Parsons Corporation announced it has been selected as an awardee for the Defense Threat Reduction Agency’s (DTRA) Cooperative Threat Reduction Integration Contract IV (CTRIC IV). The award, announced on December 5, 2025, is an indefinite‑delivery, indefinite‑quantity (IDIQ) multiple‑award task order with a $3.5 billion ceiling and a five‑year base period plus a five‑year option.
The CTRIC IV contract is designed to support DTRA’s mission to reduce chemical, biological, radiological, and nuclear (CBRN) threats worldwide. By securing a position on this IDIQ, Parsons gains the opportunity to bid on a range of task orders that could involve securing and consolidating WMD materials, assisting partner nations, and providing technical expertise. The award is expected to add significant revenue potential over the contract’s life and to strengthen Parsons’ backlog, which stood at $8.9 billion at the end of Q4 2024.
Parsons’ selection follows a successful history with DTRA, having been awarded the CTRIC III contract in 2018 and winning multiple task orders under that program. The company has also secured other large government contracts in the same period, including a $15 billion Pacific Deterrence Initiative MACC position and two Middle East defense contracts totaling over $100 million. These wins demonstrate Parsons’ proven capability to deliver complex national‑security solutions and reinforce its competitive standing in the defense sector.
The announcement coincided with a sharp market reaction driven by the loss of a $12.5 billion Federal Aviation Administration (FAA) contract for the Brand New Air Traffic Control System (BNATCS) to Peraton. Analysts responded with downgrades and price‑target cuts—Raymond James moved from “Strong Buy” to “Market Perform,” and Truist Securities reduced its target from $100 to $90. William Blair upgraded Parsons to “Outperform,” and UBS initiated coverage with a “Buy” rating, citing growth in the Federal Solutions segment. Despite the positive news of the DTRA award, the FAA contract loss dominated investor sentiment and tempered enthusiasm for the new contract.
From a business perspective, the CTRIC IV award expands Parsons’ backlog and provides a long‑term revenue stream that aligns with its strategic focus on technology‑driven national‑security solutions. Management highlighted the award as evidence of continued success in securing high‑value federal contracts. CEO Carey Smith noted that the company’s “strong execution and deep expertise in complex defense programs” position it well to capitalize on opportunities like CTRIC IV.
The mixed analyst reactions illustrate the dual nature of the event: while the DTRA contract signals robust demand for Parsons’ core capabilities, the loss of the FAA contract underscores the volatility of large federal contracts and the importance of maintaining a diversified portfolio. Investors will likely view the CTRIC IV award as a positive long‑term development, but the short‑term headwind from the FAA loss will remain a key consideration for the near‑term outlook.
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