Parsons (PSN) UBS Global Industrials and Transportation Conference summary

Company overview and market positioning

• Operates in over 25 countries with 19,500 employees, focusing on Federal Solutions (60% of revenue) and Critical Infrastructure (40%).

• Six core markets: cyber/intelligence, space/missile defense, infrastructure protection, transportation, environmental remediation, and urban development.

• Projected 5%-12% compounding growth rate across core markets over the next three years.

• 85% of revenue is from North America, with 15% from the Middle East.

• Federal business emphasizes integrated deterrence and national security, while Critical Infrastructure focuses on program management and engineering.

Financial performance and growth drivers

• Achieved six consecutive quarters of over 20% organic growth, with all business units and geographies growing double digits.

• Maintained a contract win rate of 75% year-to-date.

• Backlog stands at $8.8 billion, with 66% funded and an additional $13 billion awarded but not yet booked.

• Book-to-bill ratio has remained above 1.0 since IPO in 2019.

• Margin expansion expected, with Critical Infrastructure margins trending toward 10% over time.

Middle East and international operations

• Deep roots in the Middle East, especially Saudi Arabia, with a 50-year joint venture.

• Major involvement in Saudi giga projects like NEOM, The Line, Oxagon, Qiddiya, and King Salman Park.

• No significant impact from regional geopolitical dynamics; strong U.S.-Saudi and UAE relations.

• Engaged in UAE infrastructure and flood recovery projects.