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KBR to Modernize Transportation Infrastructure, Boost Backlog

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KBR, Inc. (KBR - Free Report) has inked a contract to modernize technical, logistical and safety-related transportation systems for Mission Information Technology Support Services in Cambridge, Massachusetts.

Per this $126.7 million recompete by the U.S. Department of Transportation Volpe National Transportation Systems Center, KBR is entitled to enhance transportation innovation for the public good.

The company has been working for more than a decade at the Volpe Center. Per the latest hybrid cost-plus, time-and-materials contract, KBR will facilitate technical support to the Volpe Center. The company will be providing mission-critical information technology, software and systems engineering for all modes of transportation for several government entities, including the Federal Aviation Administration (FAA), Federal Motor Carrier Safety Administration, Federal Highway Administration, National Highway Traffic Safety Administration (NHTSA), Department of Defense as well as Department of Interior.

Work under the contract is expected to be carried out for more than four years.

KBR’s Focus on Improvement of Transportation Infrastructure

KBR has been providing construction and software engineering to important infrastructure systems across all types of U.S. transportation, the U.K. Ministry of Defense as well as other government entities. The company’s efforts to modernize the industry can be well traced by some of its recent innovation efforts for the Volpe Center. These include the development of the FAA Safety Assurance System, a deep-learning system to validate the performance of the MobileEye collision avoidance system and modernization of the NHTSA Artemis system.

Pertaining to it, KBR’s president and chief executive officer, Stuart Bradie said, “KBR is excited for the opportunity to continue partnering with the Volpe Center to provide the support required to build a safer and more resilient 21st century transportation system”.

Share Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

KBR’s shares have gained 37.6% in the past year, outperforming the Zacks Engineering - R and D Services industry’s 28.3% growth. It has been driving growth by focusing on lowering carbon emissions, product diversification, energy efficiency, and more sustainable technologies as well as solutions.

KBR’s 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.

Zacks Rank & Other Key Picks

Currently, KBR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other top-ranked stocks in the broader Construction sector include Jacobs Engineering Group Inc. (J - Free Report) , MasTec, Inc. (MTZ - Free Report) and Quanta Services, Inc. (PWR - Free Report) , each carrying a Zacks Rank #2.

Jacobs, MasTec, and Quanta Services’ earnings for the current year are expected to rise 13.5%, 6.7%, and 21.5%, respectively.

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