KBR Secures Subcontract for NASA's GSFC, Boosts Growth
KBR, Inc. KBR, a leading provider of mission-oriented engineering solutions, has secured a subcontract with McCallie Associates, Inc. to provide mission and instrument systems engineering services at NASA's Goddard Space Flight Center (GSFC) in Maryland and Wallops Flight Facility in Virginia. The Systems Engineering Advanced Services II (SEAS II) contract boasts a five-year period of performance and a total value of $300 million, positioning KBR for substantial growth and bolstering investor confidence.
Under the SEAS II contract, KBR, along with its prime team, will offer mission and instrument systems engineering expertise, as well as guidance, navigation and control systems. This includes the analysis and development of altitude control systems, aiming to enhance the integration and efficiency of the entire mission development process across space, ground, science and operations segments. This collaboration further solidifies KBR's position as a go-to provider for cutting-edge engineering solutions in the aerospace industry.
KBR's long-standing support for GSFC, coupled with its extensive experience in mission engineering and space flight instrument development, makes it a trusted partner for NASA. The company's expertise spans the entire spectrum of activities, encompassing design, analysis, manufacturing, assembly and testing.
With the lucrative SEAS II contract, the company is well-positioned to capitalize on the growing demand for innovative solutions in the aerospace industry. Investors can expect this contract to fuel KBR's business growth. As KBR continues to secure high-profile contracts and demonstrate its commitment to excellence, its stock value is likely to rise, offering investors prospects for long-term gains.
Share Price Performance
Shares of the company rose 16.5% in the past three months, outperforming the industry’s 10.6% gain. Earnings estimates moved north to $2.88 per share from $2.87 over the past 60 days. The estimated figure indicates 6.3% year-over-year growth. The trend is likely to continue, given the solid backlog level (including award options).
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As of Mar 31, 2023, the total backlog (including award options) was $20.89 billion compared with $19.76 billion at 2021-end. Notably, in first-quarter 2023, KBR received $3.1 billion in bookings and options in highly strategic areas with a trailing 12-month book-to-bill of 1.4x.
In first-quarter 2023, the Science & Space division under the GS segment rose 10.3% to $279 million. Of the total backlog, Government Solutions or GS booked $16 billion.
Overall, KBR’s long-term, mission-critical programs provide strong visibility in volatile times. Its determination to reduce emissions, product diversification, inorganic moves and strategic alliances bode well.
Zacks Rank
Currently, KBR carries a Zacks Rank #3 (Hold).
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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