Vectrus Inc. credited $330 million in new contracts so far this year for boosting revenue and profits by double-digit percentages as the Colorado Springs-based defense contractor heads into a key year in 2019.
Revenue for the third quarter was up 14.3 percent to $308.1 million, and earnings surged more than 70 percent to $9.87 million, or 86 cents a share, the company said Tuesday. Revenue for the year’s first three quarters rose 16 percent to $949.7 million, and profits were up 40 percent, reaching $25.2 million, or $2.21 a share.
Vectrus continues with the new awards, including a $60 million deal announced last week, “to capitalize on the growth opportunities in our markets,” company Chief Financial Officer Matt Klein said in a news release, adding that Vectrus remains “well-positioned” to continue its growth.
The company also narrowed its revenue forecasts for the year at $1.25 billion to $1.27 billion and earnings between $31.6 million and $36.1 million, or $2.77 to $3.17 a share. Vectrus’ third-quarter profits beat forecasts by stock analysts by 3 cents a share, but its revenue for July to September fell $2.9 million short of forecasts.
Vectrus has a contract backlog of $3 billion, down $300 million from the previous quarter, and pending contract bids totaling $1 billion as well as bidding opportunities totaling another $7 billion over the next year.
Among bids already submitted is one for the $82 billion Logistics Civil Augmentation Program V contract expected to be awarded in April to up to six bidders. Winning bidders will compete for individual task orders for a wide array of support and logistics services for deployed troops in contingency operations worldwide, including work that now makes up the company’s largest contract, generating 40 percent of its revenue.
Winning that bid is a key part of CEO Chuck Prow’s strategy to double the company’s revenue over the next five years to $2.5 billion and nearly double its profit margin.