KBR Inc. KBR recently secured a significant sustainable aviation fuel (SAF) project that highlights the growing commercial potential of its proprietary clean-fuel technologies. The company announced that NorSAF, a leading SAF producer in the Baltics, selected its PureSAF technology for Northern Europe’s predictably largest SAF and e-SAF production facility. Following the news, KBR stock gained 4.3% during trading hours yesterday.
Per the agreement, KBR will license its proprietary PureSAF technology for NorSAF’s planned production plant in Latvia. The plant is expected to produce 100,000 tons of SAF and e-SAF per year, with production targeted to begin in 2030. The project is backed by Avia Solutions Group and is expected to serve aviation markets across the Baltics, Northern Europe and other European regions.
This award reinforces the strength of KBR’s Sustainable Technology Solutions (STS) segment, where management continues to witness robust demand for energy-transition projects, particularly in sustainable aviation fuel, engineering and pre-FEED activities. As Europe accelerates aviation decarbonization efforts under the ReFuelEU Aviation regulation, which requires fuel supplied at EU airports to contain at least 6% SAF by 2030, this contract sits at the conjecture of long-term growth expectations.
As of April 3, 2026, KBR’s backlog and options were $23.2 billion, with a backlog of $17.3 billion, wherein the STS segment had about $4.7 billion of backlog, up 9% year over year. Management indicated the STS segment is positioned for mid-teens year-over-year revenue growth, driven by award momentum and elevated services demand. Thus, with a growing pipeline, expanding technology portfolio and favorable regulatory backdrop, KBR appears well positioned to benefit from the increasing adoption of sustainable aviation fuels.
Competitive Landscape for KBR
KBR operates in a competitive engineering and infrastructure market alongside peers such as Fluor Corporation FLR and Sterling Infrastructure, Inc. STRL, both of which are also benefiting from rising investment across energy, infrastructure and mission-critical projects.
Fluor continues to leverage its scale across large engineering, procurement and construction projects tied to energy, chemicals and infrastructure markets. In the first quarter of 2026, the company reported a backlog of $28.7 billion, supported by improving execution and steady demand across advanced manufacturing, mining and energy-transition opportunities. Management also emphasized a disciplined approach to contract selection and risk management, helping support more stable margin performance and stronger earnings visibility.
Sterling, meanwhile, has been experiencing strong momentum through its E-Infrastructure Solutions segment, driven by hyperscale data center demand, semiconductor-related projects and expanding customer programs. In the first quarter of 2026, companywide revenues surged 92% year over year, while adjusted EBITDA more than doubled and margins expanded to a first-quarter record of 20%. Sterling’s combined backlog reached $5.2 billion, reflecting sustained demand for mission-critical infrastructure development.
KBR’s Stock Price Performance & Valuation Trend
Shares of this Texas-based infrastructure service provider have declined 14.3% year to date, underperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
KBR stock is currently trading at a discount compared to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 8.29, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of KBR
KBR’s earnings estimates for 2026 and 2027 have trended downward in the past 30 days to $3.96 and $4.35 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 0.8% and 9.7%, respectively.
Image Source: Zacks Investment Research
KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fluor Corporation (FLR): Free Stock Analysis Report
KBR, Inc. (KBR): Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).