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KBR, Inc. KBR has secured a significant global agreement with BP International Limited to provide engineering, procurement, and construction management (EPCM) services. This three-year agreement, with an option for a two-year extension, covers conventional and new energy projects worldwide, enhancing KBR’s position as a versatile and trusted partner in the energy sector.
Shares of KBR gained 1.6% during the trading session yesterday.
The contract involves KBR supporting both onshore and offshore projects, spanning greenfield and brownfield developments. By integrating its market-leading licensed technology solutions, KBR continues to showcase its depth and capability in delivering innovative energy solutions.
Under this new agreement, multiple KBR project teams from offices across Houston, Baku, India, Abu Dhabi, Oman, Singapore, Perth, and London will contribute to BP’s energy initiatives. The geographic diversity of the teams highlights KBR’s capability to execute complex projects on a global scale.
Driving Growth in Energy Transition
The expanded EPCM agreement not only reinforces KBR’s partnership with BP but also positions the company to benefit from the energy transition. With BP’s growing portfolio in conventional and renewable energy, KBR stands to play a pivotal role in advancing innovative and sustainable energy solutions.
KBR’s existing engineering services agreement with BP has already supported critical projects in regions like the United States, North Sea, Iraq, Africa, and Azerbaijan. This new contract broadens the scope of collaboration, enabling KBR to capitalize on BP’s expanding global energy initiatives.
KBR’s new agreement with BP is a testament to its expertise in EPCM services and its ability to deliver results in both traditional and new energy sectors. By deepening its partnership with BP, KBR is poised to drive growth, strengthen its market position, and contribute meaningfully to the evolving global energy landscape.
Image Source: Zacks Investment Research
KBR’s shares have lost 9.5% in the past six months compared with the Zacks Engineering - R and D Services industry’s 3.9% decline. Although high costs and expenses are posing concerns, increased activity in energy transition projects is likely to be beneficial in the upcoming period.
KBR’s Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the Construction sector.
MasTec, Inc. MTZ currently sports a Zacks Rank #1 (Strong Buy). MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has jumped 38% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MTZ’s 2025 sales and earnings per share (EPS) calls for an increase of 8.8% and 43.4%, respectively, from a year ago.
Weyerhaeuser Company WY currently sports a Zacks Rank of 1. WY delivered a trailing four-quarter earnings surprise of 41.6%, on average. The stock has lost 1.3% in the past six months.
The consensus estimate for WY’s 2025 sales and EPS indicates an increase of 8% and 71.3%, respectively, from a year ago.
AECOM ACM presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 5.2%, on average. Shares of ACM have rallied 24.4% in the past six months.
The Zacks Consensus Estimate for ACM’s fiscal 2025 EPS implies an increase of 12.8% from the prior-year levels.