Parsons Secures $34M Contract from Defense Threat Reduction Agency
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Parsons announced that the Defense Threat Reduction Agency has exercised Option Year 3 on the Vulnerability Assessments task order under the agency's $170M ceiling value Assessments, Exercises, Modeling and Simulation Support IDIQ. The option year has a value of $34M, with a one-year performance period. Originally awarded in 2023, DTRA has now exercised three of the four option years available on the IDIQ. Under the exercised option, Parsons will continue supporting DTRA's Nuclear Enterprise Mission Assurance Department through vulnerability assessments, technical support projects, design review and operational support, and strategic mission analyses aligned with Department of War priorities. This work enhances resilience, ensures mission assurance, and promotes operational readiness throughout vital nuclear enterprise programs, while also reinforcing national and global security initiatives within the DTRA Nuclear Enterprise Directorate.
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Analyst Views on PSN
Wall Street analysts forecast PSN stock price to rise
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 51.810
Low
70.00
Averages
84.00
High
107.00
Current: 51.810
Low
70.00
Averages
84.00
High
107.00
About PSN
Parsons Corporation is a disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Its Federal Solutions segment provides advanced technical solutions to the United States government. This segment provides advanced technologies, supporting national security missions in cyber operations, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. Its Critical Infrastructure segment offers integrated engineering and management services for complex physical and digital infrastructure around the globe. This segment is a technology innovator focused on next-generation digital systems and complex structures. It also develops advanced, warfighter-focused solutions for military and security applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record Backlog: The company's backlog reached a new high of $9.3 billion, primarily driven by projects tied to the U.S. Infrastructure Investment and Jobs Act and large-scale initiatives in the Middle East, providing strong support for future revenue growth.
- Cash Flow Pressure: While profitability is improving, the company's working capital is under strain, with net days' sales outstanding increasing from 58 to 72 days, as management cites collection delays in the Middle East and the impact of the shrinking confidential contract, adding uncertainty to future cash flows.
See More
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See More
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- Key Project Developments: Two months later, Parsons secured a $136 million Air Force architect-engineer contract covering infrastructure and cybersecurity design services at an Air Force base, further solidifying its position in the defense infrastructure market.
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- Market Reaction: Following the contract announcement, Parsons' shares rose over 1.5% in premarket trading, reflecting positive market sentiment despite a more than 21% decline in stock price this year.
- Strategic Implications: This contract marks Parsons' second award from the Pentagon this month, highlighting its competitiveness in the defense contracting market, as it aims to secure more task orders to meet infrastructure needs.
See More
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- Long Contract Duration: The contract has an 8.5-year performance period, providing Parsons ample time and opportunities to expand its business in architect-engineer services, thereby enhancing long-term revenue stability.
- New Business Opportunities: Under the agreement, Parsons will compete for task orders covering architect-engineer services across the installation, which not only provides a new revenue stream but also potentially boosts its competitiveness in the government contracting market.
- Optimistic Financial Outlook: Parsons reiterates its 2026 outlook with a projected 6.6% organic growth rate in Federal Solutions and mentions $11 billion in unbooked awards, reflecting the company's growth potential and market confidence moving forward.
See More
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- Strengthened Client Trust: The award reflects the USAF's ongoing trust in Parsons' ability to support mission-critical infrastructure projects, further solidifying the company's position in the market.
- Multi-Domain Support Capabilities: Beyond infrastructure solutions, Parsons provides all-domain support in areas such as cyber, electronic warfare, and advanced technology systems, enhancing its competitiveness in the defense sector.
See More
