KBR Lands Libya Deal With Zallaf: Is the Expansion a New Growth Lever?

KBR Inc. KBR has won a project management contract from Zallaf Exploration, Production and Refining of Oil and Gas Company to support the development of the South Refinery Project in Ubari, Southwest Libya. This award reinforces KBR’s presence in global energy infrastructure and signals continued momentum within its Sustainable Technology Solutions (STS) segment.

The work scope for KBR includes contract management, project management and supporting technical services throughout the EPC phases of the project. This engagement is expected to run for approximately 50 months, providing the company with significant multi-year revenue visibility while solidifying its role in managing large-scale energy projects globally. Moreover, the Zallaf South Refinery Project sits on the long-standing commitment of KBR to offering crucial oil and gas infrastructure in Libya. The company has successfully delivered projects in the country, including engineering services for national programs such as the Great Man-Made River Project, besides other landmark developments. By securing this long-term project management role, KBR continues to transition toward higher-value, OpEx-oriented services that provide more resilient margins and reduced exposure to traditional CapEx volatility.

KBR’s expansion in the downstream and refining space significantly bolsters its backlog and pipeline visibility. The company exited 2025 with a $4.2 billion backlog in its STS segment, underpinned by a 1.2x trailing 12-month book-to-bill ratio. For 2026, the STS segment is projected to deliver low double-digit revenue growth while maintaining normative long-term margins of 20% or higher.

KBR’s Libya refinery contract reinforces its shift toward global energy infrastructure and downstream expansion. While not transformative, it enhances backlog visibility and supports the view that Global South exposure could drive growth, contingent on continued execution and pipeline strength.

Can KBR Outmaneuver Rivals in High-Stakes Markets?

KBR operates in a competitive government services and infrastructure landscape alongside established peers such as Fluor Corporation FLR and Sterling Infrastructure, Inc. STRL.

Fluor operates across complex engineering, procurement and construction projects where long development cycles often translate into stable revenue pipelines. Exposure to sectors such as LNG, mining and metals, advanced technologies, life sciences, nuclear fuels and national security programs is helping Fluor maintain a steady flow of opportunities that support growth. Fluor ended 2025 with a backlog of $25.5 billion, of which roughly 81% is reimbursable, offering better cost visibility and balanced project risk.

Sterling has delivered a strong performance, driven by momentum in its E-Infrastructure and Transportation segments. Disciplined project selection, strategic acquisitions and solid execution have supported revenue and adjusted operating income growth. Sterling’s adjusted EBITDA rose sharply year over year, with fourth-quarter gross margins reaching record levels on a favorable project mix and improved efficiency.

KBR’s Stock Price Performance & Valuation Trend

Shares of this Texas-based infrastructure service provider have declined 24.9% in the past six months, 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 with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 8.91, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of KBR

KBR’s earnings estimates for 2026 have trended downward in the past 30 days to $4.01 per share. However, the Zacks Consensus Estimate for KBR’s 2026 revenues and EPS indicates year-over-year growth of 4.2% and 2%, 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.

Quantum Computing Stocks Set To Soar

Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.

Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.

Access the Report Free Now >>

Want 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).

Zacks Investment Research