Parsons Updates Financial Outlook for 2022; CEO Carey Smith Talks Largest Acquisition Since IPO

Parsons (NYSE: PSN) has raised full-year sales guidance to reflect improved organic performance for the 2022 second half and the company’s $388 million acquisition of Xator that closed May 31.

The Centreville, Virginia-based company said in its second quarter earnings statement it now expects revenue in the $3.95 billion-$4.15 billion range compared to the prior $3.7 billion-$3.9 billion forecast.

Revenue for the three months ended June 30 came in at $1.01 billion to register a 15 percent increase from the same period last year.

Contracts and a contribution from the Xator deal helped drive a 9 percent organic growth, which Parsons said is the highest recorded since its initial public offering in 2019.

“We also leveraged our balance sheet to complete our largest acquisition since our IPO,” Carey Smith, chair, president and CEO of Parsons, told analysts last week.

“Xator is an important strategic and financially accretive acquisition that diversifies our customer base, broadens and further differentiates our capabilities and increases our addressable market in both the federal solutions and critical Infrastructure segments,” added Smith, a four-time Wash100 Award winner.

Sales in the federal unit grew 21 percent year-over-year to $537.6 million, while the infrastructure business edged up 8 percent to $471.2 million.

Net income for the period nearly tripled to $18.3 billion from $6.70 billion while earnings per share inched up to 17 cents on a diluted basis from 6 cents a year earlier.

Total backlog amounted to $8.2 billion at the end of the second quarter.

Parsons shares opened at $43.19 on Wednesday, slightly up from a previous close of $42.56. 

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