Parsons this week posted higher third-quarter earnings due to a tax benefit, sales up on acquisitions in its Federal Solutions Segment, and to a lesser degree on an increase in organic revenue.
Net income climbed 38% to $56.8 million, $0.57 earnings per share (EPS), from $41.2 million ($0.52 EPS), the company reported Tuesday. Adjusted earnings were up a percent to $84 million ($0.52 EPS), topping consensus estimates of $0.37 er share.
Sales increased 5% to a record $1 billion on growth in the Federal Solutions and Critical Infrastructure segments. Sales in Federal Solutions were higher largely due to acquisitions in the past year and a percent of organic growth, while the Critical Infrastructure segment was slightly up on an increase in organic sales.
Bookings in the quarter were robust at $1.1 billion and total backlog stood at $8.3 billion, up 4% from $8 billion a year ago. Order activity was driven by awards in the Federal Solutions segment, which recorded the largest cyber contract in its history, the $590 million Combatant Commands Cyber Mission Support award.
The company also won five other contracts in the third quarter worth over $100 million.
Free cash flow was $161 million.
Parsons also promoted Carey Smith to president in addition to her job as chief operating officer.
“This promotion recognizes Carey’s contributions to our transformation and adds additional functions under her leadership to enhance support to our customers and customer-facing teams,” Chuck Harrington, chairman and CEO of Parsons, said in a statement.
Parsons Government Services holds an Enterprise Construction Management Services contract with the National Nuclear Security Administration (NNSA). The task-order-style contract allows the company to consult with the semi-autonomous nuclear-weapons agency on major infrastructure projects.
For example, Parsons wrote the nearly 300-page engineering analysis of the agency’s plan to manufacture fissile weapon cores called plutonium pits at both the Los Alamos National Laboratory and the Savannah River Site. At Savannah River, the NNSA plans to turn the partially built Mixed Oxide Fuel Fabrication Facility into a factory that, by 2030, is supposed to cast 50 pits annually. Los Alamos would make another 30 by 2030.
