As we enter a new year, we’re pausing to reflect on what we’ve accomplished in 2023 and highlight our top moments of the year!
1. Leading The AI Revolution
Though artificial intelligence became more mainstream in 2023, we’ve been supporting our customers with the development of AI solutions for the ingestion, processing, exploitation, fusion, dissemination, and visualization of their data for years. In 2023, we continued to use AI to transform how our integrated solutions empower the national security and global infrastructure markets.
Here are a few of our favorite AI articles from the year:
- How AI Is Changing the Way We Move
- Leveraging AI/ML To Protect the Space Domain
- Revolutionizing Design: The Power of Generative AI
- AI Will Revolutionize Construction… If We Let It
- Operationalizing Artificial Intelligence: Making It Work for The Mission Today
2. Parsons Helps the US Destroy its Final Chemical Weapons Stockpile
On July 7, 2023, the U.S. announced the final munition in the U.S.’s obsolete stockpile of chemical weapons was safely destroyed, an accomplishment months ahead of schedule. We were part of a joint-venture team that used neutralization and explosive destruction technologies to eliminate more than 100,000 mustard agent and nerve agent-filled projectiles, and nerve agent-filled rockets. Destruction operations at the Blue Grass Army Depot began in June 2019. Since then, more than 523 U.S. tons of chemical agents have been safely destroyed.
3. Delivering The Future of Infrastructure For THE LINE and Oxagon Giga-Projects in Saudi Arabia
This year we announced our role as delivery partner for THE LINE, the world’s first cognitive city within the region of NEOM in northwest Saudi Arabia, as well as our contract to provide project management support in building Oxagon – NEOM’s reimagined industrial city that will be home to advanced and clean manufacturing. Both projects are being developed to tackle the challenges facing humanity in urban life today.
Envisaged as a model for the future of sustainable urban living, THE LINE is being designed to have no cars, no roads, and will operate on 100% renewable energy. One of the most complex and challenging infrastructure projects in the world, THE LINE will stretch 170km (106mi) in length, be 200m (656ft) wide and reach up to 500m (1,640ft) above sea level. Being built with nature at its core, the linear urban development serves as a blueprint for how people can live in harmony with the natural environment. The giga-project prioritizes the health and well-being of its citizens, and addresses some of the most pressing challenges facing humanity today, such as outdated infrastructure, pollution, traffic and human connection. The team broke ground on THE LINE in 2022 and the project is currently under construction.
Oxagon, one of NEOM’s regional projects, represents the future of Industrial Cities and will feature ‘Port of NEOM’ a next-gen port and integrated supply chain and logistics ecosystem. We will work closely with NEOM and Oxagon to deliver project management, technical, commercial and construction management services to deliver fully functioning industrial cities. Parsons has been a trusted partner of governments and private entities in the Middle East for more than 60 years and we are one of the leading consultants in design, construction, operations and maintenance, commissioning, and project management services, whose efforts have helped build and transform the region. Learn more about our presence in the Middle East.
4. We Achieved Record Organic Growth
We recorded record total revenue for the third quarter of 2023, increasing by $284 million, or 25%, to $1.4 billion. This increase was primarily driven by organic growth of 23% due to the ramp-up of recent contract wins and growth on existing contracts, and inorganic revenue benefited from the company’s SealingTech and IPKeys acquisitions.
“We also achieved over 20 percent organic growth in [the federal solutions and critical infrastructure segments] for the second consecutive quarter, adjusted EBITDA growth of nearly 25 percent, a double-digit increase in contract awards, and over $200 million in quarterly cash flow for the first time in our company’s history,” said Carey Smith.
5. Continued Expansion: Acquisitions of IPKeys, SealingTech, and I.S. Engineering
In 2023, we acquired IPKeys Cyber and Power Partners, Sealing Technologies, Inc., and I.S. Engineers. We are proud to have them as part of the Parsons family and plan to continue to grow through organic expansion and strategic acquisitions.
The acquisitions continue bolstering the company’s infrastructure protection capabilities, defensive cyber operations portfolio, and core critical infrastructure business.
6. Parsons Delivers First RADBO System To U.S. Air Force
In 2023, we delivered the first of 13 total Recovery of Airbase Denied by Ordnance (RADBO) systems, plus an additional three ZEUS® laser neutralization systems, to the U.S. Air Force.
The delivery is part of the company’s 6-year, $51 million contract awarded in 2020. The technology is the first ground-based directed energy weapon system to be approved for production. It has been successfully deployed and tested in Iraq and Afghanistan.
7. We Held Our First In-Person Investor Day At The New York Stock Exchange (NYSE) Since Our IPO
On Wednesday, March 15th, we held our first in-person Investor Day at the New York Stock Exchange in New York City since our initial public offering (IPO) in May 2019. Parsons’ executives presented our company’s vision, strategy, key business initiatives, and financial goals.
To check out all of the presentations from the event, please visit our investor day webpage.
8. Parsons Honored As One Of The World’s Most Ethical Companies For The 14th Consecutive Year
For the 14th consecutive year, we were recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the 2023 World’s Most Ethical Companies! Parsons has been recognized every year since 2010. In 2023, 135 honorees were recognized spanning 19 countries and 46 industries.
9. Parsons’ Carey Smith Named Government Contracting Executive Of The Year
Our Chair, President, and Chief Executive Officer, Carey Smith, was recognized as “Executive of the Year” in 2023 at the 21st Annual Greater Washington Government Contractor Awards, where she won the “Executive of the Year, Over $300 Million” category.
Smith joined Parsons in 2016 as President of Federal Solutions, and was successively promoted to COO, and President and COO, prior to being named President and CEO in 2021 and unanimously being elected Chair, President, and CEO in 2022.
“I’m honored to accept this award and share it with the more than 18,000 employees at Parsons,” said Smith. “The leaders recognized with these awards represent the efforts of the talented workforces we have the privilege of leading every day. At Parsons, our entire team sets out to imagine next in national security and global infrastructure, and this award recognizes their commitment to our customers and to our growth. I couldn’t be prouder to lead such a tremendous team and to be recognized for my part in their success.”
Smith ended the year by appearing on CNBC’s Worldwide Exchange to discuss the company’s historic year.
10. Our Aviation Business Soared To New Heights
2023 was a milestone year for our aviation business! From seamless connections to soaring ambitions, airports are the launchpads of limitless possibilities. We are delivering the smart infrastructure to make them secure and efficient.
Last year, we transformed Terminal A at the Newark Liberty International Airport. We were recognized as “Excellence in Sustainability” and “Award of Merit Airport/Transit” winners by Engineering News Record (ENR) for our work as general contractor and civil engineer for the Newark Liberty International Airport Terminal Redevelopment.
Also in 2023, we won a contract to serve as the lead designer for the JFK International Airport Reconstruction., supporting a $1.24 billion design and reconstruction of John F. Kennedy International Airport’s Central Terminal Area Roadways, Utilities and Ground Transportation Center (GTC) in Queens, New York. The project is expected to be completed in 2027.