Core Insights - KBR has completed the acquisition of LinQuest Corporation, enhancing its capabilities in advanced engineering, data analytics, and digital integration for national security space missions [1][2] - The acquisition aims to strengthen KBR's position in space, air dominance, and connected battlespace missions, serving key U.S. government customers [1][2] - LinQuest's integration into KBR's Government Solutions segment and Defense and Intel business unit will begin immediately, although its financial results will not significantly impact KBR's Q3 2024 results [2] Company Overview - KBR has decades of experience providing mission-critical solutions to customers in national security and space domains, including the Department of Defense and NASA [3] - KBR employs approximately 36,000 people globally, serving customers in over 80 countries and operating in more than 30 countries [4] - LinQuest, with a legacy of 47 years, has over 1,500 team members focused on advanced digital transformation solutions for defense and intelligence missions [5]

Core Viewpoint - KBR Inc. reported mixed Q2 2024 results, with earnings exceeding estimates while revenues fell short, indicating a strong performance in core business areas and an optimistic outlook for the remainder of the year [2][3]. Financial Performance - Adjusted EPS was 83 cents, surpassing the consensus estimate of 79 cents by 5.1% and reflecting a 12% year-over-year increase [3]. - Total revenues reached $1.86 billion, missing the consensus mark of $1.88 billion by 1.6%, but showing a 6% increase year-over-year [3]. - Adjusted EBITDA rose 13% year-over-year to $216 million, with an adjusted EBITDA margin of 11.6%, up 75 basis points [3]. Segment Performance - Government Solutions segment revenues increased 3.3% year-over-year to $1.4 billion, with adjusted EBITDA of $145 million, slightly up from $143 million, but the adjusted EBITDA margin fell 20 basis points to 10.4% [4]. - Sustainable Technology Solutions segment revenues grew 14.2% year-over-year to $458 million, with adjusted EBITDA increasing 22.5% to $98 million and an adjusted EBITDA margin of 21.4%, up 150 basis points [4]. Backlog and Liquidity - Total backlog as of June 28, 2024, was $20.1 billion, down from $21.73 billion at the end of 2023, with Government Solutions contributing $12.89 billion and Sustainable Technology Solutions adding $3.92 billion [5]. - Cash and cash equivalents increased to $414 million from $304 million at the end of 2023, while long-term debt rose to $1.9 million from $1.8 million [6]. Cash Flow and Guidance - Cash provided by operating activities in the first half of 2024 totaled $261 million, down from $288 million in the previous year, with adjusted free cash flow at $226 million, down from $250 million [7]. - Updated guidance for 2024 includes total revenues projected between $7.4 billion and $7.7 billion, adjusted EBITDA between $825 million and $850 million, and adjusted EPS in the range of $3.15 to $3.30 [8]. Market Sentiment - Estimates for KBR have trended downward over the past month, indicating a potential shift in market sentiment [9]. - KBR holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].

KBR, Inc. (KBR) has secured a significant contract worth an estimated $199 million to enhance the Department of Defense's (DoD) digital infrastructure. Awarded under the Department of Defense Information Analysis Center's (DoDIAC) multiple-award contract (MAC) vehicle, this five-year project focuses on advancing the Naval Information Warfare Center Pacific Program Executive Office Digital and Enterprise Services (PEO Digital) Technical Director's Office.The contract highlights KBR's critical role in transfo ...

Core Insights - KBR, Inc. has been awarded a follow-on contract by the U.S. Navy for the development of space science instrument systems, indicating strong government demand for its services [1] - The company is experiencing a winning streak in contracts due to its resilient business model and focus on national security and energy transition [2] - KBR's Sustainable Technology Solutions business is advancing decarbonization initiatives, including a significant contract to provide technology for sustainable aviation fuel production [2] - KBR's financial performance shows a 6% year-over-year revenue increase, with a total backlog of $20.1 billion as of June 28, 2024 [5] - The company has raised its adjusted earnings per share (EPS) projection for 2024, reflecting positive growth expectations [6] Contract Wins and Business Development - KBR has received a five-year, approximately $153 million contract from Naval Test Wings Atlantic and Pacific Aircrew Services [3] - The company has secured $2.1 billion in bookings in strategic areas during the second quarter of 2024, with a trailing 12-month book-to-bill ratio of 1x [5] - The total backlog includes $12.89 billion from Government Solutions and $3.92 billion from Sustainable Technology Solutions [5] Financial Performance - KBR's total revenues for the second quarter of 2024 reached $1.86 billion, supported by growth in Sustainable Technology Solutions and Government Solutions [5] - The adjusted EPS estimate for 2024 has been raised to a range of $3.15-$3.30, indicating an 11.3% year-over-year growth [6] Market Position - KBR's shares have gained 20% year-to-date, although this is below the industry average growth of 29.2% [4] - The ongoing contract wins are expected to enhance KBR's market prospects in the upcoming quarters [4]

Core Insights - KBR has been awarded a $199 million cost-plus-fixed-fee contract to support the Naval Information Warfare Center Pacific Program Executive Office Digital and Enterprise Services [1] - The contract will focus on enhancing the Department of Defense's zero-trust capabilities, ensuring secure data flow and edge protection for military operations [2] - KBR will conduct research and development in critical technology areas, including future generation wireless technology, trusted artificial intelligence, integrated sensing and cyber, and quantum science [2][3] Company Overview - KBR employs approximately 36,000 people globally and operates in over 30 countries, providing technology and engineering solutions to governments and companies [5] - The company aims to deliver valuable technology and mission expertise to the U.S. Department of Defense, enhancing its capabilities in various information systems [3][5] Program Context - The DoDIAC program, sponsored by the Defense Technical Information Center, supports the Department of Defense and federal government users by providing technical data management and research support [4] - Established in 1946, the IAC program aims to drive innovation and technological developments within the DoD science and technology community [4]

Core Points - KBR has been awarded a cost-plus-fixed-fee contract by the U.S. Navy for the continued development of space science instrument systems at the Naval Research Lab [1][2] - The contract, known as the Space Science Instruments and Experimental Payloads (SSIEP) 3, will involve engineering and research activities focused on sophisticated space science instruments and experimental payloads [1][2] - This contract is a follow-on to previous contracts (SSIEP 1 and 2) that KBR has supported since 2015, maintaining its presence at the NRL [2] Company Overview - KBR has over 50 years of comprehensive design engineering experience across various industries [2] - The company employs approximately 36,000 people worldwide and serves customers in more than 80 countries [3] - KBR provides technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results [3]

HOUSTON, Aug. 12, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today the appointment of Nchacha E. Etta to its Board of Directors effective August 12, 2024.Nchacha E. Etta is executive vice president and chief financial officer of Omnicell, Inc., a multinational healthcare technology company. His breadth of finance and accounting experience stems from leading and working in global finance organizations across the healthcare and consumer products industries for more than 20 years. Prior to joining Omnicell ...

HOUSTON, Aug. 6, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today that Avina Clean Hydrogen Inc. has selected the sustainable aviation fuel technology, PureSAF℠, for its project in the US. Developed by Swedish Biofuels, PureSAF technology is exclusively licensed by KBR worldwide.Under the terms of the contract, KBR will provide the technology licensing, proprietary engineering design, and front-end engineering design (FEED) for Avina's facility to produce 120 million gallons of sustainable aviation fuel ...

HOUSTON, Aug. 5, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced it has been awarded an estimated $153 million cost plus fixed fee recompete contract to support Naval Test Wings Atlantic and Pacific Aircrew Services over a five-year period. The work will be performed primarily at Naval Air Station (NAS) Patuxent River, Maryland, but also at NAS Pt. Mugu, California, and NAS China Lake, California. Under the terms of the contract, KBR will provide aircrew services, engineering technical services, independent ...

blackred Investment Thesis KBR, Inc. (NYSE:KBR) has good growth prospects ahead. The company is experiencing secular demand drivers within both of its segments. The Sustainable Technology Solution segment is seeing secular trends from ammonia, decarbonization, energy security, and energy transition. The Government Solution segment is seeing secular trends from favorable national security, space, and Cybersecurity end markets. These secular demand tailwinds should support the company’s revenue growth mov ...