DynCorp International announced Wednesday 2017 fourth quarter earnings and full year financial results. Revenue in Q4 climbed to $567.3 million, with an adjusted EBIDTA of $38.6 million for the period, as compared to Q4 2016 revenue of $461.8 million.
Full year 2017 revenue reached $2 billion, with the company handling a total backlog of $4.2 billion. By contrast, last year DynCorp reported total 2016 revenue of $1.8 billion.
Moreover, 2017’s full year net income was $30.6 million, compared to a net loss of $54.1 million in 2016, with an adjusted yearly EBIDTA of $152.5 million, yielding 7.6% profit margins. The company enjoyed year-over-year revenue growth of 9.2% and a 50.9% profitability increase.
Going sector by sector, DynCorp’s Aviation, Engineering, Logistics and Sustainment division reported Q4 2017 revenue of $167.1 million, surpassing the $141.4 million it earned during the same period last year. Its adjusted EBIDTA for Q4 2017 was $10.4 million, compared to a $3 million loss during the same period in 2016. The unit’s 2017 adjusted EBIDTA was $29.5 million, compared with a $16.8 million loss last year.
The Aviation Operations and Life Cycle Management division reported Q4 2017 revenue of $155.6 million, growing over last year’s $147.5 million for the same period. Total 2017 revenue was $603.2 million, falling slightly from $617.3 million the previous year. The company attributed this to decreased output from one of the unit’s programs and the completion of another. Q4 2017 adjusted EBIDTA was $14.7 million, compared to $17.1 million for the same period in 2016. Full year adjusted EBIDTA was $66 million, surpassing $56.8 million last year.
Lastly, DynLogistics reported Q4 2017 revenue of $244.4 million, compared with $172.5 million for the same period in 2016. Total yearly revenue was $796.2 million, compared with $633.6 million last year. Q4 2017 adjusted EBIDTA was $20.4 million, slightly down from $22 million for the same period in 2016. Full year adjusted EBIDTA was $73.5 million, surpassing last year’s $71.5 million.
In the press release, the company attributed much of 2017’s success to major defense contract wins and renegotiations. As part of its goal to bring down operating costs, in January DynCorp merged its three businesses – AELS; AOLC; and DynLogistics – into two, DynLogistics and DynAviation. Also, the company paid down a principal payment of $54.9 of its term loan, $32.4 million more than what was required on or by June 15 of this year.
“I am extremely proud of the outstanding performance the team delivered in 2017 … We expect that the recent strategic rebalance of our operating segments, superior program execution, and continued focus on capturing new business opportunities will drive growth and success in the year ahead,” said George Krivo, DynCorp’s chief executive officer, in a statement.