KBR Wins Twin Deals, Bolsters Government Services Business
Zacks Investment Research | Mar 19, 2018 10:42PM ET
KBR Inc.’s (NYSE:KBR) Government Services business, KBRwyle, recently clinched a $34.1-million task order from the U.S. Air Force (“USAF”). The company will offer analytical and engineering weapons systems support to the USAF with air traffic safety as well as cyber threat issues. Revenues related with the project will be booked as unfilled orders in Government Services business segment.
Per the contract, KBR will support the Engineering and Communication Network Branch of the USAF’s Life Cycle Management Center (AFLCMC) Engineering Directorate. The company will offer services such as system engineering analysis, cyber resiliency strategy development, cybersecurity assessments and Air Traffic Management / Identification Friend or Foe (ATM/IFF) component testing as well as certification for foreign military sales requirements and DoD.
This apart, KBRwyle also secured a $69.3-million indefinite-delivery/indefinite-quantity (IDIQ) contract from the Naval Air Warfare Center Aircraft Division. Per the deal, the company will provide engineering and technical services for the installation and maintenance of the Light Airborne Multipurpose System MK III Datalink. The company will be responsible for providing full life cycle support like systems integration, in-service engineering, test and evaluation, logistics, training, repair and validation, and technical management.
Our Take
KBR’s Government Services business is growing steadily, driven by organic growth and expansion of task orders on existing U.S. Government contracts. Growth on existing program management projects in the U.K is also supplementing revenue growth. Further, the company remains optimistic about growth across its key markets like the United States, the UK and Australia, driven by continued opportunities across the lifecycle of projects. Notably, over a year, the stock has returned 23%, against the Zacks Investment Research
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