KBR Secures $229M Army Contract to Boost Helicopter Readiness

Core Insights - KBR, Inc. has secured a $229 million recompete task order under the Department of Defense Information Analysis Center's multiple-award contract, focusing on research and analysis to improve the U.S. Army's CH-47 Chinook helicopter systems [1][2] - The contract emphasizes KBR's expertise in military aviation support and aims to enhance the availability, reliability, and cost-efficiency of the CH-47 Chinook helicopter [2][4] Company Performance - KBR's shares gained 0.8% during the trading session following the contract announcement [1] - Year-to-date, KBR's shares have lost 11.8%, compared to a 15.2% decline in the Zacks Engineering - R and D Services industry [6] - The company has a total backlog of $21.2 billion as of January 3, 2025, with Government Solutions contributing $13.55 billion [7] Financial Outlook - Earnings estimates for 2025 have increased to $3.84 per share, indicating a 15% growth from 2024 [8] - KBR's trailing 12-month book-to-bill ratio stands at 1.1x, reflecting a healthy order intake relative to revenue [7] Market Position - The contract win reinforces KBR's leadership in defense technology and logistics, supported by a 35-year partnership with the U.S. Army's Aviation Program Executive Office [4] - KBR's focus on high-end government business and technology consulting positions it well for long-term growth [6][7]