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KBR Wins 3 Major Civil Infrastructure Project Contracts
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Premium engineering, procurement, and construction company KBR, Inc. (KBR - Free Report) recently announced that it has managed to clinch three contracts from major civil infrastructure projects in Australia. These awards entail KBR to provide design management, project management and procurement services for its clients.
All of these contracts, whose value has been kept under warps, has been booked into backlog of unfilled orders under the company’s Engineering & Construction business segment for third-quarter 2016.
The Contracts in Details
Gateway South – a joint venture between Fulton Hogan and Laing O'Rourke – has selected KBR to offer engineering and design services for the Darlington Upgrade Project in Adelaide. Adelaide's North-South Road Corridor happens to be an important transport route of the city and Darlington Upgrade Project is a part of it. This contract has been booked into backlog of unfilled orders for the company’s Engineering & Construction (E&C) business segment in the third quarter. The company will be offering design services to deliver a lowered motorway that bypasses five signalized intersections and ten new bridges.
Secondly, KBR, as a part of the John Holland Managing Contractor team, will offer professional services for initial works on the Metro Tunnel project in Victoria, Australia. One of the most prominent public transport projects of Victoria, this project includes the excavation of two shafts in Melbourne's central business district to create twin rail tunnels and five new underground stations.
Thirdly, KBR’s contract with South Australia Water Corporation (SA Water) has been extended for another two years. Per this extension, KBR will continue to offer project management and procurement (PMP) services for capital works projects in the Adelaide metropolitan area. Also, the company will be offering engineering management and construction management services as part of an integrated management team with SA Water.
Our Take
KBR has a diverse mix of business portfolio that helps the company combat cyclicality associated with any single market. Presently, the company is banking on the strength of its Technology & Consulting and Government Services businesses to optimize its growth potential. Of late, it has won multiple key contracts and deal extensions in the government sector that have proved conducive to growth.
The company believes the Government Services and Technology businesses will provide it some balance between hydrocarbons and government projects, which bodes well for long-term improvement. Apart from solid prospects in the Asia Pacific region, KBR also remains bullish about the U.K. government’s Army 2020 project as it enters into the next phase and is expected to unlock multiple lucrative opportunities in the second half of the year.
KBR currently holds Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Willdan Group, Inc. (WLDN - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) and AO Smith Corp. (AOS - Free Report) . All three stocks carry a Zacks Rank #2 (Buy).
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KBR Wins 3 Major Civil Infrastructure Project Contracts
Premium engineering, procurement, and construction company KBR, Inc. (KBR - Free Report) recently announced that it has managed to clinch three contracts from major civil infrastructure projects in Australia. These awards entail KBR to provide design management, project management and procurement services for its clients.
All of these contracts, whose value has been kept under warps, has been booked into backlog of unfilled orders under the company’s Engineering & Construction business segment for third-quarter 2016.
The Contracts in Details
Gateway South – a joint venture between Fulton Hogan and Laing O'Rourke – has selected KBR to offer engineering and design services for the Darlington Upgrade Project in Adelaide. Adelaide's North-South Road Corridor happens to be an important transport route of the city and Darlington Upgrade Project is a part of it. This contract has been booked into backlog of unfilled orders for the company’s Engineering & Construction (E&C) business segment in the third quarter. The company will be offering design services to deliver a lowered motorway that bypasses five signalized intersections and ten new bridges.
Secondly, KBR, as a part of the John Holland Managing Contractor team, will offer professional services for initial works on the Metro Tunnel project in Victoria, Australia. One of the most prominent public transport projects of Victoria, this project includes the excavation of two shafts in Melbourne's central business district to create twin rail tunnels and five new underground stations.
Thirdly, KBR’s contract with South Australia Water Corporation (SA Water) has been extended for another two years. Per this extension, KBR will continue to offer project management and procurement (PMP) services for capital works projects in the Adelaide metropolitan area. Also, the company will be offering engineering management and construction management services as part of an integrated management team with SA Water.
Our Take
KBR has a diverse mix of business portfolio that helps the company combat cyclicality associated with any single market. Presently, the company is banking on the strength of its Technology & Consulting and Government Services businesses to optimize its growth potential. Of late, it has won multiple key contracts and deal extensions in the government sector that have proved conducive to growth.
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The company believes the Government Services and Technology businesses will provide it some balance between hydrocarbons and government projects, which bodes well for long-term improvement. Apart from solid prospects in the Asia Pacific region, KBR also remains bullish about the U.K. government’s Army 2020 project as it enters into the next phase and is expected to unlock multiple lucrative opportunities in the second half of the year.
KBR currently holds Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Willdan Group, Inc. (WLDN - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) and AO Smith Corp. (AOS - Free Report) . All three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>