KBR Inks Deal to License Giammarco-Vertrocoke's Technology
KBR, Inc. KBR inked a deal with Giammarco-Vertrocoke S.R.L. to license its carbon capture technology globally.
Per this master license and engineering agreement, KBR will integrate and deploy critical carbon capture solutions to help its clients meet their sustainability targets. This well-proven, energy-efficient and flexible technology can be integrated across the value chain for blue ammonia, petrochemical and refining industries.
KBR and Giammarco-Vetrocoke aim to provide a more sustainable world by capturing CO2 from the environment to reduce the impact of climate change.
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The stock fell 3.04% on Sep 22, post news release, but gained 0.94% in the after-hours trading session. KBR’s shares have gained 18.2% in a year against the Zacks Engineering - R and D Services industry’s 3% fall.
Solid Backlog Level, Upbeat Views
KBR’s solid backlog level of $15.39 billion (as of Jun 30, 2022) reflects its underlying strength. The company’s impressive 2021 and first-half 2022 performances demonstrated its unwavering focus and superb business execution. Solid double-digit top-line growth, strong organic growth in the Government Solutions unit and robust adjusted EBITDA growth are commendable. The impressive performance was backed by a solid contract winning spree, strong project execution, backlog level and potential government and technology businesses.
Although the Sustainable Technology Solutions business revenues declined in first-half 2022 due to the company’s exit from commercial activities in Russia and the timing of certain ongoing projects, it has started making progress in its profit growth strategy.
Backed by favorable market tailwinds, good booking momentum, a strong first-half 2022 and more than 90% work under contract, KBR provided strong 2022 guidance. For 2022, the company expects total revenues in the range of $6.4-$6.8 billion and an adjusted EBITDA margin of 10%. Also, it expects adjusted earnings per share in the band of $2.53-$2.65. It expects adjusted operating cash flow in the range of $360-$400 million.
In 2021, it generated total revenues of $7.34 billion, an adjusted EBITDA margin of 8.5% and adjusted earnings of $2.42 per share. It had an adjusted operating cash flow of $319 million.
Zacks Rank & Key Picks
Currently, KBR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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ACA’s expected earnings growth rate for 2022 is 19.7%. The Zacks Consensus Estimate for current-year earnings has improved to $2.31 per share from $2.08 over the past 30 days.
United Rentals, Inc. URI, presently sporting a Zacks Rank #1, has been benefiting from a broad-based recovery of activity across its end markets served. Higher margins from rental revenues and used equipment sales are added benefits.
The Zacks Consensus Estimate for URI’s 2022 earnings rose to $31.73 per share from $31.66 in the past 30 days. The estimated figure suggests 43.8% year-over-year growth.
Dycom Industries, Inc. DY is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. Dycom expects considerable opportunities across a broad array of customers.
Dycom’s, currently sporting a Zacks Rank #1, earnings for fiscal 2023 are expected to grow 142.1%. The Zacks Consensus Estimate for DY’s 2022 earnings rose to $3.68 per share from $3.28 in the past 30 days.
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