Parsons Corp (PSN) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Q4 2023 Parsons Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們先生們，謝謝你們的支持。歡迎來到第四季2023 Parsons Corporation收入電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would like now to turn the conference over to David Spille, Senior Vice President of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係資深副總裁David Spille。請繼續。

Thank you. Good morning and thank you for joining us today to discuss our fourth quarter and fiscal year 2023 financial results. Please note that we provided presentation slides on the Investor Relations section of our website.

謝謝。早安，感謝您今天加入我們，討論我們2023年財務表現的第四季和財政年度。請注意，我們在網站的「投資者關係」部分提供了簡報幻燈片。

On the call with me today are Carey Smith, Chairman, President and CEO; and Matt Ofilos, CFO. Today, Carey will discuss our corporate strategy and operational highlights. And then Matt will provide an overview of our fourth quarter financial results as well as a review of our 2024 guidance and increased Investor Day targets. We then will close for the question-and-answer session.

今天與我的電話是凱裡·史密斯（Carey Smith），董事長，總裁兼執行長；和Matt Ofilos，CFO。今天，凱裡將討論我們的公司策略和營運重點。然後，馬特（Matt）將概述我們的第四季度財務業績以及對我們2024年指導和增加投資者日目標的審查。然後，我們將關閉問答環節。

Management may also make forward-looking statements during the call regarding future events, anticipated future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors. These risk factors are described in our Form 10-K for fiscal year ended December 31, 2023, and other SEC filings.

管理層還可以在有關未來事件，預期的未來趨勢以及公司未來績效的電話期間發表前瞻性陳述。我們警告您，此類陳述不能保證未來的績效，並涉及難以預測的風險和不確定性。由於多種因素，實際結果可能與前瞻性陳述中預測的結果有重大不同。這些危險因子在我們的表格10-K的表格中，截至2023年12月31日和其他SEC文件的表格。

Please refer to our earnings press release for Parsons' complete forward-looking statement disclosure. We do not undertake any obligation to update forward-looking statements. Management will also make reference to non-GAAP financial measures during this call. We remind you that these non-GAAP financial measures are not a substitute for the comparable GAAP measures.

請參閱我們的收入新聞稿，以獲取帕森斯的完整前瞻性聲明披露。我們不承擔任何更新前瞻性陳述的義務。管理階層也會在此通話期間提及非GAAP財務指標。我們提醒您，這些非GAAP財務指標不能取代可比較的GAAP措施。

And now, I'll turn the call over to Carey.

而現在，我將電話交給凱裡。

Thank you, Dave. Good morning, and welcome to Parsons' fiscal year 2023 and fourth-quarter earnings call.

謝謝你，戴夫。早安，歡迎來到帕森斯（Parsons）的2023財年和第四季的收益電話。

I want to start by thanking all 18,500 employees Parsons Corporation for their contributions to an exceptional 2023. We executed on our growth strategy, delivered our customers' critical missions, and achieved record financial results for our shareholders.

首先，我要感謝所有18,500名員工Parsons Corporation對2023年傑出的貢獻。我們執行了成長策略，交付了客戶的關鍵任務，並為股東取得了創紀錄的財務成果。

For the full year and the fourth quarter, we delivered the strongest financial results since our IPO, including records for total revenue, organic revenue, adjusted EBITDA, operating cash flow, and contract awards.

在全年和第四季度，我們提供了自IPO以來最強的財務業績，包括總收入，有機收入，調整後的EBITDA，營運現金流量和合約獎勵的記錄。

Starting with the full year, we exceeded $5.4 billion in revenue for the first time and delivered record organic revenue growth of 23%, making us an industry leader in both our federal solutions and critical infrastructure segments. We had consistent results throughout the year with organic growth in excess of 20% for each of the last three quarters of the year and double-digit organic growth in all four quarters. Our strong results for the year were driven primarily by our ability to win and ramp new contracts, strong hiring and retention, and on-contract growth.

從整整一年開始，我們首次超過了54億美元的收入，並帶來了創紀錄的有機收入增長23％，這使我們成為聯邦解決方案和關鍵基礎設施領域的行業領導者。我們全年取得一致的結果，一年中的最後四個季度中的每個季度中的每個季度中的每一個，有機增長超過20％，並且在所有四個季度中都有兩位數的有機增長。我們今年的出色成績主要是由於我們贏得和晉升新合約的能力，強大的招募和保留以及合約成長的能力。

In 2023, we delivered over $460 million in adjusted EBITDA for the first time in our company's history and continue to expand our margin, achieving 13 basis points of improvement for the year. Total revenue grew 30%, while adjusted EBITDA increased by 32%. Our ability to drive adjusted EBITDA grow faster than our revenue growth demonstrates our focus on margin expansion.

2023年，我們在公司歷史上首次交付了超過4.6億美元的調整後的EBITDA，並繼續擴大利潤率，實現了當年的13個基點。總收入增長了30％，而調整後的EBITDA增長了32％。我們推動調整的EBITDA成長的能力比營收成長快的速度顯示了我們對利潤率擴大的關注。

For the full year, our contract awards increased 40% to a record $6 billion, which equates to a 1.1 times book-to-bill ratio. In addition, our fiscal year 2023 cash flow increased by 72% over 2022 to a record $408 million.

在整整一年中，我們的合約獎勵增加了40％，達到創紀錄的60億美元，相當於書本比率的1.1倍。此外，我們2023財政年度的現金流量在2022年增加了72％，達到創紀錄的4.08億美元。

For the fourth quarter, total revenue increased 35% year over year and 34% organically. Adjusted EBITDA grew by 30% over the prior year period, and cash flow from operations was $190 million. During the fourth quarter, we won two single award contracts worth more than $100 million each. This brings our total contract wins that are greater than $100 million to 15 for the full year, a new record for Parsons. Our ability to successfully deliver on our customers' missions has allowed us to continue to win new work and secure [recompetes].

在第四季度，總收入年增了35％，有機收入增長了34％。調整後的EBITDA在上一年期間成長了30％，業務現金流量為1.9億美元。在第四季度，我們贏得了兩項價值超過1億美元的單一獎勵合約。這使我們的全年合約勝利大於1億美元至15美元，這是帕森斯的新紀錄。我們成功執行客戶任務的能力使我們能夠繼續贏得新的工作並確保[recoptetes]。

Also, our exquisite federal solutions portfolio is aligned with national security's near-peer threat priorities, and our digitally enabled critical infrastructure business is capitalizing on unprecedented global infrastructure spend.

此外，我們精緻的聯邦解決方案投資組合與國家安全的近乎權利威脅的重點保持一致，我們的數位化啟用關鍵基礎設施業務正在利用前所未有的全球基礎設施支出。

Significant fourth quarter wins included a single award classified contract for continued and new work in support of the United States government. These five-year contracts valued at over $250 million, of which we booked $50 million in the fourth quarter. A new $150 million single-award contract to serve as lead designer on a major infrastructure replacement project in the northeast United States. We plan to book the full value of the contract in the first quarter of 2024.

重大的第四季度勝利包括一份單一的獎項分類合同，用於持續和新工作以支持美國政府。這些五年的合約價值超過2.5億美元，其中我們在第四季度預訂了5000萬美元。一項新的1.5億美元的單尊敬合同，旨在擔任美國東北部主要基礎設施替代項目的首席設計師。我們計劃在2024年第一季預訂合約的全部價值。

A new $80 million contract to provide remediation of lead contaminated soil for a United States customer. We booked $73 million on this contract in the fourth quarter. We were also awarded prime position on two multiple award IDIQ contracts. The first one is a new five-year contract for the Army Corps of Engineers with a ceiling value of $245 million for environmental remediation. This contract includes infrastructure investment and Jobs Act funding related to Environmental Protection Agency cleanup projects. We continue to win significant environmental remediation projects.

一份新的8000萬美元合同，為美國客戶提供鉛污染土壤的補救。我們在第四季度預訂了該合約的7300萬美元。我們也獲得了兩項多個獎項IDIQ合約的主要職位。第一個是陸軍工程兵團的新合同，其上限價值為2.45億美元，用於環境修復。該合約包括與環保署清理項目相關的基礎設施投資和就業法案資金。我們繼續贏得重要的環境修復項目。

During the fourth quarter, we also completed a comprehensive assessment, investigation, and treatment of PFAS for a major Fortune 100 industrial client. We completed this project from investigation to treatment without causing any downtime for the customer's facility, which is a testament to the innovation, creativity, and expertise about multidisciplinary PFAS team. The Parsons water treatment lab in Syracuse, New York has been a leader in water treatment innovation for more than 30 years.

在第四季度，我們也完成了對主要財富100大工業客戶的PFA的全面評估，調查和處理。我們完成了從調查到治療的項目，而不會引起客戶設施的任何停機時間，這證明了有關多學科PFAS團隊的創新，創造力和專業知識。紐約錫拉丘茲的Parsons水處理實驗室已有30多年的歷史。

The second multiple award contract that we won in the fourth quarter is a new five-year General Services Administration, public building services program. In this contract is an estimated ceiling value of $200 million.

我們在第四季度獲得的第二個多重獎勵合約是新的五年通用服務管理，公共建築服務計劃。在本合約中，估計的上限價值為2億美元。

After the fourth quarter of 2023 ended, we were awarded two significant contracts. We were selected by the Department of Labor Job Corps to assist with planning, management, and oversight of their facilities program. This single award five-year recompete contract has a ceiling value of over $115 million. We were also awarded a new three-year $87 million contract to provide project management services for a major tourism and entertainment development project in the Middle East.

在2023年第四季結束後，我們獲得了兩項重要合約。我們被勞動部職位部門選中，以協助對其設施計劃進行計劃，管理和監督。該單一獎項五年的Recompete合約的上限價值超過1.15億美元。我們還獲得了一份新的三年8700萬美元的新合同，為中東的主要旅遊和娛樂發展項目提供專案管理服務。

During the fourth quarter, we completed the acquisition of I.S. Engineers, which is a Texas-based full-service consulting engineering firm that specializes in transportation engineering, including roads and highways and program management. This acquisition adds critical infrastructure talent and strengthens our portfolio in this large and growing state. Texas is poised to receive nearly $30 billion in total transportation funding from the infrastructure investment and Jobs Act between 2022 and 2026.

在第四季度，我們完成了I.S.的收購。工程師是一家總部位於德克薩斯州的全方位服務諮詢工程公司，專門從事交通工程，包括道路，高速公路和計劃管理。此次收購增加了關鍵的基礎設施才能，並在這個龐大且不斷成長的州增強了我們的投資組合。德州預計在2022年至2026年之間從《基礎設施投資和就業法》中獲得近300億美元的運輸總資金。

The acquisition of I.S. Engineers marks our third acquisition in 2023, which includes two acquisitions in critical infrastructure and one of federal solutions.

收購I.S.工程師標誌著我們在2023年的第三次收購，其中包括關鍵基礎設施和聯邦解決方案之一的兩項收購。

In addition to bolstering our critical infrastructure portfolio through strategic acquisitions, we strengthened and reorganized segment to better align with our customers, geography, and end markets, and better position Parsons to capitalize on the unprecedented global infrastructure spend. For informational purposes, we have provided historical financial results in the back of our earnings press release for our new business units.

除了透過策略性收購來增強我們的關鍵基礎設施投資組合外，我們還加強了和重組的細分市場，以更好地與客戶，地理和最終市場保持一致，並更好地將Parsons的位置用於利用前所未有的全球基礎設施支出。出於資訊目的，我們為新業務部門的收入新聞稿提供了歷史財務表現。

As part of our 80-year history of cultivating a responsible enterprise, Parsons is proud to be recognized with the highest achievable score of 100 by the Human Rights Campaign Foundation on their 2023-2024 for Corporate Equality Index for active support and inclusion of the LGBTQ+ community.

作為我們80年培養負責任企業的歷史的一部分，帕森斯很榮幸能夠以2023 - 2024年的2023 - 2024年獲得最高可實現的100分數，以實現企業平等指數，以積極支持和納入LGBTQ+社區。

In addition, Parsons was recognized as a Best for Vets company by the Military Times for supporting veterans' post-military careers. In 2023, we were also named as one of the world's most ethical companies by Ethisphere for the 14th consecutive year, one of the world's best companies by Time Magazine, and one of the best employers for diversity by Forbes.

此外，帕森斯（Parsons）因支持退伍軍人的軍事軍事職業而被軍事時報被公認為獸醫公司的最佳選擇。2023年，我們連續第14年被Ethisphere評為世界上最道德的公司之一，這是《時代》雜誌上世界上最好的公司之一，也是《福布斯》中最優秀的多元化雇主之一。

In summary, we are executing on our strategy and delivering our customers' missions as we continue to post record results and strong growth rates across all financial metrics. We also expanded margins and closed an accretive acquisition that strengthens our engineering expertise and increase our footprint in a high-growth geography.

總而言之，我們正在執行策略並交付客戶任務，因為我們繼續發布所有財務指標的記錄結果和強勁的成長率。我們也擴大了利潤率並結束了累積性的收購，從而增強了我們的工程專業知識，並在高成長地理學中提高了我們的足跡。

As we enter 2024 and the 80th anniversary of our company, we are excited about our long-term prospects. We are well positioned into high growth and complementary segments that continue to experience significant tailwinds.

當我們進入2024年和公司成立80週年時，我們對自己的長期前景感到興奮。我們的位置很高，可以繼續遇到重要的尾風。

Starting with federal solutions. The proposed defense budget supports an $886 billion top-line budget, which is 3% higher overall than 2023. However, the Parsons'core defense markets are growing at mid to high single digits. Given worldwide geopolitical events, we continue to see strong demand for our solutions, including cyber, electronic warfare, signals collection, space, missile defense, and critical infrastructure protection. Our focus remains on outpacing our nation's near-peer threats with our differentiated solutions.

從聯邦解決方案開始。擬議的國防預算支持了8,860億美元的一流預算，總體上比2023年高出3％。但是，帕森斯核心國防市場在中高點數字上成長。鑑於全球的地緣政治事件，我們將繼續看到對解決方案的強烈需求，包括網絡，電子戰，信號收集，空間，導彈防禦和關鍵基礎設施保護。我們的重點仍然是透過差異化解決方案超越國家的近境威脅。

In critical infrastructure, global demand remained strong in all three geographies where Parsons operates, the United States, Canada, and the Middle East. We are leveraging our core competencies in engineering design, program management, and owners' representative to win and deliver on large complex programs. As an industry leader in applying digital transformation and infrastructure, we look forward to continuing to transform this industry.

在關鍵基礎設施中，在帕森斯（Parsons），美國，加拿大和中東的所有三個地理位置中，全球需求仍然很強勁。我們正在利用工程設計，計劃管理和所有者代表贏得大型複雜計劃的核心競爭力。作為應用數位轉型和基礎設施的行業領導者，我們期待著繼續改變這一行業。

Given our strong performance in our confidence in our current outlook, we are pleased to update the long-term guidance we provided at our Investor Day on March 15, 2023. Matt will share more details. But in summary, we're raising our revenue growth targets, which is also up a total revenue base that is $1.2 billion higher than it was at the end of 2022.

鑑於我們對當前前景的信心表現出色，我們很高興更新2023年3月15日投資者日提供的長期指導。馬特將分享更多詳細資訊。但總之，我們正在提高營收成長目標，也是總收入基礎，比2022年底高出12億美元。

In addition, we expect to average 20 to 30 basis points of margin expansion each year through 2025 and our free cash flow conversion rate of 100% or more of adjusted net income. We also expect to continue to supplement our organic growth with two to three accretive acquisitions per year in order to enhance our technology differentiation, move further up the integrated solutions value chain, and drive additional shareholder value.

此外，我們預計到2025年，每年的利潤率擴大平均為20至30個基點，而我們的自由現金流轉換率為100％或以上的調整後淨收入。我們還希望每年透過兩到三個增值收購來補充我們的有機成長，以增強我們的技術差異化，進一步提高整合解決方案價值鏈，並提高額外的股東價值。

With that, I'll turn the call over to Matt to provide more details on our 2023 financial results, 2024 guidance, and our enhanced long-term financial targets. Matt?

這樣，我將把電話交給馬特，以提供有關我們2023年財務業績，2024年指導以及我們增強的長期財務目標的更多詳細資訊。馬特？

Thank you, Carey. As Carey indicated, our fourth quarter and fiscal year 2023 were highlighted by record results in a number of areas, including total revenue, organic revenue, adjusted EBITDA, operating cash flow, and contract awards.

謝謝，凱裡。正如凱裡（Carey）所指出的那樣，我們的第四季度和2023財政年度都在許多領域的記錄結果中強調了許多領域，包括總收入，有機收入，調整後的EBITDA，運營現金流量和合同獎勵。

Total revenue of $1.5 billion for the fourth quarter of 2023 increased 35% from the prior-year period and was up 34% on an organic basis. Adjusted EBITDA of $128 million increased 30% from the fourth quarter of 2022, and adjusted EBITDA margin decreased 30 basis points to 8.6%. The adjusted EBITDA increase was driven primarily by accretive organic growth on recent contract wins as well as growth on existing contracts.

2023年第四季的15億美元的總收入比上一年增長了35％，在有機基礎上增長了34％。調整後的EBITDA為1.28億美元，比2022年第四季成長了30％，調整後的EBITDA利潤率下降了30個基點，至8.6％。調整後的EBITDA增加主要是由於最近的合約獲勝以及現有合約成長的增值而驅動的。

Our adjusted EBITDA growth for the quarter was negatively impacted by a net $20 million headwind from adjustments on two separate programs. On the first program, we reached a positive proposed judgment on rail and transit project for which we realized a $38 million favorable impact to fourth quarter adjusted EBITDA.

我們調整後的EBITDA在兩個單獨計劃的調整中受到了2000萬美元的淨逆風，對本季度的EBITDA增長受到了負面影響。在第一個計劃中，我們對鐵路和運輸項目做出了積極的判斷，我們意識到對第四季度調整後的EBITDA產生了3800萬美元的有利影響。

On the second program within equity and earnings, we took a $58 million adjusted EBITDA charge. The impact of the result of supply chain challenges identified during the procurement of materials. Normalized margins, excluding two adjustments, would have been 9.9% and 8.9% for the fourth quarter and full year, respectively.

在股權和收益範圍內的第二個計劃中，我們接受了5,800萬美元的EBITDA費用。在材料採購過程中確定的供應鏈挑戰結果的影響。在第四季和全年中，標準化的利潤率（不包括兩項調整）將分別為9.9％和8.9％。

Total revenue for the fiscal year 2023 increased 30% from prior year and was up 23% on an organic basis. The strong organic growth throughout the year was driven by the ramp up of recent contract wins and growth on existing contracts. Acquisitions contributed approximately $274 million of revenue for the full year.

2023財政年度的總收入比前一年增長了30％，在有機基礎上增長了23％。全年強勁的有機成長是由於最近的合約勝利和現有合約成長的成長所推動的。全年的收購貢獻了約2.74億美元的收入。

SG&A expenses for the full year were 16% of total revenue compared to 18.5% in 2022. Intentional focus on efficient spend positions the portfolio well to continue to drive margin expansion. Fiscal year 2023 adjusted EBITDA of $465 million increased 32% from 2022, and adjusted EBITDA margin increased over 10 basis points to 8.5%. The adjusted EBITDA increases were primarily by increased volume on new and existing contracts, accretive acquisitions, and continuing to closely manage costs.

全年的SG＆A支出為總收入的16％，而2022年為18.5％。故意專注於有效的支出位置，將投資組合很好地推動利潤擴大。2023財政年度調整後的EBITDA為4.65億美元，比2022年成長了32％，調整後的EBITDA利潤率在10個基點上增加到8.5％。調整後的EBITDA增加主要是由於新合約和現有合約的數量增加，增值，並繼續緊密管理成本。

I will turn now to our operating segments. Starting first with federal solutions, where our fourth-quarter revenue increased by $280 million or 50% from the fourth quarter of 2022. This increase was driven by organic growth of 47% in the contribution from our Sealing Tech acquisition, which closed in August of 2023. Organic growth was driven primarily by the ramp up of recent contract wins and growth on existing contracts.

我現在將轉向我們的操作細分市場。首先從聯邦解決方案開始，我們的第四季收入增加了2.8億美元，比2022年第四季增加了50％。這一成長是由我們的密封技術收購貢獻的47％的有機成長所驅動的，該公司於2023年8月關閉。有機成長主要是由於最近的合約獲勝和現有合約成長的逐步驅動。

Federal solutions' adjusted EBITDA increased by $35 million or 73% from the fourth quarter of 2022, and adjusted EBITDA margin increased 130 basis points to 9.8%. These increases were driven primarily by increased volume on new and existing contracts with effective cost controls.

聯邦解決方案的調整後的EBITDA增加了3500萬美元，比2022年第四季增加了73％，調整後的EBITDA利潤率提高了130個基點，達到9.8％。這些增加主要是由有效的成本控制的新合約和現有合約的數量增加所驅動的。

For the full year, federal solutions' revenue increased by $808 million or 30% -- 36% from 2022. This increase was driven by organic growth of 25% and approximately $264 million from acquisitions. Organic growth was driven by the ramp-up of recent contract wins and growth on existing contracts. Federal solutions' adjusted EBITDA for the full year increased $90 million, or 45% from 2022, and adjusted EBITDA margin increased 60 basis points to 9.6%. These increases were driven primarily by organic operating leverage, accretive acquisitions, and $20 million of non-recurring incentive fees recognized in the second quarter of 2023.

在整整一年中，聯邦解決方案的收入增長了8.08億美元，比2022年增加了30％ - 36％。這一增長是由收購中的25％和約2.64億美元的有機增長所驅動的。有機成長是由於最近的合約勝利和現有合約成長的成長所驅動的。聯邦解決方案的全年調整後的EBITDA增加了9000萬美元，比2022年增加了45％，調整後的EBITDA利潤率增加了60個基點，達到9.6％。這些成長主要由有機營運槓桿，增值和2000萬美元的非重新激勵費用所驅動。

Moving now to our critical infrastructure segment. Fourth-quarter revenue increased by $111 million or 21% from the fourth quarter of 2022. This increase was driven by organic growth of 20% in the [organic] revenue contribution from acquisitions. Organic growth was driven by higher volume on both Middle East and North America infrastructure programs.

現在移至我們關鍵的基礎架構細分市場。與2022年第四季相比，第四季的營收增加了1.11億美元或21％。這種成長是由收購的[有機]收入貢獻的20％的有機成長所驅動的。在中東和北美基礎設施計劃中，有機成長是由較高量的驅動的。

Critical infrastructure's adjusted EBITDA decreased by $5 million or 10% from the fourth quarter of 2022. Adjusted EBITDA margin decreased 240 basis points to 7.0%. The adjusted EBITDA decreases were driven by the $20 million negative net impact previously discussed, partially offset by profits from accretive organic growth on both new and existing contracts.

關鍵基礎設施的調整EBITDA減少了500萬美元，比2022年第四季下降了10％。調整後的EBITDA邊緣將240個基點降至7.0％。調整後的EBITDA減少是由先前討論的2000萬美元負面淨影響驅動的，這部分被新合約和現有合約的增值有機增長的利潤所抵消。

For the full year, critical infrastructures' revenue increased by $440 million or 22%, almost all of which was organic. Organic growth was driven by expansion in both the Middle East and North America. Critical infrastructures' adjusted EBITDA for the full year increased by $22 million or 14% from 2022, and adjusted EBITDA margin decreased 50 basis points to 7.2%. The adjusted EBITDA increase was driven primarily by accretive organic growth and operating leverage. The lower margin was the result of fourth quarter's $20 million net impact from the two programs previously discussed.

在整整一年中，關鍵基礎設施的收入增加了4.4億美元或22％，幾乎所有都是有機的。有機成長是由中東和北美的擴張所驅動的。關鍵基礎設施的全年調整後的EBITDA增加了2,200萬美元，比2022年增加了14％，調整後的EBITDA利潤率將50個基點降至7.2％。調整後的EBITDA增加主要是由積聚的有機成長和營運槓桿所驅動的。較低的利潤是第四季度從前討論過的兩個計劃的淨影響的結果。

Excluding the Q4 impact, critical infrastructure margins were 10.1% and 8.1% for the quarter and total years prospectively.

除了第四季度的影響外，該季度的關鍵基礎設施利潤率為10.1％和8.1％，總年代為10.1％。

Next, I'll discuss cash flow and balance sheet metrics. Our net DSO at the end of Q4 2023 was 59 days, down 10 days from the prior year period. Our fourth-quarter operating cash flow totaled $190 million compared to $89 million from the prior year period. Our operating cash flow for the full year increased 72% to $400 million. Our strong cash flow was driven by improved profitability and strong collections across the portfolio.

接下來，我將討論現金流量和資產負債表指標。我們在第4季2023年末的淨DSO為59天，比前一年的淨DO下降了10天。我們第四季的營業現金流量總計1.9億美元，而上一年期為8,900萬美元。我們全年的營運現金流增加了72％，達到4億美元。我們強勁的現金流是由整個投資組合中提高的獲利能力和強勁的收藏所驅動的。

Total year free cash flow conversion was 120%. Capital expenditures totaled $10 million in the fourth quarter of 2023 and $40 million for the full year. CapEx continues to be well controlled and remains in line with our planned spend of less than 1% of annual revenue. Our balance sheet remains strong as we ended the fourth quarter with a net debt leverage ratio of 1.0 times compared to 1.4 at the end of 2022, even after closing three acquisitions in 2023. Our low leveraged, strong free cash flow outlook and balanced sheet capacity will enable us to continue to make internal investments and accretive acquisitions to support long-term growth.

年總自由現金流轉換為120％。資本支出在2023年的第四季總計1,000萬美元，全年為4,000萬美元。資本支出繼續受到很好的控制，並與我們計劃的不到年收入的1％的支出保持一致。我們的資產負債表仍然很強大，因為我們以淨債務槓桿比率為1.0倍，而在2022年底，即使在2023年完成了三次收購之後，淨債務槓桿率為1.0倍。我們低槓桿，強大的自由現金流前景和平衡的床單容量將使我們能夠繼續進行內部投資和增值，以支持長期成長。

Turning to bookings for the fourth quarter. Year over year, contract award activity increased 13% to $1.2 billion. On trailing 12-month basis, contract awards increased by 40% and our book-to-bill ratio was 1.1 times on an enterprise basis and in both business segments. Our book-to-bill ratio for the fourth quarter was 0.8 times.

轉向第四季的預訂。逐年，合約獎勵活動增加了13％，達到12億美元。在落後的12個月基礎上，合約獎勵增加了40％，我們的書籍與帳單比率是企業和兩個業務部門的1.1倍。我們第四季的書籍比率為0.8倍。

In our critical infrastructure segment, we have achieved a quarterly book-to-bill ratio of 1.0 times or better for 13 consecutive quarters. We remain optimistic that [IGA] and global infrastructure investments will continue to drive demand and new business well into the future.

在我們關鍵的基礎設施部分中，我們連續13個季度達到了季度的閱讀比率為1.0倍或更高。我們仍然樂觀，[IGA]和全球基礎設施投資將繼續推動需求和新業務發展。

Our recent contract awards and backlogs to support our long-term critical infrastructure margin goal of approximately 9% by 2025. Our backlog at the end of the fourth quarter totaled $8.6 billion, up $413 million or 5% from the fourth quarter of 2022.

到2025年，我們最近的合約獎項和積壓旨在支持我們長期關鍵的基礎設施保證金目標約為9％。我們在第四季末的積壓總計86億美元，成長了4.13億美元，比2022年第四季5％。

Next, I'll turn to our guidance. When establishing our guidance, we've contemplated key variables, which include a competitive labor market, uncertainty around domestic budgets, and challenging inflation. However, we're confident in our ability to achieve results within our improved guidance ranges given significant tailwinds, including unprecedented global infrastructure spend, a federal portfolio that's closely aligned to the national defense strategy, low recompete risk, $8.6 billion of total backlog included funded backlog of $5 billion, and $14 billion of contracts won that are not yet reflected in backlog.

接下來，我將轉向我們的指導。在建立指導時，我們已經考慮了關鍵變量，其中包括競爭性勞動力市場，國內預算周圍的不確定性以及充滿挑戰的通貨膨脹。但是，我們有信心我們在改進的指導範圍內取得結果的能力，包括大量的尾風，包括前所未有的全球基礎設施支出，這是一種與國防戰略緊密一致的聯邦投資組合，低重新競爭風險，總計86億美元，包括總計票數為86億美元。積壓為50億美元，尚未反映在積壓中的140億美元合約。

For '24, we expect revenue to be between $5.8 billion and $6 billion. This represents 8% growth at the midpoint of the range, and 7% growth on an organic basis. Our adjusted EBITDA is expected to be between $505 million and $545 million, with a margin of 8.9% at the midpoint of our revenue and adjusted EBITDA guidance ranges. This represents adjusted EBITDA growth of 13% and margin expansion of approximately 40 basis points from 2023, achieving our Investor Day commitments.

對於24年，我們預計收入將在58億至60億美元之間。這代表該範圍中點的8％增長，有機基礎增長了7％。我們調整後的EBITDA預計將在5.05億至5.45億美元之間，在我們的收入中點和調整後的EBITDA指導範圍內，利潤率為8.9％。這表示已調整後的EBITDA成長率為13％，從2023年開始的利潤率擴大了約40個基點，從而實現了我們的投資者日承諾。

The growth in adjusted EBITDA and associated margins is expected to be driven by improved program performance, accretive wins, and a continued focus on operating leverage. Our cash flow from operating activities, which is expected to be between $350 million and $410 million. At the midpoint of the guidance range, we expect free cash flow conversion to be approximately 100% of adjusted net income.

調整後的EBITDA和相關利潤率的成長預計將取決於計劃的表現，累積性勝利以及繼續專注於營運槓桿作用。我們的現金流量來自營運活動，預計將在3.5億至4.1億美元之間。在指導範圍的中點，我們預期自由現金流轉換率約為調整後淨收入的100％。

2024 cash flow is expected to be down from 2023, primarily due to the exceptional fourth quarter that accelerated approximately $30 million in receipts from 2024.

2024年的現金流量預計將比2023年下降，這主要是由於出色的第四季從2024年開始加速了約3000萬美元的收入。

Our other key assumptions in connection with our 2024 guidance and our quarterly cadence are outlined on slide 15 in today's PowerPoint presentation located on our Investor Relations website. As Carey mentioned, we are increasing the long-term targets we provided at our March 2023 Investor Day. At that time, we expect the total revenue growth of 4% to 6% and organic growth of 3% to 5%. We now believe that we can achieve organic revenue growth of mid-single digits or better through 2025.

我們與2024年指導和季度節奏相關的其他關鍵假設在今天的PowerPoint簡報中概述了我們投資者關係網站上的PowerPoint簡報。正如凱裡（Carey）所提到的那樣，我們正在增加2023年3月投資者日提供的長期目標。當時，我們預計總收入將成長4％至6％，有機成長3％至5％。我們現在認為，直到2025年，我們可以實現中間位數的有機收入成長。

With performance in 2023, a strong outlook for 2024, we are raising our revenue growth targets of a total revenue base that is $1.2 billion higher than it was at the end of 2022.

由於2023年的表現是2024年的強勁前景，我們正在提高營收成長目標，總營收基礎比2022年底高出12億美元。

In addition, we continue to expect an average of 20 to 30 basis points to margin expansion each year through 2025 and a free cash flow conversion rate of 100% or more of adjusted net income. These targets indicate we expect total revenue to exceed $6 billion and adjusted EBITDA margin to be over 9% by the end of 2025. These implied targets indicate adjusted EBITDA growth is expected to outpace total revenue growth through 2025.

此外，我們繼續預期，到2025年，每年的利潤率擴大平均為20至30個基點，自由現金流轉換率為100％或以上的調整後淨收入。這些目標表明，我們預計總收入將超過60億美元，並且在2025年底調整後的EBITDA利潤率將超過9％。這些暗示目標表明，調整後的EBITDA成長預計在2025年之前超過總收入成長。

We expect to supplement organic growth with two to three accretive acquisitions per year to further drive shareholder value. In summary, we reported exceptional results from the fourth quarter and full year. I'm confident in our ability to achieve results within our 2024 guidance ranges. We are operating in well-funded markets, had a great team that is executing at a high level, and I believe we're making the right organic and inorganic investments to continue to drive growth and margin expansion into the business.

我們預計每年可以透過兩到三個增值收購來補充有機成長，以進一步推動股東價值。總而言之，我們報告了第四季度和全年的出色結果。我對我們在2024年指導範圍內取得成果的能力充滿信心。我們在資金充足的市場中運營，擁有一支偉大的團隊，該團隊正在高水準執行，我相信我們正在進行正確的有機和無機投資，以繼續推動成長並將利潤擴展到業務中。

With that, I'll turn the call back over to Carey.

這樣，我會把電話回到凱裡。

Thank you, Matt. I'm very pleased with the continued strong performance of our company. We delivered record fourth-quarter and full-year results for total revenue, organic revenue growth, adjusted EBITDA, operating cash flow, and contract awards. In addition, we're executing on our strategic M&A program, which driving additional growth into our business.

謝謝你，馬特。我對我們公司的持續表現感到非常滿意。我們為總收入，有機收入成長，調整後的EBITDA，營運現金流和合約獎勵提供了創紀錄的第四季度和全年業績。此外，我們正在執行策略併購計劃，這將進一步的成長帶入了我們的業務。

Our team is delivering consistent results, and we're benefiting from tailwinds in each segment. We expect our momentum to continue, given our portfolio is well aligned to important macroenvironment trends into well-funded segments and six growing and enduring markets.

我們的團隊正在取得一致的結果，我們從每個細分市場中的後風中受益。我們希望我們的勢頭將繼續下去，因為我們的投資組合與重要的宏觀環境趨勢融為一體，資金良好的細分市場以及六個成長和持久的市場。

With that, we will now open the line questions.

這樣，我們現在將打開行問題。

(Operator Instructions) Sheila Kahyaoglu, Jefferies.

（操作員說明）Sheila Kahyaoglu，Jefferies。

Good morning, everyone. Thank you so much. Matt and Carey, Happy Valentines' Day. I just wanted to say. I think we're all pretty in love with these results and what you've done with Parsons. So congratulations. I mean, it's pretty phenomenal.

大家，早安。太感謝了。馬特（Matt）和凱裡（Carey），情人節快樂。我只是想說。我認為我們都非常喜歡這些結果以及您對Parson的所作所為。所以恭喜你。我的意思是，這很棒。

So I guess my first question's related to that. You started off '23 guiding for organic growth up [for]. You closed up 23% and you accelerated into the year, which is kind of amazing. So I guess, what unlocks that? Can you talk about was it hiring? Was that just award wins? New business? And how do you expect that to progress? Obviously, you've raised your long-term targets.

所以我想我的第一個問題與此有關。您從'23指導有機增長開始[為了]。您關閉了23％，並加快了這一年，這真是太神奇了。所以我想，什麼解鎖了？可以談談招募嗎？那隻是獎項嗎？新生意？您如何期望這會進展？顯然，您已經提高了長期目標。

Well, thank you, Sheila, for your questions. Happy Valentine's Day to you as well. So I would say hiring and retention have continued to be strong. Our consistent trailing 12-month book-to-bill of greater than [1.0] has helped us win new programs. We had record win rates this year at 66%, with 93% of recompetes. We've secured all four of our major recompetes that are $2 billion programs. And I would say business development is hitting it across the board on all cylinders.

好吧，謝謝希拉的問題。也祝你情人節快樂。因此，我要說的是招募和留任率仍然很強大。我們始終如一地落後於[1.0]的12個月對書，這幫助我們贏得了新的計劃。我們今年的勝利率為66％，佔93％的重新成績。我們已經確保了所有四個主要卷塊，即20億美元的計劃。我想說的是，業務發展正在所有圓柱體上全面擊中。

What I'm probably most proud of is all four business units delivered double-digit organic growth, so it's not one business unit driving Parsons. All four business units are delivering.

我可能最驕傲的是所有四個業務部門都提供了兩位數的有機成長，因此這不是一個駕駛Parsons的業務部門。所有四個業務部門都在交付。

Maybe we could delve into the critical infrastructure growth and just the segmentation on a regional basis. It looks like Europe, Middle East, Africa are growing 2x, North America. So can you just talk about the balance of those two in the high single-digit growth for 2024? How do you see it? How much is locked in, whether it's in the backlog or the unbooked pipeline?

也許我們可以深入研究關鍵的基礎設施成長，而僅在區域基礎上進行細分。看起來歐洲，中東，非洲正在成長2倍，北美。那麼，您能談談2024年高單位成長中這兩個人的平衡嗎？你怎麼看？無論是積壓還是未預訂的管道，鎖定了多少？

Yes. We're really pleased with the Middle East growth being over 30% this year. We had some very strong wins and large programs, particularly in Saudi Arabia, that occurred, but also doing well in the UAE. North America is also doing extremely well and had strong organic growth. And if you look at that, it was 16%. So both organizations are doing well.

是的。我們對今年中東成長超過30％感到滿意。我們獲得了一些非常強大的勝利和大型計劃，尤其是在沙烏地阿拉伯，但在阿聯酋也表現出色。北美的表現也非常好，有機成長強勁。如果您看一下，那是16％。因此，兩個組織都做得很好。

I would say North America is going to continue to speed up because we haven't hit the peak yet on the infrastructure investment and Jobs Act. We expect that to be around the 2027 timeframe. But that said, the Middle East, also that growth is expected to peak somewhere between 2028 and '30. So the nice thing is we've got strong tailwinds in both of our end geographies for a long foreseeable future.

我想說的是，北美將繼續加速，因為我們尚未達到《基礎設施投資和就業法》的高峰。我們希望這將是2027年的時間表。但這就是說，中東也預計成長將在2028年至30年之間達到頂峰。因此，好處是，在漫長的預期未來，我們在兩個最終地理位置都有強烈的逆風。

Tobey Sommer, Truist Securities.

Tobey Sommer，Truist證券。

Hey, good morning. This is Jasper Bibb on for Tobey. I guess just following up on a negative $20 million adjustment in the [CI] segment, can you update us how much of that risk your legacy work is still in the segment today? And with a near 10% margin, excluding those adjustments, how should we think about the go-forward margin profile as that business comes out of the portfolio?

嗨，早安。這是jasper bibb for tobey。我想只是跟隨[CI]細分市場的負2,000萬美元調整，您能否向我們更新您的遺產工作的風險，而您的遺產工作仍然存在於今天的細分市場中？而且邊距接近10％（不包括這些調整），隨著業務從投資組合出現時，我們該如何看待前進的利潤率？

Sure. Thanks for the question. So this was not one of the two legacy programs that you've heard us refer to previously. Fortunately, we had indicated that one of those programs was just going to wrap up the first quarter of this year, which it did. That is going to present a $18 million on tailwind for us as we enter the share because we had $18 million write-off on that particular program last year.

當然。謝謝你的提問。因此，這不是您之前聽過的兩個舊計劃之一。幸運的是，我們已經表示，其中一個計劃將結束今年的第一季。當我們輸入這筆股份時，這將為我們提供1800萬美元，因為我們去年在該特定計劃上寫下了1800萬美元。

The second legacy program is still on track to complete in the third quarter of this year, and that program is 90% and exceeded some recent technical milestones. The program that we had, the $20 million impact or the $58 million write-down was due to supply chain impacts from material procurement. It was a job that have been bid back in 2019 prior to COVID. So we got initial quotes at that time.

第二個傳統計劃仍在今年第三季完成，該計劃為90％，超過了最近的一些技術里程碑。我們擁有的計劃，2000萬美元的影響力或5800萬美元的減記是由於物質採購對供應鏈的影響。這項工作已經在2019年之前出價。因此，我們當時收到了初始報價。

Once we get into design several years later and we went back and we refresh those quotes, we had less supplier availability and those suppliers, prices have gone up. The good news is that this is kind of one-off, I'm going to stay, within our portfolio because we stopped bidding this type of work years ago. So we don't have other large contracts that have a big majority of material pass through.

幾年後，一旦我們開始設計，我們就回去了，我們刷新了這些報價，我們的供應商供應量較小，這些供應商的價格上漲了。好消息是，這是一次性的，我將留在我們的投資組合中，因為我們停止了幾年前的這種工作。因此，我們沒有其他大部分材料通過的大合約。

I'm really pleased that even with this impact, the great job that we've done expanding margins, we were up 13 basis points for the year. We grew EBITDA dollars at 32% with revenue up 30%. So EBITDA is growing faster. And as we looked at 2024, we're going to be expanding our margins by 40 basis points.

我真的很高興，即使有了這種影響，我們已經取得了擴大利潤率的出色工作，我們的一年基點也達到了13個基點。我們以32％的收入成長了32％的EBITDA美元，成長了30％。因此，EBITDA的成長速度更快。當我們看2024年時，我們將提高利潤率40個基點。

Jasper, I'd just add relative to critical infrastructure specifically, the total year was about 7.2% within that business. We're expecting about 8.5% in 2024. Federal will still be in kind of a low 9%, [or 9.2%]. And that's how we get to the [8%, 9%] midpoint.

賈斯珀（Jasper），我只是添加相對於關鍵基礎架構的添加，在該業務中，總年約為7.2％。我們預計2024年約8.5％。聯邦仍將處於低9％的速度，[或9.2％]。這就是我們進入[8％，9％]中點的方式。

Carey and I have talked long term that by 2025, our goals have both segments operating over 9%. And a lot of the new work that we're bidding, as we've mentioned, is trending double digit. So really positive about the long-term projections for critical infrastructure.

凱裡（Carey）和我已經長期談到，到2025年，我們的目標的兩部分都超過9％。正如我們所提到的，我們競標的許多新作品都在趨向雙重數字。因此，對關鍵基礎設施的長期預測非常積極。

Thanks. And then the organic growth is obviously really impressive this quarter. But ramp significantly ahead of your backlog growth from a book to bill. So how should we think about the ability of the backlog? What you're seeing in the bid pipeline, the awards you won after the quarter that support further growth in '24 and '25?

謝謝。然後，有機增長顯然令人印象深刻。但是，從書籍到比爾的積壓增長之前，大大的推動力在您的積壓增長之前。那麼，我們該如何考慮積壓的能力呢？您在競標管道中看到了什麼，在該季度之後獲得的獎項支持了24年和25年的進一步成長？

Yeah. So we're pleased that we were able to win the 15 awards greater than $100 million. And as we announced, we've had two greater than $100 million already as we go into this year. The bid pipeline is very robust. It's the highest it's ever been for our business, such at $58 billion. Other than $58 billion, we have 110 awards that are greater than $100 million.

是的。因此，我們很高興能夠贏得超過1億美元的15個獎項。正如我們宣布的那樣，當我們進入今年時，我們已經擁有了兩次超過1億美元。競標管道非常強大。它是有史以來最高的，這是我們的業務，耗資580億美元。除580億美元以外，我們還有110個獎項超過1億美元。

We also have a waiting notice of award, $4 billion. And within there, we have eight programs greater than $100 million. And then we've talked about the $14 billion of unbooked backlog. So that's basically comprised of contracts. They have option years or unbooked ceiling, and we're confident on good portion, and that being able to convert over the next three years.

我們還收到了獎勵的等待通知，40億美元。在那裡，我們有八個超過1億美元的計劃。然後，我們討論了140億美元的未預訂積壓。因此，這基本上由合約組成。他們有期權年份或未預訂的天花板，我們對大部分有信心，並且能夠在未來三年內進行轉換。

Got it. Last question for me. I just wanted to ask about M&A appetite and the size of deals you might be looking at. I guess we did notice the $10 million in transaction rather expense in the guide. So just any color on what that might be related to.

知道了。對我來說最後一個問題。我只是想問一個併購的胃口以及您可能正在查看的交易規模。我想我們確實注意到該指南中這筆1000萬美元的交易費用。因此，只要與可能與之相關的任何顏色。

Yeah, I would say the overall pipeline for M&A remains strong. I think we're -- with anything that's in the guide is related to prior transactions. So we as we mentioned, we closed the I.S. Engineers deal in Q4. And so again, the M&A pipeline is quite strong. We feel good about -- we've closed three transactions in 2023. Our goal is two to three in 2024 as well.

是的，我想說併購的整體通路仍然很強。我認為我們 - 指南中的任何內容都與先前的交易有關。因此，正如我們所提到的，我們關閉了I.S.工程師在第四季交易。再次，併購管道非常強。我們感覺很好 - 我們在2023年關閉了三筆交易。我們的目標也是2024年的兩到三個。

And I'll just add to that. So we're looking at both federal and critical infrastructure. The size of the deals will continue to be around what we've done the past. We generally look at companies that are between about $100 million and $500 million annual revenue.

我只是添加。因此，我們正在研究聯邦和關鍵基礎設施。交易的規模將繼續圍繞著我們過去所做的事情。我們通常會查看年收入約1億至5億美元之間的公司。

But as you noted, we did buy I.S. Engineers for $10 million. And the reason for that is that it was located in a key state that's going to have a lot of potential growth. And what we intend to see is smaller deals on the critical infrastructure side versus the federal side of the house.

但是正如您所指出的，我們確實購買了I.S.工程師有1000萬美元。這樣做的原因是它位於一個關鍵狀態，將具有很大的潛在成長。我們打算看到的是在關鍵基礎設施方面與眾議院聯邦方面的較小交易。

We've been very selective. We're going to continue to keep our high bar of companies growing greater than 10% top line, greater than 10% EBITDA margin. And we're also looking for companies that have technology differentiation, but a good pipeline.

我們一直很有選擇性。我們將繼續保持高級公司的成長超過10％的最高線，超過10％的EBITDA利潤率。而且，我們還在尋找具有技術差異化的公司，但管道良好。

Bert Subin, Stifel.

Bert Subin，Stifel。

Hey, good morning. I guess I'll echo everyone's thought. It's just amazing results.

嗨，早安。我想我會回應每個人的想法。結果真是太神奇了。

Thank you, Bert.

謝謝你，伯特。

Thanks, Bert.

謝謝，伯特。

So, Carey, maybe just a follow-up from earlier question. How do you do you think you keep momentum going in federal solutions? I mean, we just grew essentially 4,000 basis points above the industry in the fourth quarter. Just curious how much of that was driven by unit specific contracts being full venture or additional work with the [FAA]? And then how good is your visibility as we think to '24, '25? I guess it's pretty good since you're updating those longer-term targets.

因此，凱裡（Carey）也許只是早期問題的後續行動。您如何看待聯邦解決方案的動力？我的意思是，我們在第四季度基本上比該行業高出4,000個基點。只是好奇，其中多少是由單位特定合約驅動的，或者是與[FAA]？然後，您對'24，'25的看法有多好？我想這非常好，因為您正在更新這些長期目標。

Yes. So I'll take the second part first. Our visibility is very good. The good news, too, we have very low recompete, which we mentioned on the call. But it's less than 5% as we go into this year. We also have that $14 billion of unbooked contracts. So the visibility and line of sight to that transitioning is good over the next three years. We anticipate a roughly 50% to transition.

是的。因此，我將首先進行第二部分。我們的知名度非常好。好消息也是我們在通話中提到的非常低的重新組件。但是，我們今年不到5％。我們還擁有140億美元的未預訂合約。因此，在未來三年內，過渡的可見性和視線是良好的。我們預計過渡將大約50％。

How do we keep the momentum going is we continue to keep laser focus on our six core markets. Those markets are all growing between 5% to 12% compound annual growth rate. Our goal has been to be differentiated and be a top player in each of those market areas.

我們如何保持勢頭的發展是，我們繼續將雷射集中在我們的六個核心市場上。這些市場都在成長5％至12％的複合年增長率之間成長。我們的目標是差異化並成為每個市場領域的頂級球員。

And one thing I was happy about when you look at our wins across the year and those 15, we won in almost every single area. If you look at environmental remediation, for example, we won work and the mine jobs. We expanded our presence in army ammunition plant modernization. If you look at cybersecurity, we've been very, very strong with cyber command as well as the GSA job. If you look at critical infrastructure protection, the work that we've been doing with Department of State has been very good. Also won work in INDOPACOM, expanding our footprint there with Kwajalein housing.

當您在一年中觀看我們的勝利和15次勝利時，我感到很高興，我們幾乎在每個領域都贏得了勝利。例如，如果您查看環境修復，我們將贏得工作和礦山工作。我們擴大了在陸軍彈藥植物現代化中的存在。如果您查看網路安全，我們對網路命令以及GSA的工作非常非常強烈。如果您查看關鍵的基礎設施保護，我們與國務院所做的工作非常好。還贏得了在indopacom的工作，並在那裡擴大了我們在誇賈林住房的佔地面積。

If you look over on the infrastructure side, in transportation, we were awarded what at the time was our biggest design jobs since IPO with JFK highways. We just surpassed that with infrastructure job that I announced on the call today, which will now be our new biggest design job that we've had.

如果您在基礎設施方面看著運輸方面，我們將被授予自甘迺迪高速公路IPO以來最大的設計工作。我們剛剛透過我今天在電話中宣布的基礎設施工作超越了這一點，這將成為我們已經擁有的新最大的設計工作。

And then finally, urban development. The team over in the Middle East has just done an amazing job of securing our position on all [bigger] projects. And the fact that we're not even going to see a peak there until later, 2028 to 2030 timeframe, I think we've got a lot of momentum in the business.

最後，城市發展。中東的團隊剛剛做出了出色的工作，以確保我們在所有[更大]專案上的地位。而且，直到2028年至2030年的時間範圍後期，我們甚至不會看到那裡的高峰，我認為我們的業務有很多勢頭。

Maybe just as my follow-up, Carey. You talked about the Middle East there. It's clearly been an engine for pretty significant growth. We saw a slowdown of the growth basis. It is still very elevated. As we look forward, can you just talk about I guess what the risks are in the region? Are you seeing any spillover just from conflict in Red Sea, and Israel-Hamas? Or I guess as we think beyond that, is there a geographic dispersion you expect? I mean, it sounds like Saudi has been really strong. Are you seeing strength of UAE? Are you seeing a rebound in Qatar? Just curious how the Middle East is shaking out.

也許就像我的後續行動一樣，凱裡。您談到了那裡的中東。顯然，這是一個非常顯著成長的引擎。我們看到了成長基礎的放緩。它仍然非常抬高。當我們期待的時候，您能談談該地區的風險是什麼？您是否僅在紅海和以色列 - 哈馬斯衝突中看到任何溢出？或者我想，正如我們所想的那樣，您期望有地理分散嗎？我的意思是，聽起來沙烏地阿拉伯非常強大。您看到阿聯酋的力量嗎？您在卡達看到反彈嗎？只是好奇中東是如何搖擺的。

Yes. So from a risk perspective, the conflicts really dealt pertain to the type of work we do because we're really doing infrastructure. I would call it helping Saudi really build out their infrastructure, whether it's transportation infrastructure, whether it's new industrial cities, whether it's new entertainment and tourism.

是的。因此，從風險的角度來看，衝突確實與我們從事的工作類型有關，因為我們確實正在進行基礎架構。我稱它為幫助沙烏地阿拉伯真正建立他們的基礎設施，無論是運輸基礎設施，無論是新的工業城市，無論是新的娛樂和旅遊業。

That building is just going on across the country and will continue for a long time. It's great for their -- all the people that live there because they'll have places to go for entertainment. Their education systems getting improved. Their healthcare is getting improved. So I'd say that's terrific.

那座建築只是在全國範圍內進行，並且將持續很長時間。這對他們來說很棒 - 所有住在那裡的人都可以去娛樂。他們的教育系統得到了改善。他們的醫療保健正在改善。所以我想這太棒了。

On the conflict side, where we would see potential opportunity is in our federal solutions business because of the type of areas we play in. Whether that's cybersecurity, missile defense, and intelligence type of work. We also do some RF emulator projects that we've seen deployed.

在衝突方面，由於我們參與的領域類型，我們將看到潛在的機會在我們的聯邦解決方案業務中。無論是網路安全，導彈防禦和智力類型的工作。我們也執行了一些我們已經部署的RF模擬器專案。

Our geographic dispersion. We are the largest in Saudi Arabia, about 60%, 65% of our business is there. That's also been our fastest growing, followed by the UAE, which has not had strong growth. UAE's focus has been on mixed-use developments and continuing to build out whether it's Dubai or Abu Dhabi, which where most of our work there is. And we did recently the UAE World Expo.

我們的地理分散。我們是沙烏地阿拉伯最大的，約60％，我們的業務中有65％在那裡。這也是我們成長最快的，其次是阿聯酋，但沒有強勁的成長。阿聯酋的重點一直放在綜合用途的發展上，並繼續建立是杜拜還是阿布達比，我們大部分的工作都在哪裡。我們最近進行了阿聯酋世界博覽會。

In Qatar, we were heavily involved in the World Cup. We did that traffic management system for that. We also did the Lusail City, which we were recognized as an outstanding consultant for our performance there. But I would say Qatar will probably out of the three of those, be the slowest, with Saudi being the fastest, followed by UAE.

在卡達，我們參與了世界盃。我們為此完成了交通管理系統。我們也做了Lusail City，我們被認為是我們在那裡表現的傑出顧問。但我想說卡達可能會在其中的三個中，是最慢的，沙烏地阿拉伯最快，其次是阿聯酋。

Thanks, Carey. I guess, Matt, just as a sort of a last follow-up. On the cash side, it sounds like generation looks really good. And talking more like two to three deals a year versus maybe one to two, I guess in the meantime, how are you thinking about capital deployment? Are you just sort of willing to wait until you guys find the next deal?

謝謝，凱裡。我想，馬特（Matt），就像最後一次後續行動一樣。在現金方面，聽起來一代看起來真的很好。我想，與一到兩交易相比，更像每年兩到三筆交易，也許是一到兩筆交易，您如何看待資本部署？您只是願意等到你們找到下一筆交易嗎？

Yeah, I think that's right, Bert. Obviously, we have the share buyback program that's kind of nominal. We did about $11 million worth of share buyback in 2023. But definitely, the focus is on M&A. And to your point, team has done an amazing job with the $100 million in op cash for the year, just focused on working capital improvements. And so the cash is generating and we're really achieving critical milestones.

是的，我認為是的，伯特。顯然，我們擁有名義上的股票回購計畫。我們在2023年做了大約1100萬美元的股票回購。但肯定的是，重點是併購。就您而言，團隊在當年的1億美元現金現金中做得非常出色，只是專注於營運資金的改善。因此，現金正在產生，我們確實實現了關鍵的里程碑。

So really excited about the cash position. The 1.0 leverage puts us in a great place to keep pushing deals. I'd say the transition from kind of a one to two deals to two to three is a mix of going from kind of a heavier federal to a mix of federal and CI. Where the CI deals, as Carey mentioned, are a little bit smaller. So we have capacity to just kind of get to the two to three.

因此，對現金部位感到非常興奮。1.0的槓桿作用使我們成為繼續推動交易的好地方。我想說從一到兩交易到兩到三到三的過渡是從較重的聯邦到聯邦和CI的混合在一起的混合。如Carey所述，CI交易的地方要小一些。因此，我們有能力只能進入兩到三。

And then M&A really helps our momentum as well, whether it's if I look at the three recent deals, Sealing Tech really expanded our presence in defense of cyber. We were strong in offensive. Now, we can cover full spectrum of cyber operations. I talked about I.S. Engineers, expanding our presence in Texas. The two of us together can move up the value chain and bid and win larger jobs.

然後，併購也確實有助於我們的勢頭，無論是我看最近的三項交易，密封技術都真正擴大了我們為捍衛網路的影響力。我們在進攻方面表現強勁。現在，我們可以涵蓋全面的網路操作。我談論了I.S.工程師，擴大了我們在德克薩斯州的存在。我們兩個在一起可以提升價值鏈，出價並贏得更大的工作。

And then IP cases kind of nice at the intersection between federal and critical infrastructure, providing cyber compliance for energy and water companies. So those -- all of those acquisitions as well as the ones that we've done in prior years are healthy momentum.

然後，IP案例在聯邦和關鍵基礎設施之間的交集中有點不錯，從而為能源和水務公司提供了網路合規性。因此，這些 - 所有這些收購以及我們前幾年所做的收購都是健康的動力。

Andrew Wittmann, Baird.

安德魯·維特曼（Andrew Wittmann），貝爾德（Baird）。

Great. Good morning. Thanks for taking my question. I think I might just have one question today. It's for Matt. As I look at the capital structure, you got this $400 million convertible note out there. It fully hedged with the bond hedge that you've got on it. And it looks like the conditions to convert that to equity have been met with the trading performance of the stock here in the last several months.

偉大的。早安.感謝您提出我的問題。我想我今天可能只有一個問題。這是給馬特的。當我查看資本結構時，您在那裡收到了4億美元的可轉換票據。它與您擁有的債券樹籬完全套期保值。看來，將其轉換為股權的條件已經滿足了過去幾個月股票的交易表現。

So I guess my thought, or my question is, what are you going to do about $400 million face that's totally hedged out? Like I guess is it fair to figure that is basically kind of gone or like not the balance sheet because you've got to hedge that takes out the dilution that would result if you converted it? And what do you expect to do in practical sense with this? And if anything at all?

因此，我想我的想法，或者我的問題是，您要做什麼，大約4億美元的面孔完全被套？就像我猜想的那樣，這基本上是消失了或不喜歡資產負債表，因為您必須進行樹籬，從而消除瞭如果您轉換後會導致稀釋？您希望從實踐意義上做什麼？如果有的話？

Andy, thanks for the question. I would say we obviously look to the balance sheet constantly. We want to make sure that we're capable of continuing to do the M&A. The convert that we have in place has been a great deal for both us and kind of the convert holders as the stock has performed so well.

安迪，謝謝你的問題。我會說我們顯然不斷地看待資產負債表。我們要確保我們能夠繼續進行併購。我們已經實現的convert依對我們和convert依者的股票表現非常出色，這是非常重要的。

So all in all, we continue to look at it. I would say that it remains on the balance sheet. It won't go current until August of this year, but we're continuing to look at options as we go forward. So no solid plan yet, but always looking at opportunities.

因此，總的來說，我們繼續研究它。我會說它仍然在資產負債表上。直到今年八月，它才會流行，但是隨著我們的前進，我們將繼續研究選項。因此，還沒有紮實的計劃，但總是在尋找機會。

Alex Dwyer, KeyBanc Capital Markets.

Alex Dwyer，Keybanc Capital Markets。

So I wanted to ask about the organic revenue growth guide of 7% this year. How that splits between the segments this year? And if we can parse through the different assumptions from hiring and retention to win rate to the ramp up for contracts? And if there's upside to the 7% revenue guide, where do you think we're most likely to see this upside come from?

因此，我想詢問今年有機收入成長指南7％。今年的細分市場如何分裂？而且，如果我們可以解析從僱用和保留率到贏得合約的不同假設？而且，如果收入指南的收入指南有上漲空間，那麼您認為我們最有可能看到這個上升空間來自哪裡？

Yeah. So the 7% is roughly equal with federal being a little bit higher growth. And as far as upside, I would say across the portfolio again. Because if you look at the 15 wins, we've had in 2023, greater than [$100 million], and the two that we just announced this year, so far, it's across the board in all six of those end market areas. So it really affects all four of the business units.

是的。因此，7％的人大致相同，聯邦的增長更高。就上漲而言，我會再次在整個投資組合中說。因為如果您看一下15場勝利，我們在2023年獲得了超過[1億美元]的勝利，而我們今年剛剛宣布的兩場勝利，到目前為止，它在所有六個最終市場領域中均全面。因此，它確實影響了所有四個業務部門。

Then I would say, it's kind of get to the high end. As Carey mentioned, I think in her script a little bit around the labor markets. I think the US budget obviously getting deal done would be great. And so kind of those are the things that we're working through in terms of trying to get from the midpoint of the high end.

然後我會說，這有點達到高端。正如凱裡（Carey）提到的那樣，我認為在她的劇本中，勞動力市場周圍。我認為美國預算顯然完成的預算將是很棒的。因此，這些都是我們試圖從高端中點獲得的事情。

Got it. Thanks. And then the critical infrastructure backlog continues to remain strong. But I wanted to ask about federal solutions with a 0.7 book-to-bill this quarter. How much of that was the impact of the continued CRs? And should we continue to expect this segment to remain below 1 time until the government gets a full budget?

知道了。謝謝。然後，關鍵的基礎設施積壓繼續保持強勁。但是我想詢問本季的聯邦解決方案，並以0.7閱讀。持續CRS的影響是多少？我們是否應該繼續期望這一細分市場保持在1次以下，直到政府獲得完整的預算？

So I would say first, fourth quarter is always late for federal government services. Third quarter is usually kind of a peak. But I would say the trailing 12 months is what we look at, which is very important, and that's been a 1.1. And so I think our federal business has been delivering quite fine.

因此，我要說的是，聯邦政府服務的第四季總是遲到。第三季通常是峰值。但是我想說的是落後的12個月是我們看的，這非常重要，這是1.1。因此，我認為我們的聯邦業務運作良好。

On the CR, no, I don't expect that to drive being below 1.0 times. And the reason I don't is because we've already won a lot of work, that $14 billion, and the majority of that is in federal that we haven't booked yet that we can still convert. We also, by the way, one other variable, we've got 59% funded backlog, which is very high.

在CR上，不，我不希望這會以低於1.0倍的速度行駛。我之所以沒有的原因是因為我們已經贏得了很多工作，這是140億美元，而其中大多數是在聯邦政府中，我們還沒有預訂，我們仍然可以轉換。順便說一下，我們還擁有59％的積壓，這很高。

Louie DiPalma, William Blair.

路易·迪帕瑪（Louie Dipalma），威廉·布萊爾（William Blair）。

Are the [exitor] Sealing Tech and IPKeys acquisitions performing significantly better than their revenue run rates prior to being acquired? And when Parsons integrates these assets, are you able to unlock significant cross-selling revenue synergies that make the returns much more attractive than the original multiple may suggest?

[Exitor]密封技術和IPKeys的收購在被收購之前的營收率明顯優於其營收運作率？當帕森斯整合這些資產時，您是否能夠解鎖大量的交叉銷售收入協同效應，這使得回報比原始多重倍數可能建議的更具吸引力？

Yes. So I would say exitor has certainly been outperforming on our revenue front. Sealing Tech has really recent, but we do expect here they're going to deliver very strong performance. I'll talk about that a minute. And IPKeys is on track with our expectations.

是的。因此，我想說的是，Exitor在我們的收入方面肯定表現出色。密封技術確實是最近的，但是我們確實希望在這裡他們將提供非常強大的性能。我會談一分鐘。Ipkeys可以符合我們的期望。

We do get the value as you're pointing out, Louie, from the cross selling. We haven't factored in revenue or cost synergies as we've made these acquisitions. So anything that we get is kind of above and beyond. Great example would be IPKeys. They have a book of customers, hundreds of customers in the utility in the water space. So in addition to selling those customers, their capabilities, we can also solve a broader persons' capabilities in those market areas.

路易（Louie）從十字架銷售中指出，我們確實獲得了價值。由於我們進行了這些收購，我們尚未考慮收入或成本綜效。因此，我們得到的一切都超越了。很棒的例子是Ipkeys。他們有一本客戶書，其中數百名客戶在水上空間中的公用事業。因此，除了出售這些客戶，他們的能力外，我們還可以在這些市場領域解決更廣泛的人的能力。

Likewise, we can take their products to our current utility and water, wastewater customers and sell that. We've seen synergies already even between Sealing Tech and IPKeys and coming up with a new product line offering on called Cyber Escape. And we're going to be putting IPKeys' capabilities on the fly away at Sealing Tech. So that's how quickly we do the integration and we drive synergies. But that's definitely a big factor helping our momentum.

同樣，我們可以將他們的產品帶到當前的公用事業和水，廢水客戶並出售。我們已經看到在密封技術和IPKeys之間以及在稱為網路Escape上的新產品線之間已經看到了協同作用。而且，我們將把Ipkeys的功能放在密封技術上。因此，這就是我們進行整合並驅動協同效應的速度。但這絕對是幫助我們勢頭的重要因素。

Great. And another one, Parsons has been particularly strong with capturing classified cyber contracts over the past year. In general, what is driving that strength? And are these cyber contracts or some of them affiliated with the geopolitical conflicts in Europe, the Middle East, and Asia? And in general, what is Parsons presence with INDOPACOM? Thanks.

偉大的。另一個是，帕森斯在過去一年中捕獲機密的網路合約方面特別強大。通常，什麼是驅動力量？這些網路合約或其中一些與歐洲，中東和亞洲的地緣政治衝突有關嗎？總的來說，帕森斯在indopacom中的存在是什麼？謝謝。

Okay, so take the first one. What's driving the cyber? I would say, first, we're one of the leaders in offensive cyber, and that comprises about 75% of our business. We have in-depth relationships across the Department of Defense military services as well as the intelligence community and customers like Cyber Command.

好吧，所以拿第一個。是什麼驅動網路？我要說的是，首先，我們是進攻性網絡中的領導者之一，其中約占我們業務的75％。我們在國防部軍事服務部以及情報界和諸如網路司令部之類的客戶之間建立了深入的關係。

So we've been able to get a very strong position. We've done work for them for a long time. They know they can count on us, particularly in a time of need, as you mentioned, such as the conflict affiliation. I can't comment too much more on that in-depth, just due to the classification nature.

因此，我們已經能夠獲得非常強大的位置。我們已經為他們完成了很長時間的工作。他們知道他們可以依靠我們，特別是在需要的時候，如您所提到的，例如衝突的隸屬關係。只是由於分類性質，我無法對此深入評論。

In the INDOPACOM, we have several efforts underway. We've been on Guam for over three decades supporting public works. That's through our critical infrastructure group. We also are on Guam, supporting defense of Guam for the Missile Defense Agency through our team's contract.

在indopacom中，我們正在進行幾項努力。我們已經在關島工作了三十年，以支援公共工程。這是透過我們關鍵的基礎設施小組。我們還在關島上，透過我們的團隊合約為飛彈國防機構提供支援關島的國防。

We're on Kwajalein Island. We built the Kwajalein airfield. We're also just recently won the Kwajalein housing, and we're looking for continued expansion there. Particularly, that budget got increased from $9.1 billion to over $14 billion in the NDAA, so that's going to be a big focus area. And then on our defense and intelligence side, we have over 100 folks located out in Hawaii that are working on cyber and intelligence type of work.

我們在誇賈林島。我們建造了Kwajalein機場。我們最近也剛贏得了Kwajalein住房，我們正在尋找持續的擴張。特別是，該預算從NDAA的91億美元增加到超過140億美元，因此這將是一個很大的焦點領域。然後，在我們的防禦和情報方面，我們在夏威夷有100多個人正在從事網路和情報類型的工作。

Great. And one for Matt. Are your acquisitions, are they typically margin accretive, and you just forecast that you would expect two to three acquisitions per year? And so in general, should these acquisitions? Should these acquisitions be one of the drivers for your continued margin expansion that you've guided to as part of that 2025 outlook?

偉大的。一個是馬特。您的收購是否通常會增值，並且您只是預測您每年期望每年兩到三次收購嗎？總的來說，這些收購應該嗎？這些收購是否應該是您指導的2025年Outlook的一部分的持續利潤擴展的驅動力之一？

Yeah, absolutely, Louie. We target adjusted EBITDA of 10% or better, and so all these companies are performing well. I like to say that we like to buy companies that are doing well and bring them in and have them do better as part of Parsons versus kind of betting on the come, whether it's on revenue growth or margin. So, yeah, absolutely. Each one of these acquisitions. I think each one of these acquisitions are expected to be accretive in a very short term and have strong cash flow as well.

是的，絕對，路易。我們以10％或更高的調整後的EBITDA為目標，因此所有這些公司的表現都很好。我想說的是，我們喜歡購買表現良好的公司並將其帶入並讓它們作為帕森斯的一部分而做得更好，無論是在收入增長還是利潤率上，都可以押注。所以，是的，絕對是。這些收購中的每一個。我認為，這些收購中的每一個都有望在很短的時間內積累，而且現金流也很強。

Mariana Pérez Mora, Bank of America.

瑪麗安娜·帕爾（MarianaPâ），美國銀行。

Hi, this is Samantha Stiroh on for Mariana.

嗨，這是薩曼莎·斯特羅（Samantha Stiroh）的瑪麗安娜（Mariana）。

Hey, Samantha.

嘿，薩曼莎。

Good morning.

早安.

Hi. I wanted to ask about labor and hiring and kind of what you're seeing on these, what you just mentioned, the classified contracts, kind of getting those certifications. Are you seeing still a strong or like a long wait list there?

你好。我想詢問有關勞動和招聘以及您所看到的內容，您剛才提到的內容，分類合同，獲得這些認證的情況。您是否仍然看到那裡的強大或像漫長的等待清單？

Yeah, so overall in labor and hiring, we're doing very well, obviously. That's been critical to driving our organic growth. We've seen our retention improve, in fact, it improved by over 1% year to year, which is very strong. And we were already ahead of PWC industry benchmarks in that area.

是的，總的來說，在勞動和招募方面，顯然我們做得很好。這對於推動我們的有機成長至關重要。我們已經看到我們的保留率有所改善，實際上，它的一年增長了1％以上，這非常強大。而且我們已經領先於該領域的普華永道產業基準。

As far as classified contracts, the clearance processing moved to DCSA back in 2019. And when it did, they were able to drop the backlog, and I want to say it was close to 75%. And they also sped up the clearance processing time for secret and top secret, which has really helped us.

就機密合約而言，清算處理於2019年轉移到DCSA。當這樣做時，他們能夠丟棄積壓，我想說的是接近75％。他們還加快了秘密和最高機密的清除處理時間，這確實為我們提供了幫助。

Classified area is always going to be the most difficult, though, to hire. But we've seen some improvement in recent years.

但是，分類區域總是最困難的僱用。但是近年來我們已經看到了一些進步。

Great. And then on these programs that you have, the $14 billion of unbooked, would those require more hiring to keep up with? And are you kind of hiring ahead of that, or do you have the people in place already?

偉大的。然後，在您擁有的這些計劃，即140億美元的未預訂的計劃中，這些計劃是否需要更多的招聘才能跟上？您是在招募之前，還是已經有了人？

Yeah, so it's a mix. And I'll put them into two categories. When you look at it, about half that $14 billion of unbooked is option years. So those would be current programs that we're performing. And we'll get follow-on options. In general, most of those would have the people performing the contract today. There might be some increased or surged scope as you go into the options, but generally those would be on board.

是的，所以這是一個混合體。我將它們分為兩類。當您查看它時，大約有140億美元的未預訂的一半是期權年份。因此，這些將是我們正在執行的當前程序。我們將獲得跟進選項。總的來說，大多數人都會讓人們今天履行合約。當您進入選項時，可能會增加或增加範圍，但通常這些範圍會在船上。

The ones where we would get additional labor is the ones that are unbooked ceiling. So an example of that would be we won an air-based air defense program in Europe. And so that has just shy of $1 billion ceiling. So we book that as we get task orders, and those task orders represent all new work. So it's about 50-50.

我們將獲得額外勞動力的人是未經書房的天花板。因此，一個例子是，我們贏得了歐洲的基於防空的防空計劃。因此，這只有超過10億美元的上限。因此，我們預定，當我們獲得任務訂單時，這些任務訂單代表了所有新工作。所以大約是50-50。

That is all the time we have for questions today. I would now like to turn the call back to Dave for closing remarks.

這就是我們今天提問的時間了。我現在想將電話轉回戴夫（Dave）進行關閉的講話。

Thank you, and thank you for joining us this morning. If you have any questions, please don't hesitate to give me a call. We look forward to speaking with many of you over the next couple of weeks. And with that, we'll end today's call. Thank you. Have a great day.

謝謝您，謝謝您今天早上加入我們。如果您有任何疑問，請隨時打電話給我。我們期待在接下來的幾週內與許多人交談。這樣，我們將結束今天的電話。謝謝。祝你有美好的一天。

That concludes today's conference call. Thank you for your participation. You may now disconnect.

總結今天的電話會議。感謝您的參與。您現在可以斷開連線。