Published by Global Banking & Finance Review®
Posted on June 26, 2025
1 min readLast updated: January 23, 2026
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Serco expects North American defence contracts to drive growth in 2025, with defence now its largest sector. The company raises its sales growth outlook.
(Reuters) -British outsourcing firm Serco said on Thursday that it expects its North American market to drive organic growth in the first half of 2025, fuelled by a high volume of defence contracts secured last year.
Serco, which provides defence, security, immigration, health and transport services for governments, has positioned itself to benefit from geopolitical tensions, as countries ramp up defence budgets to strengthen their military and security services.
With its recent acquisition of Northrop Grumman's Mission Training and Satellite Ground Network Communications (MT&S) business in May, defense has become Serco's largest sector, now accounting for around 40% of total revenue.
For the year ending in December, Serco reaffirmed its underlying operating profit forecast of around 260 million pounds ($356.41 million), but raised its organic sales growth outlook to about 1%, supported by improved immigration business and continued organic growth in the UK.
The company also named Keith Williams as board chair-designate, set to succeed John Rishton, who will step down on December 31.
($1 = 0.7295 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips)
Serco expects its North American market to drive organic growth in the first half of 2025, fueled by a high volume of defence contracts.
Serco has positioned itself to benefit from geopolitical tensions as countries ramp up their defence budgets.
Serco's recent acquisition of Northrop Grumman's Mission Training and Satellite Ground Network Communications business has made defence its largest sector.
For the year ending in December, Serco reaffirmed its underlying operating profit forecast of around 260 million pounds ($356.41 million).
Keith Williams has been named as the board chair-designate, set to succeed John Rishton, who will step down on December 31.
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