Parsons (PSN) Q3 Earnings call transcript Oct 30, 2024
1min read Parsons Corporation, a leading provider of engineering, construction, and technical services, reported record-breaking financial results for the third quarter of 2024. The company achieved significant growth across its portfolio, with total revenue exceeding $1.8 billion and organic revenue growth of 26%. This marks the 11th consecutive quarter of record revenue and the 12th consecutive quarter of record quarterly adjusted EBITDA.
During the quarter, Parsons also announced the acquisition of BlackSignal Technologies, a next-generation digital signal processing, electronic warfare, and cybersecurity provider, in an accretive deal valued at $204 million. The acquisition strengthens Parsons' positioning in offensive cyber operations and electronic warfare, while adding new capabilities in the counterspace radio frequency domain.
The company's strong performance is attributed to its strategic investments in software and integrated solutions, as well as accretive acquisitions that provide distinguished defense capabilities and engineering expertise. These investments are driving exceptional revenue growth, margins, and cash flow.
Parsons' operating cash flow for the third quarter of 2024 was a record $299 million, representing a 91% increase over the prior 12-month period. The company's strong balance sheet and free cash flow enable it to continue making strategic internal investments and acquisitions to support its long-term growth objectives.
In the third quarter, Parsons also won 4 single-award contracts over $100 million each, demonstrating its success in the transportation market. The company's momentum in the Middle East continues to grow, with a record-breaking pipeline of projects and an all-time high headcount. Parsons is capitalizing on the market tailwinds and unprecedented global infrastructure spend, particularly in the defense and infrastructure sectors.
The company's strategic acquisitions, such as the recent acquisition of BCC Engineering, a leading transportation engineering firm in the Southeast, further strengthen its position as an infrastructure leader. This acquisition will enable Parsons to expand its reach in the Southeastern United States, a region where the Infrastructure Investment and Jobs Act has provided approximately $100 billion in Federal Highway Administration formula funds for fiscal years 2022 through 2026.
Parsons' executive team expressed confidence in its ability to achieve its increased 2024 guidance ranges, driven by its record performance, strategic acquisitions, and a strong outlook for the remainder of the year. The company's focus on operational excellence and strategic investments position it well to capitalize on the market tailwinds and drive long-term growth.
