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KBR JV Wins $20B Contracts From U.S. Transportation Command

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HomeSafe Alliance LLC — a joint venture between KBR, Inc. (KBR - Free Report) and Tier One Relocation — has won a $20-billion, nine-year global household goods contract from the U.S. Transportation Command.

Per the deal, HomeSafe will modernize and infuse technology to improve the domestic and international relocation experience for all military personnel, and their families. Importantly, HomeSafe will act as the exclusive household goods move management service provider for the U.S. Armed Forces, Department of Defense civilians and their families.

Alan Thompson, HomeSafe CEO, said, "Combining our HomeSafe Connect advanced digital solution and global program management expertise, we will dramatically improve the relocation experience for our service members, civilians and their families. Our solution will significantly expand and reward quality performance and is an important catalyst in the transformation of the military household goods moving industry."

Quick Q3 Highlights

KBR has been performing pretty well over the last few quarters. Third-quarter earnings and revenues topped the Zacks Consensus Estimate by 12.3% and 18.8%, respectively. It also raised its full-year view. The company benefited from solid Government Solutions organic growth and strong execution across the business.

Its impressive third-quarter 2021 performance demonstrates unwavering focus and superb business execution. Solid double-digit top-line improvement, strong organic growth in the GS unit and robust adjusted EBITDA margins are commendable.

As of Sep 30, 2021, total backlog was $14.76 billion compared with $15 billion at 2020-end. Of the total backlog, Government Solutions booked $12.45 billion. The Sustainable Technology Solutions segment accounted for $2.31 billion of the total backlog.

Share Performance

KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. KBR’s shares have gained 68% in the year-to-date period, outperforming the Zacks Engineering - R and D Services industry’s 57.7% rally.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, KBR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Construction sector include Skyline Champion Corporation (SKY - Free Report) , Meritage Homes Corporation (MTH - Free Report) and Sterling Construction Company, Inc. (STRL - Free Report) , each carrying a Zacks Rank #1.

Skyline, Meritage Homes, and Sterling’s earnings for the current year are expected to rise 117%, 74.5%, and 36.8%, respectively.