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CHANTILLY, Va. - Parsons Corporation (NYSE: PSN), a $7.45 billion market cap technology services provider with annual revenues of $6.77 billion, has been awarded a $169.5 million contract by the United States Army Corps of Engineers (USACE) Norfolk District to build a new Ammonium Nitrate Solution (ANSol) Tank Farm at Holston Army Ammunition Plant (HSAAP), the company announced Monday. According to InvestingPro data, the company maintains strong financial health with an EBITDA of $566 million.
The four-year contract involves providing design-build delivery services for the tank farm, which will replace existing storage tanks to support expanded manufacturing at the government-owned facility. The new infrastructure will increase storage capacity for ANSol, a byproduct of the explosives manufacturing process. InvestingPro analysis shows Parsons operates with a moderate debt level and maintains a healthy current ratio of 1.29, suggesting strong operational efficiency. InvestingPro subscribers have access to 7 additional key insights about PSN’s financial position.
"Holston Army Ammunition Plant has a vital role in ensuring our nation’s warfighters have what they need when they need it to successfully carry out missions around the world," said Jon Moretta, President of Engineered Systems for Parsons, according to the press release.
This award represents Parsons’ third USACE Norfolk District contract in four years. The company was previously selected to deliver an Explosive Decomposition Chamber facility at HSAAP in 2023 and a design-build contract for an Energetic Waste Incinerator at Radford Army Ammunition Plant in 2021.
The project is part of the U.S. Army’s multi-year, multi-billion-dollar initiative to modernize its organic industrial base, which includes upgrades to facilities, processes, and workforce capabilities throughout depots, arsenals, and ammunition plants.
Parsons Corporation provides technology services in national security and global infrastructure markets, with capabilities in areas including cyber intelligence, space defense, transportation, and critical infrastructure protection. The company’s stock currently trades near its InvestingPro Fair Value, with analysts projecting earnings of $3.30 per share for fiscal year 2025. Discover comprehensive analysis and detailed metrics in the Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Parsons Corporation has announced a significant revision to its financial outlook due to uncertainties surrounding a classified contract with the U.S. State Department. The company disclosed that it has removed this contract from its fiscal year 2025 guidance, leading to a reduction in projected adjusted EBITDA to between $590 million and $630 million, down from the previous range of $640 million to $710 million. TD Cowen analysts maintained a Hold rating on Parsons’ stock, noting the potential restructuring impacts on sales and expressing concerns about the substantial cuts and contract uncertainties. Despite these challenges, Benchmark analysts reiterated a Buy rating, maintaining a $90.00 price target, while Raymond James and William Blair both kept a Market Perform rating, citing the need for further clarity on government procurement activities.
In addition to these developments, Parsons has been selected as one of the lead consultants for the City of Austin’s airport expansion project, known as the Journey With AUS. This initiative will involve modernizing and developing the Austin-Bergstrom International Airport over a five to seven-year period. Parsons will provide program management services to support the city’s Department of Aviation, aiming to ensure timely and efficient project delivery. The expansion will include enhancements such as terminal expansion, infrastructure improvements, and sustainability initiatives to increase airport capacity and improve operational efficiency. Parsons’ extensive experience in global airport projects positions it well for this role, as it continues to contribute to the growth and development of Austin’s infrastructure.
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