KBR Secures $445M DoD Contract to Boost Test Infrastructure

Group 1: Contract and Partnership - KBR, Inc. has secured a $445 million cost-plus-fixed-fee contract under the Department of Defense Information Analysis Center's multiple-award contract vehicle, highlighting its long-standing partnership with the U.S. military [1] - The contract spans five years and supports the Joint Mission Environment Test Capability (JMETC) program, which is crucial for the Test Resource Management Center under the Office of the Secretary of Defense [2] Group 2: JMETC Program and Responsibilities - The JMETC program provides an integrated test infrastructure that combines live, virtual, and constructive test resources, essential for mission readiness [3] - KBR's responsibilities include researching unique test requirements, enhancing JMETC capabilities, and extending its reach to additional locations, focusing on data analysis, system development, evaluations, and strategic planning [3] Group 3: Technological Focus and Innovation - The contract reinforces KBR's position as a leader in supporting critical DoD technology areas, including artificial intelligence, hypersonics, cybersecurity, and multidomain operations [4] - KBR is committed to innovation and aims to enhance the military's testing and evaluation capabilities by integrating cutting-edge technologies and providing subject matter expertise [5] Group 4: Financial Performance and Outlook - KBR's shares have underperformed the Zacks Engineering - R and D Services industry, gaining 5.8% compared to the industry's 13.5% growth this year [6] - The Zacks Consensus Estimate for KBR's 2025 earnings indicates an 18.2% growth from the previous year, with a 13.3% revenue growth expected [7] - KBR's solid backlog and option level stands at $22.12 billion at the fiscal third quarter of 2024-end, with $3.3 billion in bookings and options in strategic areas, reflecting a trailing 12-month book-to-bill of 1.1x [8]