Parsons (PSN) Barclays 43rd Annual Industrial Select Conference summary

Performance highlights and recent achievements

• Exceeded high end of 2023 targets, with strong revenue growth across six end markets and 120 basis points EBITDA margin expansion; cash flow CAGR reached 26%.

• Middle East delivered double-digit growth for three years, with 8.5% projected for the coming year; North America growth is more cyclical due to project completions.

• Federal business expects 6.5% growth (excluding a confidential contract), with strong demand in missile defense and cyber/electronic warfare.

• Margin expansion continues, with 10.4% in critical infrastructure and 20 basis points expected in federal; recent Altamira acquisition adds accretive margins.

• Backlog at record levels: 73% funded, $8.7B in backlog, and $11B in awarded-not-booked, with strong visibility and quality.

Forward-looking growth and strategic positioning

• 2026-2028 plan targets mid-single digit organic growth, anchored by strong Middle East performance and infrastructure opportunities.

• Book-to-bill expected at 1.0 or better in both federal and critical infrastructure, with 21 consecutive quarters above 1.0 in CI.

• FAA technical support contract to increase by 25% in 2026; new and renewed federal contracts include missile defense, cyber, and research lab awards.

• Golden Dome missile defense project offers long-term integration and system engineering opportunities, with a key flight test in 2028.

• Growth drivers include alignment with major federal and infrastructure funding bills, Middle East megaprojects, and expanding defense and security sectors.

Competitive advantages and portfolio strategy

• Six decades of continuous Middle East presence, with a 50/50 joint venture in Saudi Arabia and delivery of major projects like Qiddiya and King Salman Airport.

• Diversified portfolio with a 50/50 split between federal and critical infrastructure, leveraging synergies in aviation, PFAS, and critical infrastructure protection.

• Altamira acquisition strengthens intelligence, missile warning, and space ground systems capabilities, enhancing cross-selling and federal market reach.

• AI is deeply embedded in both federal and infrastructure offerings, driving operational transformation and value chain advancement.

• Focus remains on markets with 4%-11% CAGR, high win rates, and technological differentiation, aiming to stay a top player in enduring, profitable sectors.