KBR Secures $199M Contract, Boosts DoD Digital Capabilities

KBR, Inc. KBR has secured a significant contract worth an estimated $199 million to enhance the Department of Defense's (DoD) digital infrastructure. Awarded under the Department of Defense Information Analysis Center's (DoDIAC) multiple-award contract (MAC) vehicle, this five-year project focuses on advancing the Naval Information Warfare Center Pacific Program Executive Office Digital and Enterprise Services (PEO Digital) Technical Director's Office.The contract highlights KBR's critical role in transforming the DoD's zero-trust capability — a modern security measure crucial for safeguarding military data and operations. KBR's team will spearhead research, analysis, and testing to identify and integrate advanced technologies, with a strong emphasis on future-generation wireless technology, trusted AI, integrated sensing, and quantum science. These efforts aim to protect the nation's networks, enhance information dominance, and support the development of autonomous information systems.KBR’s involvement in this project not only reinforces its expertise in delivering cutting-edge solutions but also underscores its commitment to supporting the DoD's mission. Stuart Bradie, KBR's president and CEO, expressed enthusiasm for the contract, emphasizing its significance in KBR’s digital transformation strategy and its ability to deliver state-of-the-art technology to the DoD.As KBR addresses critical technology areas and integrates new systems into existing military frameworks, this contract strengthens the company’s standing as a key player in defense technology and positions it for continued growth in the sector. The contract will be executed in Charleston, South Carolina, and San Diego, California, further solidifying KBR's footprint in vital defense hubs.Focus on Bolstering Technology Offerings in Defense AgenciesKBR's emphasis on a resilient business model and efficiency-enhancing initiatives has fueled its recent success in securing new projects. The growing global focus on national security, energy security, energy transition, and climate change has provided a significant boost. With over five decades of extensive design engineering experience across various industries, KBR is well-positioned to capitalize on these trends.Meanwhile, on Jul 16, 2024, KBR announced that it intends to acquire LinQuest Corporation. KBR's acquisition of LinQuest represents a strategic move to significantly bolster its capabilities and market position, particularly in the high-tech defense and intelligence sectors. LinQuest's expertise in engineering, data analytics, and digital integration aligns perfectly with KBR's strategic focus on advancing its technology offerings and enhancing mission-critical capabilities.By integrating LinQuest's specialized knowledge, especially in supporting key U.S. defense agencies like the U.S. Space Force and U.S. Air Force, KBR is poised to deepen its involvement in high-priority national security initiatives, thereby driving revenue growth and unlocking substantial synergy opportunities.Share Price PerformanceImage Source: Zacks Investment ResearchShares of this company have gained 19.6% so far this year compared with the Zacks Engineering - R and D Services industry’s 28.7% 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.Zacks Rank & Key PicksCurrently, KBR sports a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Zacks Construction sector: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. Shares of the company have gained 76.7% year to date (YTD). 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. Shares of the company have gained 26.6% YTD.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. Shares of the company have gained 23.6% YTD.The Zacks Consensus Estimate for PWR’s 2024 sales and EPS indicates a rise of 14.2% and 18.3%, respectively, 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