HOUSTON - KBR Inc . (NYSE: NYSE:KBR), a global technology and engineering firm, has been selected for a $2 billion contract to support U.S. Navy facilities worldwide. The company announced Monday that it will compete for task orders under the Indefinite Delivery Indefinite Quantity (IDIQ) contract awarded by the U.S. Naval Facilities Engineering Systems Command.
The contract, known as the Global Contingency Services Multiple Award Contract (GCSMAC) III, commenced in April 2024 and is set to extend over 8.5 years. KBR will provide essential services in response to natural disasters, humanitarian efforts, military actions, and other urgent needs. The contract will cover a range of support services, including IT management, force protection, airfield and port operations, healthcare, and transportation.
Byron Bright, KBR Government Solutions U.S. President, emphasized the company's commitment to supporting the Navy's global mission, leveraging its extensive experience and resources to meet the service's diverse requirements. KBR's existing operations under the GCSMAC II contract and other defense programs demonstrate its capability to manage significant government assets and support military operations and exercises across various regions.
The award positions KBR to potentially expand its support, especially in the strategically significant Indo-Pacific region. The company's history of providing global contingency services includes base operations support in Poland and humanitarian assistance to Afghan refugees in Virginia in 2021.
KBR, with a workforce of approximately 35,000, operates in over 30 countries and serves customers in more than 80 nations. The company's broad portfolio includes delivering science, technology, and engineering solutions to government and commercial clients.
The announcement contains forward-looking statements regarding KBR's future performance and the potential for task orders and pricing structures. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially.
This news is based on a press release statement issued by KBR, Inc.
InvestingPro Insights
In light of KBR Inc.'s (NYSE: KBR) recent $2 billion contract to support U.S. Navy facilities worldwide, the market has been keeping a close eye on the company's financial health and stock performance. According to InvestingPro data, KBR has a market capitalization of $8.97 billion, reflecting its significant presence in the industry.
The company's revenue growth over the last twelve months as of Q1 2024 stands at 7.9%, indicating a solid upward trajectory in its earnings capability. Despite a negative P/E ratio for the last twelve months, analysts are optimistic about KBR's future, expecting net income growth this year and predicting the company will be profitable.
Two InvestingPro Tips that stand out for potential investors are KBR's consistent history of dividend payments, with an increase for 4 consecutive years and maintained payments for 17 years, which could signal a reliable income stock. Moreover, analysts have revised their earnings estimates upwards for the upcoming period, suggesting confidence in KBR's financial outlook. With the stock trading near its 52-week high and a strong return of 26.59% over the last three months, KBR is capturing investor interest.
For those considering adding KBR to their portfolio, the company has demonstrated a strong return over the last five years and is expected to sustain this momentum with the new contract in place. To access more insights and analysis, including additional InvestingPro Tips, visit InvestingPro. Right now, there are over 14 additional tips available on InvestingPro. And don't forget, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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