Conduent to upgrade NJ TRANSIT with advanced fare gates

FLORHAM PARK, N.J. - Conduent Transportation, a unit of Conduent Incorporated (NASDAQ:CNDT), has secured a contract to provide NJ TRANSIT with its latest 3D Fare Gate Solution at two key New Jersey stations. The $437 million market cap company, which InvestingPro analysis suggests is currently undervalued, will handle installations at Secaucus Junction and Newark Liberty International Airport stations to modernize fare collection processes and enhance overall system reliability.

The new gates, standing nearly 8 feet tall, are part of NJ TRANSIT’s efforts to update its infrastructure and are expected to be operational in the coming months. This move also allows for the possibility of extending the 3D fare gate technology to additional stations in the future, further strengthening the three-decade-long partnership between Conduent and NJ TRANSIT. Despite recent revenue challenges, with a 9.83% decline in the last twelve months, the company maintains a healthy liquidity position with a current ratio of 1.68.

The agreement involves the installation of a total of 72 gates. This follows a similar contract signed in 2024 with the Southeastern Pennsylvania Transportation Authority (SEPTA) to install 100 of Conduent’s 3D fare gates at nine Philadelphia area stations. The decision by SEPTA came after a pilot program demonstrated an increase in annual revenue, attributed to the combination of new fare gates and transit police efforts to reduce fare evasion.

Conduent Transportation is recognized for providing high-volume mobility solutions and services, including tolling and advanced transit systems, to transportation agencies globally. The company’s solutions are designed to enhance the services provided to citizens and have been implemented in more than 20 countries over the past 50 years.

Adam Appleby, Group President of Public Sector Solutions at Conduent, expressed pride in expanding their relationship with NJ TRANSIT through the adoption of the 3D Fare Gate Solution, highlighting the technology’s role in modernizing fare collection and promoting fair access to the transit system.

Conduent’s broader offerings encompass digital business solutions and services across various sectors, utilizing cloud computing, artificial intelligence, and advanced analytics to deliver mission-critical solutions. The company supports its clients’ operations, enhancing customer experiences and driving efficiencies.

This development is based on a press release statement from Conduent Transportation. For investors seeking deeper insights into Conduent’s financial health and growth prospects, InvestingPro offers comprehensive analysis with 14 additional exclusive ProTips and detailed financial metrics in its Pro Research Report, helping investors make more informed decisions in the transportation technology sector.

In other recent news, Conduent Incorporated reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS), which came in at -$0.15 compared to the forecasted -$0.12. The company’s revenue for the quarter also fell short, reaching $800 million against an expected $806.33 million. For the full year, Conduent’s revenue declined by 4.3% to $3.176 billion, with adjusted EBITDA significantly decreasing to $124 million from $247 million in 2023. The company has set its revenue guidance for 2025 in the range of $3.100 billion to $3.250 billion, with an adjusted EBITDA margin expected between 4.5% and 5.5%. In strategic developments, Conduent is focusing on leveraging AI technologies and expanding offshore capabilities. Additionally, Ireland’s Health Service Executive has entered into a five-year contract with Conduent for its Maven Disease Surveillance & Outbreak Management System. This marks Maven’s first implementation in the European Union, expanding its global reach in public health management.

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