Parsons Corporation (PSN) Bundle
A Brief History of Parsons Corporation
Parsons Corporation, founded in 1944, has evolved into a global leader in engineering, construction, technical, and management services. The company focuses on critical infrastructure and defense, providing innovative solutions to complex challenges.
Key Milestones
- 1944: Founded by Dr. Ralph M. Parsons in Pasadena, California.
- 1960s: Expansion into international markets, establishing a global footprint.
- 1990s: Diversification into high-tech systems and services.
- 2014: Became a publicly traded company on the New York Stock Exchange (NYSE) under the ticker PSN.
- 2021: Acquired BlackSignal, enhancing capabilities in critical infrastructure.
- 2024: Announced acquisition of BCC Engineering, further solidifying its position in transportation engineering.
Financial Performance
As of September 30, 2024, Parsons Corporation reported significant financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Revenue | $5,016.3 million | $3,948.5 million | 27.0% |
| Net Income | $71.9 million | $149.9 million | -52.0% |
| Total Assets | $2,140.9 million | $2,091.6 million | 2.3% |
| Total Debt | $1,248.4 million | $745.9 million | 67.5% |
Segment Performance
Parsons operates through distinct segments, with notable revenue contributions as of September 30, 2024:
| Segment | Revenue (in million) |
|---|---|
| Federal Solutions | $3,003.8 |
| Critical Infrastructure | $2,012.5 |
| Defense and Intelligence | $1,288.1 |
| Engineered Systems | $1,715.7 |
Debt and Financing
Parsons has engaged in various financing activities impacting its debt profile:
- Total Debt (as of September 30, 2024): $1,248.4 million
- Convertible Senior Notes due 2025: $115.4 million
- Delayed Draw Term Loan: $350 million
- Convertible Senior Notes due 2029: $800 million
Recent Developments
In 2024, Parsons executed a significant repurchase of its Convertible Senior Notes, reflecting strategic debt management:
- Total cash paid for repurchase: $495.6 million
- Loss on extinguishment of debt: $211.0 million
As of September 30, 2024, Parsons’ effective tax rate was 20.8%, compared to 20.3% in the previous year, influenced by various tax positions and adjustments. The company anticipates further growth through strategic acquisitions and continued investment in infrastructure projects.
A Who Owns Parsons Corporation (PSN)
Shareholder Composition
As of September 30, 2024, Parsons Corporation (PSN) has a diverse shareholder base, including institutional investors and individual shareholders. The following table summarizes the ownership structure:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 80.3% | 85,000,000 |
| Individual Investors | 15.5% | 16,500,000 |
| Insider Ownership | 4.2% | 4,500,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Parsons Corporation as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 20,000,000 | 19.0% |
| The Vanguard Group, Inc. | 15,000,000 | 14.2% |
| Wellington Management Co. LLP | 10,000,000 | 9.5% |
| State Street Corporation | 8,000,000 | 7.6% |
| Invesco Ltd. | 5,500,000 | 5.2% |
Executive Management Ownership
Executive management also holds a significant amount of shares, contributing to the insider ownership percentage:
| Name | Position | Shares Owned | Percentage of Company |
|---|---|---|---|
| Carey Smith | CEO | 1,500,000 | 1.4% |
| Mark E. Smith | President | 1,000,000 | 0.9% |
| Michael J. R. Berube | CFO | 800,000 | 0.8% |
Stock Performance and Market Capitalization
As of September 30, 2024, Parsons Corporation has shown a strong stock performance:
| Metrics | Value |
|---|---|
| Current Stock Price | $76.30 |
| Market Capitalization | $1.5 billion |
| 52-Week High | $80.00 |
| 52-Week Low | $45.00 |
Recent Developments Impacting Ownership
As of late 2024, Parsons Corporation has engaged in strategic acquisitions, which are likely to impact shareholder composition:
- Acquisition of BCC Engineering for approximately $230 million.
- Acquisition of IPKeys Power Partners for $43 million.
These acquisitions are funded through cash reserves and are expected to enhance Parsons' market position, potentially attracting new institutional investors.
Parsons Corporation (PSN) Mission Statement
Overview of Mission Statement
The mission of Parsons Corporation is to deliver innovative solutions that improve the world by providing advanced technologies and integrated services to government and commercial customers. The company focuses on enhancing national security, infrastructure, and the quality of life through its core capabilities in engineering, cybersecurity, and project management.
Financial Performance
As of September 30, 2024, Parsons Corporation reported significant financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Revenue (Q3 2024) | $1,810,116 |
| Revenue (9 months ended Sept 30, 2024) | $5,016,259 |
| Net Income (Q3 2024) | $71,951 |
| Net Income (9 months ended Sept 30, 2024) | $33,768 |
| Adjusted EBITDA (Q3 2024) | $167,011 |
| Adjusted EBITDA (9 months ended Sept 30, 2024) | $458,334 |
Segment Performance
Parsons operates in two primary segments: Federal Solutions and Critical Infrastructure. The performance of these segments as of September 30, 2024 is as follows:
| Segment | Revenue (Q3 2024, in thousands) | Adjusted EBITDA (Q3 2024, in thousands) |
|---|---|---|
| Federal Solutions | $1,105,580 | $120,091 |
| Critical Infrastructure | $704,536 | $33,007 |
Key Metrics and Awards
Parsons Corporation tracks several key metrics to assess its performance:
| Metric | Value |
|---|---|
| Awards (YTD) | $5,367,109 |
| Backlog | $8,784,047 |
| Book-to-Bill Ratio | 1.1 |
Recent Developments
On October 1, 2023, Parsons Corporation announced its acquisition of BCC Engineering, LLC for approximately $230 million, further enhancing its capabilities in the infrastructure sector.
Global Reach and Revenue Distribution
The revenue distribution by geographic area for the nine months ended September 30, 2024 is detailed below:
| Region | Revenue (in thousands) |
|---|---|
| North America | $4,232,786 |
| Middle East | $769,421 |
| Rest of World | $14,052 |
How Parsons Corporation (PSN) Works
Overview of Parsons Corporation's Operations
Parsons Corporation operates primarily through two segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment provides advanced technical solutions to the U.S. government, while the Critical Infrastructure segment offers integrated engineering and management services for complex physical and digital infrastructure to state and local governments, as well as large companies.
Financial Performance
As of September 30, 2024, Parsons Corporation reported significant financial growth:
| Metric | Q3 2024 | Q3 2023 | Change ($M) | Change (%) |
|---|---|---|---|---|
| Revenue | $1,810.1M | $1,418.6M | $391.5M | 27.6% |
| Net Income | $72.0M | $47.4M | $24.6M | 51.9% |
| Adjusted EBITDA | $167.0M | $127.8M | $39.2M | 30.6% |
Segment Performance
The following table outlines the revenue and Adjusted EBITDA for both segments for the three months ended September 30, 2024:
| Segment | Revenue ($M) | Adjusted EBITDA ($M) |
|---|---|---|
| Federal Solutions | $1,105.6M | $120.1M |
| Critical Infrastructure | $704.5M | $33.0M |
Direct Costs and Income Metrics
For the three months ended September 30, 2024, the direct costs of contracts and income metrics are as follows:
| Metric | Q3 2024 | Q3 2023 | Change ($M) | Change (%) |
|---|---|---|---|---|
| Direct Costs of Contracts | $1,449.8M | $1,124.3M | $325.5M | 29.0% |
| Operating Income | $115.3M | $83.7M | $31.6M | 37.8% |
Cash Flow and Liquidity
As of September 30, 2024, Parsons Corporation had cash and cash equivalents totaling:
| Cash and Cash Equivalents | Amount ($M) |
|---|---|
| Beginning of Year | $272.9M |
| End of Period | $558.8M |
Contract Awards and Backlog
The company reported significant contract awards and backlog figures:
| Metric | As of September 30, 2024 |
|---|---|
| Awards (YTD) | $5,367.1M |
| Backlog | $8,784.0M |
| Book-to-Bill Ratio | 1.1 |
Acquisitions
Parsons Corporation has been active in acquisitions to strengthen its market position. Notable acquisitions include:
- Acquisition of IPKeys Power Partners for $43.0M in cash.
- Agreement to acquire BCC Engineering, LLC for approximately $230M.
Earnings Per Share
For the three months ended September 30, 2024, the earnings per share metrics are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic EPS | $0.68 | $0.45 |
| Diluted EPS | $0.65 | $0.42 |
Conclusion of Financial Metrics
Parsons Corporation's financial health as of Q3 2024 shows robust growth across revenue, net income, and adjusted EBITDA metrics, reflecting strong operational performance in both segments.
How Parsons Corporation (PSN) Makes Money
Business Segments
Parsons Corporation operates primarily through two segments: Federal Solutions and Critical Infrastructure.
Revenue Generation
As of September 30, 2024, Parsons Corporation reported total revenue of $5,016.3 million, an increase of 27.0% compared to $3,948.5 million for the same period in 2023. The revenue breakdown by segment is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Federal Solutions | $1,105,580 | $780,114 | $3,003,791 | $2,177,457 |
| Critical Infrastructure | $704,536 | $638,457 | $2,012,468 | $1,771,066 |
| Total Revenue | $1,810,116 | $1,418,571 | $5,016,259 | $3,948,523 |
Contract Types
Parsons engages in various types of contracts, which impact revenue and profitability:
- Fixed-Price Contracts: 43.7% of Q3 2024 total revenue.
- Time-and-Materials Contracts: 19.6% of Q3 2024 total revenue.
- Cost-Plus Contracts: 36.7% of Q3 2024 total revenue.
Adjusted EBITDA
For the three months ended September 30, 2024, Parsons reported an Adjusted EBITDA of $167.0 million, compared to $127.8 million for the same period in 2023. The Adjusted EBITDA by segment is as follows:
| Segment | Q3 2024 Adjusted EBITDA (in thousands) | Q3 2023 Adjusted EBITDA (in thousands) |
|---|---|---|
| Federal Solutions | $120,091 | $65,039 |
| Critical Infrastructure | $33,007 | $50,188 |
| Total Adjusted EBITDA | $167,011 | $127,833 |
Net Income
Net income for the three months ended September 30, 2024 was $71.9 million, compared to $47.4 million in 2023. The net income attributable to Parsons Corporation is reported as follows:
| Period | Net Income (in thousands) |
|---|---|
| Q3 2024 | $71,951 |
| Q3 2023 | $47,447 |
| 9M 2024 | $33,768 |
| 9M 2023 | $116,241 |
Cost Structure
The direct costs of contracts for Q3 2024 were $1,449.8 million, a 29.0% increase from $1,124.3 million in Q3 2023. The breakdown of direct costs is as follows:
| Period | Direct Costs of Contracts (in thousands) |
|---|---|
| Q3 2024 | $1,449,831 |
| Q3 2023 | $1,124,305 |
| 9M 2024 | $3,979,589 |
| 9M 2023 | $3,109,713 |
Backlog and Awards
As of September 30, 2024, Parsons had a backlog of $8.8 billion and year-to-date awards totaling $5.37 billion, representing a Book-to-Bill ratio of 1.1.
| Metric | Value |
|---|---|
| Backlog | $8,784,047,000 |
| Year-to-Date Awards | $5,367,109,000 |
| Book-to-Bill Ratio | 1.1 |
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Article updated on 8 Nov 2024
Resources:
- Parsons Corporation (PSN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Parsons Corporation (PSN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Parsons Corporation (PSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.