KBR(US:KBR) ZACKSยท2024-09-24 16:55Group 1: Contract and Project Details - KBR's joint venture, KTJV, has secured a contract from Lake Charles LNG Export Company to support the development of a world-class LNG facility, transforming an import facility into an export facility [1] - The project aims to meet growing global LNG demand, delivering three liquefaction trains and upgrading facilities to enable the export of 16.45 million metric tons per year of LNG, pending a notice to proceed [1][2] Group 2: Market Position and Performance - KBR's stock has underperformed compared to the Zacks Engineering - R and D Services industry over the past three months, facing challenges from macroeconomic concerns and sector-specific headwinds [3] - Despite this, KBR's new and on-contract growth, along with increased demand for sustainable services, is expected to be beneficial in the near future [5] Group 3: Financial Metrics and Backlog - In Q2 2024, KBR received $2.1 billion in bookings, with total revenues increasing by 6% year-over-year to $1.86 billion, driven by growth in Sustainable Technology Solutions and Government Solutions [6][7] - As of June 28, 2024, KBR's total backlog 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 $3.92 billion [7] - KBR raised its adjusted EPS projection to $3.15-$3.30, reflecting an 11.7% year-over-year growth in EPS, with a Zacks Consensus Estimate of $3.25 for 2024 [7] Group 4: Industry Context and Competitors - The global emphasis on energy security and climate change is providing significant tailwinds for KBR, which has over five decades of design engineering expertise [6] - Other top-ranked stocks in the same sector include Sterling Infrastructure, Howmet Aerospace, and M-tron Industries, with positive sales and EPS growth projections for 2024 [8][9]