KBR Inc. ( KBR Quick Quote KBR - Free Report) and NASK joint venture (JV) — Xandar LLC — has nabbed a potential $4.8 billion contract from the National Air and Space Intelligence Center or NASIC for research and development and maintenance of key systems. Per this multiple-award, indefinite delivery/indefinite quantity Scientific and Technical Information Analytic Capability Support or NOVASTAR contract, Xandar LLC will facilitate NASIC with research, development and maintenance of new and existing hardware, systems and software capabilities for the scientific and technical intelligence production for the U.S. Air Force. Byron Bright, KBR’s Government Solutions U.S. President, said, “Xandar's broad technical capabilities and strong understanding of the customer's mission make us the right partner to support NASIC in meeting both the known and unforeseen challenges of the future”. Xandar will deliver innovative resource skills for the technical analysis to build intelligence products via innovations, thereby improving productivity in technical analysis product generation. Government Business: a Major Growth Driver
The company’s Government Solutions unit has been witnessing solid organic growth across all government businesses — Defense & Intel, Science & Space, Readiness & Sustainment and International. The Government Solutions business has been banking on on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Strength in KBR’s overseas logistics and mission support programs on the back of higher military exercise activities, increased outsourcing of sustainment activities by the military and the ramp-up of the new wins led to the growth. Moreover, 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 on, KBR expects growth across all its key markets in the United States, the UK and Australia, driven by continued opportunities across the lifecycle of projects.
Revenues in the Government Solutions segment increased 6.6% year over year to $1,312 million in the second quarter of 2022. The unit continues to benefit from a favorable international mix, strong project execution and excellent customer performance scores in challenging technical areas that reflect high client satisfaction, core revenue growth and favorable project closeouts. The stock has gained 19.8% in the past year versus the Zacks Engineering - R and D Services industry’s 2.7% decline. Image Source: Zacks Investment Research The 2022 earnings estimate for this Zacks Rank #3 (Hold) company moved upward to $2.62 per share from $2.61 in the past 30 days. This positive trend reflects bullish analyst sentiment. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Some Better-Ranked Stock in the Construction Sector United Rentals, Inc. ( URI Quick Quote URI - Free Report) , a Zacks Rank #1 company, has been benefiting from a broad-based recovery of activity across end markets served. Also, higher margins from rental revenues and used equipment sales are added benefits. The consensus mark for URI’s 2022 earnings rose to $31.73 per share from $29.68 in the past 60 days. This suggests 43.8% year-over-year growth. Dycom Industries, Inc. ( DY Quick Quote DY - Free Report) — a Zacks Rank #1 company — a specialty contracting firm operating in the telecom industry. It has been gaining from higher demand, extended geographic reach and proficient program management and network planning services. Dycom’s earnings for the current fiscal year are expected to grow by 134.2%. EMCOR Group ( EME Quick Quote EME - Free Report) , a Zacks Rank #2 (Buy) company, has been benefiting from double-digit growth across the U.S. segments, resilient end markets, solid RPOs and bolt-on acquisitions. The consensus mark for EME’s 2022 earnings rose to $7.73 per share from $7.64 in the past 60 days. This suggests 9.5% year-over-year growth.