KBR Wins $149M Air Force Contract, Boosts Defense Digital Franchise

KBR, Inc. KBR recently won a $149 million cost-plus-fixed-fee contract under the Acquisition, Data, Engineering, Digital, Decision Integration and Software (ADEDDIS) program. This contract reinforces the company’s position as a key digital and engineering partner to the U.S. Department of Defense.Commissioned by the Air Force Life Cycle Management Center’s Armament Directorate, this strategic initiative tasks KBR with modernizing legacy systems and accelerating operator readiness at Eglin Air Force Base in Fort Walton Beach, FL. This award underscores the company’s successful strategic evolution from traditional logistics toward high-consequence digital engineering, ensuring the U.S. Air Force maintains a decisive technological advantage in an increasingly digital battlespace.Shares of KBR were down 2.1% during the trading session yesterday.Overview of the New ContractKBR will deliver high-end digital, engineering and software capabilities to support the U.S. Air Force in developing and deploying weapons systems more rapidly and effectively. The work includes advanced analytics, digital and software solutions, and systems engineering designed to simplify the design and production process, allowing warfighters to receive critical capabilities faster and more efficiently.The contract is structured as a seven-year Indefinite Delivery, Indefinite Quantity (IDIQ) agreement. Initial work will focus on modeling and simulation and advanced digital engineering to accelerate armament development and production. Building on its established presence at Eglin Air Force Base, KBR will also leverage its experience in test data analysis and support for the Test Resource Management Center’s Test & Training Enabling Architecture, which enables integrated and interoperable environments for advanced systems development. Management noted that the award reinforces the company’s commitment to delivering next-generation technologies that shape the future of armament development while ensuring service members receive reliable, mission-critical solutions more quickly.Strong Backlog Growth MomentumKBR’s backlog continues to build, supported by favorable market conditions in the United States and internationally. Sustained U.S. government focus on national security, along with increasing global investment in sustainability, energy affordability, LNG and ammonia projects, and digital modernization, underpins the company’s long-term growth outlook.As of the end of the third quarter of fiscal 2025, KBR’s backlog and options totaled $23.35 billion, representing a 5.6% year-over-year increase and a 13.5% rise from fiscal year-end 2024, supported by a trailing 12-month book-to-bill ratio of 1.4x. The quarter included several notable contract wins across both segments. In Mission Technologies, KBR secured a major recompete, including a $2.5 billion base contract with up to $1 billion in options to support astronaut health and human performance for NASA. In Sustainable Technology Solutions, new awards included front-end engineering design work for Indonesia’s Abadi LNG project, a multi-year contract extension with Basra Oil Company in Iraq, program management consulting for power and water networks in the UAE, and heavy-oil and energy-security FEED support for Kuwait Oil Company.KBR’s Stock Price PerformanceKBR stock has declined 15.1% in the past six months against the Zacks Engineering - R and D Services industry’s 9.1% growth. Near-term prospects remain constrained by delays in new contract awards and slower defense funding in the U.K. However, KBR remains well-positioned to benefit from resilient demand across mission-critical U.S. government programs, strengthening international momentum and disciplined execution, supported by recent wins in space, defense, LNG and energy security markets.Image Source: Zacks Investment ResearchKBR’s Zacks Rank & Key PicksKBR currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the Construction sector are:James Hardie Industries plc JHX flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter negative earnings surprise of 3.8%, on average. JHX stock has declined 14.2% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for James Hardie’s fiscal 2026 sales indicates growth of 5.2%, while EPS indicates a decline of 28.2% from the year-ago period’s levels.Quanta Services, Inc. PWR has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 5.8%, on average. PWR stock has climbed 25.5% in the past six months.The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 10.4% and 17.3%, respectively, from the prior-year levels.MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 18.9%, on average. MTZ stock has gained 40.4% in the past six months.The Zacks Consensus Estimate for MasTec’s 2026 sales and EPS indicates growth of 8.7% and 28.7%, respectively, from the year-ago period’s levels.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want 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 James Hardie Industries PLC. (JHX): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks