KBR Inc. (KBR - Analyst Report) recently won a multi-year Job Order Contract (JOC) from Dallas, Texas to provide construction services at the city’s various municipal facilities. The contract is initially for two years with an option of 3 one-year renewals.
The agreement requires KBR to provide renovation and construction services to the City of Dallas, including Love Field airport. The latter is currently undergoing a Love Field Modernization Program (LFMP) for renovation and expansion. The renovation program intends to build a new centralized concourse with 20 gates, a remodeled lobby, expanded baggage claim area and a new ticketing wing.
KBR is one of the leading providers of On-Call Construction and JOC with over 26 years of experience. The company has successfully executed more than 70 Indefinite Delivery/Indefinite Quantity (IDIQ) JOC contracts. KBR’s JOC business works on numerous repair/renovation construction projects, such as interior renovation, green/sustainable projects, emergency/urgent repairs/renovations and HVAC repairs/renovations.
KBR has been lately winning a series of contracts. A couple of weeks ago, the company secured a contract from the U.S. Army Corps of Engineers, Europe District, to support the first land-based ballistic missile defense system of the continent at the Deveselu Air Base of Romania. The deal comes under the purview of the U.S. Department of Defense and is worth $134 million. Such deals are expected to provide a steady revenue stream for the company.
KBR is one of the leading global engineering, construction and services companies, supporting energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets.
Currently, KBR carries a Zacks Rank #4 (Sell). Better placed stocks in the same sector that are worth a look include Dycom Industries Inc. (DY - Analyst Report), Chicago Bridge & Iron Company N.V. (CBI - Analyst Report) and EMCOR Group Inc. (EME - Analyst Report). While both Dycom and Chicago Bridge have a Zacks Rank #1 (Strong Buy), EMCOR carries a Zacks Rank #2 (Buy).