Parsons (PSN) The Stifel 2024 Cross Sector Insight Conference summary

Business overview and recent performance

• Employs 18,500 people across 25 countries, with revenue split 57% federal and 43% critical infrastructure.

• All four business units and major geographies are experiencing double-digit growth.

• U.S. accounts for 76% of business, with significant presence in Canada and the Middle East.

• Federal solutions business has shifted from 3–4% to over 40% organic growth in recent quarters.

• Win rates for new business are at 78%, with large contract wins driving growth.

Federal solutions segment

• Cyber and intelligence now represent 14% of revenue; space and missile defense 13%.

• Growth driven by high-end cyber, electronic warfare, and space capabilities, enabled by M&A.

• Recent wins include classified contracts, GSA, Army ammunition plants, and a $1B air defense program in Europe.

• Organic growth in federal expected at 16% for the year, moderating to high single digits as comparables get tougher.

• Federal business is focused on advanced solutions, not staff augmentation, and is aligned with RDT&E funding trends.

Cyber and technology differentiation

• 75% of cyber business is offensive, 25% defensive, with proprietary toolsets and platforms.

• SealingTech acquisition expanded defensive cyber and commercial offerings.

• Cyber is now a required component in most infrastructure bids, providing a competitive edge.

• Vertically integrated solutions for critical infrastructure protection in high-threat, high-regulation sectors.