We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KBR Secures Seat on $6.4B IDIQ Contract From US Air Force
Read MoreHide Full Article
KBR Inc. (KBR - Free Report) has received a contract from the U.S. Air Force for worldwide contingency and humanitarian support. This multiple-award Air Force Contract Augmentation Program V (AFCAP V) contract has a maximum ceiling value of $6.4 billion and an eight-year performance period.
Per this indefinite-delivery, indefinite-quantity (IDIQ) contract, KBR has the opportunity to compete on task orders to provide a full range of support to the U.S. government. These services include assisting with contingency planning, deploying, training and equipping of U.S. military forces; emergency and contingency construction; as well as logistics and commodities.
KBR has held a seat on predecessor contracts, AFCAP III and IV, since 2005. The company has been providing the U.S. Air Force for critical services through various AFCAP contracts. It had provided recovery efforts at the Tyndall Air Force Base, after Hurricane Michael devastated the same in 2018.
"When the U.S. government faces unexpected circumstances, KBR has the ability to quickly and adeptly meet challenges head-on anywhere in the world," said Byron Bright, KBR’s Government Solutions U.S. president.
Solid Contribution From Government Solutions Business Bodes Well
The performance of the Government Solutions business is exceeding market expectation, which is adding to KBR’s bliss. The segment, which has been delivering industry-leading organic revenue growth for quite some time now, currently contributes 69.6% to the company’s total revenues. Organically, sales from the Government Solutions business recorded 14% growth in 2019, 9% of which was organic.
The solid performance was pinned by on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under its portfolio of well-positioned contracting vehicles. Ongoing growth in KBR’s overseas logistics and mission support programs driven by higher military exercise activities, increased outsourcing of sustainment activities by the military and the ramp up of the new wins led to the growth.
Higher tasking for various missile defense and other military priorities in its engineering business areas, under select IDIQ contracts, also led to the upside.
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 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. Nearly 75% of the backlog represents work in Government Solutions.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
KBR Secures Seat on $6.4B IDIQ Contract From US Air Force
KBR Inc. (KBR - Free Report) has received a contract from the U.S. Air Force for worldwide contingency and humanitarian support. This multiple-award Air Force Contract Augmentation Program V (AFCAP V) contract has a maximum ceiling value of $6.4 billion and an eight-year performance period.
Per this indefinite-delivery, indefinite-quantity (IDIQ) contract, KBR has the opportunity to compete on task orders to provide a full range of support to the U.S. government. These services include assisting with contingency planning, deploying, training and equipping of U.S. military forces; emergency and contingency construction; as well as logistics and commodities.
KBR has held a seat on predecessor contracts, AFCAP III and IV, since 2005. The company has been providing the U.S. Air Force for critical services through various AFCAP contracts. It had provided recovery efforts at the Tyndall Air Force Base, after Hurricane Michael devastated the same in 2018.
"When the U.S. government faces unexpected circumstances, KBR has the ability to quickly and adeptly meet challenges head-on anywhere in the world," said Byron Bright, KBR’s Government Solutions U.S. president.
Solid Contribution From Government Solutions Business Bodes Well
The performance of the Government Solutions business is exceeding market expectation, which is adding to KBR’s bliss. The segment, which has been delivering industry-leading organic revenue growth for quite some time now, currently contributes 69.6% to the company’s total revenues. Organically, sales from the Government Solutions business recorded 14% growth in 2019, 9% of which was organic.
The solid performance was pinned by on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under its portfolio of well-positioned contracting vehicles. Ongoing growth in KBR’s overseas logistics and mission support programs driven by higher military exercise activities, increased outsourcing of sustainment activities by the military and the ramp up of the new wins led to the growth.
Higher tasking for various missile defense and other military priorities in its engineering business areas, under select IDIQ contracts, also led to the upside.
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 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. Nearly 75% of the backlog represents work in Government Solutions.
Zacks Rank
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>