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KBR's H2ACT Selected for Ulsan's Ammonia Cracking Project
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KBR, Inc. (KBR - Free Report) signed a Memorandum of Understanding (MoU) with Korea-based ISU Chemical to provide its innovative technology, H2ACT, for a commercial ammonia cracking project.
Per the MoU, KBR is expected to deliver licensing, proprietary engineering design, proprietary equipment and catalyst for the planned 10 MTPD hydrogen production unit. This project is based in Ulsan, Republic of Korea, and its operations are scheduled to start during the first half of 2026.
KBR is optimistic about the extensions of its partnership with ISU Chemical. This is because it believes this collaboration will help expand the range of adopting ammonia cracking for the production of hydrogen. This will also aid KBR in achieving its net zero targets.
Image Source: Zacks Investment Research
Following the announcement, shares of this engineering, construction and services firm inched up 0.6% during the trading hours on Nov 14. However, shares of the company have gained 6.4% in the past year compared with the Zacks Engineering - R and D Services industry’s 21% growth.
Consistent Contract Wins Drive Growth
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project winning momentum. Also, rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.
In the third quarter of 2023, it received $3.5 billion in bookings and options in highly strategic areas, thus taking its backlog and option level to $21.8 billion. This uptrend was backed by increased new contracts and on-contract growth within all Government Solutions business units. Also, growing demand for Sustainable Technology Solutions, mainly from engineering and professional services and technology licensing, adds to growth.
Since third-quarter 2023 end, the company announced six contract wins. Recently, on Nov 9, it won a Front-End Engineering Design contract from Fidelis New Energy for Project Fyrkat. Per the contract, its Sustainable Technology Solutions’ (STS) experts will provide engineering services to aid liquid carbon dioxide handling and storage facility, supporting Fidelis New Energy’s aim to help global decarbonization.
Going forward, KBR expects broad-based growth across both Government Solutions and STS segments. Primary growth drivers include high-end and differentiated government business work, strong margin performance, and technology and consulting business.
Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks that investors may consider from the Zacks Construction sector.
Acuity Brands, Inc. (AYI - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). AYI delivered a trailing four-quarter earnings surprise of 12%, on average. The stock has declined 2.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AYI’s fiscal 2024 sales and EPS indicates a decline of 3% and 4.7%, respectively, from a year ago.
M-tron Industries, Inc. (MPTI - Free Report) currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 267.7% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and earnings per share (EPS) indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Construction Partners, Inc. (ROAD - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.6%, on average. Shares of ROAD have rallied 36.7% in the past year.
The Zacks Consensus Estimate for ROAD’s fiscal 2024 sales and EPS indicates an improvement of 14.6% and 47.1%, respectively, from the prior-year levels.
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KBR's H2ACT Selected for Ulsan's Ammonia Cracking Project
KBR, Inc. (KBR - Free Report) signed a Memorandum of Understanding (MoU) with Korea-based ISU Chemical to provide its innovative technology, H2ACT, for a commercial ammonia cracking project.
Per the MoU, KBR is expected to deliver licensing, proprietary engineering design, proprietary equipment and catalyst for the planned 10 MTPD hydrogen production unit. This project is based in Ulsan, Republic of Korea, and its operations are scheduled to start during the first half of 2026.
KBR is optimistic about the extensions of its partnership with ISU Chemical. This is because it believes this collaboration will help expand the range of adopting ammonia cracking for the production of hydrogen. This will also aid KBR in achieving its net zero targets.
Image Source: Zacks Investment Research
Following the announcement, shares of this engineering, construction and services firm inched up 0.6% during the trading hours on Nov 14. However, shares of the company have gained 6.4% in the past year compared with the Zacks Engineering - R and D Services industry’s 21% growth.
Consistent Contract Wins Drive Growth
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project winning momentum. Also, rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.
In the third quarter of 2023, it received $3.5 billion in bookings and options in highly strategic areas, thus taking its backlog and option level to $21.8 billion. This uptrend was backed by increased new contracts and on-contract growth within all Government Solutions business units. Also, growing demand for Sustainable Technology Solutions, mainly from engineering and professional services and technology licensing, adds to growth.
Since third-quarter 2023 end, the company announced six contract wins. Recently, on Nov 9, it won a Front-End Engineering Design contract from Fidelis New Energy for Project Fyrkat. Per the contract, its Sustainable Technology Solutions’ (STS) experts will provide engineering services to aid liquid carbon dioxide handling and storage facility, supporting Fidelis New Energy’s aim to help global decarbonization.
Going forward, KBR expects broad-based growth across both Government Solutions and STS segments. Primary growth drivers include high-end and differentiated government business work, strong margin performance, and technology and consulting business.
Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks that investors may consider from the Zacks Construction sector.
Acuity Brands, Inc. (AYI - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). AYI delivered a trailing four-quarter earnings surprise of 12%, on average. The stock has declined 2.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AYI’s fiscal 2024 sales and EPS indicates a decline of 3% and 4.7%, respectively, from a year ago.
M-tron Industries, Inc. (MPTI - Free Report) currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 267.7% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and earnings per share (EPS) indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Construction Partners, Inc. (ROAD - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.6%, on average. Shares of ROAD have rallied 36.7% in the past year.
The Zacks Consensus Estimate for ROAD’s fiscal 2024 sales and EPS indicates an improvement of 14.6% and 47.1%, respectively, from the prior-year levels.