On Wednesday, Parsons (NYSE:PSN) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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The full earnings call is available at https://edge.media-server.com/mmc/p/bj9subw7
Summary
Parsons reported a strong start to 2026, achieving record adjusted EBITDA margin of 10.1%, and record total and funded backlog of $9.3 billion and $6.6 billion respectively.
The company secured significant contract awards, including a $593 million extension with the Federal Aviation Administration and a new $500 million contract with the United States Cyber Command.
Parsons successfully closed the acquisition of Altamira Technologies Corporation for up to $375 million, enhancing capabilities in national security and intelligence.
The company reaffirmed its 2026 guidance, projecting continued growth supported by a robust backlog and strategic acquisitions.
Management highlighted strong performance in both critical infrastructure and federal solutions segments, with significant contributions from the Middle East and North America.
Full Transcript
OPERATOR
Thank you for standing by and welcome to Parsons Corporation's first quarter 2026 earnings conference call. At this time, all participants are in listen only mode. After the speakers present, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, David Spiele, Vice President, Investor Relations. Please go ahead sir.
David Spiele
Good morning and thank you for joining us today to discuss our first quarter 2026 financial results. Please note that we provide a presentation slides on the Investor Relations section of our website. On the call with me today are Carrie Smith, Chair, President and CEO and Matt Ofilos, CFO. Today Carrie will discuss our corporate strategy and operational highlights and then Matt will provide an overview of our first quarter financial results as well as a review of our 2026 guidance. We then will close with a question and answer session. Management may also make forward-looking statements during the call and 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, 2025 and other SEC filings. 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. Please refer to our earnings press release and presentation slides for a reconciliation of the non-GAAP financial measures. I now will turn the call over to Cary.
Carrie Smith (Chair, President and CEO)
Thank you Dave Good morning. Welcome to Parsons first quarter 2026 earnings call. I want to begin by recognizing the dedication and performance of Parsons more than 21,000 employees who delivered a strong start to the year. Most importantly, I'm pleased to share that our 7,500 team members in the Middle East region have remained safe during the current regional conflict. They've shown tremendous resilience in managing volatility while continuing to deliver our customers critical miss as we'll discuss later in the call, our Middle East business produced solid financial results this quarter and I am very proud of what the team has achieved as demonstrated by the current military operations. Our differentiated solutions spanning cyber electronic warfare, air based defense, counter unmanned aerial systems and intelligence and operations centers are vitally important to protecting both our nation's and our allies security post conflict Parsons is prepared to support the Middle East on its path to recovery by providing essential capabilities including critical infrastructure protection, air base defense, integrated air and missile defense, transportation solutions, and the reconstruction of conflict affected areas. We believe Parsons is well positioned to advance allied priorities. With our nearly 70 years in the region, extensive footprint and performance reputation, we are proud of the work we do in defense security and infrastructure for our global customers. The first quarter highlighted the resilience of our business and our team's high level of execution as we delivered our highest adjusted EBITDA margin ever, reached record levels for both total and funded backlog, achieved a robust book-to-bill ratio of 1.4x in both segments, and generated record first quarter cash flow. Revenue performance was in line with our expectations and we continue to complement our organic growth with strategic accretive acquisitions that enhance our differentiation and drive long term shareholder value. Looking at our first quarter financials in more detail, total revenue increased by 8% and organic revenue grew 3% excluding our confidential contract. This total revenue growth was driven by 12% growth in our federal solutions segment and 3% growth in critical infrastructure. Our record adjusted EBITDA margin of 10.1% was driven by a 10.8% margin in Critical Infrastructure, marking our highest first quarter performance in that segment. The 50 basis points of margin expansion at the corporate level in Q1 builds on the 40 basis points of expansion we delivered in the first quarter of 2025. In addition, we significantly exceeded our cash flow target and closed the quarter with record total and funded backlog of 9.3 and $6.6 billion respectively. On the bookings front, contract awards increased 17% year over year resulting in a strong book-to-bill ratio of 1.4 times. Our critical infrastructure segment reported a book-to-bill of 1.4 for the quarter marking 22 consecutive quarters above 1.0. Performance in the Middle East was outstanding with a book-to-bill ratio of 1.5. In federal solutions, contract awards increased 38% year over year resulting in a book-to-bill ratio of 1.4 times. These strong bookings provide a foundation for continued organic growth in both segments. A key driver of our future performance is the strategic importance of our contract WINS. During the first quarter we secured four single award contracts valued at more than $100 million. These included a $593 million contract extension under the Federal Aviation Administration's Technical Support Services or TSSC5 contract with $410 million booked in Q1. This award exercises the first option period, extends performance through 2030 and supports the FAA's Aviation System Capital Investment Plan. TSST5 has a $1.8 billion ceiling value with a four year base period and two three year option periods. We received a Production Award notification from the United States Cyber Command for the Joint Cyber Hunt Kit solution, a new sole source contract with a ceiling value of up to $500 million with $250 million booked in Q1. Importantly, this contract was another transaction agreement which allows for faster customized and collaborative industry partnerships. Parsons is an industry leader in the use of these rapid delivery vehicles. We were awarded a new five year contract valued at over $340 million to provide program management services for a major transportation project in the Middle East, booking over $300 million in Q1. Our transportation work in the region spans rail and transit, roads and highways, bridges, airports and intelligent transportation systems. We were awarded more than $145 million under the GARDAM contract. Under these task orders, Parsons will enhance command and control, space and intelligence, surveillance and reconnaissance technologies for the Air Force and other federal customers. We will develop and sustain next generation software, deliver on site training and rapidly deploy advanced mission applications. We booked $38 million on these contracts during the first quarter. We also received an additional $150 million on 2 contracts to continue serving as the main construction manager for remediation projects on the Faro Mine and Giant Mine Programs in Canada, two of the largest and most complex mine reclamation projects in the world. We booked the full amount on these contracts during the first quarter. After the first quarter ended, we received 4 more strategic federal awards previously unannounced. First, we were awarded $400 million for two other transaction agreements each having a three year period of performance. This new work shows the continued demand for our mission critical defense and intelligence capabilities and our ability to deliver solutions to our national security customer base rapidly. Next we were awarded a single award classified IDIQ contract with a ceiling value of $140 $84 million over seven years. That represents entirely new work for the company. We were awarded this contract based on our differentiated technology including our unique biometrics capabilities. And finally, we were awarded an $87 million increase on its current National Security prime contract. Importantly, in all of our Federal solution wins, we are leveraging our artificial intelligence capabilities to enhance our solutions and create differentiated outcomes. I would now like to highlight some additional accomplishments during this quarter. We closed our acquisition of Altamira Technologies Corporation in an all cash transaction valued at up to $375 million. Altamira advances high priority national security missions, supporting intelligence community and Department of War customers by providing multi intelligence technology solutions and performing critical operations. Altamira expands Parsons market presence and signals intelligence, missile warning, space and foreign military exploitation and adds critical customer depth with the National Air and Space Intelligence Center, National Security Agency and other classified intelligence customers. We were named one of the world's most ethical companies by ethisphere for the 17th consecutive year and we were honored for our project excellence on two major infrastructure initiatives in Georgia. Our team received the Engineering Excellence Honor Award from the American Council of Engineering Companies for the Acres Mill Ramp Extension in Cobb County. Internationally, we were recognized with the Refurbishment and Retrofit Project of the Year at the big Project Middle East Awards for our work on the King Abdullah Financial District Residential Uplift Project. Looking forward, we are optimistic about Parsons future. The synergies between our critical infrastructure and federal solutions segments across six growing, profitable and enduring end markets set us apart and create significant opportunities for us to meet or exceed our financial goals in critical infrastructure. We continue to see strong demand in both North America and the Middle East. Our focus on hard infrastructure, roads and highways, bridges, airports, rail and transit and intelligent transportation systems is aligned with the spending priorities in these geographies. Also, there's a need for urban development support to major events and advanced manufacturing that match our core competencies. Our number one ranked program management, number three ranked construction management and AI enabled solutions underpin our success. While we continue to monitor geopolitical developments including the ongoing war in Iran, our momentum and our customers commitments to advancing their projects forward give us confidence and continued growth. Although our business has not been affected by the conflict to date, our customers remain focused on ensuring their budgets are aligned with the right priorities and their programs are properly phased. Across the Middle East, the emphasis on diversifying economies, hosting major global events and addressing defense, security and infrastructure requirements is expected to continue driving demand for our expertise. Turning to Federal Solutions we are encouraged by the momentum in the United States Defense Spending in fiscal year 2026, 1 trillion has been appropriated for defense and we're beginning to see funds flow from both the base budget and reconciliation industry. For fiscal year 2027, the administration has submitted a $1.5 trillion defense budget comprising a $1.15 trillion base and $350 billion in reconciliation funding. This proposed 44% increase over current funding levels, which is focused on modernization, would represent the largest defense budget in history. The fiscal year 27 budget presents substantial opportunities for Parsons that are closely aligned with our strengths, including missile defense, cyber space, counter unmanned aerial systems, electronic warfare, facilities modernization, critical minerals, countering weapons of mass destruction, and joint all domain command and control. Our purpose built Federal Solutions portfolio is aligned with our nation's defense and security priorities and because of our strategic acquisitions and sustained research and development investments, we've built differentiated capabilities that help safeguard our nation and outpace evolving threats. We are encouraged by the strong bipartisan commitment to increasing US Defense spending in response to the evolving global security challenges. Our leading indicators, including our $54 billion pipeline, strong win rates of 60%, total backlog of $9.3 billion of which 71% is funded, and our $11 billion of contract wins not yet booked give us confidence that we will continue to remain an industry growth leader excluding the impact of our confidential contract in both states segments we operate in two large and well funded segments across six end markets and our favorable financial outlook is supported by our proven execution and effective capital deployment. We are reaffirming our 2026 guidance ranges which Matt will review shortly. In summary, we had a strong start to the year delivering new records for adjusted EBITDA margin and total unfunded backlog, exceptional book-to-bill ratios in both segments and record first quarter cash flow. Our operational discipline, strategic contract wins and additional corporate achievements reinforce our position as an industry leader. We remain optimistic about our future and are confident in our ability to drive long term shareholder value. With that, I'll turn the call over to Matt to provide more details on our first quarter financial results. Matt thank you Carrie.
Matt Ofilos
We've started 2026 with solid results and favorable forward looking indicators toward future growth. With a strong book-to-bill in both segments, record adjusted EBITDA margins and our highest total and funded backlog to date, we are well positioned to deliver for our customers and shareholders. We continue to effectively deploy capital, investing in strategic acquisitions, internal research and development and increased share buybacks, all to support long term growth and create shareholder value. Turning to the details of our first quarter results, total revenue grew 8% and 3% on an organic basis excluding the confidential contract. These increases were driven by growth in our critical infrastructure, protection, space and missile defense and transportation markets. Highlights included strong growth on key contract drivers for the year such as Airbase, Air Defense and the FAA TSSC 5 contract. Total revenue including the confidential contract decreased 4% from the prior year period and was down 8% on an organic basis. SGA expenses for the first quarter increased 10% from the prior year period, primarily driven by costs related to recent acquisitions and higher transaction expenses. Record first quarter adjusted EBITDA of $151 million increased 1% from the prior year period. Adjusted EBITDA margin expanded 50 basis points to a record 10.1%. These increases were driven by improved execution and contributions from accretive acquisitions. I'll turn now to our operating segments starting first with the critical infrastructure where first quarter revenue increased by 3% from the first quarter of 2025. This increase was driven by organic growth of 2% and inorganic revenue contributions from our TRS and Applied Sciences acquisitions. Organic growth was primarily driven by strength in the global transportation markets. As a reminder, Middle East revenues were negatively impacted by the number of workdays in Q1 given the holiday schedule compared to 2025. We expect this to resolve in Q2 where there are three additional workdays compared to the prior year. Critical Infrastructure adjusted EBITDA of $79 million increased 8% from the first quarter of 2025 and adjusted EBITDA margin expanded 50 basis points to 10.8%. Both adjusted EBITDA dollars and margins were first quarter records for critical infrastructure. These increases were driven by the ramp up of recent awards, accretive acquisitions and strong program exit execution. Moving to our Federal solutions segment where first quarter revenue increased 12% and 4% on an organic basis excluding the confidential contract. These increases were driven by growth in our critical infrastructure, protection, space and missile defense and transportation markets. Total Federal Solutions revenue including the confidential contract decreased 10% from the prior year period and 17% on an organic basis. Federal Solutions adjusted EBITDA decreased 5% from the first quarter of 2025 while adjusted EBITDA margin expanded 40 basis points to 9.4%. The adjusted EBITDA dollars were primarily impacted by lower volume on the fixed price confidential contract. The adjusted EBITDA margin increase was primarily driven by accretive contract growth and acquisitions. Next I'll discuss cash flow and balance sheet metrics. Our net DSO at The end of Q1 2026 was 72 days, a 14 day increase from the prior year period. This increase was primarily driven by lower volume on the confidential contract and timing of collections in the Middle East. During the first quarter of 2026 we used $4 million of operating cash which was an $8 million improvement from the prior year period. Capital expenditures totaled $15 million in the first quarter of 2026. Looking ahead, we expect capital expenditures spend to ramp in Q2 as investments in classified facilities and upgrades to our enterprise systems accelerate to support Parsons long term growth and drive greater efficiency throughout the business. Trailing 12 month free cash conversion was 102%, reflecting our disciplined focus on contract execution and collections. Our balance sheet remained strong as we ended the first quarter with a net debt leverage ratio of 2.0 times. This includes the impact of the upfront cash consideration of $330 million for the acquisition of Altamira in the quarter. During Q1 we repurchased approximately 583,000 shares for an aggregate purchase price of $35 million. Turning next to bookings in the first quarter we secured $2 billion in contract awards, a 17% increase year over year, driving a strong enterprise book-to-bill ratio of 1.4 times on a trailing 12 month basis. Our book-to-bill stood at 1.1 times, which extends our track record of a trailing 12 month book-to-bill of 1.0 or greater for every quarter since the IPO. Both segments reported a book-to-bill ratio of 1.4x for the quarter. Our critical infrastructure segment continued its impressive streak with its 22nd consecutive quarter above 1.0, with particularly outstanding performance in the Middle East where we achieved a book-to-bill ratio of 1.5 times in federal solutions. Contract awards increased 38% year over year. Our backlog at the end of the first quarter totaled $9.3 billion, a 3% increase from the prior year period. Funded backlog of $6.6 billion remains the highest since our IPO and increased 7% year over year. At the end of Q1, our funded backlog represented 71% of total backlog. Now let's turn to our guidance. We are reiterating our 2026 guidance ranges provided on February 11, based on our financial results for the first quarter of 2026 and our outlook for the remainder of the year. These guidance ranges are outlined in our earnings press release and PowerPoint presentation, both of which are located on our Investor Relations website on slide 11 of our PowerPoint presentation. We also include other key assumptions in connection with our 2026 guidance, including quarterly cadences. 2026 guidance reflects the evolving budget environment, a competitive labor market, and the realities of a challenging government procurement landscape. While these factors present challenges, we're also benefiting from the tailwinds, including unprecedented global infrastructure spend, a federal portfolio that's tightly aligned with the Administration's priorities, recompute risk of less than 3% of 2026 total revenue, and a record $9.3 billion in total backlog, including our highest funded backlog ever. On top of that, we have $11 billion in awarded contracts still to be booked, which further strengthens our outlook. We have lowered second quarter expectations due to the timing of recent wins. However, we continue to believe strong backlog and recent awards are supportive of growth projections in the full year guidance. In summary, we delivered strong results for adjusted EBITDA margins, contract awards, total unfunded backlog and our revenue was in line with expectations. Despite a complex global environment, we could continue to deploy capital effectively investing in organic growth opportunities, acquisitions, share repurchases to support our growth strategy. All of this reflects our disciplined execution and we remain confident in our ability to achieve commitments and create long term value for our shareholders by delivering critical capabilities for our customers around the world. With that, I'll turn the call back over to Kerry.
Carrie Smith (Chair, President and CEO)
Thank you Matt. This quarter's results underscore the strength and durability of the Parsons portfolio. With a robust pipeline, high win rates, strong book-to-bill performance in both segments, record levels of total unfunded backlog, and $11 billion in contract wins awarded and yet to be booked. We are confident in our outlook. With that, we will now open the line for questions.
OPERATOR
Certainly. And our first question for today comes from the line of Sangeeta Jain from KeyBank. Your question please.
Sangeeta Jain (Equity Analyst at KeyBank)
Good morning Kerry and Matt. Thanks for taking my question. First off Kerry, it's really good to hear that all your Parsons team members are and you had very strong 1Q results. Can you elaborate on some of the conversations you may be having with your customers about the balance between the short term disruptions and the long term opportunities?
Carrie Smith (Chair, President and CEO)
Certainly. Thanks Sangeeta. I appreciate your question. As you mentioned, our first concern is always for the safety and security of our employees and all 7,500 are safe and secure. Most importantly, all the employees are working on the job sites and in the offices. We really have not seen an impact to date. I will point out too the conflict has not delayed any of our funding. The Middle East exceeded their first quarter cash forecast. We have not seen any slower contract awards or pause in negotiations. That's clearly reflected by our strong 1.5 times book to Bill and we've not had any force majeure insurance claims. One thing that's good about our portfolio is that no Middle East program represents more than 1.6% of our revenue and we have 20% of Middle East backlog. The contracts are pretty long in duration as well. The average contract duration is 4.7 years and 49% of our revenue is tied to long term frameworks and we're clearly holding our full year guidance for the Middle East of 8.5% organic. What we're seeing, Sangeeta, to your question, is that many of the Gulf Cooperation Council countries are using the periods of high oil prices to fund diversification in the non oil sectors and advanced technologies such as artificial intelligence and digital infrastructure so that they're less vulnerable to future price swings. I do want to point out that post conflict we believe there's going to be significant investment in areas including redundancy and resiliency. So not only will persons be doing our traditional areas of transportation, water and environment and urban development, but we're going to expand into prioritized areas including integrated air and missile defense, border security, counter unmanned air system, critical infrastructure protection, water security and desalination, rail pipeline security and rebuild opportunities. And there's also a priority to take key assets into hardened underground facilities such as data centers, traffic treatment plants and military assets. Just reported on the defense front, it was April 27, Arabian Gulf business indicated that the defense spending in the Middle East is expected to rise by 20% over the next three years.
Sangeeta Jain (Equity Analyst at KeyBank)
That's super helpful Kerry, and maybe one for Matt. Can you talk about some of the puts and takes that went into your guidance since your FS margins have recovered really well and your CI margins are very strong but you decided to keep the full year margin outlook unchanged. Can you help us walk through that?
Matt Ofilos
Yeah, thanks Sangeeta. So to your point, really strong Q1 at 10 north of 10% margin, 10.1% CI now has five straight quarters north of 10 so the performance there has been really strong. Obviously still early in the year. 9.7% is you know 10 basis points this year but on the back of 110 basis points over the last couple of years. So we're still you know bullish on our margin expansion opportunities over the next couple of years. But obviously want to be thoughtful. It's still early in the year when we look at Federal, you know Federal is 94 in Q1 where high 8 low 9s is kind of the target for us for the year and then infrastructure we're 10 and a half at the midpoint. So 108 to start the year is a little bit better than total year expectations. But obviously early in the year we will expect, you know within federal we'll have some additional growth and cost types we've talked previously about. Mix is always the biggest driver to Federal margins and then on the infrastructure side we had A little bit lighter pass throughs and materials in Q1. So a little bit of pressure there on margins. So again early in the year, a great start to the year. But we'll watch over the next couple quarters. Great. Thank you so much.
OPERATOR
And our next question comes from the line of Sheila Kahota from Jefferies. Your question please.
Sheila Kahota
Good morning guys and thank you. Kerri, Matt, Dave, maybe Kerry, can you just talk about the Middle East? Seems okay. But aside from that, how do you
Carrie Smith (Chair, President and CEO)
think about the first half versus the second half growth trends? What's really driving the upswing in the second half and some of the major program drivers there. Yeah, thank you very much, Sheila, for the question. I appreciate it. So both we anticipate both of the segments to grow within the second half of the year. What's driving it? Let me start with Federal are the new awards. We just highlighted the four awards, three of which were federal that occurred during Q1 and then the four awards that have already occurred after Q1 ended. So very strong start to the year for Federal. Also seeing significant growth on Federal Aviation Administration. Federal Aviation Administration we achieved 25% growth in the first quarter and we expect the Federal Aviation Administration to be strong throughout the year. So I would highlight besides the awards I mentioned during the call areas such as munitions, Holston and Ammo, those programs are ramping up. Also a lot of classified work and other transaction agreements. Federal Aviation Administration and then our Missile Defense Agency teams contract, which we expect to achieve over 10% growth this year as we're supporting the important Iron Dome program within the critical infrastructure segment. I mentioned the Riyadh Metro. So we expect that to have a ramp up in the latter half of the year. Within the North America group, we expect Public-Private Partnerships, particularly on the east coast to ramp up. And then we had some recent wins on the west coast including the LA Metro Line A extension, the I70 in Missouri and the Silverline in Texas. And probably a couple other programs I'll highlight in the Middle east would be Qiddiya, the entertainment city as well as King Salmon International Airport.
Matt Ofilos
Yeah, Sheila, the only other one I would add that we've talked previously about the joint cyber hunt kits through Sealing Tech. That program is in lrip, as you know. And so second half will transition to production and have some critical deliveries before the end of the year. So that's also benefiting the second half.
Sheila Kahota
Got it. And maybe to follow up, Matt, on that, you said Q2 is a little bit lower given award timing. Can you just give us a little bit more color on that? What are you seeing in the outlay environment, why was it lower?
Matt Ofilos
Yeah, so some of the awards that Kerry highlighted that came in start of Q2 were kind of expected earlier in the year, call it January, February. So we thought we'd be ramping on those. Additionally, some phasing within the Middle East. Middle East makes up about half of the reduction to Q2, so that's really just phasing as we see the customer's prioritizations. But again, the second half ramp on those awards is going to benefit the Middle East business. But overall, again, the reductions are really kind of just phasing and timing of awards.
Carrie Smith (Chair, President and CEO)
And it's super exciting to see the federal momentum that we had.
Matt Ofilos
Cool. Thank you. So helpful. Thanks, Sheila.
OPERATOR
Thank you. And our next question comes from the line of John Godin from Citi. Your question, please.
John Godin
Hey guys, thanks for taking my question. Maybe we could just revisit the $1.5 trillion budget. You described it as a generational investment well aligned with the Parsons portfolio. Could you just elaborate on what's most exciting there for you and then sort of a quick follow up to that? Obviously there's some concern about the $1.5 trillion budget going through. You guys don't have a perfect crystal ball, but any thoughts on how that may play out as we just sort
Carrie Smith (Chair, President and CEO)
of form our own views? Yeah, thanks, John. I appreciate the question. As you mentioned, it is exciting. It is a generational investment. It's been recognized on a bipartisan basis that we're facing one of the most complex and dangerous threat environments in our nation's history with adversaries, events and capabilities. And so the need for that budget is there. The budget's focused around three pillars and I'll kind of hit on where Parsons plays in each of those pillars. The first one is Supercharging America's defense industrial base. So why that pillar talks about shipbuilding and air power. Also within that pillar is a focus on critical minerals, onshoring and energy independence and emerging technologies. Both areas where Parsons place the area. Probably it's most important to us as a second pillar, securing America's military advantage in the homeland. Counter unmanned air systems and autonomy are going to see big increases of greater than 70 billion on the top line for drone dominance and counter unmanned air systems. The Pacific initiative is going to increase from 10 billion to 11.7 billion. And 3 billion of that is aligned to infrastructure improvements in cybersecurity. There's going to be over 20 billion of additional funding. There's artificial intelligence, 58.5 billion of investment in AI as well as joint all domain command and control. And then there's going to be a significant hike in both per trial and research, development and technology overall, and particularly in the space area, which is going to be more than double the 2026 enacted level. Missile defense is a budget priority. Missile defense agencies to receive 17.9 billion and then if you look at Iron Dome, that's supposed to receive 17 billion, that would be within the budget. The next pillar focuses on securing America's military readiness. And we play in two areas there. The first one is modernizing the nuclear triad. We're involved in nuclear command, control and communications. And the second area is in improving the infrastructure for our war fighters, which is right up our alley. So overall I'd say, you know, looking at a Procurement increase of 85% and RDT&E increase of 63% is good. As you mentioned, it's not for certain. And I'd say in particular that's discussion right now is over. The reconciliation bill, Reconciliation 2.0 is moving forward, but the future's not real clear yet. Speaker Johnson is planning on a floor vote sometime this week which would be based on the Senator's, the Senate's budget resolution. But there's a discrepancy between some of the House Republicans. Some want to add additional items that are election related, additional DHS provisions. In other words, Republicans are recommending that the skinny vote basically be passed. So I would say this week we expect the next step on the reconciliation to see whether or not the Senate and House do pass the identical reconciliations which would move that bill forward.
John Godin
That was excellent. Thank you. And if I could just ask one totally separate question on M and A. You guys closed three deals in the last 12 months and a relatively large one just recently. Can you just refresh us on M and A pipeline thoughts from here and how we should be thinking about the M and A strategy maybe for the next 12 or 24 months. Thanks.
Carrie Smith (Chair, President and CEO)
Yeah, thanks, John. So M&A reM&Ains our number one focus for capital deployment. As you mentioned, we closed three deals last year, followed by a deal the first quarter of this year. We anticipate this year we'll close between two to four deals. We've got a strong pipeline in both federal and critical infrastructure. We continue to keep our high bar of growing greater than 10% on the top line, greater than 10% EBITDA margin M&Argin. We're continuing with our strategy of preemptive as well. We like to get with companies that we know well, that we've worked with we have a similar mission and culture and that way we're more certain for success after the integration of those assets. So you can expect to see us continue to focus most of our capital on M&A. I think it's been a significant differentiator for the company. In fact, as I look over those the federal wins that I cited on the script, I would say M&Any of those are due to the fact of our revenue synergies that we've been able to drive across the federal business.
John Godin
That was excellent. Thank you so much.
OPERATOR
Thank you. And our next question comes from the line of Andrew Whitman from Baird. Your question please.
Andrew Whitman
Thanks for taking my questions and good morning. Matt. I just wanted to help understand the quarter a little bit better. The holiday timing in the Middle east, how did that affect can you quantify the effect or estimate the effect on the growth rate in the CI segment for the quarter and then how much of the benefit you're going to pick up here in the second quarter? Just to understand that moving those moving pieces a little bit more clearly.
Matt Ofilos
Yeah, it was about three days from Q1 to Q2, so think of it as 10 to $15 million of impact. So we had a little bit of a headwind in Q1. Nice part for, you know, when we originally guided to first quarter for Middle East, we're expecting flattish to down a bit. Actually came in up 2.5% and so a little bit of a strong start to the year for the Middle East and some tailwinds into Q2.
Andrew Whitman
Okay. And then Kerry, on the $11 billion of awarded but unbooked, that number's been pretty steady there. Is that getting worked down and then just getting replenished to the same level or is it kind of stagnant? I'm just kind of curious as to the dynamics of what's going on in there.
Carrie Smith (Chair, President and CEO)
Yeah, great question, Andy. So what we did is we moved the FAA work which we booked for 410. So that basically moved out of late. Awarded, not booked. But as you saw by the announcements that we made of the stuff that we've already won post Q1, we're going to be well over that. So that number is going to go right back up as we go into the next quarter. So I think the important thing as well is to look at our book-to-bill ratios, which very strong again across the board. 1.4 for persons, 1.4 for federal and critical infrastructure and our backlog of 9.3 billion and then add to that $11 billion and again the $11 billion to your point is going to be replenished by these new awards.
Andrew Whitman
And then I guess maybe just one final thing just on cash flow, Matt, your contract assets number, so your unbilled receipt or contract assets cash that you've got or that you don't have, that work that you performed is up a decent amount. Maybe you could just drill into that a little bit. Is this certain types of work that you're starting to perform in greater amounts today? Is this a geographic thing with somebody that you're working for and have that asset? It's sticking out. And with the DSOs up a little bit, obviously there's a seasonal effect there. I think just digging into some of these working capital pieces are, would be interesting to just understand those dynamics.
Matt Ofilos
Yes, good question, Andy. So to your point, Day Sales Outstanding is up about 14 days, which is a good number. And so overall, really happy with the cash performance in Q1. We do have a higher balances. A lot of it is related to in the federal business to milestones on some of the munitions projects that it will deliver over the next two quarters. So I expect that number to come down over the next two quarters. I don't think it will continue to expand. I think, you know, when we get into production on the cyber hunt kits, we may have a little bit of fluctuation, but not to the same scale. So I'd say the biggest driver has been the munitions programs and the upcoming milestones there.
Andrew Whitman
All right, thank you very much.
OPERATOR
Thank you. And our next question comes from the line of Gavin Parson from ubs. Your question please.
Gavin Parson
Kerry, how big is your cuas business and are you seeing any accelerated procurement yet? Given Middle east learnings?
Carrie Smith (Chair, President and CEO)
Yes. So the big part of the counter uas, we have two components. One is our non kinetic business and that mostly goes through the Army 10 cap program. And as I mentioned, it's deployed in the Middle East right now. The second part of it is our drone armor, which is a system of systems and that's basically it's a technology readiness level nine that's been deployed. It is currently deployed in Laredo on the southern border. So if I pull those two components out, I would guess probably around $100 million if I had to make an estimate. Yes, we see growth as far as the we see future growth as far as the Middle East. So we were brought in the Middle East originally to fix another company system that was not working. So our system had basically replaced that and there's ongoing demand. We also see Demand within the United States. There's a couple of procurements that we're waiting on award from Department of Homeland Security and Customs and Border Protection and the Coast Guard.
Gavin Parson
The ABAD contract, I think that might also possibly fall in that category. I mean, is that just Europe and Africa? Are there other geographical opportunities?
Carrie Smith (Chair, President and CEO)
Yeah, that's a great point, Kevin. I didn't include that in the number I just threw out. But they're a base air defense contract that's a roughly a billion dollars over five years and we're on a run rate to achieve that. So if I throw that in the Cutterman Air system, it's much higher. We think Air Base defense is going to continue to increase within the region as well as within Indo-Pacific Command. Our contract within Europe has rapidly expanded. It's currently being used for early warning for the Middle east activities. Thank you very much.
OPERATOR
Thank you. And our next question comes from the line of Gautam Khanna from TD Securities. Your question, please.
Gautam Khanna
Yeah, thanks. Good morning, guys.
Carrie Smith (Chair, President and CEO)
Gautam, was wondering what's the latest on the Federal Aviation Administration program that Peraton won? I didn't know if much work has come your way yet and, you know, what's your latest expectation on that?
Gautam Khanna
Yeah, so just to recap, we've been supporting the FAA for over five decades. We've supported them for 24 years on the technical support service contract. The FAA just issued our extension for three years, one full year early, indicating their intent to fully use that contract. Under that contract, we provide engineering and design support, installation integration services. We do project structure management and also technical logistics and field support. Importantly, we've supported about 1,000 FAA sites. So we have people pretty much everywhere embedded in the facilities and equipment work that occurs with the National Airspace System, whether it's radars, navigation aids, communications, surveillance, automation towers, we do the terminal radar approach control system, air route traffic control centers and much more. RFA revenue, as I mentioned, is projected to grow at 25% this year on just the TSSC contract, and we were at 25% for the first quarter. We also had additional growth in FAA on areas like voice communication switches and some questions contracts that we have outside the TSSC, putting us at around a 35% growth rate. In addition to the legacy work that we've performed on the tssc, we're starting to perform work for the implementation of the new air traffic control system. And that work includes voice communication, automation and training systems. We've been working very closely with Peraton. We have an associate contractor agreement as well as with the faa. Both the FAA and Paraton want to continue to use Parsons as the implementer for that work.
Carrie Smith (Chair, President and CEO)
And I just wanted to also circle Back to the Q2 commentary. It sounded like bookings have been pretty strong to start the quarter. What would you expect? Do you have a view on what book to bill could be in the second quarter based on what's in the pipeline and what you've already been awarded?
Gautam Khanna
Yeah. To your point, Gotham, really strong start to the year. We are expecting north of 1.0 again at the Parsons level in Q2.
Carrie Smith (Chair, President and CEO)
Okay. And within the segments, is there any skew? Is one particularly strong relative to the other?
Gautam Khanna
Not really. I think they'll both just be around one or better. I don't think we'll see another one, another 1.4 necessarily. But I think they're both in a good place to be north of 1.
Carrie Smith (Chair, President and CEO)
And again, critical infrastructure, 22 consecutive quarters greater than 1.0 and our trailing 12 month as a company has been over 1.0 since IPO.
Gautam Khanna
Great. And then you did. I mean obviously you touched on the Middle east business being more resilient than I think people worry about. At what point do you start to worry about this? I mean, I'm just curious in terms of, you know, does it disrupt the pace of contract awards? I know you mentioned there's a long duration to the backlog there. But you know, I'm just curious at what point should we worry? Because it does seem like an overhang.
Carrie Smith (Chair, President and CEO)
Yeah, again I would say we are not worried. The work that we're performing there is critical infrastructure work. And now we've actually added additional defense capabilities supporting the war hitting on the critical infrastructure workforce. 60% of our work is is in Saudi Arabia. The Public Investment Fund just released their Priority 6 ecosystems this week. So whether it's tourism, travel and entertainment, urban development, advanced manufacturing, industrials and logistics, clean energy, neon, we play in every single one of those areas. They also reiterated that they're going to maintain all GIGA projects. Projects. They don't see any cancellations. So there's only been minor rephasing of programs. But they've got to get ready to be on the world stage, which is going to be 2030 for the Expo, 2034 for the world cup. And I'll point out in Saudi Arabia, importantly, 80% of the investment is going to be deployed within Saudi Arabia. We've been there for seven decades. We have a 5050 joint venture company. So we see that as very strong, stable within the uae. We're Focused still on a lot of development work. There's still a lot of development that has been going on so we don't see any slowdown there. In Qatar, our focus is primarily on two areas. Ashgal is our primary customer and then we do a lot of work in the city of Lusail for which we just got the contract recompete win. So we've been very strong as a result of the war. We've been strong supporting during the war effort. Cyber electronic warfare, counter unmanned air systems, air based defense. And then we see as I mentioned earlier post war that we're going to have opportunities, particularly when you look at areas like critical infrastructure protection. A lot of the attacks from Iran have been on data centers, water utilities. So those assets are all going to have to be protected, potentially put underground, but definitely have critical infrastructure potential protection and then there's going to be additional rebuild. So to have a company that has a long deep history within the region, very demonstrated proven performance as a trusted partner, we look forward to continuing to work across the Middle East and be able to help that region very quickly recover.
Gautam Khanna
Thanks very much gary. Thank you Ms. Gollum.
OPERATOR
Thank you. And our next question comes from the line of Jonathan Siegman from Stifel. Your question please.
Jonathan Siegman (Equity Analyst at Stifel)
Good morning Kerry, Matt and Dave, thanks for taking my question. On the Cyber Hunt contract win, interesting work and it's new for Parsons. You mentioned it's going to start ramping up in the second half. Can you maybe level set just how steep that ramp could be and any kind of differences in margins or capital intensity of that type of work. Thank you.
Carrie Smith (Chair, President and CEO)
Yeah, so I'll start, Matt can jump in as well. But we're excited about the joint Cyber Hunt kit award. It started off as another other transaction agreement. Over 100 companies submitted white papers. They down selected the three companies to build prototypes and then we were ultimately selected as the successful winner. We've already started the low rate initial production and we'll be moving into production in the fall. I will note that we've produced over 500 of these kits. We're expecting another 500 to 750 as we go forward on the new contract. Another unique thing that was in our solution is it's the first use of a generic AI in a Threat Hunt kit solution and we think that was a big discriminator in helping us win that award. It's margin accretive. It is double digit margins.
Matt Ofilos
Yeah. So John, just to add on to Kerry's $500 million ceiling over a relatively short window kind of three to five year contract booked the first 250 within the quarter. So feel really good about that work. We've already kind of started long lead material purchases on the production orders to kind of get ahead of schedule and help out there. I would say for second half versus first half we're seeing about a $50 million growth on those on that contract which is helping our second half of course. And then I think from a margin perspective this year it's favorable and accretive. I think we'll see more more benefit in the out years as we get further into the production and deliveries.
Jonathan Siegman (Equity Analyst at Stifel)
And maybe one more for you Matt. And I think your earlier comments tied to this. But just to confirm directly remaining performance obligations for FELS Solutions was down sequentially and diverged from funded backlog. Is that just the phasing that you mentioned earlier or is there anything else to kind of keep in mind? Yeah, no, exactly. It was the phasing that I mentioned and nothing else behind that, I would say.
Matt Ofilos
Good luck for the rest of the quarter.
Toby Sommer (Equity Analyst at Truist Securities)
Thank you. And our next question comes from the line of Toby Sommer from Truist Securities. Your question please.
Carrie Smith (Chair, President and CEO)
I want to double click on the Middle East again if we could. With some of your customers experiencing less oil petrochemical revenue currently, look at the risk that the eventual rebuilding of that to generate revenue could crowd out or elongate the projects that you are working on and pressure a little bit of revenue growth there? First Toby, I'd say that among the three major investment funds, Abu Dhabi, Qatar and Saudi Public Investment Fund, they've amassed over $5 trillion of wealth. So when you look at Abu Dhabi Investment Authority, they're like the fourth largest sovereign fund in the world. The public investment fund is the fifth largest sovereign fund in the world. So they have amassed a lot of wealth over time Regarding oil prices. They also have the capability both in the UAE and Ian Saudi that they aren't dependent on the straight or firm use. They both have oil pipelines that they can continue to transport oil. The focus within the regions is very strong. There's a Saudi Vision 2030. There's visions in the UAE for 2030 and 2040. There's a national vision for Qatar for 2030. Their whole focus has been how do they diversify their dependence away from oil. So to be able to do that and achieve that, they're still going to prioritize infrastructure investments and to be on the world stage and be present for Those events, what we're seeing, and I'll take public investment fund strategic plan that they just published is they're rephasing and moving things away from other sectors or other priorities to stay laser focused on what's going to drive economic and social benefit to the region. And that's where we play.
Toby Sommer (Equity Analyst at Truist Securities)
Appreciate that. And then if I could, with respect to the cyber kits and that aspect of your business related to technology and sort of products, how do you envision that growing and becoming a more meaningful part of the company? And if you could dovetail your MA strategy in coming years with your response. Yeah, thanks. So we have a lot of products within the portfolio. Cyber Hunt Kit being one of those, we also have, I'll just give you a few examples, assured position, navigation and timing. So if you lose your GPS signal, you can get location information. We have a product called T Rex, which is an emulator platform product that can emulate certain signals that's been useful in Ukraine and can also be useful in Indopacom and in the Middle east region. In the space side we have a space series of products, it's called the ACEs products that are involved with a lot of the control timing of satellite vehicles. We have space ground systems. We've delivered over 170 different ground system solutions. And then on the infrastructure side we have the intelligent transportation system where we're the most globally deployed system in the world today. Just extending our reach now into the Middle East. We had our first deployment there and we've won some real big statewide procurements recently, including Georgia. So products is definitely a focus for us. I'm going to put products into two categories. We have products that you might call hardware products. And I'll take like our Blue Fly system. It's a search and rescue system that's able to assist local law enforcement as well as customs and border protection. But the secret sauce within there is really the digital signal processing and that's an area that we focus on as a company. So our product offerings include both software as well as hardware. And I would say a lot of the companies that we have been acquiring, in addition to Ceiling Tech, which produced the joint Cyber Hunt Kit, do have products capacity and focus and you can expect to see that going forward. We think that that helps with our differentiation as a company. We think that's driven our very strong win rates which have been consistent over the past three years. And they're also margin accretive.
Carrie Smith (Chair, President and CEO)
Thank you, thank you, thank you.
OPERATOR
And our next question comes from the line of Mariana Perez-Mora from Bank of America, your question please.
Mariana Perez-Mora
Good morning everyone. Thank you for taking my question. Hi Marianne. So the first one is a little bit on the budget. The market is mostly concerned about, not like the $1.5 trillion ask, but actually how much could actually be done in an election year. How do you think about growth and how much is already like funded or procured? If you were to think about like a full year continuum resolution and how are you positioned to that scenario?
Carrie Smith (Chair, President and CEO)
Yeah, first. So I would say in an election year a full year continuing resolution is probably very likely. We know how to live with continuing resolutions. We've lived with them for decades. The key for us is really getting these large on the federal side large task order awards which we just announced two that are worth $400 million over the next three years. Because once you have those then you don't really fall under the continuing resolution. All you need to do is deliver task orders to those. Another important thing obviously with Our portfolio is 50% of our portfolio does not fall under the federal government. So half our business is kind of immune from that. I would say the budget we are excited about, not just, just this upcoming budget, but excited to see the 150 billion of prior reconciliation dollars starting to flow. Whether that's for Iron Dome, the munitions Pacific deterrence, the FAA modernization, that all benefits our portfolio. We do have a record backlog as well. And out of that backlog 71% is funded and $11 billion of awards not booked yet. So I think you know, we're well positioned preparedness company run for a long time and having these large other transaction agreements and IDIQs puts us in a good spot.
Mariana Perez-Mora
Great, thank you. And then if I can be more specific, there is about like a month ago the Department of State put out a request for information for the second iteration of deeps, the diplomatic platform Support Services contract. That exator, you actually benefited from that and you got the confidential contract within that main award. How do you think about that? Because when you look at the areas they are looking at cars, transportation, logistics, security with physical and electronic security support infrastructure maintaining and construction and remediation. And if we think about the activity going on in the Middle east right now, I could have expect those volumes to pick up. How are you thinking about that contract right now? How are you thinking about like the regards for information and your positioning towards that?
Carrie Smith (Chair, President and CEO)
Yeah, thanks Mariana. So the Diplomatic Platform Support Services contract to your point is coming out for reprocurement again. I believe we were the number one awardeer at the very top on the last dips. Contract we are definitely planning to bid in prepare to win that contract. Within the Department of State today, the majority of our work is with diplomatic security. We provide for diplomatic security, electronic security systems. We do biometrics capabilities and counter unmanned air systems. We've deployed those at over over 250 embassies and consulates to date throughout the world. And I'd say that's kind of our ongoing continuous business. But the Diplomatic Platform Support Services contract, we are going to be bidding. Great.
Mariana Perez-Mora
Thank you so much for the caller.
OPERATOR
Thank you. Our next question comes from the line of Louis DePalma from William Blair. From William Blair, your question please.
Louis DePalma (Equity Analyst)
Harry, Matt and Dave, good morning. Hey, Louis, on the space front, last year you announced a strategic partnership with Global Star and I was wondering, do you anticipate any potential positive impacts from the proposed Amazon acquisition? Perhaps you could become one of Amazon's main satellite partners for defense applications across their LEO broadband and also their LEO cellular constellations that are in the process of being built out. And also related to the Global Star partnership, is there the potential that your technology could be embedded into drones and other unmanned platforms to provide resiliency in the various theaters right now, whether it's the Middle East, Ukraine or the Asia Pacific. Thanks.
Carrie Smith (Chair, President and CEO)
Yeah, thanks, Louis. I appreciate the question. On the second part, the answer is yes, it could be embedded into drones to be able to support. We're excited about the acquisition of globalstar by Amazon and we are starting to engage with Amazon. I don't want to get ahead of those discussions, but I'd be happy to discuss it on future upcoming calls.
Louis DePalma (Equity Analyst)
Thanks, Carrie. And there's been a lot of questions and answers on the Middle east, but are you reiterating the the prior full year outlook for 8.5% growth in the region? And has there been any change in the long term view and in terms of the variables, how important is the price of oil in terms of the long term picture here in the Middle East? Thanks.
Carrie Smith (Chair, President and CEO)
Thanks, Louie. Yes, we are reiterating our 8.5% growth for the Middle East long term view. We're very optimistic about the Middle East. One thing we've done very well is first, we've been positioned there seven decades. We have gotten in at kind of ahead of need. We're seen as their trusted partner for all their big programs. We positioned intentionally around Riyadh about three years ago because we knew if there ever became funding challenges, they would focus on Riyadh because of the Expo and because of the World Cup. So we're involved in transportation, we're involved in urban development, we're involved in water and environment. Then we expanded our capabilities recently into defense and security. So we won a border wall project and we won a project with the Ministry of Defence. So we've moved into other sectors. We've also gotten into data centers. We're currently involved in about 12 data center projects within the region and also artificial intelligence projects. So I think what the team has done there very well is successfully moved from our core, which is going to continue into new areas. And I believe that we're focused on the right priorities. If you look at Saudi Arabia, 49% their GDP is now based on on non oil. So the countries over there have been very successful in diversifying away from oil. I'm really excited about our prospects in the country. I think they're going to only increase after the war with Iran ends.
Louis DePalma (Equity Analyst)
Right. And so even if priorities shift, you expect to maintain your share because you know Parsons ability to be versatile in terms of like perhaps shifting from transportation project or an entertainment project to a data center project or what shifts do you expect to potentially take place?
Carrie Smith (Chair, President and CEO)
So I would say again, public investment fund in Saudi just reiterated their six priorities. So their laser focus focused on tourism and entertainment, urban development, advanced manufacturing, industrials, logistics, clean energy and neon. We're in all six of those areas. So you know, whether it's doing airports, the world's largest entertainment city, participating in the World cup and the Expo, tourism and hospitality sector we're in, we do a lot of urban development with the developers there I mentioned. We're doing the data center working country, we're building industrial cities, we're performing logistics efforts, we do a lot of work, water work, desalination work, renewable work. So I think we're just really well positioned where the money's going to be spent.
Louis DePalma (Equity Analyst)
Thanks Carrie and thanks Matt and Dave.
Noah Popnock (Equity Analyst at Goldman Sachs)
Thank you. And our next question comes from the line of Noah Popnock from Goldman Sachs. Your question please. Hey, good morning everyone. Matt, is it possible to quantify what's
Matt Ofilos
in the full year revenue guidance? What are you assuming for organic revenue growth in federal solutions ex confidential and organic revenue growth at CI? And how do you expect those to split first half versus second half?
Noah Popnock (Equity Analyst at Goldman Sachs)
Yes. So federal excluding confidential contract organic revenue growth is 6.6% and then CI is just north of 6, 6:1 and first half or second half, call it just about 4% on federal versus 9 in the second half and then infrastructure is 3 ish first half and then 9 second half. So that's the ramps we talked about earlier. Thank you. And Matt, on the CI margin, you know, I guess a lot of progress there in the last 18 months. The guidance implies that slows down quite a bit through the rest of the year. Can you talk a little bit more about that trying to figure out if that's, you know, truly mix and other inputs or if you're sort of still living in ultra conservative mode because of the history of that margin?
Matt Ofilos
Yeah. So without a doubt very happy with the performance of the CI margin over the past 5 quarters. 18 months to your point. And so again, 10.5 at the midpoint is about 10 basis points above 2025. We still have these legacy contract closeouts that we're going. So I would say there's some thought in my mind around some flexibility for Kerry and I if we were to accelerate some of these closeouts. But generally speaking, to your point, the performance within the business is quite strong and so we feel really good generally. The only other thing I would add is Q1 was a little bit stronger than expected with lower pass throughs and materials as I mentioned before. And so there's some natural headwinds over the next three quarters as we ramp on some of those newer programs. But all in all, again, just really strong performance out of Middle east and North America and some favorable trends. And Carrie, you mentioned munitions and missile support missions. Work a few times on this call. Remind us what you do there and maybe how big that is. And then you also mentioned reshoring of critical minerals. What does Parsons do there?
Carrie Smith (Chair, President and CEO)
Yes. Matt will give you the numbers on how big that is in just a second. But let me hit on what we do, the munitions. So we currently have projects at both Holston and Radford and we've been awarded four of those projects, two at each. And what we're doing is modernizing the. When you go to these facilities, they're old, they're like three to five decades old. So we will go in, for example, and put in a new incinerator system that is more modern, doesn't have as many environmental issues. That would be a sample project. We've built a great moat around this because we actually have not had competition on most of these projects. So we're really well positioned there. The most recent win that we have was the NAMMO award and that was a unique one because that's with a commercial Norwegian company to stand up an energetics facility within the United States. So when you look forward, both under the reconciliation funds that were already Passed and you look forward at the next budget. There's a big focus to redo our plants, recognizing the importance of both ammunition and munitions. And I think we're in a really strong spot for those. And then your second question on critical minerals. So we provide, we're a delivery partner to private clients as well as federal agencies across mining projects, industrial projects and infrastructure programs. Our history in the mining and critical mineral space dates back to 2013. And it really started with the two mine projects I mentioned on the call. Giant and Faro Mines. Those are two, two of the most complex high risk environmental programs in North America. They're up in Northern Canada. So at Giant Mine, for example, we're managing the safety construction of the roaster complex, stabilizing the underground workings and containing about 237,000 tons of underground arsenic trioxide. And at Farro Mine, we lead contaminated water treatment, dam safety management, landform response, reconstruction and habitat. These are multi billion dollar projects. They're each over $2 billion and they range from 12 to 20 billion. So the expertise that we have there is very applicable to some of the critical minerals onshoring activities where they're going to need companies that come in and they understand the technology, they understand speed of production, can manage product program and construction management, perform contaminated waste management, deal with indigenous communities and understand how to do the environmental work. Matt, over to you once again.
Matt Ofilos
Yeah, I'd say just high level. Each one of these contributes kind of 40 to 50 million dollars a piece. Radford's a little bit smaller this year as it kind of scales back in terms of delivery. But all in all, you know, a really strong market that's growing and we're really excited to be part of it. Obviously it's a high demand for the administration and so we're happy to show use our capabilities here and be able to grow this market. And Each of the five projects I mentioned are over 100 million in revenue over the period.
Noah Popnock (Equity Analyst at Goldman Sachs)
It's about 40 or 50 million per year. Yep. Okay. Thank you for the detail. Appreciate it.
Jonathan Siegman (Equity Analyst at Stifel)
Thank you. And our final question for today comes from the line as a follow up from Jonathan Siegman from Stifel. Your question please. Thanks so much for taking a follow up. Just back on some of these products. The ironclad controller that you guys offer, can you just sketch out the opportunity for that product? And is that something that might have been used on some of the drones that were deployed in EpicFury or maybe partnered with some of the drone dominance programs? Thanks again.
Carrie Smith (Chair, President and CEO)
Yeah, the name's not ringing a bell with me, John. I'll have to get back to you on that one.
OPERATOR
Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to David Spiele for any further remarks.
David Spiele
Thank you all for joining us this morning. If you have any additional questions, please feel free to contact me directly. We look forward to connecting with many of you over the coming weeks. And with that, we'll end today's call.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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