Parsons Corp at Raymond James TMT and Consumer Conference Summary

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

Question: Brian Gesuale - Raymond James - Analyst : <_ALACRA_META_ABSTRACT>We're going to do fireside as you can probably tell from our setup here. Please have some questions loaded up, though, if there's any time at the end. Carey, why don't you just level set us to the story?

Question: Brian Gesuale - Raymond James - Analyst : Well, that's quite a resume. Hopefully, everyone got that down. Carey, the biggest driver after two phenomenal years in '23 and '24, the biggest driver of the business this year was the confidential contract. It caused growth to turn negative after 20%-plus growth in the prior two years. Can you remind the audience about the dollar and percentage headwinds that that caused? Maybe talk about growth, excluding that contract, and really how you -- when that contract anniversaries and the company will be back to an as-reported organic number.

Question: Brian Gesuale - Raymond James - Analyst : Fantastic. Let's talk to -- let's pivot to another contract with the FAA. Recent contract award to a competitor of yours. You've historically had a sizable footprint at the FAA. Would you maybe discuss what happens with your existing contracts from a scope, duration, and growth perspective? And are there new opportunities that you could be part of this air traffic control network in a different capacity than lead integrator? And if so, maybe how should we think about the timing and sizing of that?

Question: Brian Gesuale - Raymond James - Analyst : How would we think about the contract flow through to Parsons? Does it require new vehicles or you have the existing ceiling or --?

Question: Brian Gesuale - Raymond James - Analyst : Fantastic.

Question: Brian Gesuale - Raymond James - Analyst : $1 billion left. Perfect. I want to talk about some of the other growth areas. You mentioned a lot as you were introducing the company to folks. Can you maybe help us what your top four growth areas for '26 are and what the timing of that looks like and how investors should be looking at the business going forward?

Question: Brian Gesuale - Raymond James - Analyst : But don't let me stop here. You can go one deeper if you want. We have time for that.

Question: Brian Gesuale - Raymond James - Analyst : If I could just maybe pull on just one of the common threads here. When I was in DC a few weeks ago, a lot about border security, encounter UAS in that whole construct. And then just last week, the Shield contract was awarded for Golden Dome. Can you maybe help us understand how that matriculates through to contract awards and activity and how people should think about the timing for some of these things?

Question: Brian Gesuale - Raymond James - Analyst : Makes a lot of sense. I want to zoom into the President with a near-term question here. On the last call, you talked about some disruption from the government shutdown, but at the same time, you still guided an acceleration in your fourth quarter here coming up. Can you walk us through the components that are driving the sequential acceleration in your Federal Services segment and maybe if the length of the shutdown is causing that recovery to be a bit more elongated?

Question: Brian Gesuale - Raymond James - Analyst : Right. We typically see cash slowdown at this time of year for those situations. Let's maybe zoom now, take the counterbalance of that question and zoom out longer-term view. Remind the group of really what your growth algorithm is organic versus 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 09, 2025 / 3:40PM, PSN.N - Parsons Corp at Raymond James TMT and Consumer Conference inorganic, how much margin leverage you can realize as you scale up bigger and really what the primary levers are to expand margins towards the top end of that peer group, which is 11% or 12% on an EBITDA basis.

Question: Brian Gesuale - Raymond James - Analyst : You've done a really nice job on that Critical Infrastructure piece. Maybe let's pivot to that business a little bit, not only the margin execution, but the growth rate has been mid-teens, 20 consecutive book-to-bills greater than 1. Maybe talk about the durability of this cycle. It sounds like it's a very elongated cycle with years in front of it still. And then maybe where you're seeing the biggest pockets of activity, whether it's transportation, water. And then maybe give us a regional flavor for where things are coming, either Middle East or North America or how you're looking at it.

Question: Brian Gesuale - Raymond James - Analyst : A lot going on in the Middle East, definitely. Let's maybe -- I think you teased it a little bit, but let's talk about capital allocation. I think your leverage is about 1.4 times. You've done kind of a few deals each year, two to four. So they've been reasonably sized. How are we thinking about -- you mentioned the stock dislocation. How are we looking at maybe two things, one, what the pipeline looks like from an M&A perspective? Is there a leaning towards one segment or the other where you would do more deals? And then third, how are you now balancing a potential stock buyback going forward?

Question: Brian Gesuale - Raymond James - Analyst : Great areas to be in. Carey, this is your moment to shine here, the drop the mic moment. So go ahead, no follow-up for me, talk directly to investors here and on the internet and tell them why they should consider Parsons as an investment.

Question: Brian Gesuale - Raymond James - Analyst : It sounds great. Well said, Carey, thank you so much for joining us today. And thanks, everyone, out there for your interest. We do have time for a question or two, if anyone has one in the audience. Yes, please. Unidentified Participant (inaudible - microphone inaccessible)

Question: Brian Gesuale - Raymond James - Analyst : Great. Carey, thanks so much.