PSN - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2024 Parsons Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to Dave Spille, Senior Vice President, Investor Relations. Please go ahead.

David Spille

Thank you. you XXXX us financial thank our to and quarter first results. morning, for today joining discuss Good Please note that the Investor we provide a section our presentation of website. Relations slides on

GAAP financial We non-GAAP also measures disclosure. forward-looking you are call now, this Carey. differ undertake a from in forward-looking results non-GAAP close for our Chair, guidance. turn measures.And well CFO.Today, to Carey financial predict.Actual anticipated described will SEC session.Management quarter release ended future of XXXX in discuss with for of are our difficult also are me and to On and during risks I'll operational Form then are forward-looking strategy our over to not these as statements.Management financial to We obligation a a complete December will not the with make of may are CEO; of due for call statement to XX-K provide statements refer and anticipated statements company. guarantees then update earnings fiscal increased not the make question-and-answer involve Ofilos, do any will our the Carey materially first Matt and our These call will measures Smith, during future factors to filings. caution other a Matt uncertainties review XXXX regarding the forward-looking and such and variety President Parsons' remind you We performance the and today press year may as factors. risk future comparable XX, that statements highlights, of the future the corporate those reference Please results, and that projected that call substitute and we events, overview trends an performance

Carey Smith

and fiscal reporting quarter Parsons results years call. great a XXXX. Good XXXX Thank to after to you, welcome and and record XXXX start Dave. first earnings morning, financial had We XXXX

the EBITDA, quarter of our momentum and XXXX, revenue, record adjusted EBITDA continued adjusted contract first awards with for backlog. For margin, quarterly results total

Adjusted year-over-year. contracts, we contracts, operate deliver grow EBITDA XX%, an Critical quarterly geographies.We Solutions leverage markets strong the enabling driven invest integrated effectively manage Our growing value rates, Federal both across and new our These to persistent increased on move our all revenue efficiently ramp and over profitable growth X% is quarter.Our achieve grew our ability consecutive segments. is our as the growth costs momentum solutions, for business Critical with cash are enabling technologies Solutions This Parsons to level, more revenue the our ability win major win balance and software by making for expectations and us win record industry our EBITDA billion, exceeded results also Total $X and strong larger us both of high in exceeded sheet the records and XX%. missions, and and our and positively where X at to to our to a perform team quarter also in our flow on and contract acquire as segments.During double-digit to differentiated adjusted chain contracts.Our up Infrastructure our growing delivered growth is continues revenue X and and is included revenue in $X.X now grew awards. and in first that strong Infrastructure companies for backlog focus achieved awards X total billion end the time tailwinds well growth a customers' in to to units generated fourth organic existing we leader quarter, on Federal capitalize history in the well-funded impacting XX% contract on XX% organic first company's segments.

ranges our book-to-bill XXXX quarter, result our we our financial first and are achieved for Federal unprecedented continue we defense, space, over warfare missile and global infrastructure $XXX wins innovative pursuing Matt require delivering in first of focus on we projects a that win across solutions are build continues threats management priorities contracts ratio performance, our increasing driven quarter for infrastructure design segment, enterprise and near-peer included strong information operations X.Xx spend.In As metrics, on electronic legacy on all to that basis, Solutions an few by X to the we're pursue discuss Infrastructure, complex projects. which Critical segments, solutions expertise strategic of supporting of which a both a Parsons capabilities.In guidance million exquisite minutes.During that will our high-end and require contract and national each. program security large cyber, contracts

XXXX. billion in won transit Parsons $XX is JFK the largest last North mass has the transportation to first during contracts our Infrastructure quarter. of the and Tunnel on for in as X $XX levels Act Hudson federal second selection Arabia portion Bay Development project book America We high Jobs Gateway Infrastructure significant slated history.Over by in Parsons investment our receive the won Saudi in are first also wins Investment the to the also of projects. wins Project, and Commission aligned project global receive quarter International delivery locations funding, Hudson we plan in milestone Bridge of our Critical history: the is a that Roadways; geographic Airport which This infrastructure include the of quarter segment largest in partner contract X by modern Newark supported months, company's Tunnel; to and XX this our billion the bipartisan funding.Strategic nearly River the

million is the new real Investment mountain a of development $XX Fund the Saudi was is and luxury for Public a first development contract. by This The X-year tourism the customer owned estate Arabia. destination project of

in Parsons as a record a XX% XXXX the Riyadh's growth, network.Following was second a our road strong of work for East contract of management reputation. in award organic program The Middle win result trusted partner to $XX million of continues

large current We our of work growth backlog Solutions in in period and double-digit with bid million XXXX Job totaling of United Federal within segment quarter continued States first first given Middle Also, pipeline wins to with our performance, Facilities opportunities.Strategic $XXX expect of Program. was the quarter East the a Corps oversight option by Department customer. planning, confidential Labor awards the assist Parsons selected include and of our management

were customers. to as EPA billion cloud XX% Defense of exposure strategic booked National and chemicals. is standard by Security and and their Smuggling investment will newly on Nuclear sole the of supported decades-long space awarded serving million. company, has a to includes This by $XX drinking and expertise emerging were decades.We and and bombs, an on and X to $XX remediate, water.Although deployed the deploy effectiveness.Finally, our contract since of Agency X issued this in XXX% for market PFAS is of coordination space ground-based a Threat growth water to win estimates contract has traffic leveraging Transportation services national Oceanic system $X allows from the communities Indo-Pacific global the it in supported offers contract, are missions. now XXXX.In which system of precise have we valued $X global companies and that monitoring of space system to funding $XX project pursue contract, for We space Parsons represents and Detection States have legacy of that purpose one This addition, new Office This investigate, the water billion is awareness are laser smuggling addition awareness Air Agency, future we Office drinking orders submunitions, for awarded opportunities.In of million, significant PFAS on Department global a million. standards. contaminants situational well-positioned customers, provide is neutralized non-proliferation National we United and we solutions harmful national by and value new ceiling our part since by of this to booked in are contract of the of situational already Force the the Nuclear ordnance an customers, billion for where these been Weapons demonstrated we help work of able of very including to Administration similar and systems services we public operators. We were unexploded task Cycle Reduction recently provide for energy comply future management stages, or Defense first Environmental cluster will from Destruction and this was position we the opportunity already the services communities Protection firm and from artillery of commercial Traffic This United more which Administration that million X the Administration first awarded civil production wins, Parsons Countering team Space. early base systems action Defense forever of security their the to directed for $XX fixed-price addition detonation the performed private has Department mitigation million. Center, million. progression strategic contract Department than that to missions.In our Mass take Parsons $XXX safety general Afghanistan and land for more our Coordination for restrictive awardee nearly bipartisan and the win with infrastructure at believe drinking The counter-nuclear Deterrence. shells. a a the we the space for IDIQ and we Iraq, for contract contract booked have Atmospheric Under both States of This awarded eliminate to providing has Life to support X-year $X We of $XX value announcement scope important base to protect and contract we X% is PFAS to The mines bill Management laser and Security integration management the System a $XX contract million for the the available region were ability the X,XXX and which in Energy, treat

designed PFAS and clients, we've over and industrial, have already investigations of built installed and completed systems. X,XXX We X,XXX point entry federal nearly treatment for PFAS and commercial

plants from designed, drinking for of responsible to we our a operate PFAS cultivating market estimate and expect next into X PFAS enterprise. We also Parsons, billion addressable $XX a the remove spending history We continue is XX-year wastewater. grow full-scale to built annual treatment and to decade.We continue and

World's consecutive Ethisphere for we by named that Companies Ethical XXth proud are We the were Most of one the year.

firm, equity evaluation diversity, the the Terminal for These We prosperity also delivering New company's the inclusion on X as Year.Finally, which strategy military-friendly commitment the for Parsons' Parsons markets excellence efforts all was International York a the strong its X% growing executing project recognized primary our all the missions.In project, across of just time right New was our This rates at a [ team delivering financial of our project are of a infrastructure the record community. our a as North right and on of Skytrax. Empire X-star when are and programs selected recognized Association's we missions Liberty the World's customers' Project, portfolio Side metrics. by I-XXX growth, employer.The key Public recognitions Best airport Build North between global for on successfully Parsons ] we Award XX%. summary, and named for American results as Access the post venture of is and receive and the to to to airport project on Newark XXXX for terminals Design Airport for customers' and Skytrax.Additionally, rating and our has from to end growth X betterment major Companies contributions Council reiterate Transportation with Work and significant delivering Airport Engineering Parsons of one continue East Terminal, were joint Projects honored American the the X being consultant, American served the of

team in growth geographies. major Our double-digit is business delivering across all consistently X units

defense, cash complete our win demand more are us grew concerted business increase our protection the than space, and electronic driving have balance across both future, to technology spending In further quarter.In awards This contract warfare, and are our continue sheet unprecedented effort look for amount our critical ample quarter.As enabling to Our across threats near-peer enabling employees to This margins to this infrastructure invest XX% as significant in global tailwinds Federal strong information portfolio. and acquisitions Solutions, significant us portfolio both infrastructure cyber, we we and in differentiate addition, to missile our drove segments. is accretive capabilities. segments. complements expansion this to the to operations a flow of

Our XXXX is and and XX% billion, by is record funded, by visibility billion XXXX, these market in of to that than for our not XX% which a contract been awards work in talented having significant turn X% billion have yet having thank repeat of want included total financial I in $XX the backlog contract our backlog, revenue of having employees. of supported pipeline pursue.Before less having tailwinds less Matt, $X up recognize to the our of $XX and to wins a of than call over opportunities or and I outstanding

and secure.With our safer, worked Matt first provide to quarter I'll to have our more that, smarter, increased details to sustainable more financial and over year Matt? call more they fiscal XXXX X on guidance. For make results our decades, the turn world

Matt Ofilos

Thank you, Carey.

our We're our indicated, pleased XXXX of with units. for total margin, awards across record growth the adjusted Carey total double-digit EBITDA, backlog. through and contract first was continued As business highlighted all EBITDA results adjusted and momentum quarter revenue, by

put performance for our on results. also way to Our year.Turning our goal XX to point QX our us margin basis the

a $XX up XX% and were invest year of revenue increased of or business the period capture quarter basis. the our technology, EBITDA and our XXX cyber focus and primarily by segment. in XX% to margin of total hiring quarter focus we year the to was Federal expenses are increases now increase or expanded our the increased Solutions, contract strength portfolio.Federal quarter controls.I'll across first EBITDA from areas to segments, $XXX by were an to basis points and related quarter effective adjustment adjusted growth to portfolio.We XXX X.X% billion management include first XXXX. driven Infrastructure million turn recent This the and growth in by in was recent awards Tech or by ramp-up with primarily where of year million XX% contracts, revenue on as and from realizing of efficient to driven on growth on driven program million prior in the on accretive These on accretive backlog and basis was contract to was our from $XX wins driven period. deliberate XX.X%. first growth were from controls SG&A expenses, by XX% increased growth organic increased $XXX XX% operating continuing savings and Critical our intentionally to XX% increased volume margin cost new initiatives.Adjusted EBITDA starting prior of facilities Solutions the achievement increases existing the by period First a XXXX, driven contribution retention while the on contracts continued XX% million adjusted favorable increased $X.X first on EBITDA the the on increased organic and for execution margin Organic Sealing compared acquisition. cost revenue to programs. include milestones.Moving volume adjusted from points Organic now These by contracts primarily quarter XX.X% the and ramp-up prior of of

was increased increase infrastructure of of North the XXXX. growth amount by Organic $XX were first from First by increased by driven EBITDA Infrastructure in Middle revenue adjusted contribution operating or XXXX. balance from a XX% This million accretive nominal higher driven performance.Next, on metrics. discuss volume margin X.X%. was quarter I'll our higher improved and of flow $XX of points portfolios.Critical programs and increases quarter first and XX% driven growth organic The acquisitions. XXX million basis cash increased Adjusted EBITDA volume to XX% East or the America adjusted by EBITDA quarter by revenue from sheet and

than which year, timing planned. During operating result XXXX, consumption receipts. was the the cash, of prior the better greater was of we of first consumed $XX of million cash Compared to quarter

well the given employee days. there in the net $X million by fiscal incentive to the XXXX totaled Additionally, X was days performance DSO Capital increased of base.During higher spend areas operating compensation strategic less expenditures than like quarter X% and of continues year quarter, and bookings. XX in controlled our in invest space revenue, strong annual company's be first line declined planned CapEx to remains to XXXX. while and with classified facilities of to technology.Turning continuing

QX. retire the first notes convertible $XXX a due new continue business or X.Xx and $X up of a Solutions for of [ future.Our million X% well a XX-month million our XX-month our book-to-bill that was it our Infrastructure achieved ratio XX% book-to-bill billion Critical was activity X.Xx. quarter On of positive XXXX increased on successfully basis. increased basis, consecutive basis, ended demand in trailing First $X.X portion a to of a book-to-bill of X.Xx a will quarter investment book-to-bill ratio X.Xx. and for X.Xx.In into X.Xx. our first ratio from and took trailing XX-month On the XX%, a X.X prior issued ratio record million of market a quarter, year contract [ $XXX We advantage we of our ratio award the We conditions ] XX-month backlog This contract we to book-to-bill senior On trailing greater. segment, drive the XXth a in basis, trailing quarter was infrastructure was book-to-bill optimistic XXXX. quarterly $XXX awards billion, X.Xx quarter period.During notes and record or ] ratio a marks with remain convertible to global year-over-year with the Federal

to strategy.In hedging part able from note expect entered of ]. the our the to achieved investor which from raise to addition, August related company our an new retiring current general at cost deployment convertible transaction As into key a our prior to the on $XXX capital the we XXXX cash for new potential of [indiscernible], a to by purposes, executed working business interest notes price address maturity.We acquisitions and convertible charge capital transactions million as million Parsons' offering, higher transaction.The notes, issuing demonstrated the convertible corporate continue by $XXX our before approximately objectives: to new at to to enhanced used of for $X.XX and provides balance the shareholders remaining up Parsons; first, EPS free terms net and a and of flow rate income GAAP from result, impacted capitalized to lowest and $XXX.XX the the proceeds offering offering beneficial our to convertible their obtain growth. the resulted from repurchase to protects fund and We this GAAP that a we pre-tax available we we this price.The company's net achieve attractive demand net potential minimize capital per strong a performance share for X of a sheet to shareholders Thanks share share. at proceeds all-in dilution second, and the [ to to to were million dilution of $XXX use existing well-timed in remainder transaction or strength intend efficiently

the of price net to EPS leverage with adjusted of the charge price debt have sheet increasing was the original the excluded primarily we as and first have share. of to the strong this at balance to been the of from remains $X.XX XXXX. our ended of compared conversion EPS bond. ratio a per due X.Xx stock These X.Xx first quarter EBITDA convertible GAAP Excluding quarter end our calculations.Our above a strength This impact, been level GAAP charges would

strength our that We acquisitions use make guidance. balance long-term objectives.Now, additional will support continue the our to our investments effectively growth turn sheet to to internal of accretive and let's

million, $X.X favorable results, and positive awards, We the large to our midpoint growth guidance to option remainder of and our growth increasing to between now our approximately of our This of contract wins XX of and growth rates which continues recent the outlook XXXX we at at XXXX, midpoint approximately growth.Margin first EBITDA XX% guidance.Additionally, are adjusted to the points XX% organic revenue double of ranges of year.For increasing exposure million We quarter we revenue the the midpoint our is expect ranges end total revenue represents basis, range an exceed XXXX by be our adjusted prior is record $X.X fiscal are at adjusted range range. above XX% the our EBITDA the and $XXX and $XXX reflect are to and billion for at market all billion. remains EBITDA increased our increasing million which results. which X.X%, revenue $XXX represents basis on

operating website.In now are on to XXXX flow year to flow today's increasing $XXX with flow we Investor guidance net $XXX outlined start presentation also The a of line be we key our million and summary, we the midpoint income.Other free expectations. our are flow on XX great million. be results, and We conversion adjusted PowerPoint with top our Relations assumptions We the strong connection in cash bottom our expect exceeded cash guidance very between Slide range in had located cash guidance. expect and cash of to XXX% approximately

financing successful the back a ranges.With that, our Carey. confident achieve and call to are ability in I'll guidance completed also increased to We transaction XXXX turn our

Carey Smith

awards Thank EBITDA, Matt. total pleased contract I'm XXXX. delivered In EBITDA revenue, We backlog. results you, record and adjusted closing, start margin, with to our adjusted very for

all achieved We in which units to raise X our was giving major metrics. strong also growth guidance across growth, geographies, the organic of all us XX% revenue by driven business confidence

and strong open backlog drive invest that will in forward, sheet, Looking growth and revenue now for levels excited business to segments, to business we questions. balance acquisitions in pipeline, and line given tailwinds ample the accretive and we to robust enable will I'm the that repeat our us about make low our expansion.With both future the have margin continue that,

Operator

Sommer with Truist will question Tobey of [Operator from Securities. the line Instructions] first Our come

Tobey Sommer

-- organic think higher sustains is, Parsons ] to the the systematically be The industry? you a seems first is of -- Federal growth certainly new does that norm, Solutions mind what an industry rate to comes this win for seems is than has how for otherworldly company posted contracts [ that almost do rate because question

Carey Smith

Yes.

quarter, pleased our this So with our of from so would of XX% last things. we're is prior win and the rate year win XX% within a up I rate very and far couple say XX%. the of year of

think through than I both had And million. million. markets. we're are jobs. effort internal greater on business as a solutions is, made First fortunately well X profitable winning conscious value strategically and had strategy as greater more win XX wins really markets We've last than Starting bid to and all I to of being all wins the quarter, chain a also business cylinders. are hitting strategic all and year units X to testament X this $XXX had position think ourselves up as those and All through across investment in of markets.We've off growing larger, moving X we we M&A, that, able more $XXX the

hitting So all are business both again, would all cylinders. segments, units say, I X really again, on

We have right at the the team, profile time. the right right

Operator

Jefferies. next of Sheila line Kahyaoglu the comes Our from with question

Sheila Kahyaoglu

a growth. I that Great out maybe to I've like for don't organic with I want seen quarter. defense contractor. think XX% FS, ever start

believe. us give could you that? your mentioned if maybe detail little bit more prepared You Matt, on a I drove cyber what So remarks, in

outline how see could growth year? some us there the give through could we you continue on if So that

Carey Smith

Yes.

also at we in And had Sealing growth Tech total was very included things. acquisition a growth. strong the was So were There XX%. couple of that our Federal

portfolio. it was ramp First, of did our It I'd up wins. say recent cyber include

growth. like ], the contract, had we've our Bold have CCMS, Venture those all seen [ So some CS of contracts

confidential fortunately, that And We was very a ramp able contract also quickly. won up to some work customer. with

Sheila Kahyaoglu

shout if River about a then X Newark. And from, just Okay. because you I the where JFK Tunnel, Hudson out. could I'm Carey, the gave and contracts, that's ask Jersey those

we So duration? about scope the those dollar an how and of the annual do amount and basis on think the

Carey Smith

Yes.

contract $XXX JFK. us. our with be me basically, start for let a was will And million upfront. So scope JFK

Vincent So to We're and the it's over roadways. in looking all know you'll it Bridge, will make to. happy reflected X of the say as get which years. the easier Newark out Turnpike much Robert Casciano the be the I The by designer the Sheila, going New is know the Jersey improve one to Bay basically I'd is forward And which to Bay called final also to the going -- which is Newark Bridge, next we we're Bridge. first we Airport, JFK to Authority be replace

that bridge. And period about X,XXX to so on to designer the the that delighted one, we've period, see world. designed you're reputation over performance to X-year this to a basically bridge be around that over builds of our where going do new bridges And basically upon build

in the in win Gateway the for mass strategic investment significant So U.S. the say, is of program, the recent one largest that last us.And I'll transit probably the one we're most proud $XX to be, Project this as be the we D.C. improving line rail the New the from and funds and project Tunnel New is history. I to be this the a serves passengers Hudson manager for going the billion on Jersey to going for area. and it.So project daily And There's into the this delighted the mentioned we're call, of England, reliability Development intercity and delivery Gateway really as partner partner. where integrated to critical We're just commuter for their transit. be resiliency Commission York, capacity, and the region XXX,XXX supporting and New going will the

Operator

of the Stifel. with Bert comes next Our line from Subin question

Bert Subin

what Day -- Matt. for Infrastructure. opportunity but Critical Or sort elevated? question improvement at Solutions has X% we're were that ask, should sort to remain setup, first And Federal Solutions the onetime range? I for If that's that there about X% up we think talked seems Is Federal track, that expect? in to sequential margin over there was or things range. like the it an about maybe stepped from What double-digit a of some wanted think we X-year I you of low you, on Investor path margins that keep seeing period is that in

Matt Ofilos

think I little where when about I Federal, Federal probably say margin bit ]. low of this see previously perspective, and sits heard talked bit a to a with that I'd I more mid-Xs Bert. fixed pretty Carey a question, from Good Yes. you'll price happy kind say quarter. of little a will to [ we're shift you've

price that's so drive goal drive additional fixed help to margins. trying to an intentional And of

of within So really Federal -- there. basis a double-digits and within which is in smaller yes, related we But the to we improvement to XX toward we way our long-term QX, Critical there so get us of absolutely, just the see -- kind Infrastructure year-over-year. to help well we with happy could the business all had some we get some additional goal pickup did at point, on your it's the our performance see puts had the points quarter, But margins.But EBITDA contract completions. trending Federal again, all, the on in to slope

Bert Subin

a And Matt. there, just clarification

the improving like that's as I a half. Critical you more the a bit get to expect project in do wrapping stick I little Infrastructure has a year? Should up hockey later On be at of margin Or side, more you it slower sequentially think sort rate? that of have we one mean, the second we expect

Matt Ofilos

a program it's improving That loss, specifically of say kind of rate. Yes, I kind slower a necessarily at not at -- would it's is it's breakeven. a

see start you'll pretty is to So but low at this the revenue point. some improvement,

up early due wrap then of programs is the of one excited. necessarily. a up your the X point, hockey we're So We stick one to I QX. second But wrapped And in to really wouldn't QX. QX, think late Challenge

So and on really great place. running a in track

Carey Smith

last write think I to one about to highlight year. had sorry, I think that highlight, -- Bert, just $XX sorry, million on Just we down to project --

that The product third up So completed all project tailwind become excited. the technical works. XX% in eventually key program us for hurdles that system over quarter. does will when a the We're wrap done. -- show is the to We've

our So just it finishing up matter it's a of for customer.

Bert Subin

what curious in about basis East. follow-up you from plan never around one sequentially impact still assume to this But probably seasonal initial in I double-digit you've that just talking some on seen is frame. you're NEOM think I pretty time just getting the It was plant quarter, think, just in flat been year X.X on viewed the as and Middle I'm earlier realistic region? as And seems the miles. the XXX-mile that, good back There's a too the scaled growth. noise, initial like

expect impact? region? it in is you the do any So any And acceleration having

Carey Smith

Yes.

NEOM actually refaced [ XXXX. ] in So was

into do we again, they've overall changed still what Basically, But the line had by is going same, our built scope an to the So this still XXXX. to X.X is miles they're is miles the be perspective. duration. plan. but XXX The long, from going

be on will the of the manager, the start As from project. finish we to this program

So necessarily it work. impact our doesn't

in Just been the we've been years. for We've region, East to overall Arabia for XX highlight years. in Middle in Saudi region XX

with XX-XX a company. a have partnership Saudi We

they of So seeing why we're set Vision And country trust do. away with diversify us was and XXXX their that's in from kind as transform the most we Saudi work projects.Saudi that the up critical to oil.

nearly District, cultural Saudi's a a different in in LINE, city, city Abdullah entertainment basis? X led basis, to project King of size going Diriyah, the Central how which NEOM world's be restoration Park, do social renewables. King that's we're be doing lot the a major going by to that's driven to a And at Qiddiya, history, Salman largest economic Oxagon, every Park, Financial of and NEOM X So Saudi, basis, times THE you is including on on look an from going things involved

destination. Al In a tourism Then city. be addition, Soudah, XXX% luxury recent NEOM THE going LINE, our to is which renewable most win, new

growth our we East still win it's to there. a you of work look continue substantial for of quarter Middle So results and lot when at XX%, the

Operator

line question comes the of Baird. next from Wittmann with Andrew Our

Andrew J. Wittmann

us little don't for just you. to of at, how look help feels about much updated saw But this like in you're if just quarter? you the year. just have look most consensus of last results And quarter for change mean, about quarter? kind can pickup the the when just in the of I at segment, I more the how that we the rest rather outperformance here. outlook could raise maybe offer your in you of quantify outlook guidance understand Federal if I of versus to in was some range, due of the versus thoughts bit thinking the quarter a the I when kind how than year thought was it on it of understand a you remaining for that guide a the I Matt, wanted but quarterly, I would you in kind maybe

Matt Ofilos

happy to Yes, do that, Andy.

I about think million it plan. is, the ] the in QX from [ way the $XXX we up looked at ballpark was

-- million half in that about ] of happened of half $XXX the is [ QX. raise the So

expecting the percent the the think quarter QX So per the through to $XX $XX come depending of point, to QX year. did But in A performance with a segments, of you're or both to are looking Federal all, we in million your on QX. good in segment XX-ish minus raise growth all about million point. plus in end really at. happy which portion

QX. $XXX half think was of QX the spread I is that ] million -- it then So and lift the QX rest to [ about is

Andrew J. Wittmann

of And payment? the size the pickup the milestone on

Matt Ofilos

about under That million, was million. just $X $X.X

Andrew J. Wittmann

context And awarded the then, backlog well that the you in us us that's you thank Got contract as gave been not pipeline. gave -- scope but your total for it. as you

so you is curious you how amount just that of process are kind see the guys that awards if into awards? on submitted an about notice. I'm talk can you've the update of also have one, we awaiting just bid Sometimes that converting

Carey Smith

Sure.

with billion start have we now the $XX right pipeline. to So a pipeline,

option -- been greater billion is awarded, ] that's in half programs of it years The mentioned, Within of booked, we've or million as awarded. million that on contracts are XXX $XXX is there $XX [ basically not you than -- $XXX are value. that and comprised

The Sealing other is a to half single as awarded ] [ Parsons. award

years. of the XX% to about that expect do convert we next within So X

award $X.X Our awaiting notice of is billion. amount

there Within million. start And win the awards than XX% are $X.X to with $XXX with the very rate. XX greater billion, year the again, just pleased

Operator

next line with question Dwyer the Alex comes KeyBanc. of from Our

Alexander Dwyer

billion quarter. slightly a in just think down the expand Is book-to-bill? I X.X last that the are pipeline a smaller? or $XX the like the had bigger on of of then that is So And I does that that any would Is the wanted driving thoughts of business there with be to one X function quarter Just just pipeline, the from X which split pipeline, share all the wins how that or units? X are one those between helpful. or on you've

Carey Smith

Sure.

is what very close the So it to pipeline was last quarter.

really our pipeline was I term pipeline about that But Federal the to company's little it's in to the our had have We of because that wins. in longer Most think it's significant did $X say the slanted still towards pipeline we've tends history. billion. more is of the within work driven comprised. pipeline. the point, we in previously a largest it's sight your I'd ever of win be by, Federal some And line business. more

if you all though, of the X again, business the look business within are winning. at pipeline. So And and heavily units, delivering all units X of are represented the

Alexander Dwyer

this seeing ask heightened this And you smaller? the year? competition would deals year last larger they for be can if to many about acquisitions acquisition you're strategy I close or And year? this any for How Could expect on maybe year? versus

Carey Smith

Yes.

we X on to acquire XXX be companies. to year, to X very selective. to passed year. plan going over we We're companies this So continue Last

at criteria have looking having So the line greater -- than but our XX% on financial to EBITDA meet delivering XX% greater they we margin. growing and strict regularly of are companies, than top

for still capabilities. Our plan buy is to for We're buying scale. not

able don't technology differentiation. value for through capabilities scale. and and shown bid been we move I need buy to chain larger up and we've win the to think jobs We've

focused and XX competition when near-peer do Texas, first look going funding.As to Infrastructure our New we the the I in But to at the electronic side, companies look our of on Even and I'd we know bankers what deals would range. the Federal by similar to point, on lot predominant saw year. are far to of in X the amount up XXXX. seen continue we're warfare states, Infrastructure haven't around go going ones the on fight.And Jobs to say, of those I when quarter, say on as is on been that heightened to capabilities operations as last Act you a the to the going significant California, and to you number XX Florida, at expectation, Tier we're will There's we space, look it's York in change. that So all continue which still an have that has the Investment business XXx of really pretty [ this pay going ] We're side, Jersey. cyber, Critical valuation, focus a New states, which though are information receive

Operator

question of Mariana Perez Bank America. Instructions] the Our with next of line [Operator comes from Mora

Mariana Perez Mora

Carey, looking this yourself right could and right do you infrastructure skills, and time, capture [ team, to that develop mentioned continue you about the of you're I to be to build how ]. able or organic the inorganic growth? already profile, growing have this at the this -- the right fast argue you the type because critical expose the be to right to with you're capabilities think continue But to profile to you place have

Carey Smith

Yes.

points couple say regard. of a I in that So would

the important and talent. develop best retain it's is First to hire,

a engaged ourselves huge company. first. pride a a in people are come we business. not that and can in the be company focuses people differentiated We So on having We're fully on where culture

we're applying do an cybersecurity. in Two-fold like you air how And move. detect you do how and an systems, be, portfolio. research would applying with.On as detect that's how be Within use intelligence Infrastructure and development We it it's So circuit we intelligence small to it the enabler in intelligence areas areas entrepreneurism track printed great at been like to projects examples do agility still areas make We if another edge.X next also yet adversary's unmanned we be in a energy. like One, that and company win board, use an our the touched counter-unmanned side, a identify, PFAS. example of I artificial you we in. but research say like our entire of have to and would looking kind the we're to and leading upon artificial there. large determine have breadth Critical if of intelligence, artificial coming business, across vehicle development sure depth I we're on able artificial invest tampered you're programs. and would

management resource energy distributed system. have You

you that. change, relative going going start load is to your your payment terms renewables, are As have how to to to change how

for for it and on cyber traffic and energy water it use flow. using sectors compliance we're for also predictability We then

critical intelligence say other I'd artificial is a is PFAS. business.The enabler area for So the

remove FAA. as self-forming We entries point-of-use I mentioned, facilities households. aqueous completed Department already that over PFAS billion We've to $XX for investigations, for Parsons. the X,XXX market, film, addressable is Defense, We've on basically for of expect XX film also the X,XXX projects done be to the market is a which

missions people But So say to the we robust back right the the all very it I'd value that comes as deliver segments. customers' a marketplace. to our we having as in up see chain both of move

Mariana Perez Mora

margins the think addressable follow-up today? billion And the to as And large those we market? target over next should like the how and developments? this as PFAS $XX are decade market, PFAS -- the or the you about How a growth like how is reach on

Carey Smith

Yes.

at is the you the stages. I remediation say very would decade, So over currently, of of next our look PFAS revenue. environmental early about Parsons' XX% portfolio And if growth at the we're

all now with minimum contaminant EPA have and has investigations. its people are guidance have But these we've for So the published to are that to going to levels -- done companies the cities, going margins. to There's The the to have in the are our unit margins going accretive its example, that to sites. is remediation. forward moving business start language, FAA remediate NDAA also to for

Matt Ofilos

remediation accretive Yes, studies. when into -- and accretive. more obviously, into when the early out Mariana, applying it's the ]. more are especially But phases It's more I'd IP get T&M say, the kind remediation, margins of in [ out we we the even get phase, longer-term when

Operator

Josh line comes next question Company. of Benchmark from with Sullivan Our the The

Joshua Sullivan

can question, inflation, labor the just on availability on you perspective just retention? us access, give some Just regional

Carey Smith

Sure.

been obviously growth. what's to we've organic our hire driving and So retain been able and people, that's

to we midpoint is change same our of terms of seen goal last a achieve we are year, labor market. hiring as what of revenues in Our and about haven't much delivered the the this year

if a say From last it's continues retention many to difference. on both of projects, And our in are duration. the and large Federal I to year would an be what Our that mine of exclude segments. better on industry Critical the going much perspective, those to jobs, saw, side, tend part our XX% do the reimbursed.And be then side shorter of you benchmarks of than get we of we reimbursable, have a similar to most because inflation not pretty a contracts, Infrastructure

over we inflation.From XX our Middle have East because don't significant from So the a hire perspective, the regional countries to remains we area recruit easiest world. around

Infrastructure So the North I America. The would recruit is think that easiest clearances. Federal, general people the our And hardest Critical be will in across retain probably continue. and and that area next have to hire

stage. that focus.I early of of several is very their lot a in to start where So We at we we robust where think intern put clearances get a we've hundreds bring including our very done program interns. there, things well

business. also ability our We we unique where a compared have have commercial a to peers

we our our cleared but unique we in culture Parsons. get what a and and at very back again, look security them start national can mission-focused when or culture. have we're people you attracts them and it's move whether it I business, over.But So very retains that's company, commercial think, to goes have infrastructure, at working And people

Operator

Blair. from William [Operator Instructions] Our Levitz line with question Noah next comes of the

Louie Dipalma

DiPalma. and Dave, Matt this is Carey, Louie

the by it warfare world? demand electronic around On projects along everyday lines for and elevated you missile various do of with the that specific the for? Federal Or and driven are side, And work more associated you're Ukraine, the as missions? the conflicts how defense is seeing view Israel much seeing of the cyber, the you Indo-Pacific elevated demand being geopolitical

Carey Smith

Louie, the question. Thanks, Yes. for

say would a the confidential we're requirement. I is So global to work related doing that

world. that we And there, at so, XX today specifically in countries that Talking international to broadly emulators. RF tie the yes, look the is international Ukraine, Parsons doing we're total, currently radar I And demand. in and have about would more around opportunities if

defense then flank. on system Threat order Defense awarded of to air-missile eastern air defense NATO task We across working an for some also the we're were the the integrated recently countries.And provide air-base Reduction Agency

demand counter-unmanned all come security in $X.X ammunitions. for up Missile live opportunities Hawaii, counter been has able On we budget. border Ukraine. we be higher support in housing engaged the in where Ukraine, and that is region.And other conflict the providing cyber Agency. the This building to long-term materials about FY thing I'd in and support of then result systems, Kwajalein, XXX Internationally, the electronic the across for So Ukraine to we systems, East mentioned, years, the talk currently people To We're support troops Ukraine of like Baltics built where public from we're I then support in warfare areas a Guam removal, also conflicts, people the would for a and with are of security, region.And contract for The we're budget air our the able Guam FY to and Pacific opportunity. have hazardous in region rebuild shortage the then opportunities there. that the to the assess de-mining, has missions. the Initiative. electronic up for works. significant for like be to regions looking doing 'XX cyber cyber warfare.And we that and Deterrence Defense remediation other back we is includes able includes see protect which billion includes at Parsons INDOPACOM, XX say Middle another defensive to Poland, personnel explosive mention intelligence ultimate Defense X.X% and the and that Agency munitions I seeing be get and work Parsons other to just had critical airfield Relative threats to of electronic about we have is see capabilities a to and that units Missile the environmental to provides as was then munitions, and and 'XX

the for put the Army modernize plan, involved modernization. modernization we're heavily that under to Army So there's both there ammunition and and billion $X.X Holston facilities at Radford

Louie Dipalma

the infrastructure the are as to across it business, that others question the bill relates mega few States pipeline the there Jersey many you other to bid on about exposure New conflicts. in United up right It's are obvious a you But of these of X a the mega funding, the projects. [ for of And York, have answered New side ] of ton these types now? projects

Carey Smith

we're What seeing passed was state funding local XXXX, because knew Once projects projects also in we're are was up federal to the bill Louie. their the started Yes, to put the and seeing the bigger they fruition. November and funding come secure.

projects a So we've seen lot forward. of move

coming too. until would one both be where Florida already X don't well the maybe as like I think I expect expect book-to-bill the New several Texas, after time Olympics than X bill water infrastructure nice going, the million, as consecutive mentioned, that's we there.Los final million say We there And we've moving Angeles have of they after worried that in the is projects as 'XX Cup. then that keep of see and we about It's how funds, million York, the World up receiving and Jersey tail area peak a And amount significant about and up well the New to importantly, host frame. an flowing then the to modernize as to seen to -- coming the -- there's ] specifically continues wastewater. are to years forward. a about that growth. talk And would opportunities greater so funds infrastructure Tier ranging of more X than reflected $XXX those [ our states I $XXX transportation to XX X.X do greater projects $XXX that quarters

Louie Dipalma

is terms in There for recently about in is deteriorating -- bridge a and you demand design see studies there's more there been aging role new, the a And lot play of of incident the for the Baltimore of closed infrastructure. and bridges Parsons many pipeline infrastructure? to was bridges? resilient much you there just by in there Do

Carey Smith

a bridge, We play design We we've Baltimore role. role, The But last published key roles. in management play program going way, held an play the Bridges seeing do the a Day can by week and rated and report this on opportunity. by one yes, can Industry which be X done, we we to bridge, are ASCE can we opportunity. very the that an there's poor. were of

]. And in so to some then York, need be Jersey New we're in area better seeing what cases, upgraded, they and rebuilt is [ both New the maintained this

Operator

back questions. I'd That's all like to we turn Spille remarks. the for closing time for have it to Dave

David Spille

you Thank joining us morning. for this

Have to have me seeing any hesitate We you call. to that, day. If questions, you we'll weeks. give And call. the a forward end look great over don't many coming with a please of today's

Operator

This for Thank concludes you today's participating. conference call.

now may disconnect. You

Parsons (PSN) 1 May 242024 Q1 Earnings call transcript