Parsons Corporation announced that it has been awarded a position on the Missile Defense Agency’s (MDA) Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) IDIQ contract, a 10‑year vehicle with a $151 billion ceiling. The award places Parsons among a select group of contractors—including Burns & McDonnell, Sidus Space, and Telos—tasked with delivering 19 technical and engineering activities that support the MDA’s Golden Dome missile‑defense architecture.
The SHIELD contract is a strategic win for Parsons’ Federal Solutions segment, which has faced revenue headwinds from timing delays and contract terminations in recent quarters. Q2 2025 revenue for the segment fell 19% year‑over‑year, and Q3 2025 revenue fell 29% year‑over‑year, excluding a confidential contract. The new award is expected to provide a steady, multi‑year revenue stream that will help offset those declines and support the company’s long‑term growth trajectory.
Parsons will provide program management, engineering, and integration services under the SHIELD IDIQ, positioning the company to leverage its expertise in large‑scale defense projects. The contract’s 10‑year performance period aligns with Parsons’ strategy of securing high‑value, long‑term government contracts, and it complements recent wins such as a $100 million task order for a rocket‑motor facility and a $30 million contract for the Space Development Agency’s Blackjack program.
Financially, Parsons’ Q2 2025 revenue was $1.6 billion, a 5% decline year‑over‑year, while Q3 2025 revenue was also $1.6 billion, a 10% decline. However, excluding the confidential contract, revenue growth was 13% in Q2 and 14% in Q3. Adjusted EBITDA margins improved to 9.4% in Q2 and 9.8% in Q3, driven by higher mix and operational leverage. Management has maintained its fiscal‑year 2025 guidance, indicating confidence that the new contract will support future profitability.
CEO Carey Smith emphasized the company’s optimism: “Given our healthy forward‑looking financial metrics, the team’s strong execution, recent large contract wins, and the tailwinds we have in both segments, we remain optimistic that we will continue to deliver industry‑leading organic growth rates and drive long‑term shareholder value.”
The award underscores Parsons’ ability to secure large, long‑term defense contracts and reinforces its reputation as a leading program manager in the defense arena, positioning the company for continued growth in the Federal Solutions segment.
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