Parsons Corp at Goldman Sachs Industrials and Materials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Have you studied those numbers previously?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Good. I want to talk about each of those but maybe just, Matt, on the rest of the year and into next year, I just wanted to get your updated thinking on growth in Federal Solutions. And you have the confidential program that's now rolled out of the business. For the rest of this year, I think you still have, FS, if you call it, kind of core, excluding confidential at a pretty high growth rate to finish the year. Can you do that with this -- we got a spool back up from government shutdown. And then as we go into '26, how should we think about FS core? And then what is the confidential headwind that everybody will need to attempt to model correctly when trying to model FS in 2026?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : If you're exiting at 15%, why should we not think next year can be closer to 15% than 5% before the big stuff that we're going to talk about.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Let's use that as the segue to FAA. When do you expect an award? And what can you tell us about what it could mean for your financials if you were to win?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Over what period of time with the $12.5 billion be spent?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Is there any simple framework for how to think about the $12.5 billion or the [$4 billion] a year translating to Parsons?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. There has been some discussion of uniquely running a lot of the revenue through the prime integrator and then the prime pays the subs as opposed to the subs having their own contracts with the government. Is that -- am I correct that, that's being evaluated? And I guess where I'm going with that is, will we all need to understand what -- whether or not that's happening because it has an implication for the -- a significant implication for the margin on whatever the revenue number is going to be. I don't even worry about that because you'll just lay it out for us.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : They will.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. There's not a lot of competition for this at the moment. And I've heard some people in the industry say, well, that's because, as Carey Smith just said, Parsons has a long history with aviation FAA. They've done a ton of work at airports. They just know this so well. It's not even worth competing. I've heard others say that it's a high-risk project with cost overrun potential that will have low margins and therefore, others don't want to do it. Which of those is true? Are those both -- do those both have some truth? Or what's your take on that?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay great.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : I was a little surprised that as that was explained to me by some of your peers, it is a little surprising that there aren't certain subcomponents or technologies or software that you would want to provide into the process. Or can you still do?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : And you do not run into. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:10PM, PSN.N - Parsons Corp at Goldman Sachs Industrials and Materials Conference

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. All right. We will keep our eyes peeled. Golden Dome, how does Parsons participate in Golden Dome? And is Golden Dome definitely fully moving forward? It's been a little surprising that there hasn't been more award activity. Is a significant priority for this administration but administrations are only four years long. Are you feeling at all different about the likelihood this all moves forward or not?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Have you seen any funded task ordering from under that vehicle yet that whether it's actually specifically for Golden Dome or if it's not named for Golden Dome right now, you suspect it is eventually for Golden Dome?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : You've participated in helping create the architecture? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:10PM, PSN.N - Parsons Corp at Goldman Sachs Industrials and Materials Conference

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. In your list of growth platforms for the business, you mentioned FAA Golden Dome, you also mentioned border security and INDOPACOM. Do those buckets have specific sizable singular program award possibilities? Or are those more sort of you're involved in them and they're going to grow faster than the end market?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. And then profitability in Federal Solutions, Matt, maybe just talk about where the FS margin can go from here. It's been a little -- it's always a little lumpy quarter-to-quarter but as I think confidential was higher margin. So as that's rolled out, that pressures the margin a little bit. But then last quarter, the margin was back up again. So where do you see that medium term?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Things you buy have a higher growth rate and a higher margin, but at a lower multiple?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : That's a good way to do it. There was discussion in the industry of more outcomes-based, more fixed price. You're saying you went to the customer with here's a menu for where we would do that, but they're not taking you up on it.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. And how would FAA be both fully cost plus but also in line with the segment average? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:10PM, PSN.N - Parsons Corp at Goldman Sachs Industrials and Materials Conference

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : So the FAA project, if you were to have it, would literally -- it would almost be like the segment. It would have the mix of the different types of.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Right. Right. Okay. Let's maybe talk about the Infrastructure business a little bit. I mean, to some degree, I feel like it's diversified across a lot of projects in several geographies, and it just keeps growing 10% to 12%. And I'm just going to assume it just keeps growing 10% to 12%. Can it be as simple as that? Or are there things that accelerate that? Or are there reasons that would decelerate? Anything you're seeing that's notable right now by geography? Or is it just forging ahead across dozens of projects?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. That sounds quite robust. And the margins in that business, you mentioned have expanded. You had the legacy contract, which pertains to when you historically would do a different type of work that had a different risk profile, I guess. That's now just 100% fully out of the business?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : And so how would you categorize where that margin lands three, five years down the road?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : The Middle East margins right now are higher than the North American. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:10PM, PSN.N - Parsons Corp at Goldman Sachs Industrials and Materials Conference

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Approximately how wide is that gap?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : A couple of points?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : And they should be the same over time?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Got it. Okay. We have sort of 5 to 10 minutes left. I have a few more questions, but why don't I see if there's anybody in the audience with a question for Carey and Matt. Anybody, don't be shy. I haven't had a question yet today. These lists must just be too thorough, extinguished all possibilities.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Let's talk capital deployment and acquisitions. That's a significant portion of your model as well. I guess it's been a little surprising that there may be hasn't been a little bit more activity. And I've kind of seen that across a lot of the deal platform businesses I cover, including ones in completely different end markets than your own. So I'm sort of trying to figure out if there's some common thread to that or if it's just random. But what have you seen in the deal market? Is there anything making it harder than normal right now or not? And how much do you think you can do in 2026? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 7:10PM, PSN.N - Parsons Corp at Goldman Sachs Industrials and Materials Conference

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Is -- are your thresholds specifically 10% organic revenue growth and a 10% EBITDA margin?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. And then doing that in the 9 times to 13 times EBITDA range?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. And there's plenty to do in that fit all of that?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : So you can find technologies, capabilities, solutions that have a high growth rate and a decent margin but do even better on your platform because of all that infrastructure and then they want to sell to you. So it doesn't happen.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Excellent. And how large are PFAS and water as a percentage of total revenue today? And could those be significant growth drivers or they'll just never be large enough relative to the rest of the business?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Of total company?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. Well, excellent. All right. We're out of time. So we'll wrap up there. So Carey and Matt, thanks so much for being with us today. This is great.