KBR Continues to Support US Navy at NRL With SSIEP 3 Contract

KBR, Inc. KBR has been chosen by the U.S. Navy to develop space science instrument systems at the Naval Research Lab (NRL) in Washington, D.C. KBR has received a Space Science Instruments and Experimental Payloads (SSIEP) 3 contract, which is a follow-on contract of SSIEP 1 and 2 (received in 2015).Per this cost-plus-fixed-fee contract, KBR will provide personnel, equipment and facilities to support engineering and research activities for the Navy's Space Science Division. KBR’s focus will be on the design, development, analysis, fabrication, inspection, assembly, integration, testing, and documentation of sophisticated space science instruments and experimental payloads.The work under KBR’s Government Solutions U.S. business also involves various forms of engineering, like thermal systems, contamination, optical and radio frequency, instrument systems, mechanisms, mechanical, and electrical. Moreover, it has an expected tenure of more than five years.Solid Contract Winning SpreeKBR’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. Notably, KBR has more than five decades of comprehensive design engineering experience in various industries.KBR remains at the forefront of pioneering decarbonization initiatives through continuous process innovation and harnessing low-carbon technologies to reduce emissions effectively.Recently, its Sustainable Technology Solutions business was selected by Avina Clean Hydrogen Inc. to provide technology licensing, proprietary engineering design, and front-end engineering design. Its sustainable aviation fuel (SAF) technology — PureSAF — was selected for Avina's project in the United Statesto produce 120 million gallons of SAF per year.This year, KBR is celebrating 100 years of offering clean fuel solutions.This apart, on Aug 5, the company received a five-year, approximately $153 million, cost plus fixed fee, recompete contract from Naval Test Wings Atlantic and Pacific Aircrew Services. Per the deal, KBR’s experts will perform the work at Naval Air Station Patuxent River, MD, as well as at NAS Pt. Mugu, and NAS China Lake, CA.Share Price PerformanceShares of this company have gained 20% so far this year compared with the Zacks Engineering - R and D Services industry’s 29.2% 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.Image Source: Zacks Investment ResearchIn the second quarter of 2024, KBR received $2.1 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1x. Total revenues increased 6% to $1.86 billion year over year. The upside was backed by growth across Sustainable Technology Solutions as well as the Government Solutions’ new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays.As of Jun 28, 2024, the total backlog (including award options of $3.332 billion) was $20.1 billion compared with $21.73 billion at 2023-end. Of the total backlog, Government Solutions booked was $12.89 billion. The Sustainable Technology Solutions segment contributed $3.92 billion to the total 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 $3.15-$3.30 from $3.10-$3.30 expected earlier.KBR’s EPS estimate for 2024 reflects 11.3% year-over-year growth to $3.24 on a 9% increase in revenues.Zacks Rank & Key PicksCurrently, KBR carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the same space are:Howmet Aerospace Inc. HWM 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 39.1%, respectively, from the prior-year levels.Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1. 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.Quanta Services Inc. PWR presently carries a Zacks Rank #2 (Buy). PWR has a trailing four-quarter earnings surprise of 4.6%, on average.The Zacks Consensus Estimate for PWR’s 2024 sales indicates a 14.2% rise and EPS growth of 18.3% from the prior-year levels.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks