Parsons at 45th Annual William Blair Growth Stock Conference: Strategic Growth Amid Uncertainty

On Tuesday, 03 June 2025, Parsons Corporation (NYSE:PSN) presented at the 45th Annual William Blair Growth Stock Conference, unveiling strategic plans and updated guidance. Despite removing a Department of State contract due to uncertainty, Parsons anticipates robust growth driven by strong market tailwinds and strategic investments. However, the adjustment reflects caution amid a challenging macro environment.

Key Takeaways

• Parsons expects 17% total growth and 14% organic growth for the year, excluding a major contract.
• The company boasts a $9 billion backlog and $12 billion in awarded but not yet booked contracts.
• Parsons is investing in software and integrated solutions to lead digital transformation in critical infrastructure.
• The company is pursuing acquisitions to enhance technology differentiation and growth.
• Parsons is heavily involved in infrastructure projects in the U.S. and the Middle East, with a focus on defense and security.

Financial Results

• Updated guidance reflects a cautious approach due to contract uncertainty.
• 17% total growth and 14% organic growth expected, excluding the contract.
• Backlog of $9 billion, with 69% funded, and $12 billion in awarded not booked contracts.
• Margin expansion of 30 basis points expected this year, following a 50 basis points increase last year.
• Authorized up to $250 million in share repurchases, with $25 million repurchased in Q1.

Operational Updates

• Achieved a 68% win rate year-to-date through Q1.
• Acquired 14 companies since 2017, with plans for 2-4 deals this year.
• Strategic alignment with federal priorities including FAA modernization and border security.
• Expanding cybersecurity offerings, with a focus on offensive capabilities.

Future Outlook

• All six markets expected to grow between 4% to 10% annually over the next three years.
• Transportation and cyber and intelligence sectors represent significant revenue streams.
• U.S. infrastructure spending expected to peak in 2028, with significant Middle East investments through 2030.
• Middle East business set for double-digit growth, driven by regional diversification efforts.

Q&A Highlights

• Guidance adjustment of $85 million attributed to macro environment concerns.
• Involvement in FAA modernization and potential for multiple infrastructure bills discussed.
• AI initiatives highlighted, with applications in cyber capabilities and traffic management.
• Strong growth in the Middle East, with numerous projects across the region.

For a detailed account of Parsons’ strategic initiatives and financial performance, please refer to the full transcript.

Full transcript - 45th Annual William Blair Growth Stock Conference:

Louis DePalma, Equity Research Analyst, William Blair: Microphone is working, but if it’s not, I’ll just shout. So good good afternoon. I’m Louis DePalma. I cover aerospace and defense and smart city technologies on William Blair’s equity research team. This is the first day of the forty fifth annual William Blair Growth Stock Conference.

We’re pleased to be hosting a thirty minute, mostly presentation, with the Parsons management team. And joining me today are Chair and CEO, Carrie Smith, and Head of Investor Relations, Dave Spilley, in the front row. Following the presentation, there will be a breakout session in the the Jenny A Room. Carrie, thank you for for joining us, and I’m required to inform the audience that a complete list of disclosures and potential conflicts of interests are available on the William Blair website. In addition, as many of you on the webcast and the audience are aware, last night, Parsons released breaking news that seems to be causing the stock price to trade up 5% today, and investors are are definitely interested to hear your perspective on the breaking news and the latest developments, associated with the company.

So Carrie, please take it away. Thank you very much, Louie. Happy to

Carrie Smith, Chair and CEO, Parsons: be back at this conference. It’s always so special and glad that we did our breaking news at this conference. Yes. So let me let me start off the breaking news. Last night we did update our guidance for the full year.

We’ve had a contract that’s with the Department of State that has been a little bit uncertain throughout the year. In January 20, there was an executive order that paused some foreign aid contracts. While our contract was not affected, there was a related contract that was paused that basically has caused our contract to run at a reduced volume. So through the first quarter, we were about 80% of volume and then through the second quarter about 50% of volume. Last week on May 29, Marco Rubio issued a new organization chart and the organization eliminated the program office that does hold our contract indicating that functions would be moved to a different program office.

But we felt this was prudent and the right time due to the uncertainty to remove this contract so that you won’t see any financials reflected after June. We’ve zeroed it out for the year. So as I talk through the rest of the presentation, I am quite excited to look forward and talk about things that we can control and most importantly, the exciting growth that we see in the company. So removing that contract, are looking at 17% total growth and 14% organic growth, excluding that one contract. And that is 19% total growth on the federal side, 17% organic growth within federal, 15% on the critical infrastructure side and 11% organic growth within critical infrastructure.

So obviously very strong tailwinds across all of our markets. I would say that coupled with our 68% win rate that we had year to date through Q1 has really enabled us to win some significant jobs, and we’re looking at the double digit growth in both of our segments for the year. We still have $9,000,000,000 in backlog within our 69% is funded, which is a very high number. And then we have $12,000,000,000 of what we call awarded not booked. So those are jobs that have been awarded to Parsons as a single company contractor and we have not yet reflected in our bookings or backlog.

So you can kind of take and add those two numbers together. On the bottom line, we’re expanding our margins by 30 basis points this year. That’s on top of a 50 basis points expansion last year. We see the most significant margin opportunity within our Critical Infrastructure segment. Q1 was basically what I would call a clean quarter where we didn’t have any one ups or one downs, and our Critical Infrastructure business was at 10.3% for the quarter.

So I want to reiterate our growth strategy. First and foremost is to invest in software and integrated solutions to move up the value chain to be able to prime bid and win larger contracts. For the last four quarters, we have had over a $50,000,000,000 pipeline. Within there, we have about 19 opportunities that are greater than $500,000,000 and 121 opportunities greater than 100,000,000 I do want to point out this pipeline does not reflect some of the items in the reconciliation bill, which I will address on the next chart, because we are waiting to make sure that funding gets passed and assess the timing. Our goal has been to create a very exquisite federal company that outpaces near peer threats.

We had the luxury when I joined the company back in November 2016 of putting together a federal business from scratch. So that means we really like all parts of our portfolio. We put it together to basically have end to end cyber capabilities, space capabilities, electronic warfare to be able to fight information warfare against a potential near peer threat. And we have done a great job, I am going to say, moving up that value chain and winning larger jobs. We also want to be the digital transformation pioneer within critical infrastructure.

That means we are a company that can apply our cyber capabilities, artificial intelligence capabilities, digital twins and technology capabilities because we have technical capabilities on the federal side of our house that we can leverage on the critical infrastructure side of our house, whereas other critical infrastructure companies do not have that technology component. We want to leverage our unique portfolio in areas like critical infrastructure protection. So how do you protect water companies, utility companies, transportation against cyber threats? Once again, we can vertically integrate. We understand the domain of how those areas work, but we also have the cyber capabilities to be able to protect against those threats.

And then finally, we want to be the preferred acquirer of assets. I believe we have done a great job since 2017. We’ve bought 14 companies. We buy companies that are growing at greater than 10% on the top line, greater than 10% EBITDA margin and have technology differentiation. We generally acquire companies on a preemptive basis.

These are companies we have worked with. They understand our mission, understand our culture and we have alignment in those areas. And afterwards, we pride ourselves on being able to retain what made those companies successful, whether it was a process, but most importantly, the people, the leadership and the founders of those companies. This is probably the chart I’m most excited about and what I’m going to present today, which is our alignment to administration and global priorities. Starting over on the left with Federal Aviation Modernization, that’s within the reconciliation budget for $12,500,000,000 Parsons has been the Federal Aviation Administration infrastructure contractor for four decades.

We’ve held a technical support service contract for twenty four years. We’re currently in year two of ’ten on that contract. It’s a $1,800,000,000 ceiling and we have $1,200,000,000 remaining. So we really look forward to helping the FAA modernize its systems as we go out over the next three to four years. The next item is Global Dome for America and we have several capabilities to bring to bear.

For the Missile Defense Agency, Parsons again has supported the Missile Defense Agency for four decades as a system engineering and integration contractor. So we’ve been involved in working with MDA to define a layered architecture that can provide a Golden Dome capability for America. How do you defend against unmanned air systems, cruise missiles, hypersonics, up to intercontinental ballistic missile threats? We believe the engineering and the integration is gonna play a very important role in going to Olympus America. We have a $2,240,000,000 contract that we are currently in year three of that contract, so we have scope remaining there as well.

In addition to what we do for the system engineering and integration component, the capabilities that we’ve put together in cyber and electronic warfare enable us to provide nonkinetic effects and we believe we are an industry leader in that. So instead of a kinetic missile, you are basically holding a missile through nonkinetic means. Sentinel ground infrastructure Parsons has been the engineer of record on all prior intercontinental ballistic missile ground infrastructure programs: Atlas, the Titan, the Minuteman. We were originally selected by Northrop Grumman, the prime contractor, but there were some terms under the fixed price that we could not sign up to. So we look forward to the opportunity to get re involved in the Sentinel program and leverage our capabilities in designing launch facilities and command centers.

I will point out that Sentinel has $13,000,000,000 within the reconciliation bill. Next item is munitions modernization. There $21,000,000,000 within the reconciliation bill for munitions modernization. We’re happy to be involved in two of the major Army munition and ammunition plants across America, both Holston and Radford. Just last week, Department of Defense announced that we won a 170,000,000 project to develop a new ammonia nitrate facility tank farm that will be placed at Holston.

So that’s an important initiative there. Border security, there’s $61,500,000,000 in the reconciliation budget. Parsons has done border security for over two decades. A lot of our work has supported the Defense Threat Reduction Agency in countries such as Georgia, Armenia, Lebanon and others. We’ve also done work closer here to home on the Mexican U.

S. Border, mostly involved in video surveillance activities as well as, building towers. So border security is an opportunity.

Louis DePalma, Equity Research Analyst, William Blair: Is your biometrics applicable there too?

Carrie Smith, Chair and CEO, Parsons: Yes, our biometrics would apply definitely in that area and I would say in others as well, Louie. And then I’m going to talk critical infrastructure and then I’ll come back to the areas for both. So on the critical infrastructure side of the house within The U. S, we’re aligned to the administration priorities in terms of hard infrastructure. Our company does roads and highways, designed over 10,000 miles roads and highways across six continents.

We have been involved in over four fifty rail and transit projects, over four fifty airport projects, so that’s a good alignment to the administration and we’ve designed and built over 4,500 bridges. We’re rated by Engineering News Record in a top three of three categories. In The Middle East, we’re involved in transportation activities. Middle East has significant spend. US, we’ve got the $1,200,000,000,000 infrastructure bill.

We don’t expect to peak until 2028 timeframe. It’s going to last six to eight years after that. Saudi Arabia alone has $1,300,000,000,000 of spend on infrastructure between now and 02/1930. We’re the number one program manager in Saudi Arabia, UAE and Qatar. Middle East urban development.

We’re helping design and build some of the newest, I must say, most complex facilities in the world today, mostly taking place in Saudi Arabia. The King Salmon Park, 5 times sites of New York City Central Park, Kadija, the world’s largest entertainment center. We just announced during my recent Middle East visit that coincided with Donald Trump’s visit, two wins, the airside and the landside on King So think about getting an airport signed and built prior to 2030 that’s going to host 120,000,000 passengers per year, twice the size of the JFK. Middle East defense and security. There’s close alignment to help get a partnership between the countries in The Middle East, this white space for Parsons.

We’re going to leverage our very strong position that we have in The Middle East plus our federal capabilities. Then finally, advanced manufacturing. We’re involved in helping develop and build semiconductor facilities as well as some data centers from a design and program management perspective. Moving to the center part, this is where the synergies of the portfolio come into play. Cybersecurity increasingly important for the administration.

Parsons does about 75% offensive, 25% defensive. Critical infrastructure protection, how do you protect your utilities, your water companies, your transportation from threats? PFOS PFAS, an area we see a $40,000,000,000 addressable market not peaking until the 2032 timeframe. We’re proud of the fact that we just got approval in The U. S.

For our hot ESCO technology patent. It’s going to be the first technology of its kind that destroys the PFAS molecule on-site. That patent was approved about a year ago in Canada. Rebuild. How do we help California rebuild from the wildfires?

Israel, Gaza, Syria and Ukraine. Syria presents a unique opportunity because the Middle Eastern countries are going to be involved in helping to fund that, and we’re obviously in a very strong position within The Middle East. Events management, Persons has been involved in nearly every world event like Olympics, expos, World Cups since 2016 and the Atlanta Olympics. Two most recent, we did the traffic management for, the World Cup in Doha, Qatar and we were the head of construction for the Expo in Dubai. So we hope to help out here in U.

S, Mexico, Canada as we look forward to the World Cup as well as to the Olympics in LA. Then finally, Indo Paycom, an area that got $11,000,000,000 in the reconciliation bill. We’ve been in the INDOPACOM region for three decades providing critical infrastructure. We’re there today on Guam. We’re on Kwajalein doing housing and airfield projects.

We also have hundreds of people working on cyber and electronic warfare areas within INDOPACOM. So as I mentioned, you are looking at $150,000,000,000 reconciliation bill. We are excited about the alignment to persons. A lot of times those bills are spent over a decade. They’re indicating this may be spent over a shorter period like four years and be front end loaded, so we see some pretty good alignment.

This is our end market portfolio where all six of the markets, as you can see, are growing between 4% to 10% compound annual growth over the next three years. The two most important that I would highlight here are transportation that represents 26% of Parsons revenue and cyber and intelligence, which represents 20% of Parsons revenue. So as you can see, 46% of our revenue has the strongest CAGRs. Our investment thesis remains the same since we hosted our last Investor Day several years ago. Most importantly, we have an experienced management team that delivers on commitments.

Again, very excited to be moving forward with 14% organic growth this year across our portfolio, double digits within both segments. We have a people first culture and a mission focus that attracts destination employees. We pride ourselves on having the lowest retention this year that we’ve had since 2020 and doing a great job on hiring. For example, in The Middle East, we need to hire 200 or two fifty people a month just to meet the demand for work that we’ve already been awarded. And we pride ourselves on keeping people that we’ve acquired through acquisitions and not just keeping these folks, but promoting the really good leaders in significant roles.

As I just showed you, all six markets are growing. They are all enduring. They are all profitable. I talked about our national security portfolio. It’s positioned to outpace near peer threats.

Unprecedented global infrastructure spending $1,200,000,000,000 40 percent of that spend still hasn’t been only 40% has been allocated, so you’re looking at a peak in the 2028 timeframe, six to eight year tail. In parallel, you’ve got a new five year surface transportation reauthorization bill starting up by November 2026. So we’re going to see a layering effect here in The U. S. And I already mentioned The Middle East, which we don’t expect to peak until 2030 to 02/1932.

And then we have a favorable financial outlook, proven effective capital deployment strategy. We’ve been deploying capital on M and A and also on share repurchases. On share repurchases, we’re authorized up to $250,000,000 Last year, we repurchased $25,000,000 This year in the first quarter, we did repurchase $25,000,000 already. M and A, we expect to complete two to four deals this year. We’ve already acquired one company, TRS Group, that helps us with thermal remediation and also beefs up our capability on PFAS, PFAS, helping both our federal and critical infrastructure segment.

So just to wrap up, we couldn’t be more excited about the position of the company, excited about the double digit growth, excited about the tailwinds that we see in both sectors, and also the fact that we can look out over a long period of time. Great. Thanks, Carrie. One, one question that I have following up on the introductory remarks.

Louis DePalma, Equity Research Analyst, William Blair: Beyond the confidential contract, you lowered guidance at the midpoint by $85,000,000 for the RemainCo business. And are you seeing any impact from Doge, the GSA review, or the broader Department of Defense scrutiny on consultants? In other words, are you a consulting firm? We are not a consulting firm. And are you seeing any are you seeing any consulting firm type weakness or or what is taking place with everything that’s been happening in the government tech world?

Carrie Smith, Chair and CEO, Parsons: Yes, so we lowered an additional $85,000,000 really for precautionary reasons on the macro environment, just in case we see some delays on the federal side. We are a company that prides ourselves on beating our guidance and so we want to make sure that we achieve it. Relative to Doge and GSA, we are not a consulting firm. We do not do enterprise IT work and should not be kind of thrown into that bucket. Pete Hagseff issued a memo a week ago where he talked about insourcing, IT work, consulting work, as well as advisory and administrative services.

We do not perform that work. That’s why our portfolio has not been impacted.

Louis DePalma, Equity Research Analyst, William Blair: Great. And along those lines in terms of how the FAA modernization seems to be, you know, a pretty huge opportunity given what’s taking place in Newark Airport, but and, you know, dozens and dozens of incidents across The United States over the past decade or so. What is the scope of services that you are capable of providing the FAA and what do

Carrie Smith, Chair and CEO, Parsons: you provide the FAA today? Yes, so we’re at pretty much every FAA location coast to coast across The U. S. And we’re involved in engineering. We do design, we do construction management, we do program management.

So if you think about the implementation of any project, a project could be, I’m going to upgrade a radar system or I’m going to put in a new display system or I’m going put in a new ADS B auto direction system. So we would be involved in how you implement those at all the facilities. We do quite a bit of tower work as well, but I divide it kind of into pillars. You have an infrastructure pillar, you have an automation pillar, you have a surveillance pillar, you have a technology pillar, and the nice thing is Parsons plays across all four of those pillars, which is important as we move forward to the modernization program. Great.

And how do you think,

Louis DePalma, Equity Research Analyst, William Blair: this FAA modernization is going to play out in terms of timing? Like, first, does the reconciliation bill need to get passed and then the contracts need to be written up in terms of new contracts, or can the government take your existing $1,800,000,000 contract and just build from there and also use other vendors?

Carrie Smith, Chair and CEO, Parsons: Yes, so they can use our contract today. It’s available. Again, we’re in year two of ’ten. We have $1,200,000,000 ceiling remaining on that. And there are some efforts already moving forward on the modernization.

A good example is the voice communication switches. The FAA has outlined a plan and it’s over basically a three to four year period for how they would roll out the modernization programs. There does need to be budget certainty for that to happen. Great. And another question related to The U.

S. Aging infrastructure. Did you indicate that

Louis DePalma, Equity Research Analyst, William Blair: over the next three years there could be like multiple infrastructure bills like contributing simultaneously? That’s correct.

Carrie Smith, Chair and CEO, Parsons: So you would basically have, Infrastructure Investment Jobs Act passed in November 2021, and it’s a five year bill, that runs till 2026, but the money can be spent years after that and that’s why we’re indicating you won’t see a peak till 2028 and you’ll still have a six to eight year tail. In parallel, they’re already starting work on the next surface transportation bill, and so they hope to pass that by November 2026. So you could indeed see a layering effect. Oh, great. I also should point out, sorry Lou, I should also point out the importance of state and local funding because what we see is about 60% of the funding right now is coming from state and local.

So it’s not just federal funding that we’re relying upon to enhance our infrastructure, but also the importance of state and local.

Louis DePalma, Equity Research Analyst, William Blair: Great. So it seems from, you know, your, you know, observations and, you know, your dealings with the administration that they are supportive of a successor infrastructure bill?

Carrie Smith, Chair and CEO, Parsons: Definitely, yes. You look at, ASCE is the organization that typically, evaluates US infrastructure. Before the Infrastructure Investment and Jobs Act, they rated our infrastructure at a D minus. We’re now at a level C. I think everybody here that drives on the roads every day, crosses bridges would agree we still have a ways to go, so I think it’s going

Louis DePalma, Equity Research Analyst, William Blair: to be an important bipartisan focus for years to come. Well, for for members of the audience, Sterling Infrastructure’s CEO, Joe Cotillo said the exact same thing in terms of the successor infrastructure bill in terms of September or October, November ’20 ’20 ’6. So multiple independent sources, which seems positive, even though you both are very aligned. And so, you know, it’s in your favor for that to happen, but, hopefully, it does happen for the sake of US infrastructure. Another topic that’s, you know, very pertinent related to the data center’s theme, but you talked about designing data centers.

But what is taking place with the Department of Defense in terms of AI in that? I think you guys recently gave a presentation about Project Lynchpin with the Army, but can you discuss the different initiatives you guys are doing with AI that makes you more differentiated than a consulting firm? Yes. Once again, that’s the theme is that the administration does not like consulting firms. So giving you the opportunity to discuss Thank you.

How you

Carrie Smith, Chair and CEO, Parsons: are not consultant firm. On artificial intelligence, we’ve been doing artificial intelligence for the past two decades. We actually started off, our first application was how do you find a counter improvised explosive device within video analytics, and then we developed what I would call an early version of an open source intelligence tool to help the intelligence communities sort through data so you can get to actionable intelligence. So if you fast forward today, we are applying AI in almost every program that we deliver for our customer, whether it’s offensive cyber capabilities that we are using it for, whether it’s on counter unmanned air systems, how you identify, detect, track and deter a UAS vehicle. On the infrastructure side, we also apply it to our contracts.

A good example is advanced traffic management. We use artificial intelligence to determine, predict if you have an incident, how you reroute or if there is congestion, how you reroute traffic. We use it for energy. If you’re adding renewable energy resources, what does that do to your demand loading? Also, does that do to your bills that you’re going to be paying to your customer?

And then we also have internal use cases. A couple of years ago, asked each of my leaders, come up with your best internal use case and you need to deliver three to four every single year, because I wind the ownership from the top down. So for example, our CFO, he developed an AI application to forecast cash, maybe one of the reasons we have been able to accurately predict cash. We developed a tool in our business development team for are we going to win or lose jobs? It has 92% accuracy, some pretty neat applications of AI internally as well.

Louis DePalma, Equity Research Analyst, William Blair: Great. And I guess following up on your very high profile Middle East visit in which, you know, Parsons, you were, you know, mentioned in the same vein as as Boeing, and you were on the world stage and, I think, three different White House press releases. How should we think of the trajectory of this Middle East, infrastructure spending boom in terms of, like, what inning are we in here? I know that’s a question you you get a lot. It’s not a very creative question, but considering, you know, you were just in, you know, this very high profile position and you got to speak to all of these dignitaries and, you know, hear all of the most recent news flow.

You know, what can you share with with the audience?

Carrie Smith, Chair and CEO, Parsons: Yes. So our Middle East business will deliver double digits this year. That’s on top of double digits last year and 33% growth the year before. What you’re seeing, I’ll start with The UAE, so The UAE in 2020 had a population of about 3,300,000 people. Today, the population is 9,700,000 people, so when you’re increasing the population, you have to have additional transportation infrastructure, and those are the areas that we’re involved in as well as tourism and entertainment.

Parsons did a lot of the work in Dubai originally when Dubai was started several decades ago, and now you look forward to today, there’s a lot of build out going on in Abu Dhabi, and then in the future you can see areas like in the North, Al Ain getting build out. Saudi Arabia has experienced similar growth. Saudi Arabia went from 24,000,000 people to 33,000,000 people from 2020 to 2025. They’ve had their sights set on Saudi Vision 02/1930, which is how do you diversify the country away from its dependency on oil? So they identified 13 secondtors.

Two of those sectors we’re heavily involved in, again transportation, tourism and entertainment. Infrastructure alone for Saudi Arabia, they are going to spend $1,300,000,000,000 by 2030 under the public investment fund. It’s really exciting to go over there because we are involved in pretty much every major project. We just opened the Riyadh Metro, a really beautiful metro project that we did. We are going to be doing King Salmon International Airport, about $250,000,000 2 70 5 million dollars per person, an airport with 120,000,000 passengers per year.

We’re doing Qadiyah, the world’s largest entertainment city. We’re involved in Riyadh Rings and Roads, how do you improve the traffic flow for these upcoming world events. We were awarded a sole source traffic management contract around Riyadh, which is critically important. Daria Gates, which is restoration of Saudi’s history. So you can just see how all these projects are going on.

I’d say similar, I expect, in Saudi is what we saw in UAE. You’ll build out the Riyadh area first, then you’ll get up to areas like Niyam and really build out Niyam on the Red Sea, areas in the South like our Al Sadaw project will become tourism centers, really exciting place to be.

Louis DePalma, Equity Research Analyst, William Blair: And how many different projects would you estimate that you’re doing across the area?

Carrie Smith, Chair and CEO, Parsons: I would estimate hundreds of projects across the area.

Louis DePalma, Equity Research Analyst, William Blair: Yeah. Now that and do these projects, do they like, have they been, like, ending and has that number just been, you know, growing such that maybe it was a hundred projects two years ago and then it’s increasing to 130 and it’s like the scope is widening of everything that they’re doing?

Carrie Smith, Chair and CEO, Parsons: Yeah, I’d say the biggest growth we’re going to see in this year off a smaller base is actually UAE, which we expect to achieve about 30% growth, again double digit in Qatar, digit in Saudi Arabia. UAE is really because of the influx of people and how much building and development that they are going to be doing. Saudi is just going to continue to evolve because they are going to be on the world stage between 2029, ’2 thousand and ’30 ’4. They want to become a tourism economy, so we’re going to see that over the next couple And for a lot

Louis DePalma, Equity Research Analyst, William Blair: of these projects, are they, like, mostly transportation focused, and is there also security? Like, what would you if you could bucket the different

Carrie Smith, Chair and CEO, Parsons: segments of these hundreds of projects across The Middle East? Yes, today I would say we’re involved in transportation, we’re involved in tourism and entertainment, we’re involved in mixed use development housing, we also do water, wastewater and sewage, they obviously had the flood that occurred and so how do you improve the water system. I’d say going forward the biggest white space market that we see is defense and security because leveraging our position that we have there and bringing over some of our important capabilities that they need such as integrated air missile defense, border security capabilities, counter unmanned air system capabilities, those are things that we can provide. Yeah, that’s that’s actually a great topic considering that for most of your, like, federal government type solutions, it’s for the US federal government. So is there a legitimate prospect for you to export some of your more, like, cybersecurity type solutions and the other solutions that you provide to federal Yeah, there is Just a few examples.

So within The Middle East, we are currently doing we have a Middle East contract with the Army Corps. We were just awarded the ReEPEAT. We are responsible for installing systems like that and Patriot missile systems all over The Middle East. We also just got export approval for a system that is called our ZEUS RABO system, it’s three kilowatt directed energy laser system, originally developed to take out improvised explosives, but it can also be used for debinding capabilities, we have approval to sell that within Ukraine and we see that as an important step, but

Louis DePalma, Equity Research Analyst, William Blair: definitely we always look at applications internationally. Fantastic. I believe that is all the time we have for this main session, but we are going to resume the conversation in a different room, the Jenny A room upstairs. So thank you so much, Carrie. Thank you, Lloyd.

Thank you, Dave. Thank you.

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