HOUSTON - KBR Inc . (NYSE: NYSE:KBR) has secured a $230 million contract to modernize information technology systems for the U.S. Navy's Naval Air Systems Command (NAVAIR), the company announced today. The five-year contract, awarded under the Department of Defense Information Analysis Center’s multiple-award contract vehicle, will focus on enhancing logistics and maintenance data systems for NAVAIR.
The company will work primarily from Naval Air Station Patuxent River in Maryland and in Huntsville, Alabama. KBR's task includes the development and deployment of IT solutions across the NAVAIR enterprise. The contract encompasses research and development for data movement of real-time flight and maintenance information, as well as deployable hosting solutions for applications and software testing.
KBR's President and CEO, Stuart Bradie, expressed the company's commitment to continuing its 21-year partnership with the U.S. government, emphasizing KBR's proven ability to deliver technical capabilities and manage complex enterprise systems.
The contract aims to enhance the Joint Technical Data Integration (JTDI), the Joint Delivery Management Service (JDMS), and the Naval Air Systems Command Fleet System Array (NFSA) programs. These initiatives are fundamental to the ongoing and future operations of the Logistics Information Technology (LOG IT) programs.
KBR provides support to over 83,000 military users across various units, contributing to mission success while maintaining a focus on cost-efficiency. This contract award underscores KBR's track record with distributed systems that support military operations both ashore and afloat.
The DoD IAC, sponsored by the Defense Technical Information Center, is responsible for managing technical data and supporting research within the DoD and the federal government. KBR's work under this contract will contribute to the DoD's efforts to drive innovation and technology development.
This announcement is based on a press release statement and contains forward-looking statements subject to risks, uncertainties, and assumptions as detailed in KBR's filings with the U.S. Securities and Exchange Commission.
In other recent news, KBR Inc. has secured a $140 million contract extension from the Air Force Life Cycle Management Center. This development follows KBR's robust second quarter of fiscal 2024, which saw a 6% increase in revenue year-on-year and a 13% rise in adjusted EBITDA. The company also raised its revenue expectations for the year to between $7.4 billion and $7.7 billion. However, TD Cowen downgraded KBR's stock from Buy to Hold, citing potential execution and timing risks.
In addition, KBR has been awarded contracts to conduct a conceptual study on floating blue ammonia production for Samsung (KS:005930) Heavy Industries and to design topsides facilities for two floating production storage and offloading units in Brazil's Santos Basin. The company also completed the acquisition of LinQuest Corporation, enhancing its national security services.
These recent developments highlight KBR's ongoing strategy to expand its service offerings and maintain its financial performance. The company continues to secure significant contracts and make strategic acquisitions, demonstrating its commitment to growth and sustainability.
InvestingPro Insights
KBR Inc. (NYSE: KBR), which has recently secured a significant contract with the U.S. Navy, is currently trading at a high Price / Book multiple of 5.89, as per the latest twelve-month data leading up to Q2 2024. This valuation metric may indicate that investors have high expectations of the company's asset value and future growth prospects, particularly in the context of new contracts such as the NAVAIR IT modernization project.
The company is also exhibiting a positive revenue growth trend, with a 7.22% increase in revenue over the last twelve months leading up to Q2 2024. This growth is a testament to KBR's ability to expand its operations and could be further bolstered by the new contract with the U.S. Navy, which is expected to enhance the company's logistics and IT capabilities.
One of the InvestingPro Tips highlights that KBR has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company has maintained dividend payments for 17 consecutive years, which could be an attractive factor for income-focused investors. With a dividend yield of 0.97% as of the most recent data, KBR may appeal to those looking for stable income streams.
For investors seeking a deeper analysis, InvestingPro offers additional tips on KBR, including insights into earnings revisions, trading multiples, and stock volatility. There are 12 more InvestingPro Tips available for KBR at https://www.investing.com/pro/KBR, providing a comprehensive overview for those considering an investment in the company.
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