6. KBR, Inc. (NYSE:KBR)
Number of Hedge Fund Holders as of Q4: 56
Navellier & Associates’ Equity Stake: $3.20 Million
Formerly known as Kellogg Brown & Root, KBR, Inc. (NYSE:KBR) operates across the fields of science, technology, and engineering. Founded in 1901 by Morris Woodruff Kellogg as The M.W. Kellogg Company in New York City, KBR has evolved into a major player in a wide array of industries, including aerospace, defense, industrial, and intelligence sectors. The company is currently headquartered in the KBR Tower in Houston, Texas, and continues to build on its long history of innovation and technical expertise.
In the fourth quarter of 2024, KBR, Inc. (NYSE:KBR) delivered strong financial results, surpassing analysts’ expectations on both earnings and revenue fronts. The company reported earnings per share (EPS) of $0.91, outperforming the market forecast of $0.82. Revenues for the quarter totaled $2.12 billion, exceeding the anticipated $2.01 billion. This performance reflects KBR’s successful execution of its strategic initiatives and operational discipline, solidifying its position in key markets.
Looking ahead, KBR, Inc. (NYSE:KBR) has issued an optimistic outlook for 2025, forecasting continued growth driven by its focus on advanced technology and innovation. The company projects revenue between $8.7 billion and $9.1 billion for the year, representing approximately 15% growth at the midpoint. Additionally, KBR expects adjusted EBITDA to range from $950 million to $990 million and anticipates adjusted EPS between $3.71 and $3.95. These projections highlight KBR’s commitment to expanding its market presence and capitalizing on emerging opportunities in its core industries, positioning the company for sustained, long-term growth.
Cove Street Capital Small Cap Value Fund stated the following regarding KBR, Inc. (NYSE:KBR) in its Q2 2024 investor letter:
“On the plus side, KBR, Inc. (NYSE:KBR) has been a strong performer so far YTD on the back of an investor day in the second quarter that highlighted the success of the last four-year plan (2020-2023) before laying out ambitious but credible targets for the next 4 years (2024- 2027). Since 2020, KBR has pivoted their commercial business away from high-risk EPC projects to a more differentiated IP-first consulting approach that now sees 20% EBIT margins and contributes 40% of their overall profitability. KBR has cleaned up their balance sheet by settling convertible notes and warrants and now sits at a healthy 2x net leverage. With the upcoming ramp of a $20B government services contract with the U.S. army, the company is well positioned to generate cash and return value to shareholders.”
In early 2025, KBR, Inc. (NYSE:KBR) secured a multi-year contract with BP International Limited to provide engineering, procurement, and construction management (EPCM) services for onshore, offshore, greenfield, brownfield, and new energy projects globally. The agreement involves collaboration across multiple international locations, reinforcing KBR’s reputation for delivering complex projects worldwide. This new development reflects KBR’s growing focus on space, defense, national security, and commercial markets, with expected revenue growth of 11% to 15% CAGR through 2027.
