HOUSTON - KBR, Inc. (NYSE: NYSE:KBR), a global technology and engineering firm, has been awarded a task order valued at approximately $82 million to support the United States Air Force's B-52 bombers. The cost-plus-fixed-fee task order, under an IAC MAC contract, is for the Air Force Life Cycle Management Center associated with the B-52 System Program Office at Tinker AFB, Oklahoma.
The company will continue its work over the next five years, focusing on reliability, maintainability, quality, supportability, and interoperability (RMQSI) of the aircraft. KBR's tasks will include reliability analysis, development of non-destructive inspection and test techniques, maintenance procedures, and analysis tools for reliability data. Additionally, the firm will address obsolescence and diminishing sources, structural sustainability, component and subsystem testing, and for the first time, cybersecurity.
Byron Bright, President of Government Solutions U.S. at KBR, emphasized the company's strategic commitment to the Department of Defense and pride in supporting the extension of the B-52's service life and other legacy defense systems.
This award marks the continuation of KBR's eight-year involvement with the B-52 program office, highlighting the company's growth with existing customers and expansion into cybersecurity support. KBR employs around 35,000 people worldwide, serving customers in over 80 countries and operating in more than 30 countries.
In other recent news, KBR Inc . has been involved in several significant developments. The company has secured a spot on a $43 billion military health contract, providing health and wellness services to U.S. military personnel and their families. Additionally, KBR has been selected for a $2 billion contract to support U.S. Navy facilities worldwide, offering essential services in response to various needs.
On the environmental front, KBR has obtained a contract to provide a training simulator for OCI Global's Texas Blue Clean Ammonia facility, aimed at enhancing operational safety and efficiency. This aligns with the company's dedication to safety and sustainability, as emphasized during KBR's 2024 investor day.
In terms of financial analysis, both BofA Securities and Stifel have expressed confidence in KBR's growth potential. BofA reiterated a Buy rating with an $80 stock price target, while Stifel raised the stock price target to $84 from $83. These recent developments reflect KBR's strategic direction and potential for future performance.
InvestingPro Insights
KBR, Inc. (NYSE: KBR), while securing a significant task order with the U.S. Air Force, also presents an interesting profile for investors examining its financial health and market performance. According to real-time data from InvestingPro, KBR has a market capitalization of $8.49 billion and has shown a revenue growth of 7.9% over the last twelve months as of Q1 2024. This growth is indicative of the company's ability to expand its revenue streams despite operating in a competitive sector.
Investors looking at the company's profitability metrics will note that KBR has a Price/Earnings (P/E) ratio of -33.02, which may raise questions about its current profitability. However, the adjusted P/E ratio for the same period stands at 39.15, suggesting expectations of future earnings recovery. An additional metric of interest is the Price/Book (P/B) ratio of 6.03, which may imply that the market values the company's assets highly relative to its book value.
From the perspective of InvestingPro Tips, it's noteworthy that KBR has raised its dividend for 4 consecutive years and has maintained dividend payments for 17 consecutive years, demonstrating a commitment to returning value to shareholders. Furthermore, the company's net income is expected to grow this year, with 4 analysts having revised their earnings upwards for the upcoming period. This could be an indicator of KBR's potential for improved financial performance and stability.
For those interested in further insights, InvestingPro offers additional tips on KBR, such as its operational debt levels, gross profit margins, and stock volatility. For instance, KBR operates with a moderate level of debt and generally trades with low price volatility, which could be appealing to risk-averse investors. On the other hand, the company suffers from weak gross profit margins, which may warrant closer scrutiny.
To explore these insights in greater depth and uncover more valuable information on KBR, readers can visit https://www.investing.com/pro/KBR. Additionally, InvestingPro provides a suite of tools and analytics for investors looking to make informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and access the full list of 10 additional InvestingPro Tips for KBR to help guide your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.