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KBR Wins Advisory Consulting Contract for Kuwait's Energy Plan

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KBR, Inc. (KBR - Free Report) secured a consulting contract from Kuwait Oil Company to develop a master plan for 17GW of renewable energy and 25GW of green hydrogen production by 2050.

Per the contract, the company will provide advisory consulting services to develop a phased strategy for deploying wind and solar power with storage capability. This renewable power will support green hydrogen production for internal use and export. The work will span 18 months and include market analysis, feasibility studies and training for Kuwaiti nationals.

The move indicates KBR's commitment to Kuwait, sustainability, and the energy transition. It highlights the company's advisory expertise in major national energy projects, backed by decades of successful work in the GCC region. KBR aims to expand its presence in Kuwait by contributing to this significant national strategy.

Consistent Contract Wins Boost Backlog

KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. Heightening emphasis on national security on a global scale, energy security, energy transition and climate change is a major tailwind.

In first-quarter 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 contributed $4.36 billion to the total backlog.
 

Zacks Investment Research
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Shares of this Zacks Rank #3 (Hold) company have gained 21.1% year to date compared with the Zacks Engineering - R and D Services industry’s 31.3% 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 10.7% year-over-year growth on a 9.2% increase in revenues.

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The Zacks Consensus Estimate for KBH’s fiscal 2024 sales and EPS indicates a rise of 6.5% and 19.2%, respectively, from prior-year levels.


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