Vectrus gets $212M Army comms support extension
- By Ross Wilkers
- May 30, 2017
Vectrus has received a one-year, $212 million extension on its contract for communications equipment and information systems support services to the Army in Southwest Asia.
The Defense Department announced the modification in its Friday contracts digest and Vectrus also detailed the award to investors in a regulatory filing before financial markets opened Monday. The contract covers work in Kuwait, Qatar, Afghanistan, Iraq, Bahrain, Jordan and the United Arab Emirates with a new end date of May 31, 2018.
News of this award continues a recent streak of good news for Vectrus that included the extension of the largest contract in its portfolio for logistics and facility services in Kuwait. The Army in March gave Vectrus a one-year, $521.6 million extension on the “K-BOSSS” contract that represented 37 percent of total revenue last year.
Both an extension on K-BOSSS and award of an Army IT services recompete in March led Vectrus to raise full-year revenue guidance in its first quarter earnings release in May. Vectrus’ updated outlook forecasts sales of $990 million-$1.09 billion this year versus the prior $910 million-$1.01 billion range as the company continues its long-term debt reduction effort.
Shares in Vectrus have climbed 21 percent since the end of February and 22 percent on a year-to-date basis. The stock is still 12 percent off its one-year and all-time high of $33.18 from August 22, 2016.
The extension issued Friday is for a contract that made up for 13 percent of revenue in 2016. Vectrus transitioned in the first quarter out of a Kuwait and Qatar logistics services contract that took a 15-percent share of sales last year.
Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at email@example.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.