What is the anticipated timeline for delivering the radar development engineering efforts and any associated milestones?

Delivery timeline & milestones

The award specifies a 12‑month base performance period during which Parsons must deliver the core radar‑development engineering effort for the Army’s C5ISR Radar program. In addition, the contract contains four optional 12‑month extensions that can be exercised sequentially, effectively extending the overall effort to up to five years from the contract start date (August 2025). The baseline milestone is the completion of the initial engineering package by the end of the first year; each subsequent option year is expected to trigger a new phase‑gate (e.g., system‑level integration, validation testing, and field‑ability milestones) that the Army can invoke if performance criteria are met.

Trading implications

The guaranteed 12‑month base period provides an immediate revenue stream of roughly $30 million and sets a clear near‑term earnings boost for Parsons (PSN) in FY2026. The four optional extensions represent up to $120 million of additional upside, contingent on successful delivery of the initial milestones. Traders should watch for any quarterly earnings guidance updates that reference the C5ISR contract, as a positive progress report (e.g., on‑time delivery of the initial engineering deliverables) could trigger a short‑term price uptick. Conversely, any delays or failure to meet the first‑year milestone could erode confidence and pressure the stock. Monitoring Army DEVCOM’s procurement announcements for subsequent option exercises will be key for assessing the longer‑term upside potential of the contract.