Parsons Grows U.S. Army Organic Industrial Base Modernization Portfolio with $169.5 Million Award

Rhea-AI Summary

Parsons Corporation (PSN) has secured a $169.5 million contract from the U.S. Army Corps of Engineers Norfolk District to construct a new Ammonium Nitrate Solution Tank Farm at Holston Army Ammunition Plant. The four-year contract involves replacing existing storage tanks to support expanded manufacturing capabilities. This marks Parsons' third USACE Norfolk District award in four years, following previous contracts for an Explosive Decomposition Chamber facility (2023) and an Energetic Waste Incinerator project (2021). The project is part of the U.S. Army's broader multi-year, multi-billion-dollar Organic Industrial Base Modernization Implementation Plan, aimed at upgrading facilities, processes, and workforce capabilities across depots, arsenals, and ammunition plants.

Positive

• Secured significant $169.5 million contract representing new business
• Third USACE Norfolk District award in four years, demonstrating strong relationship and contract execution
• Strategic positioning in U.S. Army's multi-billion-dollar modernization program
• Contract strengthens company's presence in critical defense infrastructure projects

Negative

• None.

Insights

Defense Industry Analyst

Parsons secures $169.5M Army contract, strengthening position in multi-billion-dollar defense infrastructure modernization program.

This $169.5 million contract award from the U.S. Army Corps of Engineers represents a significant win for Parsons within the critical defense industrial base modernization initiative. The four-year project to build a new Ammonium Nitrate Solution Tank Farm at Holston Army Ammunition Plant continues Parsons' momentum in this sector - marking their third major award from the USACE Norfolk District in just four years.

What's particularly noteworthy is how this positions Parsons within the Army's broader Organic Industrial Base Modernization Implementation Plan - a multi-year, multi-billion-dollar initiative to upgrade military manufacturing facilities. The contract reinforces Parsons' competitive standing in securing high-priority defense infrastructure projects that support ammunition production capabilities, which remain essential to military readiness.

The designation as "new work" indicates this contract adds fresh backlog rather than replacing existing revenue streams. This contributes to revenue visibility through 2029 while strengthening Parsons' credentials in the specialized field of military manufacturing infrastructure. The company's growing portfolio of similar projects demonstrates a pattern of successful execution that likely enhances their competitive position for future awards in this space.

This contract builds upon Parsons' previous USACE Norfolk District awards: a 2023 project for an Explosive Decomposition Chamber facility at the same location, and a 2021 design-build contract for an Energetic Waste Incinerator at Radford Army Ammunition Plant - establishing them as a trusted partner in modernizing critical military production facilities.

CHANTILLY, Va., June 16, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was awarded a $169.5 million single award contract by the United States Army Corps of Engineers (USACE) Norfolk District to provide design-build delivery services for a new Ammonium Nitrate Solution (ANSol) Tank Farm at Holston Army Ammunition Plant (HSAAP). The four-year contract is new work for the company.

Under this contract, Parsons will provide integrated delivery services for the ANSol tank farm, enabling the HSAAP to increase storage requirements for ANSol, a byproduct of the explosives manufacturing process. The new tank farm will replace HSAAP’s existing storage tanks to support expanded manufacturing at the Government Owned Contractor Operated facility.

“Parsons is a trusted partner in advancing the U.S. Army’s Organic Industrial Base (OIB) Modernization Implementation Plan,” said Jon Moretta, President, Engineered Systems for Parsons. “Holston Army Ammunition Plant has a vital role in ensuring our nation’s warfighters have what they need when they need it to successfully carry out missions around the world. As the number of organic industrial base modernization projects grow, we remain ready to leverage our experience and innovative technology solutions to improve readiness and operations.”

The U.S. Army is currently engaged in a multi-year, multi-billion-dollar plan aimed at modernizing the organic industrial base, which encompasses upgrades to facilities, processes, and workforce capabilities throughout depots, arsenals, and ammunition plants. This award grows Parsons’ role in these efforts and is the company’s third USACE Norfolk District award in four years. In 2023, Parsons was selected to deliver a new Explosive Decomposition Chamber facility at HSAAP, and in 2021, the company was awarded a design-build contract for a new Energetic Waste Incinerator/Contaminated Waste Processor at Radford Army Ammunition Plant.

To learn more about Parsons’ industrial base modernization solutions, visit Parsons.com/industrial-base-modernization/.

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:
Jonathan Larry
+1 706.832.7330
jonathan.larry@parsons.com

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

FAQ

What is the value and duration of Parsons' (PSN) new Army contract?

Parsons secured a $169.5 million contract with a four-year duration for the Holston Army Ammunition Plant Tank Farm project.

How many USACE Norfolk District contracts has PSN won in recent years?

Parsons has won three USACE Norfolk District contracts in four years, including this latest award.

What is the purpose of the new ANSol Tank Farm at Holston Army Ammunition Plant?

The new tank farm will replace existing storage tanks to increase storage capacity for Ammonium Nitrate Solution, a byproduct of explosives manufacturing, supporting expanded manufacturing operations.

How does this contract fit into the U.S. Army's modernization plans?

The contract is part of the U.S. Army's multi-year, multi-billion-dollar Organic Industrial Base Modernization Plan to upgrade facilities, processes, and workforce capabilities across military installations.

What previous projects has Parsons completed for HSAAP?

In 2023, Parsons was selected to deliver a new Explosive Decomposition Chamber facility at HSAAP, and in 2021, they won a contract for an Energetic Waste Incinerator at Radford Army Ammunition Plant.