KBR, Inc. ( KBR Quick Quote KBR - Free Report) has secured two contracts from the U.S. Military to provide critical logistics and operations support in the Middle East. The contracts are worth more than $100 million. One of the contracts is from Naval Facilities Engineering Systems Command Atlantic worth $67.4 million, and has one base year and seven option years. Per the contract, KBR will implement digital thoughts into real-time operation with world-class asset management software and data analytics. KBR will have control over management and administration, logistics, equipment maintenance, force protection, facility support, as well as transportation. Another contract valued at $35-million contract has been received from the U.S. Air Force Civil Engineer Center to facilitate power production service at Prince Sultan Air Base in Saudi Arabia. Per this fixed-fee contract, KBR’s task is to arrange the necessary resources for power generation for the 378th Air Expeditionary Wing and partner forces. This is a two-year-task order by the Air Force Contract Augmentation Program V. With respect to this, KBR's Government Solutions President, Byron Bright said, “We are excited to continue to grow our presence in the Middle East as we harness the power of technology to meet the unique requirements of military operations.” Continuous Contract Wins & Share Performance
KBR’s solid performance is backed by continuous contract wining spree, strong project execution, backlog level, and potential government as well as technology businesses. The Government Solutions business has been banking on on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
A solid backlog level of $15.12 billion (as of Dec 31, 2020) highlights its underlying strength. Nearly 83% of the backlog represents work in Government Solutions. Majority of these services are long-term reimbursable service annuity-type contracts that have significantly lower risks than some of the other projects. During March 2021, KBR secured a contract to provide sustainment services for the Australian Defence Force Secure Deployed Networks. The $25-million contract includes services like supply-chain management, identity and access management, as well as technical services to enable convergence of these networks. KBR’s shares have surged 39.8% in the past six months compared with the industry’s 66.5% rally. Although the company’s shares have underperformed the industry in the said period, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts' optimism over bottom-line growth potential. On a further encouraging note, the company has a robust earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing 12 quarters.
KBR — which shares space with
Quanta Services, Inc. ( PWR Quick Quote PWR - Free Report) , AECOM ( ACM Quick Quote ACM - Free Report) and Jacobs Engineering Group Inc. ( J Quick Quote J - Free Report) in the Zacks Engineering - R and D Services industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . Bitcoin, Like the Internet Itself, Could Change Everything
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