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KBR Secures Green Ammonia Technology Deal for Japan's JGC

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KBR, Inc. (KBR - Free Report) has secured a contract from Japan’s JGC Holdings Corporation ("JGC") for its green ammonia technology — K-GreeN. However, the value of the contract is not disclosed.

KBR is required to provide K-GreeN for a project sponsored by New Energy and Industrial Technology Development Organization (“NEDO”), a national research and development agency in Japan. This global engineering, construction and services firm will provide technology licensing and basic engineering for a pilot project under NEDO's Green Innovation Fund in Fukushima, Japan.

KBR, being a global leader in ammonia technology, has been leading innovations in the ammonia market for decades. The demand for the company’s technologies across ammonia for food productions, olefins for non-single-use plastics, and refining for product diversification and more green solutions to meet tighter environmental standards has been going strong. Since 1943, KBR has licensed, engineered, or constructed 250 grassroot ammonia plants worldwide.

Japan plays an important role in the adoption of green ammonia to decarbonize our planet. KBR has many opportunities with JGC to offer its green ammonia technology for NEDO's project.

Strengthening 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 in its profit growth strategy. However, the technology business’ revenues decreased 14.1% year over year in first-quarter 2022 due to the company’s exit from the commercial activities in Russia as well as the timing of certain ongoing projects.

Nonetheless, its solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. The Sustainable Technology Solutions segment booked $2.41 billion in backlog during first-quarter 2022 versus $2.35 billion at 2021-end.

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Coming to share price performance, KBR shares have advanced 6.4% over the past year, against the Zacks Engineering - R and D Services industry’s 7.6% decline.

The Zacks Consensus Estimate for the company’s 2022 earnings has increased 2% over the past 30 days, depicting analysts’ optimism over the company’s prospects. KBR holds 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 From the Broader Construction Sector

Some better-ranked players in the Construction sector include Patrick Industries (PATK - Free Report) , Beazer Homes USA (BZH - Free Report) and NVR, Inc. (NVR - Free Report) , each sporting a Zacks Rank #1.

Patrick Industries is a leading component solutions provider for the RV, marine, and manufactured housing industries. Patrick Industries, like many others in the broader RV and consumer marine space, is amid a massive run of revenue growth that began about a decade ago.

Patrick Industries’ expected earnings growth rate for 2022 is 36.7%. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the past seven days.

Beazer Homes designs, builds and sells single-family homes. BZH designs homes to appeal primarily to entry-level and first move-up homebuyers. Beazer Homes USA’s objective is to provide customers with homes that have quality and value. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers.

Beazer Homes’ expected earnings growth rate for fiscal 2022 is 49.4%. The Zacks Consensus Estimate for current-year earnings has improved 15% over the past 30 days.

NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. In order to serve homebuilding customers, NVR operates a mortgage banking and title services business. NVR operates in two business segments:  Homebuilding and Mortgage Banking.

NVR’s expected earnings growth rate for the current year is 68.4%. The Zacks Consensus Estimate for current-year earnings has improved 20.4% over the past 30 days.