Serco: FTSE giant bags £200m US army deal

British outsourcing giant Serco has secured a $247m (£203m) contract to enhance the health and fitness of US army soldiers.

The government services provider will support 45 US army brigades across 15 locations, including bases in Alaska and Texas.

Under the deal, the firm is set to drive soldier fitness, reducing injury rates and supporting post-injury rehabilitation.

The contract will start immediately for an eight-moth period, as well as four one-year option periods to follow.

While the FTSE 250 firm traditionally manages UK government deals, it has a long track record of taking US government contracts too.

In November, the firm signed another $73m (£59m) contract with the US army to bolster global logistic support services globally.

Earlier, in August , Serco was awarded a $320m (£261m) contract with the US army’s Space Force, to modernise electrical plants in Greenland.

Serco’s presence in America is expanding in its defence sector, which now represents a significant portion of the company’s total global revenue.

Mark Irwin, Serco’s chief executive, said: “This contract reflects our ability to support members of the Armed Forces at every stage of their career in the military, from helping governments recruit the right personnel to providing training, development, and health support during their period of service, through to supporting them in their transition as they leave the military and re-enter civilian life.”

“We will continue to use our broad set of capabilities, skills and expertise to impact a better future for customers, communities and countries”, he added.

The news follows the announcement of Mark Irwin’s retirement, who will be replaced by Anthony Kirby in February 2035, Sky News’ Mark Kleinman reported in an X post on Sunday.

Irwin had taken the helm in December 2022, having been in the firm for 12 years.

Serco shares were up 1.36 per cent at 159p on Wednesday.