KBR Inc. ( KBR Quick Quote KBR - Free Report) has secured a contract from PKN ORLEN to assess plastic recycling projects in Central Europe. Even so, financial terms of the contract are not yet disclosed. Under this feasibility study contract, KBR, which has been a leader in process technology development, commercialization, and plant design solutions for more than five decades, is entitled to employ its Hydro-PRT technology. Along with KBR, PKN ORLEN has also signed a Letter of Intent to team up on the development of future projects. Both the parties will assess the implementation of Hydro-PRT as an essential technology for recycling waste plastics. Hydro-PRT is an advanced recycling technology that converts waste plastic into petrochemical and refinery products, and is offered by KBR in association with Mura Technology. In sync with this, Doug Kelly, KBR president, Technology, said, “This contract represents an important milestone for KBR and PKN ORLEN to assess the long-term potential of this breakthrough technology.” Proficient Use of Technology: A Boon
The determination to lower emissions, product diversification, energy efficiency, and more sustainable technologies and solutions have been driving KBR’s performance. The demand for the company’s technologies for product diversification and more green solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is also gaining traction and KBR continues to see increasing activity across the advisory portfolio, particularly in energy transition.
Strengthening of the Technology Solutions business with its high-end, sustainability-focused industrial sector expertise and client relationships creates exciting synergy opportunities. The Sustainable Technology Solutions segment continues to make progress on its own profit growth strategy. Although the Technology business’ revenues decreased 29.4% year over year for the second quarter due to its exit from commoditized construction services in 2020, the quality of revenues are improving with much healthier margins, as envisioned by KBR when it formed this business. Adjusted EBITDA for the second quarter was more than triple from 2020 levels at $61 million and the team delivered EBITDA margins of 20%. Image Source: Zacks Investment Research
Coming to the share price performance, KBR shares have advanced 25.9% year to date, in line with the Zacks
Engineering - R and D Services industry’s rally. Its solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. As of Jun 30, 2021, total backlog was $19.9 billion compared with $19 billion at 2020-end. Of the total backlog, Government Solutions booked $12.4 billion. The Sustainable Technology Solutions segment accounted for $2.5 billion of the total backlog. The Zacks Consensus Estimate for the Zacks Rank #2 (Buy) company’s 2021 earnings indicates a 24.9% increase from 2020. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Other Key Picks
Other top-ranked stocks in the same industry include
Altair Engineering Inc. ( ALTR Quick Quote ALTR - Free Report) , Gates Industrial Corporation PLC ( GTES Quick Quote GTES - Free Report) and Quanta Services, Inc. ( PWR Quick Quote PWR - Free Report) , each carrying a Zacks Rank #2. Altair, Gates Industrial and Quanta Services’ earnings for 2021 are expected to rise 64.5%, 94.3% and 19.9%, respectively.