We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KBR Wins $207M DoD Task Order, Fortifies Government Unit
Read MoreHide Full Article
KBR, Inc. (KBR - Free Report) recently won a $207-million task order from the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract vehicle from the U.S. Air Force's 774th Enterprise Sourcing Squadron. This five-year contract will be primarily performed at Redstone Arsenal Government facilities and KBR’s offices in Huntsville, AL.
Per the contract, KBR will perform multi-disciplined analyses and develop recommendations to enhance the capabilities of the Phased Array Tracking Radar to Intercept on Target (PATRIOT) missile defense system. It will support modeling and simulation efforts to analyze the overall system performance effectively and efficiently.
PATRIOT is a critical component for air and missile defense that protects ground forces and high-value assets by countering a variety of enemy short- and medium-range tactical ballistic missiles, cruise missiles, and unmanned air vehicles.
Byron Bright, KBR’s Government Solutions president, said, "KBR has provided uninterrupted systems engineering support to the PATRIOT missile system for decades. We're proud to continue that support and to further our shared goal of protecting U.S. forces and allies through enhancing the capabilities of the PATRIOT missile system."
Over the past 40 years, KBR has been providing mission-critical technical and engineering services for the PATRIOT missile system. Also, it has been serving other related military critical air and missile defense systems, including the Cruise Missile Defense System, Counter-Rockets, Artillery and Mortar System, and Terminal High Altitude Area Defense System.
Focus on Government Projects Bodes Well
The company’s Government Solutions unit has been performing pretty well. Presently, KBR is banking on the strength of the said business to optimize growth potential. The performance of the particular business is exceeding market expectations, which is adding to KBR’s bliss.
Image Source: Zacks Investment Research
Higher tasking for various missile defense and other military priorities in its engineering business areas, under select IDIQ contracts, also led to the upside. Further, KBR expects growth across all key markets in the United States, U.K. and Australia, driven by continued opportunities across the lifecycle of projects. For the Government Solution business, the book to bill was 1.2 for 2020 compared with 1.1 in 2019.
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 40.8% in the year-to-date period, outperforming the Zacks Engineering - R and D Services industry’s 12.9% rally.
Fluor Corporation (FLR - Free Report) : Fluor — a Zacks Rank #1 company — is gaining from the "Building a Better Future" initiative, which is focused on enhancing markets outside the traditional oil and gas sector, fair and balanced commercial deals, financial discipline, and a high-performing business culture. It made significant progress toward strategic goals that comprise the reduction of outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
Fluor’s earnings for 2021 are expected to grow 143.1%. That said, FLR’s earnings have remained stable over the past 60 days.
Quanta Services, Inc. (PWR - Free Report) : This Zacks Rank #2 (Buy) company is set to deliver a resilient performance in 2021 and beyond despite a challenging environment. It is benefiting from a three-pronged growth strategy and strong margins from the Electric Power Infrastructure segment. Focus on the base business via supporting long-term programmatic spend of utilities and participating in the development of infrastructure that supports renewables and technology deployments such as 5G as well as electric vehicles will drive growth. It is to be noted that 80-90% of revenues are derived from the utility, communications, and a few pipeline and industrial infrastructure services, which remain strong.
Quanta Services’ earnings for 2021 have remained stable over the past 60 days. PWR’s earnings for 2021 are expected to advance 25.4%.
AECOM (ACM - Free Report) : AECOM — a Zacks Rank #2 company — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets. The company has been continuously focusing on delivering industry-leading margins and unlocking capital to invest in growth as well as innovation. Also, focus on higher-margin and lower-risk Professional Services businesses bodes well.
AECOM’s earnings for fiscal 2022 are expected to grow 20.6%. That said, ACM’s earnings have increased 1.5% over the past seven days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
KBR Wins $207M DoD Task Order, Fortifies Government Unit
KBR, Inc. (KBR - Free Report) recently won a $207-million task order from the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract vehicle from the U.S. Air Force's 774th Enterprise Sourcing Squadron. This five-year contract will be primarily performed at Redstone Arsenal Government facilities and KBR’s offices in Huntsville, AL.
Per the contract, KBR will perform multi-disciplined analyses and develop recommendations to enhance the capabilities of the Phased Array Tracking Radar to Intercept on Target (PATRIOT) missile defense system. It will support modeling and simulation efforts to analyze the overall system performance effectively and efficiently.
PATRIOT is a critical component for air and missile defense that protects ground forces and high-value assets by countering a variety of enemy short- and medium-range tactical ballistic missiles, cruise missiles, and unmanned air vehicles.
Byron Bright, KBR’s Government Solutions president, said, "KBR has provided uninterrupted systems engineering support to the PATRIOT missile system for decades. We're proud to continue that support and to further our shared goal of protecting U.S. forces and allies through enhancing the capabilities of the PATRIOT missile system."
Over the past 40 years, KBR has been providing mission-critical technical and engineering services for the PATRIOT missile system. Also, it has been serving other related military critical air and missile defense systems, including the Cruise Missile Defense System, Counter-Rockets, Artillery and Mortar System, and Terminal High Altitude Area Defense System.
Focus on Government Projects Bodes Well
The company’s Government Solutions unit has been performing pretty well. Presently, KBR is banking on the strength of the said business to optimize growth potential. The performance of the particular business is exceeding market expectations, which is adding to KBR’s bliss.
Image Source: Zacks Investment Research
Higher tasking for various missile defense and other military priorities in its engineering business areas, under select IDIQ contracts, also led to the upside. Further, KBR expects growth across all key markets in the United States, U.K. and Australia, driven by continued opportunities across the lifecycle of projects. For the Government Solution business, the book to bill was 1.2 for 2020 compared with 1.1 in 2019.
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 40.8% in the year-to-date period, outperforming the Zacks Engineering - R and D Services industry’s 12.9% rally.
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.
Fluor Corporation (FLR - Free Report) : Fluor — a Zacks Rank #1 company — is gaining from the "Building a Better Future" initiative, which is focused on enhancing markets outside the traditional oil and gas sector, fair and balanced commercial deals, financial discipline, and a high-performing business culture. It made significant progress toward strategic goals that comprise the reduction of outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
Fluor’s earnings for 2021 are expected to grow 143.1%. That said, FLR’s earnings have remained stable over the past 60 days.
Quanta Services, Inc. (PWR - Free Report) : This Zacks Rank #2 (Buy) company is set to deliver a resilient performance in 2021 and beyond despite a challenging environment. It is benefiting from a three-pronged growth strategy and strong margins from the Electric Power Infrastructure segment. Focus on the base business via supporting long-term programmatic spend of utilities and participating in the development of infrastructure that supports renewables and technology deployments such as 5G as well as electric vehicles will drive growth. It is to be noted that 80-90% of revenues are derived from the utility, communications, and a few pipeline and industrial infrastructure services, which remain strong.
Quanta Services’ earnings for 2021 have remained stable over the past 60 days. PWR’s earnings for 2021 are expected to advance 25.4%.
AECOM (ACM - Free Report) : AECOM — a Zacks Rank #2 company — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets. The company has been continuously focusing on delivering industry-leading margins and unlocking capital to invest in growth as well as innovation. Also, focus on higher-margin and lower-risk Professional Services businesses bodes well.
AECOM’s earnings for fiscal 2022 are expected to grow 20.6%. That said, ACM’s earnings have increased 1.5% over the past seven days.