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Parsons (PSN) investor relations material
Parsons Goldman Sachs Industrials and Materials Conference 2025 summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Market environment and industry outlook
DOGE-related disruptions are largely resolved, with no direct contract impact but some stock price volatility.
Government shutdown effects are subsiding, though some contract and award delays persist.
Reconciliation bill funding aligns well with portfolio, supporting growth in border security, Golden Dome, Indo-Pacom, and FAA modernization.
Strong tailwinds expected through 2026 due to alignment with federal budget priorities.
Federal solutions and growth expectations
Q4 federal segment expected to achieve mid-teens growth, with some delays from shutdown.
2026 outlook projects mid-single digit or better growth in core federal business, with $350M confidential contract headwind mostly in H1 2025.
Over $11B in awarded work not yet in backlog, providing significant future capacity.
Major opportunities ahead in FAA, Southern Border, and Golden Dome programs.
Only 6% of 2026 revenue from recompetes, supporting stable growth.
FAA modernization program
FAA award is imminent, with $12.5B allocated for first three years and $19B needed for subsequent seven years.
Focus areas include automation, telecommunications, surveillance, and facilities upgrades.
Parsons leads a consortium with IBM and other key partners, leveraging decades of FAA and airport experience.
Margins expected to align with federal business averages; contract structure details to be shared post-award.
No conflict of interest in equipment selection, focusing on integration and program management.
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