Parsons (PSN) 30 Oct 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Third Quarter 2024 Parsons Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to your speaker today, Dave Spille, Senior Vice President, Investor Relations. Sir, please go ahead.

Michelle. Thanks, thank XXXX us financial and our to for quarter third results. you morning, today joining discuss Good Please note that Investor Relations we provided presentation of website. slides our section on the

XXXX President today On third with discuss quarter We of well question-and-answer Matt our guidance. operational as CFO. are will and and will CEO; as strategy financial of and Carey Today, the session. results close Carey and me our will a our Smith, with highlights, call corporate provide Ofilos, Matt overview increased Chair, then review then an a

may the and events, uncertainties that Management and also of you regarding make to future not difficult anticipated are statements during forward-looking the trends performance call guarantees future such risks We future caution statements that involve anticipated and performance predict. company. future the are of

statement release may October statements Parsons' the forward-looking for the XXXX, risk Form filed Actual December year in from factors. due quarterly are ended to materially XX-K described update results refer XXXX, projected These filings, Exchange variety press including in and other our Commission XX, Securities our statements. We disclosure. Please undertake quarter not SEC any on XXXX. obligation of earnings ended fiscal on the factors Form forward-looking those September the report differ for and a with complete do forward-looking XX, to XX-Q for to XX,

this you call. also GAAP substitute remind these comparable during will financial financial not We measures. measures measures a the Management for reference non-GAAP non-GAAP that are

to I'll turn now call over Carey. And the

Third Parsons welcome Call. Dave. Earnings Good you, Thank and XXXX to morning, Quarter

results net total we quarter contract EBITDA, third cash income, revenue, flow delivered our organic with record year-to-date and pleased growth, very performance are awards. operating and adjusted revenue as for QX We

as organic line our also sixth for continues line the quarter strong managing across XX% over growth growth growth. outpace robust the consecutive achieved top while the bottom delivering efficiently growth business portfolio, We to

sheet capabilities distinguished balance and our and high-growth our well continue threats accretive provide strengthen near-peer addition, increase solutions as counter we execute leverage to as geographical defense integrated software to invest markets. expertise our infrastructure either In in footprint strong to engineering or in that acquisitions

result a cash acquisition, are our guidance full ranges. year we EBITDA our raising performance operating adjusted BlackSignal strong in revenue, of flow As our and

Our fast-paced security team and record and hard deliver results reflect work relevance of the dedication operational and entire the with environment. urgency missions customers' dynamic our in the and today's national infrastructure required Parsons on to

revenue company's $X.X third quarter, delivered and in revenue organic XX%. billion history time for For growth we in the generated of our the first

double-digit the the quarter, our in now for This the we During for record EBITDA. is XXth revenue and XXth of illustrating quarterly delivered third consecutive also both quarterly record business consecutive portfolio. adjusted total revenue strength growth segments,

for total revenue quarter XX%. the quarter, revenue X XXXX, EBITDA months of EBITDA note grew and the growth. for months increased will growth third adjusted adjusted increased that of while adjusted I grew first X And and for the by the exceeded total EBITDA XX% XX%. third revenue XXXX, XX%, also total first In

and growth, third year. points revenue XX margins robust our the our basis than faster growth EBITDA points the XX first driving the in quarter of months By expanded X for basis

period. cash exceptional trailing had more and our quarter year the operating flow cash from increased for prior an XX% In we flow XX-month than addition, by

all to ability capabilities X win and internal our to profitable accretive expansion. investments markets. free continue segments acquisitions enabling These larger us investments more cash strengthen and end to and balance across and to make as sheet well both flow margin new drive contracts are growth long-term as strong Our business and our support in

period. award each contracts activity which over increase book-to-bill represents prior a won of ratio quarter, and third we XX% contract X year X.Xx, reported the single-award $XXX in During million over a the

Middle Critical the Infrastructure segment awarded for during book-to-bill transportation addition, QX, we the In and of quarter. were projects. a Infrastructure strategic Critical or X.X XXth ratio East achieved consecutive greater In

will America, This Express and billion new new the North Parsons XXX we state-of-the-art twin lead as In and systems. use received a add serve $X.X incident award State project Georgia will the designer. express digital management where Lanes, for lanes traffic, Route

public Jobs Under infrastructure. highways, billion and is the roads Infrastructure at Investment for and resilient expected Act, to and receive Georgia least $XX airports bridges, transportation,

project, We engineering we contract for design of City X and and services for miles for stations elevated construction. The during Stations. lead the Authority designer X $X.XX this were On a Honolulu new Transportation. the rail Center are includes of lead rail design Guideway awarded Rapid of approximately the the scope and work billion guideway

Over X design projects the of The in with wins America largest and healthy a the we the Hudson transportation local project, flow XX River roadways this history. past success to company's that tunnel JFK quarter, funding North the months, continues awards Bay recent our along International we've transportation X Airport and These at Newark having pace. wins are also show demonstrate won Bridge in state market. federal, the

book-to-bill Our qualified in achieved as the continues ratio Arabia. in our both pipeline momentum company's the a the the currently Middle third largest X.Xx in have quarter. Middle Saudi of we and history East East in And we

including contracts management awarded more Arabia, program at valued Saudi large than awards. million, In X we were $XXX

high both an and all-time addition, Saudi to the third headcount Middle in grow. East reached In quarter continues and

opportunity. the invest future very to about capitalize growth unique this are to opportunities We in the region continue on excited and

during Solutions received $XXX quarter. million option confidential In with awards customer totaling we a our Federal the third segment,

booked totaling quick across solutions global Defense the an period delivering strategic leveraging its Services also option million in partners capabilities, space. contract advanced supports battle all-domain of technology reaction on $XXX This the our and General We Administration Department contract.

We Kwajalein family Islands a awarded We in INDOPACOM housing. $XX contract won Army contracts Marshall of $XXX million the region. were the on to provide X-year, million in

We also intelligence operations $XX awarded signals in were cyber work. and million

United continues in monitoring strengthen upgrade control fiscal worth and of in we to addition, and infrastructure, enhance contracts work the perform $XX Deterrence Parsons' Pacific million Hawaii geophysical to Initiative utility In its allies aligned the and of and States presence classification posture, X and is received billion 'XX on to and year Kwajalein Indo-Pacific targeted ordnance $X.X unexploded readiness to for investment and systems. region. presence Guam the advanced Guam, force

we Commands booked space, contract. and ground period Cyber Mission option Finally, million support the air, cyber, $XX on contract Support multi-domain an across Combatant includes This totaling of operations maritime.

next-generation closed $XXX warfare During third to and processing, at we built the and signal is announced deal electronic cyber digital quarter, valued security in an This acquisition threats. BlackSignal accretive our a million. company provider near-peer counter Technologies

intellectual cyber positioning enabled base This revenue in Defense adding directed of cleared BlackSignal and Department synergies. provides across intelligence significantly within an community warfare while property capabilities operations customer immediate counterspace electronic radio acquisition work strategic expands sole-source offensive customer XX% frequency workforce, and set, expanded and the new the strong offerings, and strengthens Parsons' Parsons' enabling a XX% domain.

quarter Texas, BCC is into $XXX to Florida, valued firm region's provides agreement in acquire and projects Puerto a engineering full-service a an that one transportation management Carolina Georgia, After South all-cash leading we the and planning, entered million. transaction Rico. the structural engineering definitive of civil transportation, third and for Engineering, Southeast BCC engineering at ended, firms in services design

infrastructure billion for States, fiscal in area This formula XXXX. leader acquisition Act will United expanding the Highway XXXX funds an while where Investment in the approximately Federal Administration position Infrastructure an Jobs years has Southeastern our as $XXX our through reach and strengthen provided

Department target Georgia in top-ranked working our enable for resources was become will the also the of and #X expansion market us BCC presence consultant Florida. the BCC with geographical and into our will acquisition to Florida South double Transportation.

we know X These are growth completing consistent acquisitions acquisitions and and of well or have revenue our adjusted margins strategy XX% EBITDA more. of with preemptive of companies accretive

our sheet technology will complete and expansion. acquisitions to We active And an balance that differentiation have both continue segments. both strong pipeline drive to and in provide M&A growth accretive margin we use

executing so In demonstrates this the our to chain summary, far margins flow. revenue up cash exceptional move are drive growth, record value our to strategy on year performance and we

achieved For increased points by first by margins months XX expanded flow XX% cash this to we growth, organic the revenue have XX% million. $XXX basis X and operating year,

through and cash investments balance acquire our flow strong make leverage solutions to to assets and technologies. continue strategic sheet our software We and that differentiate free internal advanced

spend on our that national is and for increased infrastructure the evolving solutions. are demand the security geopolitical market driving tailwinds environment We unprecedented global capitalizing and

our our strong the remainder metrics. operating the guidance all outlook raising and for performance are Given of year, we

turn to call our increased I'll Matt more our third guidance. over that, the on details results financial provide XXXX Matt? to With fiscal and quarter year

Thank you, Carey.

half second by for against highlighted operating XXXX. given momentum through XXXX was our organic results significant total net tougher and revenue quarter third in very realized adjusted results, the EBITDA, pleased periods, indicated, growth, with record and Carey We're growth As awards. our contract cash third quarter the flow the income, of particularly comparable continued revenue, of

revenue both with growth double-digit across remained strong growth portfolio in Our the segments.

results. Turning our to

$X.X up XX% of increased billion was revenue XX% from on basis. organic $XXX or and an the quarter year million period Third prior

For this million growth significant XXXX third grew our XX%. was achieved record $XXX quarter or off we in where perspective,

Organic compared to markets. Infrastructure of and On a growth to and of technology, revenue were compared wins while prior portfolio and percentage a quarter growth SG&A our on XX.X% the XX% basis, of in in on hiring contract for the quarter XX.X% protection efficient existing the the business revenue intelligence in driven for third recent through focus period and third continue the development XX.X% by growth total to as ramp-up as initiatives. the future retention in year we was was investing Critical contracts SG&A across cyber and expenses XXXX. year-to-date

$XXX EBITDA increased X.X%. deliberate primarily XX%. EBITDA on margin-accretive increases year-over-year to or XX cost Adjusted indirect by expanded adjusted million on And a points and contracts basis $XX volume higher of management. focus were million These margin driven

strong year the compared X.X% basis, level of to XXXX. XXXX points to As the adjusted XX% margin On X.X% in compared growth over Parsons experienced increased EBITDA period. XX growth our third in at with adjusted a basis to prior very was quarter where a we revenue, year-to-date

starting of contribution of and from organic now our SealingTech acquisitions. first XXXX. This revenue turn the segments, increased our third the XX% by quarter increase with or third BlackSignal million I'll quarter $XXX from and was operating Federal Solutions, by to where growth XX% driven

basis growth in contract adjusted $XX contributions cyber XX.X% Organic prior primarily protection EBITDA and growth the improved increased Solutions points XX% wins increased and intelligence driven EBITDA from Adjusted by period. primarily Federal driven recent to Critical XXXX. on contracts ramp-up Infrastructure XXX accretive from high-margin of were increased was markets. and year or of volume in the existing X.X% These program third by execution. margin the increases acquisitions quarter million by in our on contracts,

our to now Critical Infrastructure Moving segment.

and Growth North our both was portfolios. America Third the and period organic from inorganic quarter East revenue on volume driven prior year in both Middle higher XX% infrastructure increased basis. an by

XXXX. of quarter decreases a EBITDA by EBITDA of X.X% the Critical excluding decreased period. the on Adjusted by to legacy year completion write-down. have driven QX pro CI program XX% our write-down been or substantial EBITDA adjusted from third basis, expected that XXXX. prior million in adjusted The Infrastructure forma a X.X% On margin $XX decreased the adjusted from reach X.X%, EBITDA is million margin would $XX.X this were in

cash sheet discuss I'll metrics. balance flow Next, and

third primarily flow quarter XX-month were operating portfolio compared the the XXXX. XX-month across a million to $XXX increases $XXX prior generated XXXX, we On cash of of over During improved flow, we These increase and record profitability. by of collections of operating basis, period. generated $XXX the million million strong cash a QX a driven trailing XX% in

record XX year-over-year a days the During to low. XX net quarter, by days, third declined DSO

revenue expenditures prior to line $XX future than year like spend invest controlled classified strategic consistent of of totaled period. and technology areas space be less quarter expanding X% in Capital in third is well our growth. continues million while with and in to CapEx to with support planned annual relatively which XXXX, facilities continuing of remains the

on conversion Free and cash focus with legacy a quarter for third management was basis XX-month claims XXX% an settlement contract on the and improved collections. execution, intentional XXX% of and cash trailing

pro forma recently $XXX include debt ratio all-cash sheet of the BlackSignal. balance announced remains third would of the leverage of the million X.Xx BCC. quarter with all-cash basis, net to after X.Xx On net a of we be leverage strong Our acquisition impact as ended acquisition a the

to cash Our long-term to to is enabling objectives. internal flow strong acquisitions make us continue our accretive and strategic growth support investments

quarter our or In Critical a X.X the a basis, ratio was book-to-bill XX%, ratio book-to-bill segment, to bookings. consecutive greater. ratio third achieved with Infrastructure and Turning in the increased quarter, X.X contract On of trailing X.Xx. XX-month we a our marking XXth awards book-to-bill of

of is for of awards Third confidence not $XX quarter which activity we ability $X.X XX% year-over-year award currently in of deliver $X.X backlog, XX% to contract X.Xx. book-to-bill ratio our increased billion to growth. or of a and billion to reflected funded billion backlog, With book-to-bill have continue in

our Now guidance. let's turn to

as outlook increasing remainder a guidance our ranges quarter of year. our BlackSignal XXXX record are performance, for favorable and We the the result our acquisition third of

For $X.X XXXX, at midpoint total the revenue growth range billion and our midpoint billion. XX% $X.X are by on to $XXX increasing of basis. XX% we million an revenue organic the at represents This to

the million continues now adjusted Additionally, be to million we are the EBITDA We of expect adjusted range the midpoint $XXX growth increasing at range. the revenue growth. EBITDA represents XX% which exceed at and range by million, our between $XXX and $XX of to midpoint

results. the which increasing XX outlook revenue our is margin are increased points improvement fiscal XX ranges, point XXXX At we our and a basis midpoint of EBITDA X.X%, to adjusted by basis to

flow guidance. and we expect the conversion XXX% between adjusted to our We free flow net approximately cash be the to cash cash million. income. are range, also $XXX be midpoint At operating We of now million expect $XXX guidance increasing of flow

Other connection our on 'XX Relations key guidance website. are assumptions with outlined Slide Investor in on PowerPoint located in presentation our today's XX

we've enhance flow top which great the We're long-term and months, after our strategic the with balance and we first further line last offerings, to support had the X results. geographical X will technology footprint cash of use an putting believe sheet summary, X and announcing In over the growth. acquisitions year months exceptional bottom

to strong guidance execution business are our major units Our increased confident achieve we in our XXXX geographies. has across all ranges. been ability in And

call the turn Carey. that, to I'll back With

of In I'm company's very through Matt. year. X our with you, months performance the Thank closing, the first pleased

Our operating guidance expectations as all to once we results our continue delivered results record exceed across again metrics.

great continue, is tailwinds taking positively advantage environment Our I and impacting and XX,XXX a and and our our the that of growing am aligned team, portfolio leading executing well-funded X given strong such trends to be enduring employees are of X to to in I expect consistently thankful both segments. our markets. macro are segments well business important momentum

with will Instructions] And Jefferies. Sheila question first the Kahyaoglu [Operator come from

is quarter first has booked the I just given like? as seems rate the $XX been but still your your could on so stellar. pipeline Great a very as could potentially relatively do with How impossible If billion X always. maybe performance top unchanged That good which think book-to-bill of we enter growth Xx, questions, growth about line, on nearly what we rate. look XXXX, ask

Sheila. you, Thank

on the line our the between the we awarded reason repeats has booked, top of So is January not for and XXXX flat relatively remained that that of XXXX. booked and X July

peak So reached it were they each. billion all of $X kind a because greater than

I funded very the high. backlog, recommend an amount also is of XX% expected the and within billion the months that at the is we $X.X XXXX. would which industry probably XX the to close XX is strong plus not look that's important And combination I to a is backlog, $XX that significantly booked up to in What awarded of think over and billion next

digits better Looking perspective, indicated. as a line we mid-single top we've at or from being anticipate forward

I X% the could the off? were few over about margins run programs right ask margin run don't mind. to if a closer again. once quarters. quite think way the the This charge ex legacy CI, once Great. the What's are one Matt, fluctuated if bit, you And to past rate more On

about business goal, XX lot with to course, of CI we in kind the of digits. performing X a Yes. Sheila. I'd double Long-term say Thanks, talk the is underlying range.

to through to we but kind a get there, trudge these programs of path a your have We it's point. slow get as

of kind up wrap that expecting were We program.

unexpected the to million to kind $XX of these schedule then the and negotiations the of bit get was driver of the quarter week that out charge slip. of the biggest the closeout, little which We a was is get on But close with of couple you have programs. within as customer end charge. And as behind not delay, a kind we

that the is we've margin and the of really for on But work that north booked performing X%. kind that of underlying generally we think backlog we're speaking, recently

slope So it's can at there. at kind of just a get we which

of points expansion. basis year XX I've margin said XX kind of per to

the points to being you per If about think CI from stable, think year. kind you'd XX basis XX of federal business

way the Sheila. it, we're that's So at looking kind of

really yes, excited get rid of that to add were XXXX would would we're were bid programs. I legacy we're really also also back XXXX to I in -- add jobs frame. These these the time

As year, we of wrapped the we the first in one had entered these up quarter. only X remaining. We

away. a of as XX% just one, last this weeks complete And now. it's right couple Matt indicated, We're

So it's is of Critical mirror the the driver be to margin performance on have improved side really exciting the those biggest rearview Infrastructure execution to going because expansion. in

question comes next our Wittmann And Baird. with Andrew from

wanted better relates stuff was reading and understand the to I here just like CI seems income the it the some because in charge. Q bit guess to it little quarter I equity a that I

$XX.X said million You on your your comments, write-down.

In the write-down. million Q, it says $X.X

was I Maybe so hoping there some a just that help pieces explain so performance were better? or offset. of can little Maybe just were bit that bridge positive the some understand you that gap. write-ups closeouts And could can you the segment's we moving

Yes, question, Good sure. Andy.

we'll first. equity So talk about and earnings

So a impact million was the did the smaller to -- the point, outsized your we quarter. obviously, for take $XX.X

we why forma of the that. that's kind pro of gave So

that chain design of Parsons supply the approvals out. a of kind risk bit fighting schedule and We've kind a had the little some completing we last there around year. some our extended been additionally, kind But way design extension, program of of has through

your charge So we within point. $X equity to did million earnings, and a take

It operating earnings. op be The and be in normal the $XX.X million would roll in equity profit. CI through It wouldn't would the results.

as impacts. it million about you point, $XX of total kind So of think combined your to maybe can worth

all both they some ones, I X.X. the we'd a forma did of -- go X.X the a -- X.X well in say XX.X, excluded the smaller in range. adjustments be X.X, think XX.X all, in we There to fluctuations kind favorable of those, But pro if were any And smaller on to there's quarter. excluding I also some I be extent. the given But as from probably of would again, there'll

in Got that that of including it. into this accounting out. positives, Yes, But color some play some positives those the mental what's maybe we on eat what's X game then of one. those appreciate of and

And just up it's -- investor lot it's coming then in just, Carey, a conversations.

probably the it's on in I addressed prepared airtime East. some your it You think but remarks, worth Middle

Some some slow have some being just walked on scope about the competitors about of slowed the I of of there the -- could Maybe there. you growth and talk talked your talked have projects. you mean

talked the than about You segment Middle book-to-bill in better East your being the average. being

just you're backfill about But that could today as wins well through working as ahead you full that and of and as [indiscernible] you're head continuing talk maybe there the you the prospect the good today? seeing you what to steam work confidence that if the have there you're doing on future work

just I you, from Sure. Thank Andy. actually there. returned

it's next this So a week. and go for Matt time, there leaves perfect question to

on as the programs in was terrific and making, as well progress Saudi be Arabia ground the firsthand UAE. both to we're it tremendous that So see in the

And There's look year-to-date, Overall, from a the Middle in the quarter one as year, if revenue has XX%. expected. is East this XX%. at you year business be our Saudi region But another. going to last performing grew fluctuations is which following grown always to

the year-to-date. East as the as for We Middle within year have well double-digit full growth expect to

So they're all performance as exceeding and meeting indicators expected. key their

quarter. We wins, of second than share in highlighted million in fair the more Saudi our million the work. quarter, in we win $XXX won won $XXX to over third and we continue We

XX X.X better. And for was and this of to Middle our consecutive quarters X.X of Infrastructure Critical is the or X.X continuing group book-to-bill East So for part book-to-bill have the Saudi. again,

highlight uptick. funding on that also still I'll is the the

we even about So until when in expect to time the the the you ramp-up, at XXXX East look XXXX the funding Middle don't peak to frame.

for World the We're times major events the They've up and going XXXX. and at XXXX. world in hosting Games on Asian for the many FIFA World Cup XXXX, Winter this over the headcount. Expo both They're be coming Saudi in like got an next quarter decade. stage pipeline high to all-time have the they is in the

a receive So events. funding prioritized time projects lot done continue in and those And to be these going critical to to significant need get in infrastructure of Saudi Arabia. for is

[indiscernible] we're over to working I'd I had world's to city. on once also going next on the NEOM. week. entertainment Matt's pretty We're the exciting. programs again, there, the all largest premier very be which visiting much highlight is that opportunity visit

We're [indiscernible] Financial involved We're We just Abdullah were District. in Gates. involved involved We're for awarded the in Salman Park. King [indiscernible]. [indiscernible] in King

these major continue contract almost to come. program over Parsons So manager, is there, projects and every

bright So we've got future. a really

would that's in other also we've I and addition back of basically mention in UAE investments. Arabia, to And the Qatar. growth Saudi though, on seen infrastructure

unfortunate storm this If big there you'll was year. recall, was this which event, very

water Parsons So Dubai, a in and Qatar. of in involved is Abu improvement Dhabi lot drainage programs storm

very is seen that the a And this a and there's even And because in at, look then lot and which for the of such federal robust reputation. great the defense do we've UAE UAE of are property business, moving market starting opportunities a area Saudi lot resurgence to in have into that remains since development an include in that we're people a associated country. the we doesn't

excited exceed plans, they're and about I'm They're the line, bottom their as very there. going expected. So opportunities performing to

interesting question. but well. you just win have inform could on was commented One in as us your the technical rates, have quarter? But But it last character Appreciate there. by win you that. your overall, segment. the could guys the understand what we That's in past, rate You maybe various

quarter Yes. is is win The the win The XX%. rate rate XX%. year-to-date for

from Cai Cowen. with von question And TD our Rumohr next comes

Yes. quarter A terrific again.

that that, confidential engineering a that Your very you of with Federal grew you I Infrastructure And mean have customer? portion protection. Solutions contract one large Critical mentioned is XX%.

Yes.

areas. growth I of example, growth where work. doing lot but a seeing that contract, So would modernization in we're seeing as industrial-based highlight plant Army on we're also the an we're ammunition other

in Kwajalein the about And the particularly then excited biometrics we growth in some seeing had place. have wins INDOPACOM win. the the We're we in that also region, efforts

airfield. We Kwajalein first performing won been the Kwajalein contract. housing have We

housing Kwajalein just won second we the Now contract.

some won equipment work Missile that we And the island in put Defense for Guam. so trying come defense Guam of up in to additional in and clean the of Agency

excited So systems our whole business. engineered about

you've point solution time duration bit little one So think I can of but contracts -- than that shorter been great, at Fed contracts. you a normal the doing the engineering mentioned be

there So worry one particularly relatively protection relatively but is is that should any it a continue point contract way? this sunset Infrastructure at just quickly could it some on stable or big, Critical very

I say Yes, question. that's great would a

we're February option run at where period So on February period option have second if that exercised, contract XXXX. extends right first a that now, the it's do through We through XXXX. would

the The to they customer option If considering not the performance for submit did though do recompete contract, to have strong recompete recently a proposal intend advise whether they're going exercise even contract. otherwise we extend or it or period the the that they're to work. of performance very that we the second continued

rates. rates, including win And recompete announced win that XX% though, or average have year-to-date note there's acquisition no the present XX% an and recompete RFP. final draft I of we At there's strategy, no will time,

our what So that means, have given XXXX be expected year. we XX%, recompete what around indicated in to we which is this any percent we had

for X% say anticipate to we of now, our be XXXX I in the to somewhere right So recompete range would XX%.

the receive extensions. that on XX%, but look we year, the end we other dependent mean one contract XX%. continue I'm that as excited high be hopefully, it's And about to around I into we'll what plus contract next

recompete win We've very rate. a got strong

this book-to-bill continue to higher than off to had X.Xx a more growth. work base, of companies, organic potentially win X. year-to-date, year, We XX% extensive acquire greater And we've quarters X X continue

our base. month XX% his period And higher year increased during awards prior a over script, XX% trailing a XX on as the activity, and Matt has off highlighted

a lot in of have we momentum business. So the

And our Truist. question with from Tobey comes Sommer next

the When this we fold is think you acquisitions could acquisitions? about the the from in the break performance with point, at acquired revenue contribution and already XXXX? into And will hand, in the guidance that P&L organic raise, down what

Yes.

-- is months revenue about the the just relatively organic, kind so of a quarter. at you which me So of X quarter fourth within Tobey, contribution let total so of under give or final XX%, midpoint the minor a XX% growth is

$XXX just at next And When will any we is not in then contribute would additional BlackSignal $XXX be yet, million. look over million. over expect BCC, guidance year, which an we

months can inorganic, probably few maybe about bit this year. little $XXX worth have you because So for a lighter we BlackSignal think that million of than a

XXXs So details call the XXX, in high more I'd can say give low -- but to we it, the somewhere, later.

about $XX -- million our million $XX Black and So XXX another million BlackSignal is from is plus. BCC be to would then $XX

could sometimes Okay. acquired Historically, on with associated worked you outlook sight what synergies have together and for then is the revenue you that relationship, talk you've or BlackSignal? And about bid competing you've BCC, either have -- near-term firms line a are things with whom of or into opportunities.

Yes. I'll start with BlackSignal.

their processing, security. very nicely When in fit cyber electronic you capabilities, they As I capabilities. with warfare at look signal they provide digital Parsons' and mentioned,

work, at and digital different the look also We're for customers. signal of different both we spectrum parts doing but electromagnetic

the Parsons side. The the in involved Department legacy on both On we're was offensive. cybersecurity side, more of historically Defense

range. space, we develop see side. a space And systems. a They to use more the digital was look gaming And you basically they is intelligence training at for [indiscernible] synergies of lot on-orbit BlackSignal leader. market when BlackSignal create space twin then technologies. platform on a community cyberwar a

is This which have capability, Parsons' an called system we [indiscernible], emulator a that system. is complementary with

we're combining So those capabilities.

it fit their that capitalize also that noted, mentioned. worked and We've nice for legacy a As us. long already BlackSignal we've on on time buy growth been companies, able We've GSA companies really to we quite with I the in with known you and bit. a particularly do synergies,

both We South our have Georgia exciting. We to adding very as is They will well business. both XXX as BCC in Carolina. in have be employees presence about Florida. presence Texas,

Parsons much under engineering design in I the we're general in Miami. and X design be activities them. in legacy involved capabilities. going is Florida They're do headquarters and build they stronger construction They areas. would inspection, say to and Their engineering Florida, They are do consolidating services.

work have on State because our they in We're amount XXX about during mentioned job within that the a excited recent opportunities Georgia big with particularly I Also, of up of win lot the Georgia. of doubled that, Route Department the we the that really coming Transportation. script resources there's

BCC, have XX% on fixed they time note will I also and price, XX% material.

we side to the CI. in as So going well that's us on help anticipate that, margin

next the Dwyer with Markets. Alex And Capital comes KeyBanc question from

Are think history or the won the has Can past seeing that the largest the or awarded projects projects? be transportation of large American so? transportation so. your I take So kind there talk Parsons is could X you North of year the in these on? more you And over of out the of in seeing what still about of to more of these pipeline next company many these now of more capacity year

Alex, Thanks, question. that Yes. for

largest. We of won X have the

You occurring the transit for the Hudson tunnel. we're the project. the be project the That's and there. largest River proud really Gateway and infrastructure to It's in United mentioned project largest rail had program manager the States,

JFK over the airport. the roads highways. project City Newark be We And of $XXX were were the awarded that and Those we in we're happy awarded million living Bay improving us. will around the Bridge, you area New York for

and long-span bridge a a particularly X,XXX world are in leader designed bridges. in bridges design, leader over having We

book-to-bill. we've XX of Route with we're that quarter this than that Hawaii transit awards particularly State as X.X about well job. And is just then and of X which phase the quarters had excited consecutive What next system, is we the rail greater extension as highlighted XXX

been of And is of of was was total trillion of IIJA shows the May the that XX,XXX of into $XXX IIJA point. X-year have on projects. there funding, XX% funds Actually, Recent still announced, the the we're $X.X that the year the billion new. ramp-up. out -- covers and data years law. halfway X nearly was this And

$XXX allocated. to be So this billion leaves yet

That And they're releases, doesn't agency announced. but means that they're which obligations. note I would from is they're mean that actual captured press awarded, yet

So we're very still up ramp on here. much the

IIJA they also as the local are in saw would certainty I a XXXX, that bit the they quite well. indicate Once passage and to started state funding of of contributing contribute. November

As retaining. far job doing we're job terrific a terrific hiring, capacity, as

we've rates retention lowest our ever North Infrastructure have business. within America We the that Critical had

United the these and States, to on particularly focused continue win to going X throughout we're our jobs So Tier pursue state. large

And billion QX Right almost months. some I'm pipeline the you're Alex, so up of infrastructure. XX.X% $XX about within mentioned. at looking numbers Carey we're about to what XX billion, XXXX, just of to kind at worth now, over $XX add

continued guidance strong So of there. really growth

it. Got

on I wanted as hiring this been about more general talk year, the then hiring of across been the year past about the guess And company business challenging or the it's needs challenging months. XX plan. I to next hire? over guess there And the like entire I are business the just ask hire just most Okay. think has we then areas where for less about teams development to focused to where just next

Yes.

actually The So Middle we area XX a both East, business. I today, retention. Infrastructure would hire hire the to say America Infrastructure will we've in great hiring and done easiest Critical job the on be would around North about pretty world be from Critical and countries easy. also

that is group difficult engineered the the very you part particularly is the federal systems, not get not cleared When to hire. side, to of

is what there. highest the done again, with we've portfolio. that bar But going to So area of be I'm cleared our happy always

we ourselves From perspective, against measure PwC industry a benchmarks. retention

We are lower than the benchmarks.

we're in average doing the segments. better Infrastructure Critical the than So and the Federal industry both

we're be a that going have in business I'm say, been. to development the going to perspective, areas same we focused, From

compound all get hire to performance core BD and are Our to growing of rate of execution ahead X% as continuing winning X annual these XX% which there, well as growth large end talent both talent markets, to jobs. between

Josh Benchmark with from Sullivan question And Company. comes the The next

you've credit, your been region, to called in your opening very expansion. geographic comments, growth willingness in you when in obvious. But out geographic your to wasn't invest especially Carey, deliberate a

that curious in we just on there. are you're Or which expect regions up? the is. delivering? philosophy thinking expansion have been Should there And looking just global I'm Europe same opportunities current the So of new what any opening

Yes.

very say places we're would I that have fortunate So in we right deliberate. now. right We're been the

the the you Bill, North time look If until frame. the at growth 'XX America with Infrastructure not peaking

until peaking time look XXXX, you not If frame. Middle the XXXX at East,

there if company big have us within we a would basically we've say together threats. focus I outpace highlighted to federal, very INDOPACOM. any talk purpose-built been is, because a That's Federal we about put that near-peer I for expansion Solutions

the be intelligence going on builds, signals doing, to it's work intelligence, So defense warfare, expansion. engineered that electronic is and type the we're or of side whether cybersecurity on it's with a the information side, significant and focus operations, INDOPACOM remediation infrastructure of area systems and environmental

look as going brand start portfolio mentioned rates, take a strong and And to win I as high there can we're that earlier, also we our federal such little Middle East such well. to because bit in we the at opportunities we feel a have

to Infrastructure, America Critical we're on laser-focused as East. Middle as Within the North well stay going

work small and presence and Marseille We We in have transit France. in some Paris, do a Europe. rail

might -- the and Netherlands. in see we So also

growth to a We might deliver. little strong. of need your just we focus to see is so a continue in but So and off expansion position where we're really that,

are organic? and fruitful Great. with we kind that a software one. But approach capabilities you think LX also How then on obviously, of announced partnerships similar expansion can other you of like question more being we're be difficult this? mentioned. seeing but And should very Palantir And approaching your or

Yes.

So partner win I would to certain a we pursuits. say basis and on selective

base. have And differentiator. about portfolio, a our talk software the been building really purpose strong about Solutions software. We Federal we key it's of such It's kind when all

every and it's become intelligence, that do. really is industry almost again, signal commoditized. had to processing, program digital key areas we've strong last leaders. the the of of couple think I for more Artificial where a we're hardware And we applied we presence going one decades, where like

Software nugget. going to be the is

as our software Infrastructure, our a also a highlight heavily addition infrastructure, transportation intelligent system and are In management I'd in intelligent mostly federal, intersection couple advanced driven. areas service work, those of to business work, Critical traffic our

We use approach. an agile

lean in And We to secure continue going have on DevSecOps software. a capability. we're to

DiPalma Blair. next from with question And our comes Louie William

Congrats on results. the

you Thank much, Louie. very

your often prevent growth. and recent continuing we last momentum there about for year's organic year? next is And wondering, long-term Carry this investors the specific year's difference the mid-single-digit between that were anything and Matt, ask string from would of momentum growth and XX%-plus guidance

the going they're waiting to if confidential we're one mention the exercise is going contract it. option year did I to to see if [indiscernible] or the customer

key thing we I think for set is and and making beat us, that's that realistic. sure guidance the raise

we year, is as our about we'll programs typical into million, usual of as I mentioned, million in amount to Recompetes, of X% $XX probably next XX%. the go for which We to have us. about anticipate runoff $XXX

But up to I and We've to would jobs move to what as got continue doing. win value we're been doing bid able continue the win get larger say and chain, deliver, the execute. rates high we've win and

And software project? this AUSA twins Hudson is software we your wondering, as Great, Federal River transportation showcased you you such infrastructure? are both the JFK tunnel, able Inglewood conference, And were large utilized being for infrastructure Carey. to use contracts the and digital digital [indiscernible] And these for this Solutions software. twin of at several recent IIJA airport, bridge,

Yes.

able So applying are use capabilities Missile share infrastructure. portfolio. both twin and that would those Agency biggest the Defense with And we we've it. to our is application we digital say capabilities I across for federal the been

for We we've a while. have engineering quite and Parsons built been a framework we've called there digital out framework, it applying that

with twin the digital BlackSignal have orbit capability on now also We acquisition.

our we've On side mostly air been of twins the applying house, to projects. infrastructure the digital

as is for related, these contracts. significantly scope there are think that should revenue following risk and contracts for And the also contracts we legacy And contracts? work the fairly duration of your these on of are have these any from infrastructure how trajectory these long-term types seems write-downs? up that IIJA write-downs for Great. And it projects, different of transportation featured

take let first. the second me Yes, part

Chief engineer We the the are as I and technical back November going we've is where design. owner that roots. owners a company have program Officer to what designer, I'm core derisked The in over our we're took deliver XXXX. starting to core when And help do the our gone roots we call Operating management, portfolio, we

XXXX stopped wrapping why legacy the one we're So up the year we those. It's to frame. in programs of last those time this bidding back happy be really have

So created. rail those. in XXX, and the done the Again, and XX transit Route won, subcontractor projects since for both was the on system Parsons we've the design one years lead has what are the that we it's Hawaii, company the of State

because some our don't legacy get So project. write-downs the scope anticipate early designer, like done we've of we look at on construction no, the are programs. of you the does we When work had our in majority these

we So if project. a with project early that X X parts very nearly design Good we'll the on in of project is we're is months years, about the XX be done JFK, won done that example that to ago.

Sachs. Goldman comes question next our And from Poponak Noah with

And are large of you're able that one like XX% confidential there about you're were second that the X mainly talking X% for is? are you say contracts you to recompete of year. one engineering to the in what Are referencing saying next the -- range it that Carey, sounds creating business.

second from waiting to Those contracts The not or is customer. one may the may now, through receive February. we extensions. We're extended continue that actions continue Right extensions on we're some indefinitely.

Okay.

Okay. full EBITDA And segment Matt, by get to approximately what's in the range? the year margin just fourth quarter to

Yes.

just Xs, Xs. Noah, XXs low federal, kind we have So of right in low the call CI then and it high now,

kind is they've of where constant that than bit been. I little So lower quarter-over-quarter. of think And federal kind a

now would progress work to the you about just that And talk from remaining update could the timing as sequentially expecting here? you maybe Okay. legacy how expect on what CI. end in you're And maybe us of also

Yes.

one with the just project, we're within next customer have weeks achieve meet the expecting few really substantial to we So to the and completion.

Okay.

previously expected of it's quarter, quarter. expected had the and third So the inside now fourth Carey, that been in

we That's correct. process. that additional were There systems were that added to some had

And does reason, ramp charges? kind to it? gradual margin what some I flip just more that's complete, the other adjusted there guess once for of it's is Or CI to been some

adjusted are kind Carey kind our number, course, Substantial the of it, job. of I Noah, of completion to and has to some kind to where cautious. trail say, you're I'd but of and customers completing is, get kind negotiating of goal the with Yes.

per had say should there us of would substantive the So with speaking, years. substantial But basis kind couple year points a generally I be XX to will get that completion. we've behind that with write-downs us XX of

the basis XX the And points Parsons that as long-term indicated to We've for mentioned, segment. Matt expecting guidance. CI at level come we're our from

to remarks. over call I Spille we back time the for like all have questions. to would for the Dave is turn This do that closing

joining Thank us this you morning. for

to any great a with end weeks. over If a speaking the please have call. day. questions, many look hesitate of call. we'll to give you coming with we that, Have you And today's forward And don't me

today's conference for concludes call. participating. you This Thank

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