Parsons Corporation (PSN)

Parsons Corporation (PSN) Industrial Operations Profile

Parsons Corporation provides integrated solutions to the defense, intelligence, and critical infrastructure markets, leveraging its expertise in cybersecurity, space solutions, and infrastructure engineering. With a global presence and a focus on innovation, Parsons serves both government and commercial clients, driving efficiency and security.

What Is the Investment Thesis for PSN?

Parsons Corporation presents a notable research candidate due to its strategic positioning in growing markets such as cybersecurity, space solutions, and critical infrastructure. With a P/E ratio of 26.1 and a profit margin of 3.6%, the company demonstrates solid financial performance. Key growth catalysts include increasing government spending on defense and infrastructure, as well as the growing demand for cybersecurity solutions. The company's strong backlog and its ability to secure large contracts provide revenue visibility. However, investors should be aware of potential risks such as project delays, competition, and economic downturns. Parsons' focus on innovation and its diversified portfolio of services offer long-term value creation potential.

Based on FMP financials and quantitative analysis

PSN Key Highlights

• Market Cap of $6.13B reflects investor confidence in Parsons' market position and growth prospects.
• P/E Ratio of 26.1 indicates a reasonable valuation compared to its earnings.
• Gross Margin of 22.8% demonstrates the company's ability to maintain profitability in its projects.
• Beta of 0.73 suggests lower volatility compared to the overall market, making it a relatively stable investment.
• Absence of Dividend Yield reflects the company's focus on reinvesting earnings for growth.

Who Are PSN's Competitors?

PSN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PSN's Key Strengths?

• Strong market position in defense, intelligence, and critical infrastructure markets.
• Expertise in cybersecurity, space solutions, and advanced engineering.
• Integrated solutions approach and diverse portfolio of services.
• Established relationships with government agencies and commercial clients.

What Are PSN's Weaknesses?

• Reliance on government contracts, which can be subject to budget cuts and political changes.
• Exposure to project delays and cost overruns.
• Competition from larger and more diversified companies.
• Profit margin could be higher.

What Could Drive PSN Stock Higher?

• Increased government spending on defense and infrastructure projects.
• Growing demand for cybersecurity solutions due to rising cyber threats.
• Potential contract wins in the space solutions market.
• Expansion of smart city initiatives and infrastructure modernization projects.

What Are the Key Risks for PSN?

• Economic downturns and reduced government spending.
• Competition from larger and more diversified companies.
• Project delays and cost overruns.
• Cybersecurity threats and data breaches.

What Are the Growth Opportunities for PSN?

• Expansion in Cybersecurity Market: The global cybersecurity market is projected to reach $300 billion by 2027, driven by increasing cyber threats and the need for advanced security solutions. Parsons is well-positioned to capitalize on this growth through its cybersecurity services and platforms, serving both government and commercial clients. The company's expertise in offensive and defensive cybersecurity provides a competitive advantage in securing critical infrastructure and sensitive data.
• Growth in Space Solutions: The space solutions market is experiencing rapid growth, driven by increasing government and commercial investments in space exploration and satellite technology. Parsons offers space and geospatial solutions, including satellite ground systems, threat analytics, and space situational awareness. The company's capabilities in small satellite launch and integration provide a competitive edge in this expanding market.
• Infrastructure Modernization: Governments worldwide are investing in infrastructure modernization projects to improve transportation, water, and energy systems. Parsons provides engineering, program management, and technology solutions for these projects, including intelligent transportation systems, smart cities software, and critical infrastructure cyber protection. The company's expertise in infrastructure engineering and its ability to deliver integrated solutions position it as a key partner in these modernization efforts.
• International Expansion: Parsons has a presence in North America, the Middle East, and internationally. Expanding its operations in emerging markets presents a significant growth opportunity. The company can leverage its expertise in infrastructure development and defense solutions to serve the growing needs of these markets. Strategic partnerships and acquisitions can accelerate its international expansion efforts.
• Adoption of Smart City Technologies: With the increasing urbanization, there is a growing demand for smart city technologies that improve efficiency, sustainability, and quality of life. Parsons offers smart cities software and solutions for transportation, energy, and public safety. The company's expertise in data analytics, IoT, and cybersecurity enables it to deliver integrated smart city solutions that address the challenges of urban environments.

What Opportunities Does PSN Have?

• Expansion in cybersecurity and space solutions markets.
• Growth in infrastructure modernization projects.
• International expansion in emerging markets.
• Adoption of smart city technologies.

What Threats Does PSN Face?

• Economic downturns and reduced government spending.
• Increasing competition from new entrants and established players.
• Cybersecurity threats and data breaches.
• Regulatory changes and compliance requirements.

What Are PSN's Competitive Advantages?

• Strong relationships with government agencies and commercial clients.
• Expertise in cybersecurity, space solutions, and critical infrastructure.
• Integrated solutions approach combining engineering, technology, and program management.
• Global presence and diverse portfolio of services.

What Does PSN Do?

Founded in 1944, Parsons Corporation has evolved from an engineering firm into a global provider of technology-driven solutions for defense, intelligence, and critical infrastructure markets. Initially focused on large-scale infrastructure projects, Parsons expanded its capabilities to include cybersecurity, space solutions, and advanced engineering services. Today, the company operates through two primary segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment provides cybersecurity, intelligence, and space solutions to the U.S. Department of Defense, the intelligence community, and other federal agencies. The Critical Infrastructure segment offers engineering, program management, and technology solutions for transportation, water, and energy infrastructure projects. Parsons serves clients in North America, the Middle East, and internationally, delivering solutions that enhance security, efficiency, and sustainability. The company's commitment to innovation and its diverse portfolio of services position it as a key player in the global infrastructure and defense markets.

What Products and Services Does PSN Offer?

• Provides cybersecurity and intelligence services to the U.S. Department of Defense and intelligence community.
• Offers space and geospatial solutions, including satellite ground systems and threat analytics.
• Delivers missile defense and C5ISR solutions, such as integrated air and missile defense.
• Provides technology services for energy production, aviation, healthcare, and environmental systems.
• Offers intelligent transportation system management and smart cities software.
• Provides engineering services for infrastructure projects.
• Offers program management and environmental solutions to private-sector industrial clients and public utilities.

How Does PSN Make Money?

• Provides integrated solutions and services to government and commercial clients.
• Generates revenue through contracts for defense, intelligence, and critical infrastructure projects.
• Offers a range of services, including engineering, technology, and program management.
• Focuses on delivering innovative solutions that enhance security, efficiency, and sustainability.

What Industry Does PSN Operate In?

Parsons Corporation operates in the industrial machinery sector, which is experiencing growth driven by increased infrastructure spending and technological advancements. The market is competitive, with key players including Generac Holdings Inc. (GNRC), Regal Rexnord Corporation (RRX), and Flowserve Corporation (FLS). Parsons differentiates itself through its integrated solutions approach, combining engineering, technology, and program management expertise. The global infrastructure market is expected to reach $1 trillion by 2028, presenting significant opportunities for Parsons to expand its market share. The increasing demand for cybersecurity and space solutions also contributes to the company's growth prospects.

Who Are PSN's Key Customers?

• U.S. Department of Defense
• United States intelligence community
• National Geospatial-Intelligence Agency
• National Reconnaissance Office
• Transportation authorities and rail/transit entities

ROE 9%Key Financial Metrics

Return on equity for Parsons Corporation stands at 8.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.8%, showing how much profit it generates from its asset base. PSN trades at a trailing price-to-earnings ratio of 26.10, below the Industrials sector average of ~30x. Its free cash flow yield is 7.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.75 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.8%, the inverse of the P/E and a quick read on earnings relative to price.

Parsons Corporation (PSN) Valuation Context

Valued at $6.13B, PSN is classified as a mid-cap stock. Relative to its peer group, PSN's quantitative score of 62/100 is roughly in line with the peer average of 70/100.

Company Profile

Parsons Corporation operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Centreville, US. The company is led by CEO Carey A. Smith. PSN has traded publicly since 2019.

F-Score 6/9Financial Health

Parsons Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.77 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Parsons Corporation revenue of about $6.65B for fiscal 2026, with EPS near $3.30. The estimate reflects 10 contributing analysts.

Net buyingInsider Activity

Over the past six months, Parsons Corporation insiders filed 29 SEC Form 4 transactions — 7 sales and 22 purchases. On net that is roughly 109K shares acquired (about $292K) — insiders putting money in tends to read as conviction.

PSN Financials

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Parsons Corporation Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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