KBR, Inc. (NYSE:KBR) has secured a significant five-year contract, valued at $46 million, to bolster Iraq’s infrastructure and energy sector. This contract, awarded by the Iraqi Government’s Ministry of Planning, underscores KBR’s pivotal role in advancing Iraq’s economic and social landscape through the delivery of strategic megaprojects and sustainable development initiatives.
Under the contract terms, KBR will leverage its expertise in advisory and consultancy services to support the ministry’s efforts in economic planning, strategy development, feasibility studies, technical reviews, and large-scale project management. This initiative aims to create an effective program environment conducive to the successful execution of Iraq’s ambitious infrastructure projects.
KBR’s president of Sustainable Technology Solutions, Jay Ibrahim, emphasized the company’s commitment to fostering regeneration and sustainable growth within Iraq.
The contract also involves establishing an operational office in Baghdad and creating an engineering design center to enhance the skills of local Iraqi engineers. This move not only solidifies KBR’s presence in the region but also aligns with Iraq’s long-term vision for growth and environmental stewardship.
KBR’s involvement will significantly contribute to Iraq’s energy sector development by working closely with various ministries to identify, design, and implement critical projects. The company’s focus on innovation and sustainability will be integral in supporting Iraq’s goals for energy security and sustainable growth.
This strategic contract reinforces KBR’s position as a key player in global infrastructure and energy solutions, highlighting its ability to deliver comprehensive, sustainable development services on a large scale.
Share Price Performance
The increasing global emphasis on critical infrastructure sectors, national security, energy security, energy transition, and climate change has significantly supported KBR’s growth.
As of Mar 29, 2024, the total backlog (including award options of $3.596 billion) was $20.8 billion compared with $21.73 billion at 2023-end. Of the total backlog, Government Solutions booked $12.89 billion. The Sustainable Technology Solutions segment accounted for $4.36 billion of the total backlog. At the end of the first quarter, the company delivered a trailing 12-month book-to-bill of 1.1x.
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Shares of this Zacks Rank #3 (Hold) company have gained 15.5% so far this year compared with the Zacks Engineering – R and D Services industry’s 22.5% growth. Although shares of the company have underperformed the industry this year, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters. KBR’s earnings estimate for 2024 reflects 10.3% year-over-year growth on a 9.2% increase in revenues.
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