Serco: FTSE 250 firm bags new contract for US Space Force Pituffik base in Greenland

British outsourcing giant Serco has won a $320m (£250m) contract to manage the electrical modernisation of the US Space Force’s Pituffik Space Base in Greenland.

The contract, which began this month, will last four years. Serco will modernise the base’s backup electrical plant, enhancing the capacity and stability of the base’s electrical network.

Pituffik Space Base, formerly Thule Air Base, supports the US Space Force’s missile warning, missile defence, and space surveillance missions.

While Serco may traditionally manage UK government contracts in areas such as immigration services, it is not adverse to working in more unusual areas.

The FTSE 250 firm has a long track record of taking US government contracts. For example, last year the company renewed a deal last year for $690m (£527m) to run the country’s public health insurance schemes.

Mark Irwin, group chief exec of Serco, said: “This contract award builds on Serco’s strong capabilities in systems design and installation, as well as our exemplary past performance on defence construction projects.

“We are delighted to have the opportunity to support this large, mission-critical upgrade project for the US Space Force and Army Corps of Engineers. We recognise the impact of our work in ensuring mission critical readiness is maintained for this pivotal location.

“Serco is a proud supplier of defence expertise and services to multiple governments internationally. Our defence capabilities are broad, and we are committed to using our skills and experience to support our customers and impact a better future.”

At the end of June, Serco shares jumped after the company lifted its annual profit forecast. The company said its underlying operating profit was “ahead of plan” at approximately £140m.

It announced that it had upgraded its underlying operating profit guidance for 2024 by four per cent to £270m – nine per cent higher than 2023.

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