KBR Expands Sustainable Process Solutions With PureM
KBR, Inc. KBR expands its leading portfolio of clean ammonia and hydrogen solutions by introducing an enhanced green methanol technology, PureM. The move solidifies its position as a leader in the clean energy sector.
PureM uses bio or captured carbon dioxide and green hydrogen as primary feed components to offer a cleaner route for producing fuels or high-value chemicals. These chemicals are essential components in sustainable coatings, adhesives, and materials, facilitating a net-zero transition.
The addition of PureM into its sustainable process solutions will enhance KBR's capabilities for CO2 capture. It enables the conversion of bio or captured carbon dioxide into green methanol and valuable downstream products, providing greater flexibility for clients and diversifying their value chains.
Focus on Low-Carbon Ammonia Offerings
Since 1943, KBR has licensed, engineered and constructed more than 250 grassroots ammonia plants worldwide, capturing approximately 50% of the market share of licensed capacity. The determination to lower emissions, achieve product diversification and energy efficiency and develop more sustainable technologies and solutions has driven KBR’s performance.
To expand its low-carbon ammonia offerings for energy transition, KBR has been working on multiple contracts. Recently, the company signed a Memorandum of Understanding (“MoU”) with SolydEra, a renowned player in the renewable energy sector. This strategic partnership aims to offer a groundbreaking integrated solution for producing cost-effective clean ammonia using renewable energy sources. Also, its K-GreeN technology was selected by Madoqua Power2X for its green ammonia project at Sines Industrial Zone in Portugal.
The demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, refining for product diversification and greener solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is also gaining traction and KBR’s advisory portfolio.
Share Price Performance
Shares of the company rose by 7.1% in the past six months, outperforming the industry’s 4% growth. The growing demand for its Sustainable Technology Solutions, mainly from engineering and professional services and technology licensing, will likely add to its growth in the upcoming periods. Also, the ongoing contract wins and the solid backlog level bodes well.
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As of Jun 30, 2023, the total backlog (including award options) of KBR was $21.06 billion compared with $19.76 billion at 2022-end. Government Solutions booked $11.82 billion of the backlog and the Sustainable Technology Solutions segment contributed $5.06 billion.
Zacks Rank & Other Key Picks
KBR currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Construction sector are:
Construction Partners, Inc. ROAD sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ROAD has a trailing four-quarter earnings surprise of 10.6% on average. Shares of ROAD have gained 36.2% in the past year.
The Zacks Consensus Estimate for ROAD’s 2023 sales and earnings per share (EPS) indicates gains of 19.3% and 112.2%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. EME carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 58.6% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
TopBuild Corp. BLD sports a Zacks Rank of #2. It has a trailing four-quarter earnings surprise of 14.1%, on average. Shares of BLD have surged 42.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
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