Core Insights - KBR and Petro Rabigh have entered into a strategic 10-year maintenance services contract, with an optional two-year extension, for the Polymer I and II plants in Saudi Arabia [1][3] Group 1: Contract Details - The agreement involves KBR, through its local joint venture KBR Al Yusr, providing a digitally-enabled maintenance program that includes preventive, predictive, corrective, and cycled shutdowns maintenance services [2] - The maintenance program will utilize KBR's AI/ML-driven digital accelerators and reliability frameworks to enhance asset reliability, improve availability, strengthen safety performance, and optimize operational expenditures (OPEX) sustainably [2] Group 2: Strategic Importance - This collaboration marks a significant milestone in Petro Rabigh's business transformation, being the company's first large-scale outsourcing of maintenance services [3] - The program aims to support a structured change-management journey while focusing on safety, risk mitigation, and long-term operational excellence [3] Group 3: Leadership Statements - Othman Al Ghamdi, President and CEO of Petro Rabigh, emphasized that the transition to outsourcing maintenance is crucial for their transformation agenda, prioritizing safety, reliability, risk management, and cost efficiency [4] - Jay Ibrahim, KBR President of Sustainable Technology Solutions, highlighted the combination of KBR's global maintenance expertise with Petro Rabigh's operational leadership to enhance safety and reliability while delivering measurable value [4]

Group 1 - KBR Inc. is considered one of the most undervalued mid-cap stocks, with Citi lowering its price target to $53 from $57 while maintaining a Buy rating, anticipating solid results and growth potential in data center expenditures [1][7] - KBR was awarded the FEED contract for the Coastal Bend LNG project, a natural gas liquefaction and export facility on the Texas Gulf Coast, which will utilize advanced technologies to reduce greenhouse gas emissions [2][3] - The company will lead the FEED effort for the ISBL scope and support regulatory filings with the FERC, aiming to set a new standard for low-carbon LNG production through operational efficiency and reduced carbon intensity [3] Group 2 - KBR operates through two segments: Government Solutions and Sustainable Technology Solutions, providing scientific, technology, and engineering solutions globally [4]

Core Insights - KBR Inc. has expanded its relationship with the U.S. Space Force through two task orders totaling $103 million, focusing on AI-enabled analytics and technical expertise to enhance decision-making and personnel readiness [1][9] - The contract supports KBR's Mission Technology Solutions segment, which is experiencing growth due to demand in cybersecurity, digital engineering, and space capabilities [2][9] - KBR's federal pipeline remains strong, bolstered by ongoing investments in space operations and defense modernization, contributing to backlog growth and improved revenue visibility [3][4] Company Performance - KBR's backlog has reached $23 billion, enhancing revenue visibility and offsetting volatility in other segments [4][9] - The company has secured significant awards, including a $2.5 billion NASA recompete for astronaut health services, with an additional $1 billion in options [2] - KBR's stock has seen a 1.5% increase following the announcement of the new contracts, although it has declined 10.6% over the past six months [1][10] Competitive Landscape - KBR operates in a competitive environment alongside peers like Fluor Corporation and Sterling Infrastructure, focusing on mission-critical programs in defense and infrastructure [5] - Fluor has reported a backlog of $28.2 billion, with a strong focus on energy solutions and urban development [6] - Sterling has experienced a 32% year-over-year revenue growth, driven by demand in data centers and e-commerce distribution [7] Valuation and Earnings Estimates - KBR's stock is currently trading at a forward P/E ratio of 10.46, indicating a discount compared to industry peers [12] - Earnings estimates for KBR have trended upward to $4.17 per share for 2026, although revenue is expected to decline by 11% year-over-year [14]

Core Insights - KBR has been awarded two firm-fixed-price task orders totaling $103 million under the US Space Force (USSF) contract for decision support analysis [1][2][3] - The contract will span three years and involves delivering data analysis and technical expertise to support strategic decision-making and personnel readiness within the USSF and Department of the Air Force (DAF) [2][3] - KBR's President and CEO, Stuart Bradie, emphasized the company's commitment to national security through advanced analytics and AI-enabled workforce solutions [3] Company Overview - KBR provides science, technology, and engineering solutions globally, employing approximately 37,000 people and serving customers in over 80 countries [4] - The company focuses on delivering technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results [4] Contract Details - KBR will enhance personnel readiness and guide strategic talent decisions through skills and certification analysis, workforce design, and AI-enabled analytics [6] - The company will manage certification coding, develop interactive dashboards, and support space professional billet validation using various systems [6] - KBR aims to deliver objective, data-driven analysis to inform senior leader decisions across multiple domains within the DAF and USSF [6]

Core Thesis - KBR, Inc. is viewed positively due to its upcoming spin-off of the Mission Technology Solutions (MTS) segment, which is expected to unlock significant value for shareholders [1][5] Company Overview - KBR, Inc. provides scientific, technology, and engineering solutions to both government and commercial clients globally [2] - The company's stock has declined approximately 26% over the past year, currently trading at a discount ahead of the planned spin-off in the second half of 2026 [2] Financial Metrics - As of February 4th, KBR's share price was $42.64, with trailing and forward P/E ratios of 13.05 and 10.28 respectively [1] - KBR trades at about 12 times earnings and 8 times EBITDA, significantly lower than comparable government contractors, which typically have mid-to-high teens earnings multiples [2] Segment Analysis - The MTS segment has faced challenges, including the loss of the TRANSCOM contract, but the impact on earnings and cash flow has been limited, with backlog trends stabilizing [3] - The Sustainable Technology Solutions (STS) segment is highlighted as the company's core asset, generating double-digit revenue growth and over 20% EBITDA margins with low capital intensity [4] Valuation Insights - A sum-of-the-parts analysis indicates that the separation of MTS and STS could reveal substantial value, with an implied equity value suggesting approximately 30% upside [5] - The valuation discount is expected to diminish as the spin-off approaches, presenting an attractive risk-reward scenario for investors [5]

Core Insights - KBR has been awarded a $77 million firm-fixed-price task order by the United States Space Force to enhance digital engineering capabilities and assured communications [1][3] - The contract will be executed over a three-year period, focusing on supporting the modernization priorities of the Air Force Research Laboratory [1][2] Group 1: Contract Details - The task order is part of the Decision Support for Headquarters Analysis contract and will be conducted in Colorado Springs, Colorado, and Wright-Patterson Air Force Base in Dayton, Ohio [1] - KBR will conduct end-to-end experimentation across multiple systems and collaborate with the Department of War and U.S. government to transition solutions onto digital infrastructures [2] Group 2: Company Commitment and Performance - KBR's President emphasized the company's commitment to enhancing national defense capabilities through this contract, which builds on four years of successful support for AFRL and Space Force missions [3] - The company aims to deliver systems engineering, cybersecurity expertise, and software development to advance digital engineering for secure deployment [2][3] Group 3: Company Overview - KBR employs approximately 37,000 people globally and operates in over 29 countries, providing technology and engineering solutions to governments and companies [4]

Core Insights - KBR, Inc. has secured a $149 million cost-plus-fixed-fee contract under the ADEDDIS program, enhancing its role as a digital and engineering partner for the U.S. Department of Defense [1][8] Contract Overview - The contract, commissioned by the Air Force Life Cycle Management Center, focuses on modernizing legacy systems and improving operator readiness at Eglin Air Force Base, Florida [2] - KBR will provide advanced digital, engineering, and software capabilities to expedite the development and deployment of weapons systems [4] - The contract is structured as a seven-year Indefinite Delivery, Indefinite Quantity (IDIQ) agreement, with initial work centered on modeling, simulation, and advanced digital engineering [5] Backlog Growth - KBR's backlog and options reached $23.35 billion by the end of Q3 FY25, marking a 5.6% year-over-year increase and a 13.5% rise from FY24 [7] - The company has a trailing 12-month book-to-bill ratio of 1.4x, indicating strong demand and contract wins across various segments [7] Stock Performance - KBR's stock has declined by 15.1% over the past six months, contrasting with a 9.1% growth in the Zacks Engineering - R and D Services industry [8] - Near-term prospects are affected by delays in new contract awards and slower defense funding in the U.K. [8]

Core Insights - KBR has been awarded a cost-plus-fixed-fee contract valued at $149 million under the ADEDDIS program to enhance systems and operator readiness at Eglin Air Force Base [1] - The contract will enable KBR to provide advanced analytics, decision support, digital transformation solutions, and software development to streamline military capabilities [2] - The work will be conducted over a seven-year period, focusing on modeling, simulation, and advanced digital solutions to expedite armament development for the Air Force [3] Company Commitment - KBR's President and CEO emphasized that this contract marks a significant advancement in the company's digital transformation capabilities within defense systems [4] - The company has a long-standing presence in the Eglin Air Force Base community, contributing to mission readiness through innovative digital solutions and engineering expertise [4] - KBR's ongoing initiatives include test data analysis and the execution of the Test Resource Management Center's Test & Training Enabling Architecture, which supports advanced systems development [4] Company Overview - KBR provides science, technology, and engineering solutions globally, employing approximately 37,000 people and serving customers in over 80 countries [5] - The company focuses on delivering technology, value-added services, and long-term operations and maintenance services to ensure consistent and predictable results [5]

Core Viewpoint - KBR will host a conference call to discuss its fourth quarter and fiscal 2025 financial results on February 26, 2026, at 7:30 a.m. Central Time [1] Group 1: Conference Call Details - The conference call will be webcast simultaneously through the Investor Relations section of KBR's website [2] - A replay of the webcast will be available after the call on the website or by telephone [2] Group 2: Company Overview - KBR delivers science, technology, and engineering solutions to governments and companies globally [3] - The company employs approximately 37,000 people worldwide and serves customers in over 80 countries [3] - KBR operates in more than 29 countries, providing technology, value-added services, and long-term operations and maintenance services [3]

Core Insights - KBR has been recognized as one of the Top 40 Defense Contractors in Australia by Australia Defense Magazine, highlighting its commitment to supporting the Australian Defence Force (ADF) with innovative solutions [1][2] Company Performance - In 2025, KBR secured over 1.2 billion Australian dollars (approximately $837 million) in contract awards and extensions in Australia, enhancing its partnership with the Australian Government to address complex defense and national security challenges [2] Workforce and Operations - KBR employs more than 2,500 people in Australia, including 1,000 subject matter experts and support staff, and operates at military sites nationwide with offices in major cities such as Sydney, Melbourne, Brisbane, Canberra, and Adelaide [4] Strategic Focus - The company supports the ADF in modernizing Australia's sovereign defense systems and improving interoperability with U.S. armed forces, utilizing a system-of-systems approach to address urgent national security needs [3][7] Technological Contributions - KBR provides advanced solutions including maintenance planning for specialized warships, integration enhancements for the ADF's Air and Space Operations Command and Control System, and space domain awareness through its Iron Stallion technology [7]