KBR Inc. has announced a significant expansion of its collaboration with the U.S. Space Force (USSF) through two newly awarded firm-fixed-price task orders valued at $103 million. Under this three-year contract, the company will deliver AI-enabled analytics and specialized technical expertise, which are designed to enhance strategic decision-making and personnel readiness for both the USSF and the Department of the Air Force.
As part of this agreement, KBR will support the USSF/S1 Strategic Support Division by providing workforce design, scientific assessments, and person-job matching algorithms. These efforts aim to align Guardians - USSF personnel - with mission-critical roles.
Following this announcement, KBR’s stock rose by 1.5% during the previous trading session.
This new contract further reinforces KBR’s growing presence in federal programs, particularly in its Mission Technology Solutions segment. The company has seen increasing demand for services across key areas such as cybersecurity, digital engineering, electronic warfare, and space capabilities. In the third quarter of 2025, KBR secured several high-profile awards, including a major NASA recompete for astronaut health and human performance services worth $2.5 billion, with an additional $1 billion in options. The company has also bolstered its collaborations with the U.S. Air Force Research Laboratory and introduced its Integration Accelerator digital engineering ecosystem to the U.S. Space Force.
While procurement timing across government programs remains uneven, KBR has emphasized the strength of its federal pipeline. Continued investment in defense modernization, space operations, and advanced mission-support technologies ensures that these federal wins not only contribute to the company’s $23 billion backlog but also enhance long-term revenue visibility. This positions KBR to capitalize on sustained U.S. government spending in mission-critical domains.
KBR faces competition in the government services and infrastructure sector from companies such as Fluor Corporation and Sterling Infrastructure, Inc., which are also active in mission-critical programs tied to defense, energy, and technology.
Fluor Corporation has reported strong performance across its core markets, benefitting from progress in energy transition initiatives, LNG, mining, and data center infrastructure. At the end of the third quarter of 2025, Fluor’s total backlog stood at $28.2 billion, with 82% of it consisting of reimbursable projects, which offer a lower-risk profile and greater financial predictability.
Sterling Infrastructure, Inc., meanwhile, has seen significant growth in its E-Infrastructure Solutions segment, which focuses on data centers, manufacturing, and e-commerce distribution. In the third quarter of 2025, Sterling reported a 32% year-over-year revenue increase, driven by a remarkable 58% rise in its E-Infrastructure segment, including 42% organic growth.
Despite these advancements, KBR’s stock has faced challenges in recent months. Shares of the Texas-based service provider have dropped 10.6% over the past six months, underperforming the broader Zacks Engineering - R and D Services industry, the Construction sector, and the S&P 500 Index.
However, KBR’s forward 12-month price-to-earnings (P/E) ratio of 10.46 currently reflects a discount compared to its industry peers. Additionally, analysts have revised earnings estimates for the company upward over the past 30 days, projecting earnings of $4.17 per share for 2026. While KBR’s 2026 revenue is expected to decline by 11% year-over-year, its earnings per share are anticipated to grow by 4.4%.
KBR’s growing partnership with the U.S. Space Force and solid federal pipeline underscore the strategic importance of its Mission Technology Solutions segment. With its recent contract wins and robust backlog, the company is well-positioned to navigate near-term market uncertainties while benefiting from sustained investment in mission-critical areas.
