KBR, Inc. KBR is set to provide engineering and technical services to the NATO Support and Procurement Agency or NSPA for the PATRIOT missile system. The PATRIOT is an improved surface-to-air guided air and missile defense system that is being used by many NATO countries around the globe. This contract has a three-year base period and two option years.
Per this Technical, Analytical and Logistics Support Service contract, KBR will provide analytical, engineering, technical, programmatic and logistics services for the NATO Allies Patriot System. The scope of work for KBR includes systems engineering, program management, modeling and simulation, product assurance as well as configuration management. It will also look after production, quality, logistics and deployment along with hardware and software integration. Simultaneously, KBR will be responsible for field surveillance, and test and evaluation. It will also conduct studies, engineering evaluations and investigations as requested by NSPA.
In this regard, Byron Bright, KBR Government Solutions President, said, "KBR's expertise in cutting-edge research will assist NSPA in responding to today's dynamic threat environment in multiple theaters worldwide."
Contribution From Government Solutions Business
The Government Solutions business is one of the major contributing units of KBR, which shares space with AECOM ACM, Jacobs Engineering Group Inc. J and Quanta Services Inc. PWR in the Zacks Engineering - R and D Services industry. The business has been riding on on-contract growth in logistics and engineering, take-away wins alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Robust contribution from KBR’s overseas logistics and mission support programs on the back of higher military exercise activities, increased outsourcing of sustainment activities by the military and ramp up of new wins led to the growth. Notably, higher tasking for various missile defense and other military priorities in its engineering business areas — under select IDIQ contracts — are major positives. The company anticipates strong growth across all key markets in the United States, U.K. and Australia, primarily attributable to persistent opportunities across the project’s lifecycle.
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KBR’s shares have gained 21.4% in the past three months compared with the industry’s 9.3% growth. Also, earnings estimates for 2021 have moved up 0.5% over the past 60 days, depicting analysts' optimism over bottom-line growth potential. The Zacks Consensus Estimate for the Zacks Rank #3 (Hold) company’s 2021 earnings indicates a 22% increase from 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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