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KBR's KBRwyle Wins $500M Contract From Defense Department

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KBR, Inc.’s (KBR - Free Report) government services unit, KBRwyle has recently clinched a $500-million contract from the U.S. Department of Defense, under which the company will provide personal services in human performance and behavioral health to the U.S. Special Operations Command (USSOCOM) in support of its Preservation of the Force and Family (POTFF) mission.

Per the contract, KBRwyle will provide state-of-the-art, professional services, comprising integrated, performance-based strength and conditioning programs, and rehabilitation techniques to accelerate Special Operations Forces’ (“SOF”) performances.

It will also provide counseling services and other activities to the SOF warriors and their families to boost their spirit and well-being. This support will be carried out at 26 locations in the United States and worldwide.

KBR’s Government Services Unit: A Bright Spot

KBR’s Government Services segment, accounting for more than 72.6% of the total revenues, has been performing pretty well. Presently, the company is banking on the strength of Government Services businesses to optimize its growth potential.

KBR is one of the leaders in the human performance market. In fact, KBR, has been supporting Army and Navy in the United States, under its KBRwyle unit for a long time.

KBR’s backlog level of $13.5 billion as of Sep 30, 2018 highlights its underlying strength. About 81.8% of the backlog represents work in the Government Services segment, which increased 34.9% on a year-over-year basis in the third quarter. Notably, during the quarter, the company’s total revenues increased 23.6% year over year, courtesy of 59.5% growth of the Government Services business. Such contracts of mission support programs are likely to further boost revenues.

Furthermore, KBR, which shares the Engineering- R and D Services space with Jacobs Engineering Group Inc. (JEC - Free Report) , Gates Industrial Corporation plc (GTES - Free Report) and AECOM (ACM - Free Report) , expects growth across all its key markets in the United States, the U.K. and Australia, driven by continued opportunities across the lifecycle of projects.

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