Parsons at Raymond James Conference: Growth and Strategic Focus

On Tuesday, 04 March 2025, Parsons Corp (NYSE: PSN) presented at the Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025, highlighting robust growth and strategic initiatives. The company, known for its Federal Solutions and Critical Infrastructure segments, reported significant organic and EBITDA growth in 2024, while also addressing potential impacts from defense budget adjustments.

Key Takeaways

• Parsons achieved over 20% organic growth and 30% EBITDA growth in 2024.
• The company operates in Federal Solutions and Critical Infrastructure, targeting markets worth trillions in the U.S. and Middle East.
• Parsons anticipates mid-single-digit revenue growth and margin expansion in 2025.
• The company has a strong backlog of $8.9 billion and expects a book-to-bill ratio greater than 1.0.
• Strategic focus includes cybersecurity, digital transformation, and environmental remediation.

Financial Results

• Organic Growth: Over 20% in 2024.
• EBITDA Growth: 30% in 2024.
• Book-to-Bill Ratio: Maintained at 1.0x since May 2019.
• Revenue Growth: $2.5 billion over the past two years.
• Pro Forma Leverage Ratio: 1.4x after acquiring TRS Group.
• Revenue Mix for 2025: 56% Federal, 44% Critical Infrastructure.
• Backlog: $8.9 billion.
• Awarded Not Booked: $12.5 billion in IDIQ vehicles.
• Margin Expansion Guidance: 20 to 30 basis points for 2025.
• SG&A as a Percent of Revenue: Reduced from 18% to 14% over two years.

Operational Updates

• Win Rates: Increased to 71% in the past year.
• Contract Wins: 15 contracts over $100 million.
• Market Growth: Expected CAGR of 5% to 12% in six end markets over the next three years.
• M&A Activity: 14 companies acquired since 2017, focusing on Federal and Critical Infrastructure sectors.
• Confidential Contract: Potential headwind due to a pause in a related contract.

Future Outlook

• 2025 Revenue Growth: Mid-single-digit or better.
• Margin Expansion: 20 to 30 basis points.
• Focus Areas: Cybersecurity, missile defense, infrastructure, digital transformation, environmental remediation.
• Sentinel Program: Participation in intercontinental ballistic missile program.
• M&A Strategy: Targeting companies with over 10% top-line growth and EBITDA margin.

Q&A Highlights

• Defense Budget: Anticipation of budget increase, with focus on cybersecurity and missile defense.
• DOGE Impact: Minimal impact, less than $3 million in revenue affected.
• Continuing Resolutions (CRs): Considered "noise" in the system; 66% of backlog is funded.
• Organic Growth: Expectation of double-digit growth in all four businesses, excluding the confidential contract.
• Margin Progression: Aim to achieve 10% margin in the Critical Infrastructure business.
• Capital Deployment: Considering share repurchases along with M&A.

Parsons Corp’s strategic focus and robust financial performance reflect its commitment to growth and innovation. For a detailed analysis, refer to the full transcript below.

Full transcript - Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025:

Brian Giswali, Senior Analyst: Hey, good afternoon, everyone. I’m Brian Giswali, Senior Analyst. I cover Parsons, really happy to have the company here to take us through the story. There hasn’t been a lot going on in the government services space, so there’s probably not a lot to talk about. Just kidding, of course.

We have the company’s Chief Executive Officer, Kerry Smith, as well as the Chief Financial Officer, Matt Aflous to take us through the presentation and the story. It’s going to be a fireside chat. We may reference a few slides here, but we’ve got a lot of nitty gritty to get to. So with that, thank you so much for joining us, Carrie and Matt.

Kerry Smith, Chief Executive Officer, Parsons: Thanks for having us, Brian. Appreciate it. So I’ll fairly quickly go through the slides for those of you that may be new to the story, so we can get to the questions and answers. First, our forward looking disclosure statement. And let me jump into 2024.

’20 ’20 ’4 was an excellent year. We had over 20% organic growth, also achieved 30% growth on EBITDA, so growing our margin faster than our revenue. And this is our second consecutive year that we’ve experienced such growth. We have two business segments within the company. First is Federal Solutions.

This is a purpose built segment that we designed to outpace near peer threats. We basically when at the end of twenty sixteen, we only had a missile defense contract, And we started getting into other critical areas like cyber electronic warfare and space to be able to put together full spectrum capabilities again against a near peer threat. It’s seldom you have the luxury of putting together a purpose built business. On the critical infrastructure side of the house, we’re very focused on areas such as transportation, urban development and environmental remediation, seeing unprecedented growth in our marketplace of 1,200,000,000,000.0 in United States, One Point Five Trillion Dollars in The Middle East. You can see our statistics on the bottom.

I do want to highlight we’ve had a one point zero times trailing twelve month book to bill since we IPOed back in May of twenty nineteen. So as our revenue grew $2,500,000,000 over the last two years, we’ve been able to keep ahead of that with record awards. Investment thesis. First and most importantly, an experienced management team that delivers on commitments. I talked about the growth.

We also pride ourselves on making sure that we focus on beating and raising guidance. We have a people first culture and a mission orientation. We develop solutions in our business. We are not a service company, a consulting firm. We are a solutions based business, which is very important, and we’re focused on our customers’ emerging missions.

We have six end markets that I’ll talk about. Those are all growing, sustainable, profitable. And their CAGRs are about 5% to 12% as you look out over the next three years. I talked about our purpose built portfolio, and I’d say it’s very distinguished within the industry. Global infrastructure spending and then finally, favorable financial outlook.

If you look after our last acquisition, TRS Group, our pro form a leverage ratio is 1.4 times, enabling us to continue to do M and A. We’ve bought 14 companies over since 2017. We’ve acquired 11 of those within the federal space, three of those within critical infrastructure. As you look at the macro environment, I would say the trends are really showing why we have such strong tailwinds within our business. Looking in the center, those areas that affect both of our segments.

Cybersecurity becoming increasingly important as cyber threats continue to evolve, not just in our defense area and our intelligence community area, but also affecting our critical infrastructure in areas like water, utilities, transportation, and health care. Digital transformation is everywhere. On the federal side, we’re very focused in areas like artificial intelligence, cybersecurity, cloud computing. And on the infrastructure side, how do we build back infrastructure smarter so that we’re designing and building it so it can last a hundred years, not thirty five years. In environmental remediation, I’ll talk more about PFOS PFAS, but PFOS PFAS is a significant growth driver for the business.

We have some very unique patents there, and we see that as a 40,000,000,000 addressable market for the company. That spans both segments. On the federal solutions focused on the near peer nation state and then the America First approach. And I would say that benefits our business when you start to look at areas like the Sentinel intercontinental ballistic missile program, which can be restructured where Parsons has designed every launch center and control center since inception back in the nineteen fifties. So we look forward to being part of that critical program.

Also, when you look at a program like Iron Dome for America, now called Golden Dome for America, we’ve been involved with Missile Defense Agency for four decades and look forward to contributing to that effort. Additionally, when you start to look at some of the rebuild efforts around the world, Parsons intends to play a role in those. Under critical infrastructure, the demand is great. And I’d say the tailwinds are even better. When you look, U.

S. Market’s not going to peak until the 2028 time frame and The Middle East market’s not going to peak until after 02/1930. We’re also focused on smart mobility, improving our intelligent transportation systems. One great example of that is we were just awarded the traffic management contract in Riyadh. So we look forward to helping Saudi appear to be prepare to be on the world stage for the World Cup and the Expo.

This is the chart that shows our six markets. And I think what’s an important takeaway from here is how they span across our business units. So if you look at an area like cyber or critical infrastructure protection, that hits all four of our business units. You can see the addressable market and the three year CAGR. Let me just hit on the size of each of these in terms of 25 revenue.

Transportation is our largest at 23%. Critical infrastructure is 21%. Cyber and intelligence, 16%. Space and missile defense is 11 or 12%. Environmental remediation also 12% and urban development, 11%.

So we have a good fit print in each of these. It’s important to note, again, sustainable, growing and profitable with long term tailwinds in each. Our growth strategy, continue to move up the value chain. That’s really what’s been key to driving our strong win rates. We had 71% win rates last year, our highest ever.

That is over 66% the year before, 49% the year before that. We’ve also won our largest programs ever. So this year, we won 15 contracts greater than 100,000,000, tying what we had won last year, 15 greater than 100,000,000. Our exquisite federal company, again, all domain solutions focused on end to end cyber, end to end space and electronic warfare. Build back smarter that gets to how do you apply digital technology to transforming our infrastructure?

We have a unique portfolio in our company, so we are the company that understands the domain, but we understand how to build it back better because we have the technical component that we apply from our federal business. Critical infrastructure protection I mentioned, how do we protect transportation, utility, health care and water from cyber threats, which are increasingly happening and then continue to be a preferred acquirer? We buy companies generally on a preemptive basis. We try and avoid auctions. We’ve paid about 10 to 13 times multiple.

And I would say we’ve done a great job of retaining the talent that we get from that company, which has been key to our growth. This chart just covers our 2024 financial performance, where we exceeded all of our measures in this after three guidance raises every quarter of last year. This chart looks at our financial summary. Again, with the growth rates, you can see across the top for last year, balanced portfolios. You look at 2025, slight shift.

We’re going to have 56% in the federal, 44% within critical infrastructure. Global footprint, the majority of our work in The United States, but a very nice presence in The Middle East and some in Canada. And we like to prime most of our work. At the Parsons level, we have 63% fixed price time material, 37% that is cost reimbursable. And that split is 56 fixed price T and M on the federal side and 44% reimbursable.

And then on the critical infrastructure, that’d be 75% fixed price T and M, 25% reimbursable. This shows our business segment summary. As you can see, federal really outpaced in 2024, but also we’re keeping up with double digit and critical infrastructure. Highlight again double digit growth in all for profit and loss centers and all major geographies. This is probably the chart that I’d say we’re most proud of.

If we look back to what we’ve accomplished with a very stable executive leadership team over the last three years, and the tremendous growth that the company has seen. 2025 guidance you can see here and what we’ve said is mid single digit or better on the revenue and 20 to 30 basis points of margin expansion. And we did reiterate our guidance. And let me wrap up on our chart so we can jump to Q and A. Six end markets, all growing and durable, sustainable and profitable.

Unprecedented global infrastructure spend, particularly in the two geographies where we play 1,200,000,000,000.0 in The US, One Point Five Trillion in The Middle East. Distinguished national security portfolio purpose built to outpace near peer threats. Demonstrated M and A track record 14 companies since 2017, experienced management team that delivers on commitments, and finally, good balance sheet with the ability to do more M and A or share repurchases. With that, Brian, over to you.

Brian Giswali, Senior Analyst: Great. Cary, thank you for the rundown. And by the way, the stock’s been the best performing stock in ’twenty three and ’twenty four. So congratulations on that. I want to kind of talk about some of the macro issues that a lot of investors are chewing on.

Talk about the defense budget. Can you help reconcile the HEGSETH memo of cutting defense spending 8% a year for the next five years? The house budget, which has a considerable amount of incremental defense spending that’s going on, and and really just what are the tea leaves out there for for your expectations of defense spending overall?

Kerry Smith, Chief Executive Officer, Parsons: Yes. So starting with the ’25 budget, and we’ve got the budget resolutions going through both the house and the Senate. Within the House, they have added a hundred billion for armed services or defense. They’ve added 90,000,000,000 for homeland security. Within the Senate, they’ve added a hundred and 75,000,000,000 for homeland defense, hundred and 50,000,000,000 for for homeland security and 150,000,000,000 for defense.

So the signs are that would be over a ten year period that there would be an increase. Now they have to get bring that to resolution to get into the reconciliation process. And ideally, you know, either a long term CR or best a short term CR or a budget, but a long term CR. We don’t anticipate a shutdown at this time with everything going on the world events today. But I would say the indications are there for a budget increase.

Much of that is going into the areas that I talked about cybersecurity, missile defense, Golden Dome for America, the Sentinel program, intercontinental ballistic missile, border security I didn’t mention, which is an area that we’ve been involved in for decades. We do border security all around the world Armenia, Georgia, Jordan, Lebanon. We’ve also done work on the Mexico U. S. Border, supporting customs and border protection and Federal Aviation Administration.

It’s going to be additional funding. Also, that’s going to go into the FAA modernization, facilities. So we look forward to being involved in that as well. Fast forward to f y twenty six. So the goal is how do you take out 8% of the budget every year across the five year defense plan?

And how do you take it out of areas like D. I, climate change and unnecessary or excessive bureaucracy? And the goal is not to drop the budget, but rather to shift the budget to areas of priority that align with the administration. So Pete Higgs has outlined 17 of those areas, persons place in nine of those areas. So think about cyberspace missile defense spending on MILCON within the end Indo Pacific region, nuclear modernization, the COCOM specifically, for us, that’d be into into, PACOM region, cyber command, space command.

So we see the infrastructure side for a minute. Any shift that would occur in the infrastructure would be under the IJ would be in areas like electrification, broadband or climate change. We don’t have work in those areas. And the goal is to move more of that money to the hard infrastructure. And that’s where we play again, transportation areas, roads and highways, bridges, airports, but that hard infrastructure focus.

Brian Giswali, Senior Analyst: Great. Really appreciate the details on that. The other thing is, I’m sure that you’re experiencing Doge fatigue as am I and some of the people in this room. Talk about what contracts have been impacted by Doge. I think it’s been a very small portion and pretty much immaterial and maybe things that you’re looking for in the future that you’re just watching and weighing.

Kerry Smith, Chief Executive Officer, Parsons: Yes. So we’ve only had two small contracts that have been impacted. Those amount to less than 3,000,000 in revenue. They were South Africa contracts. I don’t know if it calls us Doge or not, but we threw it in that bucket.

When you look at areas that Doge has been targeting, it’s been areas that we don’t play. So USAID, Veterans Affairs, IRS, FBI, Department of Education, Parsons doesn’t have any work with those customers. More importantly, 44% of our work is not even dependent on the federal government because it’s dependent on international and state and local government. I go back again to, I think where DOJ is headed is how do you cut and improve efficiency of the government and cut in areas where it’s not needed, but not necessarily you’re going to drop some dollars to the bottom line. But how do you get more out in the mission capability?

Parsons is a mission company. We are focused on delivering the company. We are focused on delivering solutions for our customers. Also add on to that, Brian, that there was a GSA memo that came out last week that looked at consulting services. We don’t do consulting services.

There was basically a search, I think, done on federal contractors and come up with the NAICS code consulting. Parsons is not a consultant. We’re a solutions mission oriented provider.

Brian Giswali, Senior Analyst: So it’s a good week not to be a consultant. Let’s maybe talk about some of the specifics of business. Investors generally follow backlog, right? So some of this has kind of gummed up the system and some of the uncertainty. But can you maybe talk about your expectations for a book to bill greater than one for the year?

We don’t care on a quarterly basis. Yes. But on a trailing 12 basis to keep both book to bill positive above one and backlog growing.

Matt Aflous, Chief Financial Officer, Parsons: Yes. I would say for sure for the year, we’re expecting a book to bill greater than one point zero. So we do expect backlog to expand within the year. Importantly for Parsons, we have 8,900,000,000 worth of backlog, so greater than one times revenue. And then on top of that, we have about $12,500,000,000 of IDIQ vehicles that have been awarded to Parsons, but have not yet flowed through bookings.

These are typically option years or contract ceiling. And so we’ve really focused on those contracts as you suspect. The risk, of course, in the government side is a risk around capacity and how many new contracts they can put out. And so, our focus really is to drive work to those vehicles. We have the capacity, we have the vehicles in house.

And so how do we just continue to expand opportunity, of course, to raise ceilings and extend contracts that exist today is probably going to be the easy button. So I think that’s an important area for us to help drive that one point zero. But to your point, Brian, I think a book to bill greater than one, some of that will flow from that awarded not booked and some of it will be new and option years.

Brian Giswali, Senior Analyst: How do we think maybe about a full year continuing resolution and how that changes the arithmetic or geometry of that?

Kerry Smith, Chief Executive Officer, Parsons: Yes. So I’ve been involved in national security and working with government for four decades. And since 02/2005, we’ve experienced CRs. I like to think it’s noise in the system. On average, there’s been four CRs a year.

They last 163. I would say the benefit that we have is out of our backlog that Matt mentioned 8,900,000,000.0, 60 6 percent that is funded, which is very high. And then that 12,400,000,000.0 that we have of awarded not booked those that’s work that singularly awarded to Parsons. So we can run for a long time with our existing portfolio without being impacted.

Brian Giswali, Senior Analyst: It’s a good point. I think I saw the stat that 12 of the last eighteen months have been continuing resolution months. So you did just fine. Great. I wanted to move to organic growth.

You’ve been the leader in terms of organic growth over the last few years. You’re guiding a nice number this year, five plus percent organic, which is in line with what you said your long term goals are. The way the stocks, not just Parsons, but the group is trading, there’s a belief at least being reflected in the market that you’re going to shrink, not just you, but the entire sector. How do you think about your ability and the visibility you have into growing the top line?

Kerry Smith, Chief Executive Officer, Parsons: Yes. So I’d say, again, reiterate that we’ve been over 20% for the last two years, which is very strong. We do have one headwind this year on a confidential contract. But setting that aside, the rest of the portfolio, all four businesses and both are all major geographies are growing double digits. We’ve got the best pipeline we’ve had for six consecutive quarters over 50,000,000,000 within there.

We like to track billion. Typically, we have over 100 of those opportunities greater than 100,000,000. We now have started tracking opportunities greater than 500,000,000. We have over 15 of those greater than 500,000,000. We got to keep doing what we’ve been doing, which is keep up those very high 71% competitive win rates.

We only plan to 40 and

Brian Giswali, Senior Analyst: keep Only 40.

Matt Aflous, Chief Financial Officer, Parsons: Oh, yeah.

Brian Giswali, Senior Analyst: Those are fantastic stats. I appreciate that. I want to I want to double click on the classified contract a little bit. Talk about the headwind that that creates this year for you. Maybe the long term, maybe actually the uncertainty that you have if there are some between low end of guide to high end of guide, how you want to kind of articulate that to the group here.

And then what the long term view on that classified vehicle

Kerry Smith, Chief Executive Officer, Parsons: is? Yes. What we indicated, two earnest calls ago, we were asked what our rate repeat rate would be for the share. And we said between 5% to 15%. And the variance was this particular contract.

We secured the option here on this contract. We negotiated between November and January and we signed it. So right now, the contract runs until February 2026. We have not been stopped on our contract, but there’s a related contract that was under a pause. So if you think about a mission where you have certain number of steps to perform, just call it five steps, we have we do steps one through four, but another company and the customer do step five.

So we can partially do ours until this other work gets unpause. And that’s sort of the situation that we are in. And the variance on this contract, it could actually be something that would accelerate, that would drive us to the high high end. It could be slowed. We’re just awaiting on the adjudication from the administration on how this is going to proceed.

Brian Giswali, Senior Analyst: And if we didn’t have this headwind in that contract was, you know, status quo year over year, how much of it just maybe how much of a headwind is at this year at the midpoint of guide?

Kerry Smith, Chief Executive Officer, Parsons: Yes. We haven’t shared that because that’s class that’s we’re not allowed. Understood. But what we put in the midpoint of guide is what we’ve negotiated with the customer. We’re not assuming any increase.

It’s just exactly what the negotiated value is.

Matt Aflous, Chief Financial Officer, Parsons: And importantly, excluding this contract double digit growth at

Brian Giswali, Senior Analyst: the company level, yes. For

Kerry Smith, Chief Executive Officer, Parsons: every all four business

Matt Aflous, Chief Financial Officer, Parsons: units. Yes.

Brian Giswali, Senior Analyst: Appreciate that. I want to talk about something that I think is a big future opportunity and that’s Sentinel. That program has been under significant duress. It’s been in the headlines, but it’s also critical and the timing is important. It can’t be delayed too long.

Can you maybe talk about the opportunity set that, that presents you to kind of come in and be a participant in that program, I guess?

Kerry Smith, Chief Executive Officer, Parsons: Yes. So, Parsons has been involved in every intercontinental ballistic missile program, ground infrastructure since the 1950s. So we did the Atlas program. We did the Titan program. We did the Minuteman program.

We did the Peacekeeper program. We were the architect and the owner, the designer of record for all those programs. System out there today for the launch facilities and control centers. That’s a person’s design. So we’ve been welcoming the opportunity to get back involved in the Sentinel program.

We’ve had various meetings with the customer set on how that might be restructured. They have officially come out and said it is going to be restructured. So now we’re responding to RFIs and we’re waiting for the procurements on that program and look forward to getting back involved and continuing our history.

Brian Giswali, Senior Analyst: Great. One thing that we tend to do in this room and those that are watching online is kind of match this period in history to previous ones. I think a lot of people are anchoring to sequestration, where a lot of the public companies you weren’t public at the time, shrank a couple percent for a few years, right? Can you maybe talk about the visibility you have and the positioning you have and how Parsons as a company and how sequestration is very different than what we have now because I don’t think the periods are particularly comparable.

Kerry Smith, Chief Executive Officer, Parsons: No, I agree, Brian. So sequestration was kind of an across the board cut. What’s happening now is targeted reductions, areas that is are perceived as being inefficient or could be done better in different ways. And again, fortunately, our portfolio has not fallen under those areas that are being, addressed by DOSH, as I mentioned earlier. So I would say the objective is how do you take the budget and get more out of it to deliver to our warfighters and our soldiers?

And that’s where we play. We’re a mission company. We deliver solutions. And our goal is to get things out there for the warfighters. So if the budget f y twenty six takes out 8% and shifts it over to the areas that we play, that would be good for persons.

Brian Giswali, Senior Analyst: Absolutely. Want to talk a little bit now just briefly on margins. You have a number of tailwinds, maybe a couple of headwinds, but the net of it’s favorable. Can you maybe just talk about the margin progression as you think about the business, not only in ’twenty five, but moving forward?

Matt Aflous, Chief Financial Officer, Parsons: Yes. When I think back to the Investor Day, we held at the start of 2023, we had said 20 to 30 basis points of margin expansion per year. In 2024, we had 50 basis points. We went from an 8.5 to a nine point zero, which was a really phenomenal year for us, as Carrie mentioned on her slides. If you look at the company and you break up into the two piece of the critical infrastructure and federal, federal ran north of 10% this year helped with a mix shift, so some more fixed price work.

In 2025, we’re guiding to kind of call mid to high 9s within the federal business, mainly just that mix shift. Again, you’re going to see a faster ramp on cost plus work versus fixed price. So again, execution has been fantastic there, but just the higher the switch in the mix to more cost plus will put a bit of a headwind on the federal business. When you look at the CI business, we had we did take some charges this year related to some programs, legacy programs, I think Brian mentioned. But if we normalize the critical infrastructure business for those write downs, it was about a 10% margin.

So if you kind of our goal is to get to that 10% as soon as possible. Right now, the midpoint of guide assumes 8.8% on the infrastructure, which is almost 200 basis points of margin expansion for that infrastructure business in 2025 as we just wrap up these programs. We’re in final checklist, when we get to substantial completion, I would say the operational impacts are kind of behind you now. It’s kind of more of legal and contractual negotiations with customers.

Kerry Smith, Chief Executive Officer, Parsons: So And we have a lot of levers we can pull. On the infrastructure side right now, we’re seeing demand greater than supply. And we usually win on technical, not on costs. So that’s important. We’ve been able to hold our costs constant as our revenues gone up.

So SG and A as a percent of revenue now is about 14% a year ago, it was 16% year prior to that, it was about 18 Our M and A targets are all delivering greater than 10% EBITDA margin. So that’s been a lift to us as well. So a lot of levers that we can pull to achieve margin expansion.

Brian Giswali, Senior Analyst: Right. No, I think the balance in your business between CI and federal are, you know, really appealing from a bookings and growth standpoint and certainly margin execution standpoint. Let’s just talk about M and A real quickly. You’ve really been excellent at acquiring businesses and running them through the Parsons system and amplifying the returns. Wondering, public valuations usually get dinged before the private ones.

So I’m wondering, how easy is that to do now? And is there a point where you’d say that investing in Parsons and via repurchase is the better course? Maybe talk about capital deployment.

Kerry Smith, Chief Executive Officer, Parsons: Yes. So we do we are authorized for up to $100,000,000 in terms of share repurchase. We have $75,000,000 remaining, but that is something that we’re looking at using more. I would say on the M and A, there’s a lot more assets becoming available now, given the uncertainty in the environment. We’re going to stay very focused on companies growing greater and 10% top line, greater than 10% EBITDA margin.

Companies that have technology differentiation on the federal side, it’ll still be focused on cyberspace, electronic warfare. On the infrastructure side, it’ll be focused a lot on geography. Those states that are going to gain the most money as a result of the Texas, Florida, New York, New Jersey, and, Georgia. And so I’d say m and a will continue to be a priority for the company. I would credit that with how we’ve moved up the value chain, how we’ve improved our win rates, how we’ve been able to prime bid and win larger contracts.

Brian Giswali, Senior Analyst: Makes a lot of sense. Last one for me, this is, you know, the annual drop the mic moment, you know, talk directly to the investors here and digitally, you know, take a brief moment to pitch them on Parson stock and why they should consider you and zero follow-up from me. So you’re in the clear.

Kerry Smith, Chief Executive Officer, Parsons: Yes. So again, I would just say a consistent team that has delivered on results for the past two and a half years industry leader in both of our segments. We’re really proud of the fact that all of our businesses have grown double digits and all of our major geographies have grown double digits so far. And looking at the areas DOGE is targeting and the federal law, the federal civilian, we are not exposed under those agencies because we don’t have work under those agencies. We are a consulting firm, so we don’t also fall under that GSA.

Looking forward to the future, we are looking forward, ex the confidential contract to all four businesses growing double digits as we go into this year. We have the best pipeline we’ve had for six consecutive quarters. We’ve delivered greater than one point zero time, trailing twelve month book to bill since our inception as a public company. So if anything, I always like to just say we have the right portfolio. We have the right team at the right time, very well aligned to the administration priorities and what’s going on in the world events.

Brian Giswali, Senior Analyst: Carrie, thank you so much, Matt. Appreciate it. Everyone in the audience, thanks for joining us.

Kerry Smith, Chief Executive Officer, Parsons: Thanks, Brian.

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