing the price target to $56 due to concerns over anticipated growth slowdown and financial guidance assumptions. This marks a shift from Parsons’ previous momentum, as the company faces challenges in maintaining its growth trajectory. These recent developments highlight Parsons’ strategic positioning and ongoing efforts to navigate the complex landscape of national security and infrastructure sectors.

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