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KBR Secures $120-Million Recompete Contracts From U.S. Navy

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KBR, Inc. (KBR - Free Report) recently announced it has won contracts worth more than $120 million from U.S. Navy, wherein it has to deliver engineering services for the latter’s training systems and aircraft survivability equipment. KBR will carry out work for these task orders in Florida and other locations over the next five years.

As per the task order worth $64.9 million, KBR will develop and refurbish training system hardware, software, electronic classroom content and audio-visual courseware for the E-2/C-2 Airborne Command and Control Systems Program Office (PMA-231). KBR will also research and analyze the scope for live, virtual and constructive training that is compatible with other platforms.

Furthermore, KBR won a $55.3-million task order to offer multidiscipline research as well as predictive modeling services for the Advanced Tactical Aircraft Protection Systems Program Office (PMA-272). Consequently, KBR will enhance the authenticity, serviceability and accessibility of aircraft equipment. The company will also provide development and management services to databases and electronic technical manuals.

With respect to this, KBR's Government Solutions president, Byron Bright said, “These recompetes speak to KBR's commitment and capability to prepare and protect men and women in the fleet. Our work helps servicemembers carry out their missions effectively and come home safely.”

Robust Contribution From Government Solutions Business

The Government Solutions business is one of the major contributing units of KBR, which shares space with Altair Engineering Inc. (ALTR - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and AECOM (ACM - Free Report) in the Zacks Engineering - R and D Services industry. KBR is banking on the strength of its Government Solutions business to optimize its growth potential. Robust backlog is also growing steadily, adding to the company’s bliss.

Government Solutions, which accounted for 68.2% of KBR's 2020 revenues, mainly focuses on long-term service contracts with annuity streams for the U.K., Australian and U.S. governments.

KBR’s continuous growth is led by strong contribution from the overseas logistics and mission support programs, higher military exercise activities and increased outsourcing of sustainment activities by the military, along with ramp up of new contract wins. Higher tasking for various missile defense and other military priorities in its engineering business areas — under select IDIQ contracts — are major positives. The company anticipates strong growth across all key markets in the United States, U.K. and Australia, primarily attributable to persistent opportunities across the project’s lifecycle.

KBR’s shares have rallied 24% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 16.7% growth. Also, the Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s 2021 earnings indicates a 3.7% increase from 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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