HOUSTON - KBR, Inc. (NYSE: NYSE:KBR), a global technology, engineering, procurement and construction company, has been awarded a 60-month, cost-plus-fixed-fee task order by the Air Force Life Cycle Management Center (AFLCMC), valued at an estimated $140 million. This contract extends KBR's long-standing support for the AFLCMC, focusing on operational safety, suitability, and effectiveness for key U.S. Air Force programs.
Under the recompete Information Analysis Center Multiple Award Contract (IAC MAC) task order, KBR will continue its research and analysis efforts, developing recommendations to address various challenges. These include reliability, maintainability, quality, supportability, interoperability, airworthiness, life cycle management, failure testing, and issues related to diminishing manufacturing sources and material shortages. The work will primarily be conducted at Hill Air Force Base in Clearfield (NASDAQ:CLFD), Utah, among other locations.
KBR's role involves assisting the F-16, A-10, and T-38 System Program Offices with digital transformation initiatives, including digital material management. The company will also provide system engineering and integration support for systems like the A-10 Ground Collision Avoidance System (GCAS) and the F-16's Secure Mission Data System (SMDS) and JARVIS programs. Additionally, KBR is tasked with developing prototypes for critical safety hardware, leveraging rapid prototyping capabilities.
Byron Bright, President of KBR's Government Solutions U.S., remarked on the company's two-decade history of providing sustainment engineering to significant Air Force programs, emphasizing KBR's commitment to ensuring these programs remain safe and mission-ready.
KBR employs approximately 36,000 people worldwide and operates in over 30 countries, serving customers in more than 80 countries. The company is known for delivering science, technology, and engineering solutions to government and commercial entities globally.
This announcement contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied. KBR cautions against placing undue reliance on these forward-looking statements, which are based on current expectations and are subject to change.
The information in this article is based on a press release statement.
In other recent news, KBR Inc . has announced a series of significant developments. The company reported a robust second quarter of fiscal 2024, with a 6% increase in revenue year-on-year and a 13% rise in adjusted EBITDA. KBR also raised its guidance for the year, maintaining revenue expectations between $7.4 billion and $7.7 billion. TD Cowen downgraded KBR's stock from Buy to Hold, citing potential execution and timing risks, and a perceived lack of upcoming catalysts.
KBR has also secured a contract to conduct a conceptual study on floating blue ammonia production for Samsung (KS:005930) Heavy Industries, aiming to advance clients' energy transition goals. Additionally, the company secured contracts to design topsides facilities for two floating production storage and offloading units in Brazil's Santos Basin.
In terms of strategic moves, KBR completed the acquisition of LinQuest Corporation, enhancing its national security services. Lastly, KBR's Board of Directors saw the appointment of Nchacha E. Etta, bringing over two decades of experience in global finance within the healthcare and consumer products sectors. These are the recent developments for KBR Inc.
InvestingPro Insights
KBR, Inc. (NYSE: KBR) continues to solidify its position as a key player in the defense sector with the recent contract win from the Air Force Life Cycle Management Center. The company's stock reflects a stable investment profile with a market capitalization of $8.28 billion. KBR's commitment to delivering value to its shareholders is evident in its dividend track record, maintaining payments for 17 consecutive years and raising its dividend for the last four years, signaling confidence in its financial stability and future growth prospects.
On the financial front, KBR's net income is expected to grow this year, which may be a contributing factor to its current P/E ratio of 41.78. However, when looking at the adjusted P/E ratio for the last twelve months as of Q2 2024, it stands at a more moderate 25.38. This, combined with a PEG ratio of just 0.14 for the same period, suggests that KBR's earnings growth may not be fully reflected in its current share price, offering potential value to investors. Despite a high Price / Book multiple of 5.91, KBR's low price volatility could make it an attractive option for investors seeking a mix of growth and stability in the volatile defense sector.
For those looking for more insights, InvestingPro offers additional tips on KBR, including analyst revisions on earnings, gross profit margins, and the company's debt level. There are currently 12 more InvestingPro Tips available for KBR at InvestingPro, which can provide investors with a deeper analysis to inform their investment decisions.
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