Parsons Corporation (PSN) shares climbed Thursday after the company announced it secured a coveted position on the U.S. Air Force Comprehensive Construction & Engineering MATOC—one of those sprawling military contracts that sounds bureaucratic but actually represents serious business opportunity.
The Contract Breakdown
The multiple-award task order contract, or MATOC in defense-speak, comes with a $15 billion ceiling and is managed by the Air Force Civil Engineering Center. Think of it as a pre-qualified vendor list for keeping Air Force and Department of War facilities operational worldwide. Parsons will now compete for individual task orders against other contract holders, bidding on everything from building new facilities to renovating aging infrastructure.
The deal runs for five years initially, with five additional one-year options that could extend it through the next decade. The scope covers design and construction management for new builds, plus maintenance, renovation, and restoration work on existing properties. We're talking administrative buildings, airfields, utilities, and critical infrastructure—basically the nuts and bolts that keep military operations running smoothly.
This contract complements Parsons' existing Air Force work, including the $1.5 billion AFCEC Environmental Services Contract the company won back in April 2025. The company is clearly building out its military infrastructure portfolio in a meaningful way.
More Military Wins
The MATOC announcement follows another recent military contract win. Parsons landed an $88 million single-award task order in December to support base air defense systems for U.S. Air Forces in Europe and Air Forces Africa at Ramstein Air Base in Germany. That three-year project adds to the company's existing work under the broader ABAD program, bringing its 2025 total value under that initiative to roughly $192 million.
What Analysts Are Saying
Wall Street has been recalibrating its view on Parsons lately. On December 12, Citigroup jumped in with fresh coverage, slapping a Buy rating on the stock with an $86 price target. Just a day earlier, Jefferies maintained its Hold rating but adjusted its price forecast to $75 from $90.
TD Cowen upgraded the stock to Buy from Hold on December 10, though the $75 target price represented a cut from their previous $90 forecast. Truist Securities kept its Buy rating on December 8 while trimming the target from $100 to $90. Keybanc also maintained its Overweight rating that same day but lowered its target to $81 from $93.
The range of price targets—spanning from $75 to $86—suggests analysts see upside potential but are working through different assumptions about how quickly the company can capitalize on its growing pipeline of defense contracts.
Parsons shares traded up 0.51% at $60.51 on Thursday, sitting well below most analyst price targets and leaving plenty of room for debate about whether the stock's recent momentum can continue as these major contracts kick into gear.