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KBR Wins $140M US Air Force Follow-On Task Order, Aids GS Backlog
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KBR, Inc. (KBR - Free Report) has secured a 60-month, $140 million recompete Information Analysis Center Multiple Award Contract task order from the U.S. Air Force. As a trusted partner, KBR will provide critical engineering tasks to ensure the operational safety, suitability, and effectiveness of systems under the Air Force Life Cycle Management Center (AFLCMC).
KBR’s experts will continue conducting research and analyses to enhance reliability, maintainability, and life cycle management, among other key areas, at Hill Air Force Base in Utah and other locations. The company will also support the F-16, A-10, and T-38 System Program Offices in their digital transformation efforts through digital material management initiatives.
In addition, KBR will provide systems engineering and integration for critical programs such as the A-10 Ground Collision Avoidance System, the F-16's Secure Mission Data System and JARVIS programs. Leveraging its rapid prototyping capabilities, KBR will develop prototypes for essential safety hardware, including the T-38 Canopy Transparency.
KBR’s Solid Backlog Raises Hope for Future
KBR’s strong project momentum stems from its resilient business model and efficiency-driven initiatives. The increasing global emphasis on national security, energy security, energy transition, and climate change has provided significant tailwinds. With over five decades of design engineering expertise across industries, KBR remains a leader in decarbonization efforts, utilizing innovative processes and low-carbon technologies to effectively reduce emissions.
In the second quarter of 2024, KBR received $2.1 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1x. Total revenues increased 6% to $1.86 billion year over year. The upside was backed by growth across Sustainable Technology Solutions (STS), as well as the Government Solutions’ (GS) new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays.
As of June 28, 2024, the total backlog (including award options of $3.332 billion) was $20.1 billion compared with $21.73 billion at 2023-end. Of the total backlog, GS booked was $12.89 billion. The STS segment contributed $3.92 billion to the total backlog.
KBR’s Stock Performance
Shares of this company have lost 3.5% in the past three months against the Zacks Engineering - R and D Services industry’s 3.9% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its GS businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period.
Image Source: Zacks Investment Research
Backed by its solid performance in the first half and improving global demand for its services, KBR raised its adjusted earnings per share (EPS) projection to the range of $3.15-$3.30 from $3.10-$3.30 expected earlier.
The Zacks Consensus Estimate for KBR’s 2024 EPS has moved up by a cent to $3.25 in the past 30 days, which reflects 11.7% year-over-year growth on a 9.6% increase in revenues.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2 (Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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KBR Wins $140M US Air Force Follow-On Task Order, Aids GS Backlog
KBR, Inc. (KBR - Free Report) has secured a 60-month, $140 million recompete Information Analysis Center Multiple Award Contract task order from the U.S. Air Force. As a trusted partner, KBR will provide critical engineering tasks to ensure the operational safety, suitability, and effectiveness of systems under the Air Force Life Cycle Management Center (AFLCMC).
KBR’s experts will continue conducting research and analyses to enhance reliability, maintainability, and life cycle management, among other key areas, at Hill Air Force Base in Utah and other locations. The company will also support the F-16, A-10, and T-38 System Program Offices in their digital transformation efforts through digital material management initiatives.
In addition, KBR will provide systems engineering and integration for critical programs such as the A-10 Ground Collision Avoidance System, the F-16's Secure Mission Data System and JARVIS programs. Leveraging its rapid prototyping capabilities, KBR will develop prototypes for essential safety hardware, including the T-38 Canopy Transparency.
KBR’s Solid Backlog Raises Hope for Future
KBR’s strong project momentum stems from its resilient business model and efficiency-driven initiatives. The increasing global emphasis on national security, energy security, energy transition, and climate change has provided significant tailwinds. With over five decades of design engineering expertise across industries, KBR remains a leader in decarbonization efforts, utilizing innovative processes and low-carbon technologies to effectively reduce emissions.
In the second quarter of 2024, KBR received $2.1 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1x. Total revenues increased 6% to $1.86 billion year over year. The upside was backed by growth across Sustainable Technology Solutions (STS), as well as the Government Solutions’ (GS) new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays.
As of June 28, 2024, the total backlog (including award options of $3.332 billion) was $20.1 billion compared with $21.73 billion at 2023-end. Of the total backlog, GS booked was $12.89 billion. The STS segment contributed $3.92 billion to the total backlog.
KBR’s Stock Performance
Shares of this company have lost 3.5% in the past three months against the Zacks Engineering - R and D Services industry’s 3.9% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its GS businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period.
Image Source: Zacks Investment Research
Backed by its solid performance in the first half and improving global demand for its services, KBR raised its adjusted earnings per share (EPS) projection to the range of $3.15-$3.30 from $3.10-$3.30 expected earlier.
The Zacks Consensus Estimate for KBR’s 2024 EPS has moved up by a cent to $3.25 in the past 30 days, which reflects 11.7% year-over-year growth on a 9.6% increase in revenues.
KBR’s Zacks Rank & Key Picks
Currently, KBR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are:
Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2 (Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.