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KBR Wins 94th AAMDC Mission-Critical Task Order for 5 Years
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KBR, Inc. (KBR - Free Report) won a $24-million, 5-year contract from the 94th Army Air and Missile Defense Command (94th AAMDC).
KBR will offer mission-critical base operations and infrastructure services at two key communications sites, Kyogamisaki and Shariki Communication (KCS and SCS), in Japan. The recent win aligns with KBR's focus on expanding operations within the Indo-Pacific region in support of the U.S. strategic goals in the region.
KBR will deliver uninterrupted mission support, infrastructure security and safety by leveraging on a “ONE KBR” approach to keep all mission-critical systems fully operational throughout the transition. Also, it will plan and provide Morale, Welfare and Recreation (MWR) services for KCS and SCS, facilitating events that further improve the U.S.-Japan alliance and service members’ quality of life.
Byron Bright, KBR’s Government Solutions’ U.S. president, said, "This expansion of services in Japan adds to our current operations in Korea and Diego Garcia. Our team supports exercises throughout the region, including in Thailand and the Philippines, allowing the U.S. to maintain strategic positioning and strengthen its relations in the Indo-Pacific. We're honored to enhance the lives of our service members by expanding our support to U.S. operations in Japan."
KBR has been providing mission-critical logistics, operations and prepositioned stock services to various nations across the world for more than 25 years.
Share Price Performance
Shares of the company have slipped 0.24% on May 23 but grew 4.3% in the past three months compared with the industry’s 2.2% fall. Earnings estimates for 2023 increased by two cents in the past 30 days, reflecting 6.6% year-over-year growth. The trend is likely to continue, given the solid backlog level (including award options).
Image Source: Zacks Investment Research
As of Mar 31, 2023, the total backlog (including award options) was $20.89 billion compared with $19.76 billion at 2021-end. Of the total backlog, GS booked $16 billion. The Sustainable Technology Solutions segment accounted for $4.9 billion of the total backlog.
KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been gaining from high-end and differentiated government business work, strong margin performance, and technology and consulting services. KBR’s long-term, mission-critical programs provide strong visibility in volatile times. Its determination to reduce emissions, product diversification, inorganic moves and strategic alliances bode well.
Peer Releases
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for first-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation have been going strong and are expected to continue throughout the year.
AECOM (ACM - Free Report) reported impressive results in second-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased, backed by strong organic net service revenues (NSR) growth.
For fiscal 2023, ACM anticipates generating 8% organic NSR growth (4% for actual NSR), underpinned by robust momentum in the Professional Services business. The company expects adjusted EPS of $3.55-$3.75, which indicates a 10% improvement from the fiscal 2022 reported levels. Also, it projects an adjusted operating margin of 14.6%, suggesting an increase of 40 bps on a year-over-year basis. On a constant-currency basis, AECOM expects adjusted EBITDA of $935-$975 million, indicating 10% year-over-year growth at the mid-point.
Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago reported level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.
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KBR Wins 94th AAMDC Mission-Critical Task Order for 5 Years
KBR, Inc. (KBR - Free Report) won a $24-million, 5-year contract from the 94th Army Air and Missile Defense Command (94th AAMDC).
KBR will offer mission-critical base operations and infrastructure services at two key communications sites, Kyogamisaki and Shariki Communication (KCS and SCS), in Japan. The recent win aligns with KBR's focus on expanding operations within the Indo-Pacific region in support of the U.S. strategic goals in the region.
KBR will deliver uninterrupted mission support, infrastructure security and safety by leveraging on a “ONE KBR” approach to keep all mission-critical systems fully operational throughout the transition. Also, it will plan and provide Morale, Welfare and Recreation (MWR) services for KCS and SCS, facilitating events that further improve the U.S.-Japan alliance and service members’ quality of life.
Byron Bright, KBR’s Government Solutions’ U.S. president, said, "This expansion of services in Japan adds to our current operations in Korea and Diego Garcia. Our team supports exercises throughout the region, including in Thailand and the Philippines, allowing the U.S. to maintain strategic positioning and strengthen its relations in the Indo-Pacific. We're honored to enhance the lives of our service members by expanding our support to U.S. operations in Japan."
KBR has been providing mission-critical logistics, operations and prepositioned stock services to various nations across the world for more than 25 years.
Share Price Performance
Shares of the company have slipped 0.24% on May 23 but grew 4.3% in the past three months compared with the industry’s 2.2% fall. Earnings estimates for 2023 increased by two cents in the past 30 days, reflecting 6.6% year-over-year growth. The trend is likely to continue, given the solid backlog level (including award options).
Image Source: Zacks Investment Research
As of Mar 31, 2023, the total backlog (including award options) was $20.89 billion compared with $19.76 billion at 2021-end. Of the total backlog, GS booked $16 billion. The Sustainable Technology Solutions segment accounted for $4.9 billion of the total backlog.
KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been gaining from high-end and differentiated government business work, strong margin performance, and technology and consulting services. KBR’s long-term, mission-critical programs provide strong visibility in volatile times. Its determination to reduce emissions, product diversification, inorganic moves and strategic alliances bode well.
Peer Releases
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for first-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation have been going strong and are expected to continue throughout the year.
AECOM (ACM - Free Report) reported impressive results in second-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased, backed by strong organic net service revenues (NSR) growth.
For fiscal 2023, ACM anticipates generating 8% organic NSR growth (4% for actual NSR), underpinned by robust momentum in the Professional Services business. The company expects adjusted EPS of $3.55-$3.75, which indicates a 10% improvement from the fiscal 2022 reported levels. Also, it projects an adjusted operating margin of 14.6%, suggesting an increase of 40 bps on a year-over-year basis. On a constant-currency basis, AECOM expects adjusted EBITDA of $935-$975 million, indicating 10% year-over-year growth at the mid-point.
Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago reported level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.