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KBR Strengthens Defense Ties With $230M Navy Contract Award
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KBR, Inc. (KBR - Free Report) has been awarded a $230 million cost-plus-fixed-fee contract by the Department of Defense Information Analysis Center. This contract is part of a larger initiative by the U.S. Air Force’s 774th Enterprise Sourcing Squadron to enhance information systems and provide logistics IT solutions for Naval Air Systems Command (NAVAIR) and other key military branches. The five-year contract will primarily focus on modernizing information systems, conducting research, and improving logistical IT for U.S. Navy operations.
Strengthening KBR's Portfolio and Government Relationships
The contract win underscores KBR's 21-year history as a trusted partner in supporting U.S. military operations. As part of this agreement, KBR will provide advanced solutions to optimize IT systems for critical Naval operations, such as the Joint Technical Data Integration, Joint Delivery Management Service and Naval Air Systems Command Fleet System Array programs. These efforts aim to enhance real-time data movement, cybersecurity, and software testing in complex military environments.
Stuart Bradie, KBR president and CEO, expressed confidence in KBR’s ongoing partnership with NAVAIR, emphasizing the company’s ability to implement high-end technical capabilities across large-scale enterprise systems.
What This Means for KBR Stock
For investors, this contract is a strong indication of KBR’s ongoing relevance in the defense sector, particularly in logistics and IT modernization. The company’s ability to secure long-term, high-value contracts positions it favorably for future growth, especially as defense and cybersecurity spending continues to rise.
Additionally, the company’s extensive experience in managing complex systems across Navy, Army, and Marine Corps units ensures that KBR’s solutions will remain integral to U.S. military operations, supporting the company’s revenue streams for years to come. This latest win is likely to boost investors’ confidence in KBR’s stock, as it strengthens the company’s portfolio and reinforces its government relationships.
Image Source: Zacks Investment Research
Shares of KBR have gained 12.2% year to date, underperforming the Zacks Engineering - R and D Services industry’s 29.4% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its GS businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period (read more: KBR Wins $140M US Air Force Follow-On Task Order, Aids GS Backlog).
Backed by its solid performance in the first half and improving global demand for its services, KBR raised its adjusted earnings per share (EPS) projection to the range of $3.15-$3.30 from $3.10-$3.30 expected earlier.
The Zacks Consensus Estimate for KBR’s 2024 EPS has moved up by a cent to $3.25 in the past 30 days, which reflects 11.7% year-over-year growth on a 9.6% increase in revenues.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently carries a Zacks Rank #2 (Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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KBR Strengthens Defense Ties With $230M Navy Contract Award
KBR, Inc. (KBR - Free Report) has been awarded a $230 million cost-plus-fixed-fee contract by the Department of Defense Information Analysis Center. This contract is part of a larger initiative by the U.S. Air Force’s 774th Enterprise Sourcing Squadron to enhance information systems and provide logistics IT solutions for Naval Air Systems Command (NAVAIR) and other key military branches. The five-year contract will primarily focus on modernizing information systems, conducting research, and improving logistical IT for U.S. Navy operations.
Strengthening KBR's Portfolio and Government Relationships
The contract win underscores KBR's 21-year history as a trusted partner in supporting U.S. military operations. As part of this agreement, KBR will provide advanced solutions to optimize IT systems for critical Naval operations, such as the Joint Technical Data Integration, Joint Delivery Management Service and Naval Air Systems Command Fleet System Array programs. These efforts aim to enhance real-time data movement, cybersecurity, and software testing in complex military environments.
Stuart Bradie, KBR president and CEO, expressed confidence in KBR’s ongoing partnership with NAVAIR, emphasizing the company’s ability to implement high-end technical capabilities across large-scale enterprise systems.
What This Means for KBR Stock
For investors, this contract is a strong indication of KBR’s ongoing relevance in the defense sector, particularly in logistics and IT modernization. The company’s ability to secure long-term, high-value contracts positions it favorably for future growth, especially as defense and cybersecurity spending continues to rise.
Additionally, the company’s extensive experience in managing complex systems across Navy, Army, and Marine Corps units ensures that KBR’s solutions will remain integral to U.S. military operations, supporting the company’s revenue streams for years to come. This latest win is likely to boost investors’ confidence in KBR’s stock, as it strengthens the company’s portfolio and reinforces its government relationships.
Image Source: Zacks Investment Research
Shares of KBR have gained 12.2% year to date, underperforming the Zacks Engineering - R and D Services industry’s 29.4% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its GS businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period (read more: KBR Wins $140M US Air Force Follow-On Task Order, Aids GS Backlog).
Backed by its solid performance in the first half and improving global demand for its services, KBR raised its adjusted earnings per share (EPS) projection to the range of $3.15-$3.30 from $3.10-$3.30 expected earlier.
The Zacks Consensus Estimate for KBR’s 2024 EPS has moved up by a cent to $3.25 in the past 30 days, which reflects 11.7% year-over-year growth on a 9.6% increase in revenues.
KBR's Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are:
Howmet Aerospace Inc. (HWM - Free Report) presently sports a Zacks Rank #1 (Strong Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently carries a Zacks Rank #2 (Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.