KBR & Tecnicas Reunidas Win FEED Contract for Texas LNG Project

KBR, Inc. KBR, together with Tecnicas Reunidas (TRE), has been selected by Coastal Bend LNG to undertake the front-end engineering and design (FEED) for a planned natural gas liquefaction and export facility on the Texas Gulf Coast.

Following the news, shares of KBR are up 0.4% in pre-market trading today.

Overview of the New Contract

The companies will initially execute the FEED phase of the project. Subject to a positive final investment decision, KBR and Tecnicas Reunidas will subsequently proceed with the engineering, procurement and construction (EPC) phase. The partners will collaborate on the design of multiple large-scale LNG production trains using ConocoPhillips’ Optimized Cascade Process, targeting cost-competitive LNG production while reducing greenhouse gas emissions. Both firms bring deep expertise in LNG engineering, EPC execution and industrial decarbonization.

Leveraging more than five decades of LNG expertise, KBR brings leadership in designing energy infrastructure that is efficient, scalable and capable of meeting global energy demand. This partnership supports Coastal Bend LNG's objective of establishing a new benchmark for low-carbon LNG production by combining extensive industry experience to optimize the facility's economic performance and efficiency while lowering carbon intensity.

LNG-Led Backlog Growth Momentum

KBR’s backlog continues to trend higher, supported by favorable market conditions in the United States and internationally, along with the robust global demand for LNG and energy infrastructure projects. Increasing investment in LNG, ammonia and energy affordability, along with a growing emphasis on lower-carbon and secure energy supply, is driving sustained opportunities across the company’s engineering and technology portfolio.

As of the end of the third quarter of fiscal 2025, KBR’s backlog and options totaled $23.35 billion, representing a 5.6% year-over-year increase and a 13.5% rise from fiscal year-end 2024, supported by a trailing 12-month book-to-bill ratio of 1.4x. Growth was underpinned by a series of notable awards, including LNG-related FEED work such as Indonesia’s Abadi LNG project, alongside additional energy security and upstream support contracts in Iraq, Kuwait and the UAE. These wins highlight KBR’s strengthening position in LNG-led energy infrastructure and its ability to capture long-cycle, high-value projects globally.

KBR’s Stock Price Performance

KBR stock has gained 3.3% in the past month compared with the Zacks Engineering - R and D Services industry’s 0.8% growth. The gain reflects resilience in mission-critical U.S. programs, strong international momentum and solid execution supported by wins in space, defense, LNG and energy security. However, near-term prospects are tempered by delays in new contract awards and slower U.K. defense funding.

KBR’s Zacks Rank & Key Picks

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

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The Zacks Consensus Estimate for Dycom’s 2026 sales and EPS indicates growth of 14.5% and 5.7%, respectively, from the year-ago period’s levels.
 
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MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 18.9%, on average. MTZ stock has gained 27% in the past six months.

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This article originally published on Zacks Investment Research (zacks.com).

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