KBR Secures Up to $350M USGS Technical Support Services Contract

KBR, Inc. KBR has strengthened its U.S. footprint after securing a Technical Support Services Contract from the U.S. Geological Survey (USGS). Under the agreement, the company will deliver advanced technical and technology support to the Earth Resources Observation and Science (EROS) Center in South Dakota, supporting the analysis of Earth’s land and natural resources through satellite-based data.

Following the news, shares of KBR gained 6.7% during trading hours yesterday.

Comprehensive Overview of the New Contract

KBR has secured a single Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a potential value of up to $350 million. This award positions the company to support USGS as it enters a new phase of Earth observation, including preparations for Landsat Next — a next-generation, three-satellite constellation scheduled for launch in 2030.

Under the agreement, KBR will modernize USGS’ mission-critical operations using cloud-native systems, AI and machine learning, and enterprise-scale IT solutions. The work also covers data analytics, algorithm development, secure IT infrastructure and long-term preservation of global Earth-observation data, enabling deeper insights into Earth’s land, water and environmental systems. The five-year contract will be primarily executed at the EROS Center in Sioux Falls, South Dakota and other U.S. locations.

Leveraging decades of expertise in advanced engineering, data analytics and enterprise IT, KBR delivers strong capabilities in cloud-native systems, AI/ML, secure infrastructure and Earth-observation technologies. With more than 24 years of partnership with USGS, this fifth consecutive award reinforces KBR’s role as a trusted long-term partner supporting the agency’s leadership in environmental intelligence and planetary stewardship.

Strong Backlog Growth Momentum

KBR’s backlog remains on a strong upward trend, driven by favorable market conditions in the United States and abroad. Continued U.S. government emphasis on national security, alongside rising global investment in sustainability, energy affordability, LNG and ammonia projects, and digital modernization, continues to underpin the company’s long-term growth prospects.

At the end of the third quarter of fiscal 2025, KBR’s backlog and options were $23.35 billion, up 5.6% year over year from $22.11 billion and 13.5% from $20.58 billion as of fiscal 2024-end, with a trailing 12-month book-to-bill of 1.4x. The quarter featured several notable contract wins across both Mission Technologies (MTS) and Sustainable Technology Solutions (STS). In MTS, the company secured a major recompete: a $2.5 billion base contract with an additional $1 billion in options to support astronaut health and human performance for NASA. In STS, new awards included front-end engineering design work for Indonesia’s Abadi LNG project, a multi-year extension with Basra Oil Company in Iraq, program management consultancy for power and water networks in the UAE and heavy-oil and energy-security FEED support for Kuwait Oil Company.

KBR’s Stock Price Performance

KBR stock has dropped 0.7% in the past month compared with the Zacks Engineering - R and D Services industry’s 3.4% decline. Despite solid execution and strong international momentum, the company’s outlook has been pressured by the U.S. government shutdown, which has delayed new awards and protest resolutions, as well as slower funding activity in the U.K. defense market.

KBR’s Zacks Rank & Key Picks

KBR currently carries a Zacks Rank #3 (Hold).

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