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KBR Wins a Deal to Support USAF to Extend the Life of B-52
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KBR, Inc. (KBR - Free Report) is all set to support the United States Air Force’s (USAF) Air Force Life Cycle Management Center with an estimated $82 million cost-plus-fixed-fee task order under an IAC MAC contract.
Notably, the center supports the B-52 System Program Office (AFLCMC/WBD) P1-22-2367, located at Tinker AFB, OK. With this five-year contract, KBR maintains its solid eight-year presence in the B-52 program office.
Per the deal, KBR will continue to look after reliability, maintainability, quality, supportability and interoperability issues and impact, system and structural sustainability, component and subsystem testing, obsolescence and diminishing sources, and cybersecurity.
The scope of the work includes reliability analysis, development of non-destructive inspection and test techniques, development of maintenance procedures and techniques, and analysis tools for reliability data.
Consistent Contract Wins Boost Backlog
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. Also, the rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.
In the first quarter of 2024, KBR received $1.9 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1.1X.
As of Mar 29, 2024, the total backlog (including award options of $3.596 billion) was $20.8 billion compared with $21.73 billion at 2023-end. Of the total backlog, Government Solutions booked $12.89 billion. The Sustainable Technology Solutions segment accounted for $4.36 billion of the total backlog.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 13.6% so far this year compared with the Zacks Engineering - R and D Services industry’s 23.1% growth. Although shares of the company have underperformed the industry this year, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters. KBR’s earnings estimate for 2024 reflects 10.3% year-over-year growth on a 9.2% increase in revenues.
The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 10.6% and 29.9%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently carries a Zacks Rank #2. Sterling Infrastructure has a trailing four-quarter earnings surprise of 22.3%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 11.7% and 14.8%, respectively, from the prior-year levels.
Gates Industrial Corporation plc (GTES - Free Report) presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average.
The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.
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KBR Wins a Deal to Support USAF to Extend the Life of B-52
KBR, Inc. (KBR - Free Report) is all set to support the United States Air Force’s (USAF) Air Force Life Cycle Management Center with an estimated $82 million cost-plus-fixed-fee task order under an IAC MAC contract.
Notably, the center supports the B-52 System Program Office (AFLCMC/WBD) P1-22-2367, located at Tinker AFB, OK. With this five-year contract, KBR maintains its solid eight-year presence in the B-52 program office.
Per the deal, KBR will continue to look after reliability, maintainability, quality, supportability and interoperability issues and impact, system and structural sustainability, component and subsystem testing, obsolescence and diminishing sources, and cybersecurity.
The scope of the work includes reliability analysis, development of non-destructive inspection and test techniques, development of maintenance procedures and techniques, and analysis tools for reliability data.
Consistent Contract Wins Boost Backlog
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. Also, the rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.
In the first quarter of 2024, KBR received $1.9 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1.1X.
As of Mar 29, 2024, the total backlog (including award options of $3.596 billion) was $20.8 billion compared with $21.73 billion at 2023-end. Of the total backlog, Government Solutions booked $12.89 billion. The Sustainable Technology Solutions segment accounted for $4.36 billion of the total backlog.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 13.6% so far this year compared with the Zacks Engineering - R and D Services industry’s 23.1% growth. Although shares of the company have underperformed the industry this year, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters. KBR’s earnings estimate for 2024 reflects 10.3% year-over-year growth on a 9.2% increase in revenues.
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Some better-ranked stocks in the same space are:
Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2 (Buy). HWM has a trailing four-quarter earnings surprise of 8.5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 10.6% and 29.9%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently carries a Zacks Rank #2. Sterling Infrastructure has a trailing four-quarter earnings surprise of 22.3%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 11.7% and 14.8%, respectively, from the prior-year levels.
Gates Industrial Corporation plc (GTES - Free Report) presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average.
The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.