Premium technical service company KBR, Inc. KBR recently secured a reimbursable contract from Flint Hills Resources. As per the deal, KBR is supposed to modify and expand the firm’s Corpus Christi West refinery. We believe that the new contract will not only boost KBR’s organic growth trajectory but also strengthen its presence in the Texas Gulf Coast region.
Flint Hills Resources is an autonomous chemical, refining and biofuels producing company. The firm is focused on enhancing the quality of its facilities through innovation as well as construction modification contracts.
The latest contract from Flints is expected to generate $300 million in revenues for KBR, apart from fortifying its backlog figure in the near term. Supported by complete cooperation from and interrelation with the client, KBR management expects to accomplish the project within next three years.
KBR is a renowned multinational engineering, technology, procurement and construction company. It provides competent and non-imitable services primarily for governments and hydrocarbons industries across the world. Since its inception in 1901, the company has strategically expanded its business in various global economies. The new contract win reflects the company’s capacity to provide competent direct-hire construction expertise. Backed by such lucrative deals, we expect KBR to witness better top- and bottom-line results in the upcoming quarters.
With a market capitalization of $2.21 billion, KBR currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Accretive Health, Inc. ACHI, Booz Allen Hamilton Holding Corporation BAH and CRA International Inc. CRAI. All the three stocks hold a Zacks Rank #2 (Buy).
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