KBR's KBRwyle Receives $114M for Task Order From US Army

KBR, Inc. 's KBR government services unit, KBRwyle has recently clinched two task order modifications amounting to $114 million from the Army Contracting Command, under which the company will provide logistics support services to the U.S. Army in Europe and the Arabian Peninsula.

Out of the total $114 million, task order modifications of $53 million has been awarded to provide maintenance support, base operating support services, along with assistance in transporting ammunitions as well as explosives to U.S. European Command. The company received a contract extension of six months on the task order contract, which was previously awarded in August 2015.

Moreover, task order modifications of $61 million has been awarded to provide logistics support to the U.S. military in Kuwait and the United Arab Emirates. Major services include facilities and waste management, laundry services, transportation operations and fire shield. This is the third option year on the task order that was awarded in April 2015.

The move underscores KBR's solid presence and expertise in providing professional services to support military needs.

Meanwhile, shares of the company have declined 13% over a year, comparing favorably with its industry 's fall of 28%. Additionally, earnings estimates for the current year have increased 1.3% over the past 30 days, reflecting analysts' optimism surrounding the company's potential.

KBR Government Services Unit to Get a Boost

KBR's Government Services segment, accounting for more than 72% of its total revenues, has been performing pretty well. Presently, the company is banking on the strength of Government Services businesses to optimize its growth potential.

KBR is one of the leaders in providing military services. In fact, KBRwyle has provided life support and logistics services to the military through multiple LOGCAP contracts for more than two decades.

KBR's backlog level of $13.5 billion as of Sep 30, 2018 highlights its underlying strength. About 81.8% of the backlog represents work in the Government Services segment, which increased 34.9% on a year-over-year basis in the third quarter. Notably, the company's total revenues increased 23.6% year over year during the quarter, courtesy of 59.5% growth of the Government Services business. Such new task order modifications are likely to further boost revenues of the company.

Zacks Rank & Other Stocks to Consider

KBR currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the Construction sector include Great Lakes Dredge & Dock Corporation GLDD , Altair Engineering Inc. ALTR and EMCOR Group, Inc. EME . While Great Lakes sports a Zacks Rank #1 (Strong Buy), Altair Engineering and EMCOR both carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Great Lakes' 2018 earnings are expected to increase 111%.

Altair Engineering has an expected earnings growth rate of 23.1% for the current year.

EMCOR has a projected earnings growth rate of 20% for the current year.

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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.

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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