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KBR Secures $470-Million Contract From UK Naval Defense

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KBR, Inc. (KBR - Free Report) has won a contract from the U.S. marine defense to provide a change in the framework of infrastructure services at HM Naval Base Portsmouth. This new five-year, $470-million contract expands KBR’s presence in U.K. naval defense.

KBR in collaboration with BAE Systems (“BAESY”), together known as KBS Maritime, will furnish up to date and long-lasting changes to the Portsmouth base. Per the contract, KBS Maritime guarantees perfectly suited word class support to the Royal Navy for the next five years. The recently-established joint venture will accommodate high technology and data-driven facilities management and dockside services at the base.

With respect to this, KBR's President and CEO, Stuart Bradie said, “This successful award is testament to the innovative proposition by two world-leading organizations that have a proud history of supporting UK defense.”

Focus on Royal Navy & Share Performance

KBR has been consistently extending its support to the UK Ministry of Defence's (MOD). In February 2021, the company announced a crucial contract to facilitate support to a leading marine infrastructure program at HM Clyde Naval Base in Scotland. The company will provide management services, help design the important facilities and also support their operations.

Government Solutions, which accounted for 68.2% of 2020 revenues, mainly focuses on long-term service contracts with annuity streams for the United Kingdom, Australian and U.S. governments.

KBR’s shares have surged 26% in the year-to-date period compared with the industry’s 24.1% rally. Also, earnings estimates for 2021 have moved up 1.9% over the past 60 days, depicting analysts' optimism over bottom-line growth potential. KBR is banking on the strength in its the Government Solutions business to drive growth. The company is optimistic about healthy revenue growth from the segment in 2021.

Zacks Rank

KBR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Mayville Engineering Company, Inc. (MEC - Free Report) , Howmet Aerospace Inc. (HWM - Free Report) and Altair Engineering Inc. (ALTR - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mayville Engineering has an average earnings surprise history of 23.5% for the last four quarters.

Howmet Aerospace and Altair expect to witness 13.8% and 45.2% earnings growth in 2021, respectively.

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