QinetiQ’s Avantus wins $170m DHS contract for tethered aerostat radar system
QinetiQ Group plc has announced a significant contract win, securing a 5-year, $170 million deal with the US Department of Homeland Security for the Tethered Aerostat Radar System (TARS). This contract represents the largest new business competitive win for Avantus, a QinetiQ acquisition, and a major milestone in the company’s growth trajectory.
Avantus Achieves Record Contract Awards
Following QinetiQ’s acquisition of Avantus last year, this win is a testament to the company’s expanding footprint in the US defense sector. The TARS contract contributes to Avantus’s total new contract awards this year, totaling $827 million, which is more than 2.5 times its annual revenue cover. These significant contract awards not only bring new incremental business but also set the stage for robust revenue growth in the latter half of the year and beyond. Avantus’s success underpins QinetiQ’s confidence in achieving double-digit revenue growth with stable margins in the medium term.
Expanding US Customer Base and Identifying New Opportunities
Avantus has significantly transformed QinetiQ’s customer access in the US, growing its customer base and establishing itself as a disruptive mid-tier business in the sector. In the first half of the year, Avantus identified additional business opportunities worth $1.5 billion over the next five years. This growth is driven by combining capabilities across the US and other markets to advance QinetiQ’s future growth plan.
TARS: Enhancing Border Security and Air Sovereignty Missions
The TARS project entails providing detection, tracking, and monitoring capabilities essential for border security and air sovereignty missions in the US. Under this 5-year contract, QinetiQ will be responsible for aerostat operations, air-surface radar operations, ground control, systems monitoring, and data analysis.
Steve Wadey, Group CEO of QinetiQ, expressed enthusiasm about the TARS win, emphasizing its importance to US national security and its role in reinforcing the growth plan for Avantus and QinetiQ’s broader US business.