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Vectrus Posts 28% Growth in 2021 Revenue, $5B in Total Backlog; Chuck Prow Quoted

Vectrus (NYSE: VEC) saw its full 2021 revenue increase 28 percent to $1.78 billion and reported $419.4 million in sales for the fourth quarter of 2021, up 18 percent from the prior-year period.

The Colorado Springs, Colorado-based government services contractor said Monday it ended the year with a total backlog of $5 billion, of which $1 billion was funded.

Vectrus recorded an operating income of $62 million for full-year 2021, a fully diluted earnings per share of $3.86 and an organic revenue growth of 10 percent in 2021 due to contract wins, phase-ins and base expansion.

Chuck Prow, president and CEO of Vectrus and a 2022 Wash100 Award recipient, said the company’s strong Q4 and full-year 2021 financial results reflect the execution of its growth strategy.

He noted the company won several task orders that would provide significant revenue visibility in the next several years, including a potential five-year, $250 million Fort Benning Logistics Support task order under the Enhanced Army Global Logistics Enterprise contract and a $44 million Air Force Contract Augmentation Program V Saudi foreign military sales task order.

Prow also mentioned Vectrus’ selection to finish the final application development phases for the 5G Smart Warehouse project at Naval Base Coronado in San Diego.

“Smart Warehouse is a continued demonstration of our Converged Environment portfolio of mission essential solutions, which integrate base operations support, supply chain and logistics, IT and network operations, engineering and digital integration, and security, to help increase efficiency, reduce costs, improve readiness and cybersecurity, and strengthen national security,” Prow said. “We look forward to bringing next-generation efficiencies to the naval logistics operations.”

Vectrus announced that it agreed to merge with The Vertex Company to establish a government services contractor with approximately $3.4 billion in pro forma revenue. The transaction is expected to close in the third quarter of 2022.

The Vertex Company, formerly Vertex Aerospace, launched a rebranding effort following its acquisition of Raytheon Technologies’ (NYSE: RTX) defense training and mission critical solutions business in December.

“The combination of Vectrus and Vertex will create a stronger, more diversified company and one of the leading providers of critical mission solutions and support to defense clients globally,” said Prow.

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