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KBR Wins $44M Deal to Guard U.S. Air Force Systems & Software

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KBR, Inc. (KBR - Free Report) has secured a task order for protecting U.S. Air Force systems and software under the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract vehicle. This contract marks an important win for KBR for its continued growth in the Air Force cybersecurity area.

The contract, valued at $44 million, will enable KBR to provide protection from unauthorized access, use, disclosure, disruption, modification or destruction. Awarded by the U.S. Air Force's 774th Enterprise Sourcing Squadron, this contract will support the Air Force Life Cycle Management (“AFLCMC”) Cyber Systems Engineering Directorate.

These DoD IAC MAC task orders include the development and generation of new knowledge for the enhancement of the Defense Technical Information Center repository and the R&D and S&T community.

Pertaining to the latest contract, Byron Bright, KBR Government Solutions’ President, said, "We are excited to be a part of this significant project to protect the Air Force's most vital systems, to include command and control, force protection and emerging technology systems and capabilities."

Continuous Contract Win & Focus on GS Business: A Major Growth Driver

The company ended 2021 demonstrating its unwavering focus and superb business execution. Even during first-quarter 2022, revenues in the Government Solutions (“GS”) segment increased 25.3% year over year to $1,459 million. Solid double-digit top-line growth, strong organic growth in the GS unit and robust adjusted EBITDA growth are commendable. Currently, KBR is enjoying higher revenues in the segment, given solid organic growth across each of its government businesses. Organic growth was 21% in the first quarter.

Among the recent contract wins, the GS unit won two task orders — worth $106 million — from the U.S. Air Force's 774th Enterprise Sourcing Squadron to support AFLCMC. Per the contract, KBR will support the modernization and sustainment of the C-130 Hercules aircraft. It will help in the development of recommendations on cyber security strategies, engineering analysis and assessment of testing for the International Air Traffic Control Radar Beacon System, Identification Friend or Foe and Mark XIIB System Program Office.

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KBR’s shares have outperformed the industry this year. Its solid prospects are backed by continuous contract wins, strong project execution, an impressive backlog level, and potential government as well as technology businesses. KBR’s solid backlog level (including award options) of $18.55 billion (as of Mar 31, 2022) highlights its underlying strength.

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.

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