KBR Inc. (KBR - Free Report) recently announced that it has successfully delivered a Phenol Operator Training Simulator (‘’OTS’’) to Deepak Phenolics Limited (‘’DPL’’), based in India. The OTS will address DPL’s initial start-up as well as cater to the company’s long-term operator training needs.
Per the deal, KBR provided turn-key delivery of the OTS and other services for the DPL Phenol plant with a design capacity of 200 KTPA as well as the co-product Acetone plant with a design capacity of 120KTPA based in Dahej, Gujarat, India. The company also provided the license and basic engineering services for the plant.
The OTS will offer a cost-effective solution for the company’s operator training needs for safe and efficient plant start-up. The OTS-based training will help DPL’s plant operators to meet their objectives of operating the plant safely and reliably. Moreover, it will also enable plant operators respond to operational emergencies for higher productivity.
Slew of Contract Wins
Some notable contracts recently secured by the company include a Facilities Management Services Operations (FMSO) contract from the UK Ministry of Defence (MOD) and a $52-million deal from Federal Aviation Administration.
This apart, the business secured an engineering and project management services contract from JVGAS as well as a base operating support services deal from the Naval Facilities Engineering Command (NAVFAC) Atlantic.
Existing Business Scenario
Currently, KBR is banking on the strength of Government Services businesses to optimize its growth potential. The particular business is growing steadily, adding to KBR’s bliss. The company is also experiencing steady growth in its Technology & Consulting segment. The growth is primarily attributable to new consulting contracts from upstream projects. For the Technology & Consulting segment, the company expects thriving global technology opportunities led by ammonia, refining and olefins projects to persist. In addition, growing client operational expenditure is set to benefit the Engineering and Construction segment.
Over the past six months, this Zacks Rank #2 (Buy) company has returned 18.7% outperforming the industry’s average gain of 7.3%. KBR’s eye on strategic acquisitions and alliances have bolstered its inorganic growth and expanded its market share. Last year, KBR completed several strategic acquisitions, including two established and highly technical government services companies. This buyout fortifies KBR’s position as a professional services and technologies provider.
Other Stocks to Consider
Some other top-ranked stocks in the same space are Boise Cascade, L.L.C. (BCC - Free Report) , Owens Corning Inc. (OC - Free Report) and Willdan Group, Inc. (WLDN - Free Report) . While Boise Cascade and Owens Corning sport a Zacks Rank #1 (Strong Buy), Willdan Group carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 116.3%.
Owens Corning has outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 17.5%.
Willdan Group has outpaced estimates in the preceding four quarters, with an average earnings surprise of 44.8%.
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