Parsons Awarded Lead Design Contract on $1.66B Honolulu Rail Project

Rhea-AI Summary

Parsons (NYSE: PSN) has been awarded the lead design contract for the $1.66 billion Honolulu Rail Project. As a subcontractor to Tutor Perini , Parsons will design six rail stations and approximately three miles of elevated rail guideway for the Honolulu Authority for Rapid Transportation's (HART) City Center Guideway and Stations Project.

The project scope includes the construction of rail infrastructure from east of the Middle Street Transit Center Station to the Civic Center Station, located just east of downtown Honolulu. Design work is set to commence in 2024, with construction expected to begin in the second half of 2025. The project is anticipated to reach substantial completion by 2030.

Positive

• Awarded lead design contract for a $1.66B rail project
• Subcontractor to Tutor Perini on a major infrastructure project
• Project includes design of six rail stations and three miles of elevated guideway
• Long-term project with design starting in 2024 and completion expected in 2030

Negative

• None.

Financial Analyst

This $1.66 billion contract win for Parsons (NYSE: PSN) as lead designer is a significant positive development. As a subcontractor to Tutor Perini, Parsons will likely see a substantial boost to its revenue and backlog. The project's long-term nature, spanning from 2024 to 2030, provides stable income visibility for the company. This aligns well with Parsons' strategy to grow its critical infrastructure business. However, it's important to note that as a subcontractor, Parsons' share of the total contract value isn't specified, which introduces some uncertainty about the exact financial impact. Investors should monitor future earnings calls for more details on the expected revenue contribution and profit margins from this project.

Infrastructure Expert

The Honolulu rail project represents a significant infrastructure development, addressing urban mobility challenges in a space-constrained environment. The 3-mile elevated guideway and six stations will likely incorporate advanced engineering solutions to navigate Honolulu's urban landscape. Parsons' role as lead designer is crucial, requiring innovative approaches to integrate the rail system seamlessly into the existing cityscape. The project's complexity, including potential seismic considerations and environmental impact mitigation, will test and showcase Parsons' technical capabilities. Success here could position Parsons favorably for future urban rail projects globally, potentially opening doors to more high-value contracts in densely populated cities facing similar transit challenges.

Market Research Analyst

This contract win strengthens Parsons' position in the growing urban transit infrastructure market. With increasing urbanization and the push for sustainable transportation, demand for such projects is likely to rise globally. The Honolulu project adds to Parsons' portfolio, enhancing its competitive edge in bidding for similar contracts worldwide. However, investors should be aware of potential risks, including project delays and cost overruns, which are common in large infrastructure projects. The 2030 completion timeline is ambitious and will require careful management. Additionally, the success of this high-profile project could significantly impact Parsons' reputation and future contract wins in the rail and transit sector, making it a key project to watch for long-term growth prospects.

Company will serve as subcontractor to Tutor Perini

CHANTILLY, Va., Aug. 20, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN), a global leader in rail and transit, environment solutions, aviation, and engineering, will serve as the lead designer on the Honolulu Authority for Rapid Transportation’s (HART) City Center Guideway and Stations Project in Honolulu, Hawaii. The company is a subcontractor to Tutor Perini Corporation (NYSE: TPC), a leading civil, building and specialty construction company, on the $1.66 billion project.

"We are proud to lead the industry in rail and transit design with an innovative approach and commitment to excellence that ensures we deliver cutting-edge solutions that meet the evolving needs of our clients and communities,” said Mark Fialkowski, President of Infrastructure North America for Parsons. "Our team of experts is dedicated to creating sustainable and efficient transportation systems that enhance connectivity and improve quality of life."

The entire project scope of work includes the design and construction of six rail stations and approximately three miles of elevated rail guideway beginning just east of the existing Middle Street Transit Center Station and ending at the Civic Center Station, which will be located just east of downtown Honolulu. Project design will begin in 2024, while construction is estimated to start in the second half of 2025 with substantial completion expected in 2030.

For more information about Parsons’ rail and transit capabilities, please visit https://www.parsons.com/rail-transit/.

About Parsons:
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.

Forward-Looking Statements:
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our Registration Statement on Form S-1 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

Media Contact:
Bryce McDevitt
+1 703.851.4425
bryce.mcdevitt@parsons.com

Investor Relations Contact:
Dave Spille
+1 703.775.6191
Dave.Spille@parsons.com

FAQ

What is the value of the Honolulu Rail Project that Parsons (PSN) is involved in?

The Honolulu Rail Project that Parsons (PSN) is involved in as lead designer is valued at $1.66 billion.

When is construction expected to begin on the Parsons (PSN) Honolulu Rail Project?

Construction on the Parsons (PSN) Honolulu Rail Project is expected to begin in the second half of 2025.

What is the expected completion date for the Parsons (PSN) Honolulu Rail Project?

The Parsons (PSN) Honolulu Rail Project is expected to reach substantial completion in 2030.

How many rail stations will Parsons (PSN) design for the Honolulu Rail Project?

Parsons (PSN) will design six rail stations for the Honolulu Rail Project.