Report
Krzysztof Smalec
EUR 850.00 For Business Accounts Only

Morningstar | Strong Momentum Continues for KBR Performance; We View Portfolio Mix Shifts as Favorable

KBR is a global provider of technology, integrated engineering, procurement, and construction delivery, as well as operations and maintenance services. It operates three core business segments: government services, technology, and hydrocarbons services. Under the leadership of CEO Stuart Bradie, the firm has focused on expanding its differentiated government services and hydrocarbons services portfolio. Government services (approximately 70% of 2018 revenue and 65% of operating income) provides a comprehensive array of services across a wide range of programs, including defense, space, and aviation, mostly in the United States, United Kingdom, and Australia. The segment has capabilities across the full life cycle of government programs, from research and development, through program management and project delivery, to operations and maintenance.Technology (approximately 6% of 2018 revenue and 14% of operating income) has a unique portfolio of licensed technologies and offers consulting services across a variety of markets, including refining, petrochemicals, specialty chemicals, as well as ammonia and fertilizers. Hydrocarbons services (approximately 24% of 2018 revenue and 21% of operating income) provides engineering, procurement, and construction services across multiple end markets, including oil and gas, liquefied natural gas/gas to liquids, petrochemicals, and fertilizers. Additionally, the segment offers maintenance services under the Brown & Root Industrial Services brand.
Underlying
KBR Inc.

KBR provides services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The company has three segments: Government Solutions, which provides life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies; Technology Solutions, which combines technologies, equipment and catalyst supply, digital solutions and associated knowledge-based services into a global business for refining, petrochemicals, inorganic and specialty chemicals; and Energy Solutions, which provides life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Krzysztof Smalec

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