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HOUSTON - KBR (NYSE:KBR) and Axiom Space have successfully completed the first uncrewed thermal vacuum test of the Axiom Extravehicular Mobility Unit (AxEMU) Pressure Garment, according to a press release issued Thursday. The aerospace engineering firm, currently trading at $40.50, has seen its shares decline by over 29% year-to-date despite maintaining a solid financial foundation with a market capitalization of $5.1 billion.
The spacesuit is designed to support astronauts during NASA's Artemis III mission, which aims to be the first crewed lunar landing in more than 50 years. The test simulated the vacuum and extreme temperatures of space to evaluate the spacesuit's thermal performance and materials.
The test was conducted at KBR's Aerospace Environment Protection Laboratory in San Antonio, Texas - the same facility where Apollo astronauts trained for their moon landings. The companies completed the test from concept to execution in less than one month. According to InvestingPro data, KBR appears significantly undervalued compared to its Fair Value, with analysts setting price targets up to $65. The company has also maintained dividend payments for 18 consecutive years, demonstrating long-term financial stability despite recent stock price weakness.
"This successful test produced data to inform the AxEMU's performance and readiness for operational use on the lunar surface," said Russell Ralston, Axiom Space general manager of extravehicular activity.
The test marks a critical step in collecting data on how the suit will endure lunar conditions during the Artemis III mission. It is the first in a series of increasingly complex tests as Axiom Space moves toward the suit qualification phase with NASA.
The KBR and Axiom Space team has also completed the first dual-suit run at NASA's Neutral Buoyancy Laboratory and achieved over 700 hours of crewed pressurized time in the spacesuit. The AxEMU is currently in the critical design phase.
The development is part of NASA's Exploration Extravehicular Activity Services contract, which supports creation of the next-generation spacesuit designed to be more versatile and reliable for future missions to the moon and beyond.
In other recent news, KBR has been awarded a contract by ENKA İnşaat ve Sanayi A.Ş. to provide detailed engineering design services for the Associated Gas Upstream Project Phase 2 in Iraq's Basra region. This project is part of the Gas Growth Integrated Project operated by TotalEnergies, with partners BOC and Qatar Energy. Additionally, KBR has secured a contract to deliver detailed engineering services for QatarEnergy's Bul Hanine oil and gas field, located east of Doha, Qatar. The financial terms of this contract were not disclosed.
In another development, KBR's joint venture, Brown & Root Industrial Services, has signed an agreement to acquire Specialty Welding and Turnarounds (SWAT). This acquisition aims to create one of the largest specialty welding and turnaround service providers in North America. Furthermore, Truist Securities has raised its price target on KBR to $62 from $60, maintaining a Buy rating on the stock. The price target adjustment is based on valuation multiples and expected free cash flow over the next year. These developments reflect KBR's ongoing expansion and strategic positioning in the engineering and services sector.
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