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Parsons Reports 16% Q4 Revenue Growth, $4.2B in 2022 Full-Year Sales; Carey Smith on 2023 Priorities

Parsons (NYSE: PSN) saw its fourth-quarter revenue for fiscal year 2022 rise 16 percent to $1.1 billion and reported full-year sales of $4.2 billion, reflecting a total growth of 15 percent and organic growth of 9 percent.

The Centreville, Virginia-based contractor said Wednesday Q4 2022 net bookings reached $1.1 billion with a book-to-bill ratio of 1.0x and ended the quarter with a total backlog of $8.2 billion.

The company posted $98 million in Q4 adjusted earnings before interest, taxes, depreciation and amortization and $353 million in adjusted EBITDA for the full fiscal year 2022.

We had a strong finish to 2022, achieving record revenue and adjusted EBITDA for both the fourth quarter and for the full year, while generating solid cash flow. We also delivered on our 2022 objectives, which resulted in strong, consistent organic revenue growth throughout the year,” said said Carey Smith, chairwoman, president and CEO of Parsons and a 2023 Wash100 awardee.

Parsons’ federal solutions segment logged a 24 percent increase in Q4 2022 sales to $563 million driven by organic growth of 1 percent and Xator acquisition. For the full-year ended Dec. 31, the segment reported a 17 percent jump in revenue to $2.2 billion and attributed the increase to about $205 million of revenue from acquisitions and organic growth of 6 percent, which was associated with the ramp-up of work on federal cyber and transportation contracts.

The company’s critical infrastructure business saw its revenue climb 18 percent to $540 million, driven by increased hiring activity on existing and new contracts in the Middle East. Full-year sales of this segment rose 12 percent to $2 billion driven by the ramp-up of new transportation, environmental remediation and urban development contracts.

Major contract awards in the fourth quarter include a $122 million option-year contract with the General Services Administration for C5ISR, exercises, operations and information services and a $94 million single-award recompete contract for cyber capabilities development and support services from a classified customer.

Smith told analysts during the earnings call Wednesday about the company’s top four priorities for 2023.

Our 2023 priorities are to win new projects associated with increased global infrastructure funds, capture Federal Solutions strategic contract pursuits, expand Critical Infrastructure margins and acquire accretive assets,” she said.

In response to an analyst’s question, the chief executive noted that the company is excited about the overall defense budget and research, development, test and evaluation budget, whose focus she said is on near-peer threats.

There is that we expect to continue growth our cybersecurity, both on the offensive, defensive side. We play very heavily on the conversions of cyber, electronic warfare and information warfare to be able to fight a war against a nation states such as China,” she stated. “Space and missile defense will both continue to be high growth areas for us as well as Critical Infrastructure protection.”

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