Parsons Corp., one of the few government contractors to benefit from both the growing need for military and security technology and non-military infrastructure, reported year-end 2023 net income of $161 million on revenue of 5.4 billion dollars.
In 2022, the company earned $97 million on revenue of $4.19 billion.
For its final quarter last year, the Chantilly, Va.-based company reported net income of $45 million on revenue of $1.5 billion, compared with $28 million in $1.1 billion from the same period in 2022, which capped a solid year. Parsons’ ( PSN-NYSE ) stock price closed Feb. 21 at about $71, well above its low last year of $40.61.
The performance reaffirmed the company’s business model and basic strategy nearly five years after raising $500 million in a stock offering in May 2019. Before that, it had operated for many years as a private company.
In recent years, Parsons successfully changed its identity to that of a technology company rather than a construction engineer and contractor, fields in which it still has significant business.
In December, Parsons excitedly announced that S&P Dow Jones Indices had the company classification code has changed in “Research and Consulting Services, recognizing its status as a leading provider of professional services.”
Most of the Increase in income 2023 came from an increase in recent contract awards and growth in existing contracts, the company reported. Acquisitions added about $274 million.
Demand for Parsons’ critical infrastructure services as an engineer and contractor remains strong in its three geographic markets: the US, Canada and the Middle East.
But in 2017, when current CEO Carey Smith led Parsons’ federal business unit, he told the online publication Washington Tech. “If you look at where the market is going [in the future]it’s basically converged security: combining cyber and physical security into solutions.”
More recently, Smith said on a Feb. 14 earnings call with investors that Parsons’ core defense markets are “growing in mid to high single digits.”
He said: “Given geopolitical events on a global scale, we continue to see strong demand for our solutions, including cyber, electronic warfare, signals collection, space, missile defense and critical infrastructure protection.”
