KBR, Inc.’s KBR backlog received a boost from winning the $2.459 billion Human Health and Performance Contract 2 for NASA. This is a follow-on award with an indefinite delivery period, which could extend up to 2035, through two possible option periods having a total estimated contract value of approximately $3.6 billion.
KBR stock trended upward by 1.4% during yesterday’s trading session and up 1.1% in the after-hours. The investors’ sentiments are likely to have been boosted by the continuation of KBR’s long-standing relationship with NASA through this multi-year project win.
Diving Deep Into KBR’s New Multi-Year Win
Per the new NASA contract, KBR will be offering support services for various programs, including the Human Research Program, International Space Station (ISS) Program, Commercial Crew Program, Artemis campaign and more. The company will be managing the services for supporting astronaut health, occupational health and research that would help minimize health risks for future human spaceflight missions.
The first five-year performance for the contract is expected to commence on Nov.1, 2025, with the majority of the work taking place at NASA’s Johnson Space Center in Houston.
KBR’s Partnership With NASA
KBR has experience of about six decades in supporting human spaceflight operations, and this new project for NASA substantiates its expertise and extends the long-standing partnership. The company’s expertise in offering space solutions aligns with NASA’s requirements, with services including spacecraft development and operations, building next-generation spacesuits, preparing astronauts for their missions and ensuring efficient space launches.
Recently, KBR and Axiom Space completed three underwater tests for the Axiom Extravehicular Mobility Unit (AxEMU), the next-generation spacesuit, regarding NASA’s mission to the Moon. This evaluation process at NASA’s Neutral Buoyancy Laboratory at Johnson Space Center was successful in proving the spacesuit’s integrity and efficiency when exposed to the weightlessness of space.
Currently, KBR is looking forward to the $10 billion budget reconciliation for NASA, which is aimed at strengthening the latter’s national security missions. This budget approval will help foster KBR’s work on the Artemis program and other related works at the Johnson Space Center.
KBR Stock’s Price Performance
KBR’s shares have gained 10.9% in the past month, outperforming the Zacks Engineering - R and D Services industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment ResearchThe company’s service offerings across space solutions and other infrastructure markets are boding well for its prospects amid a favorable public spending environment in the United States. Although macro headwinds and inflationary pressures are taking a toll on the company, the robust market fundamentals are expected to fuel revenue visibility and profitability position in the long term.
As of July 4, 2025, KBR’s backlog and options were $21.57 billion, up 7.3% year over year from $20.1 billion and 4.8% from $20.58 billion as of fiscal 2024-end, with a trailing 12-month book-to-bill of 1.0x. Among the total backlog and options as of the second quarter of fiscal 2025, the Mission Technology Solutions (MTS) segment contributed $17.85 billion.
KBR’s Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold).
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Great Lakes Dredge & Dock Corporation GLDD presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 45.3%, on average. The stock has inched up 3.3% in the past three months.
The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 sales and EPS implies an increase of 8.2% and 21.4%, respectively, from a year ago.
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KBR, Inc. (KBR): Free Stock Analysis Report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Primoris Services Corporation (PRIM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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