KBR, Inc. KBR received a conceptual study contract from one of the world's largest shipbuilders in South Korea — Samsung Heavy Industries (“SHI”).
This first-of-its-kind floating ammonia production facility is part of SHI's diversification in the ocean energy business, with a focus on maritime technology. The process will involve KBR's low-carbon blue ammonia process technology and leverage SHI's expertise in the design of mega-floating vessels.
KBR’s Technology Business Bodes Well
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. It remains at the forefront of pioneering decarbonization initiatives through continuous process innovation and harnessing low-carbon technologies to reduce emissions effectively.
KBR has been at the forefront of innovation in the ammonia market for decades. Since 1943, it has licensed, engineered, or constructed more than 260 grassroot ammonia plants across the globe.
In the second quarter of 2024, KBR received $2.1 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1x. Total revenues increased 6% to $1.86 billion year over year. The upside was backed by growth across Sustainable Technology Solutions (STS), as well as the Government Solutions’ (GS) new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays.
As of June 28, 2024, the total backlog (including award options of $3.332 billion) was $20.1 billion compared with $21.73 billion at 2023-end. Of the total backlog, GS booked was $12.89 billion. The STS segment contributed $3.92 billion to the total backlog.
KBR’s Stock Performance
Shares of this company have gained 11.1% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 25.4% growth. Although shares of the company have underperformed its industry, new and on-contract growth across its GS businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period.
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Backed by its solid performance in the first half and improving global demand for its services, KBR raised its adjusted earnings per share (EPS) projection to the range of $3.15-$3.30 from $3.10-$3.30 expected earlier.
KBR’s EPS estimate for 2024 has moved up by a cent to $3.25 in the past seven days, which reflects 11.7% year-over-year growth on a 9.6% increase in revenues.
KBR’s Zacks Rank & Key Picks
Currently, KBR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are:
Howmet Aerospace Inc. HWM presently sports a Zacks Rank #1 (Strong Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. STRL presently carries a Zacks Rank #2 (Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
M-tron Industries, Inc. MPTI currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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See This Stock Now for Free >>KBR, Inc. (KBR) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report
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