Serco Group PLC (LSE:SRP) shares were one of the highest risers on the FTSE 350 on Tuesday after its MT&S subsidiary won a contract from the US Air Force to provide enhanced simulator and training services.
The UK-based group also announced that Michael LaRouche, former senior executive at SAIC, Lockheed Martin and Raytheon, has been appointed as chief executive officer of its $2 billion-revenue North American division.
The indefinite delivery, indefinite quantity contract is worth up to $972 million (£720 million) over five years to MT&S, which was acquired by Serco from Northrop Grumman in May.
It is expected to generate revenue of around $60 million from task orders during 2026.
Training systems and services are provided at over 20 locations for the USAF.
CEO Anthony Kirby said that, through MT&S, "we are well positioned to deliver innovative, technology-enabled solutions which enhance training and maintain the highest levels of mission readiness for the US armed forces.
"This contract award reflects our growing capabilities in mission simulation, operational training and live, virtual, constructive technologies, which are key areas of strength and opportunity for Serco both in the US and internationally."
On the new appointment, he said LaRouche "is a strategic leader and has deep experience in growing businesses, in the United States and internationally. The US and Canadian markets represent significant growth opportunities for Serco."
Serco shares rose 4.5% to 233.2p.