KBR wins FEED contract for ammonia plant in Iraq

Published 16/07/2025, 11:08
KBR wins FEED contract for ammonia plant in Iraq

HOUSTON - Engineering company KBR (NYSE:KBR), a $5.9 billion market cap engineering firm that has shown solid revenue growth of ~13% over the last twelve months, has been awarded a front-end engineering design (FEED) contract for an ammonia and urea production plant in Basra, Iraq, the company announced Wednesday in a press release. According to InvestingPro data, the company maintains profitable operations with a FAIR financial health score.

The contract, awarded by KAR Electrical Power Production Trading FZE (KEPPT), covers FEED work for a 2,300 metric tons per day ammonia production facility and a 3,850 metric tons per day urea production unit.

KBR will execute the project using its proprietary ammonia technology, which the company says is designed to enable high efficiency, low emissions, and operational reliability.

"We are honored to support this pivotal project, which monetizes gas feedstock to boost the agricultural industry in Iraq," said Jay Ibrahim, President of KBR Sustainable Technology Solutions.

According to the company, the project aims to generate employment and reduce Iraq’s dependency on fertilizer imports while repositioning the country as a global ammonia producer.

KBR noted that it has been involved in the licensing, design, engineering and/or construction of more than 260 ammonia plants worldwide. The company currently employs approximately 38,000 people and operates in over 29 countries, serving customers in more than 80 countries.

The financial terms of the contract were not disclosed in the announcement.

In other recent news, KBR has been active with several significant developments. The company’s joint venture with SOCAR secured two engineering contracts from BP for projects in Azerbaijan, focusing on the Sangachal Terminal Electrification and Shah Deniz compression gas field projects. These projects aim to transition facilities to a national grid supply and enhance energy security. Additionally, KBR announced the resignation of its Chief Operating Officer, Byron Bright, effective July 11, 2025, after 15 years with the company. The company expects no operational disruptions from this change and will discuss further details in its upcoming earnings call.

Meanwhile, the company’s stock has seen mixed analyst reactions following the termination of the HomeSafe program by the Department of Defense. UBS downgraded KBR from Buy to Neutral, citing concerns about government contract uncertainties and potential reductions in earnings guidance. KeyBanc also downgraded KBR’s stock rating to Sector Weight, highlighting the need for a revised long-term outlook. In contrast, Truist Securities maintained its Buy rating, despite reducing revenue and EBITDA estimates for the coming years, citing limited financial impact from the contract termination. These recent developments highlight a period of transition and uncertainty for KBR.

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