by Wayne Heilman, The Gazette, Colorado Springs, CO - Vectrus Inc. credited a pair of new contracts totaling more than $125 million with producing one of the best quarters in the nearly four years since it was spun off from Exelis Inc.
The Colorado Springs-based military contractor reported second-quarter revenue rose nearly 24 percent from a year earlier to $321.1 million. Earnings during the same period surged 68.4 percent to nearly $9.2 million, or 81 cents a share, from $5.46 million, or 49 cents a share, a year ago.
About half of the company’s growth during the April-to-June quarter came from Sentel, a Virginia-based military engineering, logistics management and intelligence support contractor that Vectrus acquired in January. The rest came from new contracts — an $84 million, seven-year contract to provide base maintenance support services at Sheppard Air Force Base in Texas, and a $43 million contract to provide maintenance at the U.S. Army Garrison Stuttgart and surrounding areas in Germany for up to five years.
Vectrus now has a contract backlog totaling $3.3 billion and has bid on $1.4 billion worth of pending contracts. Company officials have identified business opportunities totaling $8 billion over the next year.
Revenue during the first half of 2018 was up 16.8 percent to $641.6 million, while profits rose 26.2 percent to $15.3 million, or $1.35 a share, from $12.1 million, or 1.09 a share.
“During the second quarter, Vectrus won new business contracts valued at over $125 million, which builds on our success in the first quarter and brings the total value of year-to-date new business wins to over $250 million,” Vectrus CEO Chuck Prow said in a news release.
The revenue and earnings numbers both beat even the most optimistic forecasts by stock analysts. The company also reaffirmed its financial forecasts for all of 2018 — revenue between $1.22 billion and $1.29 billion and earnings between $30.9 million, or $2.71 a share, and $36.9 million, or $3.23 a share.