Engility Holdings (NYSE: EGL) expects to start seeing some organic sales growth in the second half of this year as the company has finished the integration of fellow government services contractor TASC one year out from that acquisition’s closure, CEO Lynn Dugle told investors Thursday.
Chantilly, Virginia-based Engility has nearly $3.5 billion in submitted bids awaiting decisions from agencies as of the first quarter’s end and the company believes its federal civilian market activity could go “a little bit bigger and faster as far as where our capabilities lie, ” she said in that call with investors.
Thursday’s call with analysts to discuss the company’s first quarter financial results represented Dugle’s first public comments since her March 21 transition to the CEO post.
Earnings and revenue for the January-March period exceeded analyst expectations and the company held to its full-year guidance issued in January that was below Wall Street forecasts on projected in-theater work declines and legacy contract completions.
Engility aims to submit close to $5 billion in proposals for new business during 2016, Dugle said.
She also told analysts some of Engility’s customer agencies are starting to shift away from low-price, technically-acceptable services contracts and towards best-value awards as the company awaits to see if that movement becomes an industry trend.
“We’re going to keep our eye on whether a client says it’s best value or not (and) will be awarded only to the lowest bidder. I think the jury is a bit out on that. But I will say that we are not ever going to get totally focused on just price.”
