KBR, Inc. (KBR - Free Report) has received a contract from the U.S. Air Force (USAF) Installation Contracting Center in order to provide additional cybersecurity engineering support.
With the help of this contact, KBR will boost cybersecurity and resiliency of USAF systems, while helping to instill cybersecurity finest practices into the engineering processes of systems.
This cost-plus-fixed-fee task order worth $26.8 million entitled KBR to develop cybersecurity frameworks for U.S. Air Force command and control (C2) and rapid cyber acquisition (RCA) customers.
The company will also provide system and software security, mission assurance, risk management, and resilience in developing, implementing, training, verifying, as well as executing cybersecurity strategies across the portfolio of C2 and RCA weapon systems for the U.S. Air Force Life Cycle Management Center Engineering Directorate Cyber Systems Engineering Division.
Byron Bright, the president of KBR’s U.S. Government Solutions, stated, "KBR's growing cybersecurity portfolio underscores our position as a leading provider of cutting-edge cyber and electronic security solutions for the government."
Government Solutions Business: A Key Growth Driver
The company’s Government Solutions business — which contributed 69.6% to 2019 revenues — has been serving the U.S. Air Force, Army, Navy, Marine Corps, and other federal agencies and foreign allies over the past several years.
Organically, sales from the Government Solutions business recorded 14% growth in 2019, 9% of which was organic. Its continued industry-leading organic revenue growth was underpinned by on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Improvement in KBR’s overseas logistics and mission support programs via higher military exercise activities, increased outsourcing of sustainment activities by the military and the ramp up of the new wins led to the growth.
Owing to solid performance across businesses, shares of KBR have outperformed the Zacks Engineering - R And D Services industry in a year’s time. Notably, the company is banking on strength of the Government Solutions business to optimize its growth potential. Also, steady growth in backlog is adding to KBR’s bliss. The company’s solid backlog level of $14.64 billion (as of Dec 31, 2019) compared with $13.5 billion at 2018-end highlights its underlying strength.
KBR — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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