Parsons Corp. Is Latest Contractor Assessing Trump Spending Priorities
The company capped off a profitable 2024
Parson's Corp. says it is well-positioned for domestic defense and international program management work. Photo: Getty Images
Engineering powerhouse Parsons Corp.'s military, cyber security and technology capabilities, along with its international work, are aligned with the Trump administration's likely spending policies and possible developments in Ukraine and the Middle East, says CEO Carey Smith.
That will help the companywhich concluded a successful 2024—continue to prosper in 2025, she told investors in a Feb. 26 conference call,
The company reported strong revenue and earnings despite missing estimates—recording $235 million in fiscal 2024 net income on $6.8 billion in revenue, compared to $161 million on $5.4 billion in revenue in the prior year.
Along with AECOM and Fluor, Chantilly, Va.-based Parsons Corp. is the latest big designer or contractor whose work involves direct or indirect federal spending and that must now evaluate a still evolving contract landscape.
On the same day as the Parsons conference call, President Donald Trump issued an executive order calling for a review of all federal contracts with an eye on possible termination, reduced cost or changed terms to advance new administration policies.
Related to policy uncertainty, Smith said that 44% of the company's portfolio does not depend on federal spending. The remaining portfolio, she said, is "directly aligned" with likely administration priorities that include missile defense, air systems, electronic warfare, cyber security, counter effects for cruise missiles and unmanned air systems, hypersonics, border security and space surveillance.
Since taking office, Trump has blocked billions of dollars worth of clean energy-related funding approved by Congress during the Biden administration. The U.S. Dept. of Transportation also has begun a review and may try to pull federal financing from California's High-Speed Rail Program, and it is trying to kill New York's congestion pricing program for Manhattan that produced $48.6 million in revenue in its first month of operation. Much of the revenue is intended for New York City-area transit construction.
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Although the status of the work isn't clear, Parsons has worked on an early part of the California High-Speed Rail project in a joint venture with two other firms. Public records show the company has only two small current contracts with New York's Metropolitan Transportation Authority, which operates the New York City subway system.
Parsons' exposure to federal agencies losing staff or budget is limited, Smith said.
That includes the Internal Revenue Service, U.S. Agency for International Development, Federal Emergency Management Agency, U.S. Occupational Safety and Health Administration and U.S. Dept of Veterans Affairs. "We don't have work with those agencies, so it hasn't disrupted our portfolio," she said.
Smith said that Parsons' "balanced portfolio and the speed and agility with which we operate has enabled us to improve efficiency, reduce costs and protect our nation from adversaries, as well as to take advantage of unprecedented global infrastructure spending."
Smith said that rebuilding in war-devastated Ukraine and development in the Middle East is promising. U.S. and Middle East relations are strengthening and "as the premier program management consultant" in the region, "we look forward to continuing our accelerated growth," she said.
"As we look to a potential settlement of some of the conflicts, whether it's Russia, Ukraine, Israel or Gaza, that will benefit Parsons with the rebuild opportunity as we were heavily involved in Iraq," said Smith.
Parsons Corp. is ranked at No. 15 on the 2024 ENR Top 500 Design Firms lisr,
