We came across a bullish thesis on Parsons Corporation on r/valueinvesting by Either_Excitement784. In this article, we will summarize the bulls’ thesis on PSN. Parsons Corporation’s share was trading at $72.47 as of Janaury 16th. PSN’s trailing P/E was 33.40 according to Yahoo Finance.
Parsons Corporation (PSN) is evolving from a traditional engineering and infrastructure company into a defense and technology-focused business, positioning itself in higher-margin segments with long-term growth potential. Its operations span two primary areas: infrastructure, which includes design, construction management, and supervision of complex projects like the California high-speed rail and Middle East “giga projects,” and defense, which covers cybersecurity, space defense, missile defense, nuclear waste treatment, and other advanced technology solutions.
Despite a 10% decline in Q3 2025 revenue, PSN maintained gross profits and achieved notable margin expansion, with operating margins rising from 1.7% to 7.7% and EBITDA margins growing to 8.2%, reflecting the company’s successful pivot. The company’s moat lies in its highly specialized workforce with security clearances, long-term government relationships, and proprietary software solutions like iNET and iTwin for city infrastructure management, which create significant switching costs and recurring revenue through subscription models.
PSN’s strong project backlog, with a book-to-bill ratio above 1.0 for 20 consecutive quarters and a 1.4x backlog-to-revenue ratio, supports visibility into future revenue, particularly as Middle East giga projects peak in 2027–2028. Intrinsic value estimates suggest a total enterprise value of $9.2 billion, or $73.6 per share after net debt, with upside potential to $87 per share by 2026 as EBITDA expands through defense and software integration initiatives. Seasonally adjusted cash flow trends and ongoing margin improvements provide additional support, making PSN an attractive entry point for investors seeking exposure to high-barrier, tech-enabled infrastructure and defense markets.
Previously, we covered a bullish thesis on Parsons Corporation (PSN) by No_Layer2027 in May 2025, which highlighted its U.S.–Qatar commercial agreement, strong backlog, and undervaluation versus peers. PSN’s stock price has appreciated by approximately 8% since our coverage due as the thesis played out. Either_Excitement784 shares a similar perspective but emphasizes PSN’s pivot to defense and technology and high-margin software integration.
