KBR, BSIT Selected by the U.S. Air Force for HPO Contract

KBR, Inc. KBR, in collaboration with Bering Straits Information Technologies (BSIT), was selected by the U.S. Air Force for the Human Performance Optimization (“HPO”) contract. BSIT is a subsidiary of Bering Straits Native Corporation.

Per the contract, KBR, BSIT and the support from the U.S. Air Force, will offer resiliency and well-being services to military personnel in and outside the country. The HPO contract adds to KBR’s more than 50 years of commitment to the wider health and human performance market within NASA and the Department of Defense.

The HPO contract (multi-award IDIQ) is expected to be executed over a span of ten years, extending until March 2034, and is one of the newest programs by the U.S. Air Force to enhance human performance.

Consistent Contract Wins Boost Backlog

KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. Also, the rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.

As of Dec 29, 2023, the total backlog (including award options of $4.4 billion) was $21.73 billion compared with $19.76 billion in 2022 end. Of the total backlog, Government Solutions booked $12.79 billion and the Sustainable Technology Solutions segment accounted for $4.55 billion.

Since the fourth quarter of 2023 end, the company announced four contract wins. Recently, on Mar 14, 2024, KBR won the Lobito Refinery Project’s management contract by Sonangol, wherein it will design and construct a new 200,000bpd refinery in Lobito, Angola. The services offered will include project management of engineering, procurement and construction phase execution.

Price Performance

Shares of this global engineering, construction and services firm have gained 12.1% in the past three months compared with the Zacks Engineering - R and D Services industry’s 12.7% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its Government Solutions businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period.

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Meanwhile, earnings estimates for this current Zacks Rank #3 (Hold) company for 2024 are pegged at $3.20 per share, indicating 10% growth from a year ago. KBR has a trailing four-quarter earnings surprise of 6.4%, on average. Such an uptrend depicts analysts’ optimism about the stock’s growth potential.

Zacks Rank

Here are some better-ranked stocks from the Construction sector.

NVR, Inc. NVR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVR delivered a trailing four-quarter earnings surprise of 8.1%, on average. The stock has gained 24.5% in the past six months. The Zacks Consensus Estimate for NVR’s 2024 sales and earnings per share (EPS) indicates growth of 7.7% and 4.6%, respectively, from the prior-year levels.

Vulcan Materials Company VMC currently sports a Zacks Rank of 1. VMC delivered a trailing four-quarter earnings surprise of 19.5%, on average. The stock has gained 28.6% in the past six months.

The Zacks Consensus Estimate for VMC’s 2024 sales and EPS indicates an improvement of 1.4% and 18.3%, respectively, from a year ago.

Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 20.4%, on average. Shares of STRL have increased 43.4% in the past six months.

The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 11.7% and 11.4%, respectively, from the prior-year levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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