Vectrus reports sales boosts

By Marjorie Censer / February 27, 2019 at 9:57 AM

Vectrus said this week sales in its most recent quarter reached $308 million, up 14 percent from the same three-month period a year earlier.

The contractor's quarterly profit hit $9.9 million, up 70 percent from the prior year.

Vectrus reported its 2018 sales hit $1.3 billion, an increase of 15 percent from 2017.

"The increased revenue was attributable mainly to activity in our U.S. programs of $103.2 million (consisting of a $112.3 million increase related to our acquisition of SENTEL), $45.1 million from our European programs and $16.2 million from our Middle East programs," the company said.

Vectrus' 2018 profit totaled $35.3 million, down about 41 percent from 2017.

In a call with analysts Tuesday afternoon, Chuck Prow, Vectrus' chief executive, said the company's diversification strategy is yielding dividends. He said in 2018 the company made progress in growing its Air Force business.

"We have done a great job expanding our presence with the Air Force," Prow said. "We are currently executing a similar campaign with the U.S. Navy. We are seeing early progress with our Navy campaign."

Additionally, Vectrus said it last month received notification from the government of an extension of its Kuwait Base Operations and Security Support Services contract. The effort will now be extended until March 2020 with an additional option period to push it through September 2020.

Prow said the company is expecting in April notification of awards for the Logistics Civil Augmentation Program, dubbed LOGCAP V.