OilVoice  4 hrs ago  Comment 
KBR Inc. NYSE KBR announced today the award of a prefront end engineering and design FEED study for PT Australasia LNG Indonesias AALNG new proposed LNG Hub terminal in Probolinggo East Jav
Motley Fool  Oct 5  Comment 
Many investors take analyst upgrades with a grain of salt, but investors are definitely optimistic about KBR's future prospects.
Benzinga  Oct 5  Comment 
A recent pullback in KBR, Inc (NYSE: KBR) shares represents an attractive buying opportunity, according to Johnson & Rice. Analysts cited two projects that are close to completion as a catalyst for the stock price, including the acquisitions...
Benzinga  Oct 4  Comment 
Despite severe earnings guidance cut, D.A. Davidson still rates KBR, Inc. (NYSE: KBR) a Buy as it sees lower long-term earnings risk for the company, which is exiting the high risk fixed-price EPC market for power projects to focus on low-risk...
Benzinga  Oct 4  Comment 
Deutsche Bank believes the recent selloff in KBR, Inc. (NYSE: KBR) is overdone and upgraded the stock to Buy from Hold, saying "the stock could reach $20-25 (45-80% upside) over the longer term (>12M)." Driven by the 2016 EPS guidance cut,...
Motley Fool  Oct 3  Comment 
These stocks led the market lower. Find out why.
Benzinga  Oct 3  Comment 
Shares of KBR, Inc. (NYSE: KBR) plunged 13 percent after the company cut its 2016 earnings outlook Friday on expected cost increases to complete engineering, procurement and construction ("EPC") projects. KBR cut its full-year earnings...
Benzinga  Oct 3  Comment 
The Dow fell 0.31 percent to 18,251.42, while the NASDAQ composite index slipped 0.17 percent to 5,302.82. The broader Standard & Poor's 500 index declined 0.27 percent to 2,162.32. The worst performing industries in the market today...
OilVoice  Oct 3  Comment 
KBR Inc. NYSE KBR announced today that the Company has updated earnings guidance for 2016 to reflect expected increases in costs to complete engineering procurement and construction EPC proje


KBR, Inc. (KBR) is an international construction, engineering, and services company supporting the energy, government, and civil infrastructure sectors.[1] The Company operates in four segments:Hydrocarbons; Infrastructure, Government & Power ("IGP"); Services; and Other.[1] Revenue from operations in Iraq were 29%, 35%, and 43% of revenue in 2010, 2009, and 2008 respectively, marking decreasing revenues as the war in Iraq winds down.[1] Despite these losses, KBR is partially sheltered from the recession in the United States as a result of extensive operations abroad in countries such as Kazakhstan, Saudi Arabia, and Australia.[2]

Business Growth

Almost 80% of KBR's revenue comes from operations abroad, including operations in Iraq and Afghanistan.[2] As the wars in these two theaters come to an end, revenue will decrease. Revenue from IGP, the segment that deals with contracting in war zones, decreased by 32% between 2009 and 2010.[1] Revenue decreased from $6.3 billion to $4.3 billion in 2009 and 2010 respectively.[1]

Trends and Forces

Infrastructure, Government and Power Revenue Contingent Upon Government Spending

Approximately half of KBR's revenues come from government contracts in war zones such as Afghanistan and Iraq.[1] As operations in Iraq came to an end, KBR incurred a $2 billion loss as a result of decreasing U.S. military need.[1] Furthermore, as international allies end their operations in these theaters, they will have to rely on KBR less for material support.[1]

The Effects of the U.S. Recession are Partially Offset by Operations Abroad

Revenue from international operations has increased to nearly 80% of KBR's total earnings.[1] Though KBR is largely reliant on U.S. and Western government contracts, it has expanded into areas such as Central Asia and the Persian Gulf.[2] These projects namely include building infrastructure for emerging nations; KBR has announced multi-billion dollar contracts to help build mines in Australia and with Rio Tinto and Hancock Prospecting.[2]


KBR competes directly with a growing industry of government contracts that emerged to take advantage of spending in the aftermath of the terrorist attacks of 9/11, as well as traditional engineering and construction companies. These companies include:


  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 KBR 2010 Annual Report
  2. 2.0 2.1 2.2 2.3 KBR ranked No. 10 on the Washington Technology 2011 Top 100
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