Parsons Corp. reported a sharp rise in new bookings and a robust contract pipeline at the Jefferies Global Industrials Conference 2026, underscoring demand across its defense and infrastructure businesses.
Chief Executive Carey Frazier told analysts that bookings in the company’s Federal Solutions segment surged 45% in the first half compared with a year earlier. The segment posted a book-to-bill ratio of 1.4 in the first quarter and 1.3 in the second quarter. Total backlog stands at $9.3 billion, of which 71% is funded, while awarded but not yet booked contracts total $11 billion — split roughly half in option years on follow-on agreements and half in potential ceiling value under Other Transaction Authority deals.
During the first half of 2026, Parsons secured nine contracts exceeding $100 million each, up from seven a year earlier and five two years prior. Among the largest wins were a $665 million Army counter-unmanned aircraft systems contract over seven years, a $750 million Joint Cyber Hunt Kit program over five years, and a $1.2 billion GSA FedSIM contract obtained through the BlackHorse acquisition. A classified biometric-solutions win totaling $392 million was recorded in the fourth quarter, and a confidential contract valued at more than $2 billion was enabled by the Xator acquisition.
Parsons operates in six end markets that the company says are growing at compound annual rates between 4% and 11%. Cybersecurity is the fastest-growing segment, representing 20% of revenue and expanding at 9% to 11% annually, split roughly 60% offensive and 40% defensive. Transportation accounts for 29% of revenue, space 15%, water and environment 14%, urban development 14%, and critical infrastructure protection 7%.
On profitability, Parsons guided for corporate margin expansion of 10 to 20 basis points, putting normalized margins in the high 9% to low 10% range. Federal normalized margins are expected to settle around 9.1% by year-end, targeting the mid-9% range over the next couple of years. Critical infrastructure normalized margins have remained above 10% for six consecutive quarters. Free cash flow conversion is running at approximately 115% of adjusted net income.
Shares of Parsons, which carries a market capitalization of $5.1 billion and trailing-twelve-month revenue of $6.3 billion, traded around $47 on Wednesday. The stock is down 36% over the past year and 23% year-to-date, well below its 52-week high of $89.50. The shares carry a price-to-earnings ratio of 32.5 times and a free cash flow yield of 6%.
The company also highlighted its Middle East exposure, which represents 20% of sales and has maintained a book-to-bill ratio above 1.0 through the first half despite regional disruptions. A $77 million charge was taken in the second quarter for a single remote-location program affected by logistics challenges and conflict in the Strait of Hormuz; the program is held for sale with novation negotiations underway.
In the water and environment space, Parsons identified a total addressable market for PFAS remediation estimated at $220 billion, with its own addressable share at $40 billion. The company holds seven patents in the area and operates a 30-year research laboratory in Syracuse, New York, having completed more than 7,000 investigations to date.
