Seco strengthens with defence contract wins

Land January 9, 2026

Serco Group plc has announced a significant expansion of its defence operations in the Asia Pacific region, securing key contracts and extensions that reinforce its position as a major provider of critical government services.

These developments, primarily supporting the Royal Australian Navy, underscore a broader strategic trend where defence and national security now constitute approximately two-thirds of the company’s total order intake for 2025. For UK-based suppliers and partners within the Serco supply chain, this global momentum indicates a robust and diversifying pipeline of requirements across maritime training, systems support, and infrastructure.

A primary highlight of the recent activity is the successful rebid of the HMAS Watson Navy Synthetic Warfare Training contract. Valued at more than £80 million (AUD $160 million) including all potential extensions, the agreement comprises an initial five-year term with five subsequent one-year options. Serco has delivered simulator-based maritime warfare training at this facility since 2012, and the renewal ensures continued demand for high-end technical support and training expertise. Additionally, the company has secured a three-year contract extension, worth approximately £5 million (AUD $10 million), to provide in-service support for the Mini Typhoon, Typhoon, and Toplite systems. This includes a further two-year extension option, providing long-term visibility for technical sub-contractors involved in these naval weapon and sensor systems.

Beyond the Australian naval sector, Serco has been named the preferred bidder for the design and construction of a new freight vessel for Lord Howe Island under the New South Wales Government’s Critical Infrastructure Program. This 40-year project highlights the company’s expanding role in complex maritime engineering and biosecurity-controlled logistics. These international successes follow a highly active period for Serco in the United Kingdom, where the company recently secured three contracts valued at over £1 billion to provide maritime services to the Royal Navy. Furthermore, a ten-year contract worth up to £1.5 billion was awarded to manage the Armed Forces Recruitment Service for all UK military personnel.

The global scale of Serco’s defence portfolio is further evidenced by significant awards in North America, including a 25-year, £266 million contract for the Royal Canadian Air Force’s Future Aircrew Training program and multiple US Navy contracts totaling nearly £230 million for submarine antenna systems, amphibious warfare ship support, and frigate modernisation. For businesses seeking to engage with the UK defence supply chain, Serco’s transition toward long-term, multi-billion-pound service and recruitment contracts suggests a sustained requirement for innovative sub-contracted solutions in digital training, logistics, and technical maintenance. These figures reflect a period of heightened government spending on national security, offering substantial opportunities for SMEs and prime contractors to align with Serco’s international growth trajectory.

Image: Serco

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