KBR Wins $476M Contract for Base Operations Support in Djibouti

KBR, Inc. KBR has secured a $476 million firm-fixed-price contract from the U.S. Navy Facilities Engineering Systems Command (“NAVFAC”). The contract involves Base Operations Support (“BOS”) services at Camp Lemonnier and Chabelley Airfield in Djibouti.

These sites include the only permanent U.S. Navy base in Africa. The agreement enables the company to continue providing BOS services at both locations.

KBR to Provide Mission Support Services

KBR has worked with NAVFAC in Djibouti since 2013, supporting 24/7 base operations at Camp Lemonnier and Chabelley Airfield. This continued support has helped the Horn of Africa task force focus on building partner capacity, promoting regional stability, preventing conflict, and protecting U.S. and partner interests. 

The company will continue its support to NAVFAC under the new Djibouti BOS contract. Per the contract, KBR will deliver mission support services for the Combined Joint Task Force – Horn of Africa. The company will manage facility operations, airfield and security services, emergency response and basic life support, including power, water, housing and food. The contract will run from November 2025 to May 2034.

KBR also provides base operations support in Bahrain, Diego Garcia and the UAE, along with services to the U.S. Army and Air Force across Europe, Asia, the Middle East and North America. The company has supported military operations in complex locations for more than 30 years.

KBR’s Diverse Market Presence Drives Project Growth

The company offers diversified solutions across various end markets through two of its reportable segments, Government Solutions and Sustainable Technology Solutions. The rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind. This advantage, coupled with KBR’s focus on a resilient business model and efficiency-boosting initiatives, has sparked its project-winning momentum.

KBR’s solid backlog and option level highlight its underlying strength. As of April 4, 2025, the total backlog (including award options) was $20.5 billion compared with $21.2 billion as of Jan. 3, 2025. Of the total backlog, Mission Technology Solutions and the Sustainable Technology Solutions contributed $16.51 billion and $4.03 billion, respectively. At the end of first-quarter 2025, the company delivered a trailing 12-month book-to-bill ratio of 1.0X.

KBR’s YTD Price Performance

KBR’s shares have lost 9.5% year to date compared with the Zacks Engineering - R and D Services industry’s 0.6% decline. Although its significant dependency on government spending is posing concerns, the increased demand for sustainable services and technology is likely to be beneficial in the upcoming period. In the first quarter of 2025, the company reported healthy bidding activity and continued success in securing strategic new contracts, signaling steady operational momentum. Earnings estimates for 2025 have increased to $3.85 per share from $3.83 over the past 30 days. The estimated figure indicates 15.3% growth from 2024.

KBR’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. ROCK.

Sterling presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company delivered a trailing four-quarter earnings surprise of 11.5%, on average. The stock has increased 57.9% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 1.7% and the same for earnings implies an increase of 38.5% year over year.

EMCOR currently holds a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 22.8%, on average. The stock has increased 20.8% in the past year.

The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 13.3% and 9.7%, respectively, from a year ago.

Gibraltar currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 16.6% in the past year.

The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago.

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

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