Parsons secures $81 million radar engineering contract with US Army

CHANTILLY, Va. - Parsons Corporation (NYSE:PSN), a defense technology company with $6.7 billion in annual revenue and an $8.6 billion market capitalization, has been awarded an $81 million task order by the U.S. Army Combat Capabilities Development Command (DEVCOM) to provide radar engineering solutions, according to a press release statement. InvestingPro analysis shows the company maintains a "GREAT" financial health score, suggesting strong operational stability.

The contract, awarded under the Responsive Strategic Sourcing for Services (RS3) contract vehicle, includes a 12-month base period with four 12-month option periods. The agreement is a recompete of an existing contract.

Under the terms, Parsons will enhance Army aerial and ground radar capabilities through development of radio frequency technologies, artificial intelligence integration, and systems engineering services for the Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) division.

The scope of work encompasses operational support, program management, engineering, integration, prototype development, and fabrication services.

"We recognize the vital importance of C5ISR capabilities in addressing the complex security challenges, from emerging hypersonic threats to intelligence gathering at the tactical edge," said Mike Kushin, Parsons’ President of Defense and Intelligence.

The contract aims to support the Army’s efforts to maintain advanced radar capabilities amid evolving missile defense requirements.

Parsons Corporation, headquartered in Chantilly, Virginia, provides technology-driven solutions in defense, intelligence, and critical infrastructure markets.

In other recent news, Parsons Corporation reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company exceeded earnings per share (EPS) expectations with a reported EPS of $0.78, surpassing the forecast of $0.749. However, revenue fell short, coming in at $1.58 billion, below the anticipated $1.61 billion, and marking a 5% decrease from the previous year. In terms of contracts, Parsons secured a $30 million recompete contract from the U.S. Army for radar development engineering services. This contract includes a 12-month base period with four 12-month option periods. Meanwhile, Goldman Sachs downgraded Parsons’ stock from Buy to Neutral, citing concerns about the company’s growth prospects and fiscal year 2025 guidance. In contrast, Baird upgraded Parsons’ stock rating to Outperform, noting a strong growth outlook driven by potential catalysts in projects like the FAA and Golden Dome. Additionally, Parsons has successfully implemented a new Statewide Advanced Traffic Management System for the New Jersey Department of Transportation, marking a significant development in traffic management solutions.

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