Street Calls of the Week
KBR Inc stock has reached a 52-week low, hitting $43.86, marking a significant downturn for the company. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 14.25x, while management has been actively buying back shares to support shareholder value. Over the past year, KBR has experienced a substantial decline, with its stock price dropping by 37.46%. Despite these challenges, the company maintains strong fundamentals, with 18 consecutive years of dividend payments and a recent 10% dividend growth. Analysts remain optimistic, with consensus targets suggesting significant upside potential. For deeper insights into KBR’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, KBR, Inc. announced the approval of a tax-free spin-off of its Mission Technology Solutions segment, aiming to create two independent, publicly traded companies by mid-to-late 2026. This strategic move will allow KBR to focus on its Sustainable Technology Solutions business, while the new entity, SpinCo, will concentrate on government services. Additionally, KBR secured significant contracts, including a $2.46 billion NASA contract for astronaut health services and a $175 million contract from the Air Force Research Laboratory for defense technology development. These contracts highlight KBR’s continued involvement in critical government projects. In another development, S&P Global Ratings revised KBR’s outlook to negative from stable, citing weaker-than-expected credit metrics. The rating agency now anticipates lower funds from operations to debt ratios in the coming years. Meanwhile, BCP completed the sale of its stake in Brown & Root Industrial Services, a company co-founded with KBR, though financial terms were not disclosed. These recent developments underscore the evolving landscape for KBR and its strategic initiatives.
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