KBR Awarded Estimated $229M Contract for U.S. Army Cargo Helicopter Systems
KBR (NYSE: KBR) has secured a $229M recompete task order under the Department of Defense Information Analysis Center's multiple-award contract to provide life cycle research and analysis for U.S. Army Cargo Helicopter Systems. The five-year contract will be executed in Huntsville, Alabama.
The scope includes research, analysis, and recommendations to enhance availability, reliability, and reduce support costs for the CH-47 Chinook helicopter for Cargo Helicopter Project Management Office and Foreign Military Sales partners. KBR will conduct maintainability analyses, quality assessments, supportability strategies, logistics management, and life cycle cost analyses.
The CH-47 Chinook serves critical roles in troop and cargo transport, medical evacuation, search and rescue, and disaster relief operations. KBR brings over 35 years of experience supporting the Aviation PEO and has been the incumbent contractor for U.S. Army CH-47 helicopters work for the past decade.
KBR (NYSE: KBR) ha ottenuto un ordine di lavoro di $229 milioni nell'ambito del contratto a premi multipli del Dipartimento della Difesa per fornire ricerca e analisi del ciclo di vita per i sistemi di elicotteri da carico dell'esercito degli Stati Uniti. Il contratto quinquennale sarà eseguito a Huntsville, Alabama.
Il campo di applicazione include ricerca, analisi e raccomandazioni per migliorare la disponibilità, l'affidabilità e ridurre i costi di supporto per l'elicottero CH-47 Chinook per l'Ufficio di gestione del progetto degli elicotteri da carico e i partner delle vendite militari estere. KBR condurrà analisi di manutenibilità, valutazioni di qualità, strategie di supportabilità, gestione della logistica e analisi dei costi del ciclo di vita.
Il CH-47 Chinook svolge ruoli critici nel trasporto di truppe e carichi, evacuazione medica, ricerca e soccorso, e operazioni di soccorso in caso di calamità. KBR porta oltre 35 anni di esperienza a supporto del PEO Aviazione ed è stato l'appaltatore attuale per il lavoro sugli elicotteri CH-47 dell'esercito degli Stati Uniti nell'ultimo decennio.
KBR (NYSE: KBR) ha conseguido un pedido de recompra de $229 millones bajo el contrato de múltiples premios del Centro de Análisis de Información del Departamento de Defensa para proporcionar investigación y análisis del ciclo de vida para los sistemas de helicópteros de carga del ejército de EE. UU. El contrato de cinco años se llevará a cabo en Huntsville, Alabama.
El alcance incluye investigación, análisis y recomendaciones para mejorar la disponibilidad, confiabilidad y reducir los costos de soporte para el helicóptero CH-47 Chinook para la Oficina de Gestión del Proyecto de Helicópteros de Carga y socios de Ventas Militares Extranjeras. KBR llevará a cabo análisis de mantenibilidad, evaluaciones de calidad, estrategias de sostenibilidad, gestión logística y análisis de costos del ciclo de vida.
El CH-47 Chinook desempeña roles críticos en el transporte de tropas y carga, evacuación médica, búsqueda y rescate, y operaciones de ayuda en desastres. KBR aporta más de 35 años de experiencia apoyando al PEO de Aviación y ha sido el contratista actual para el trabajo de helicópteros CH-47 del ejército de EE. UU. durante la última década.
KBR (NYSE: KBR)는 미국 육군 화물 헬리콥터 시스템의 생애 주기 연구 및 분석을 제공하기 위해 국방부 정보 분석 센터의 다수 수상 계약 하에 2억 2,900만 달러 규모의 재경쟁 작업 명령을 확보했습니다. 이 5년 계약은 앨라배마주 헌츠빌에서 수행될 예정입니다.
범위에는 CH-47 치누크 헬리콥터의 가용성, 신뢰성 향상 및 지원 비용 절감을 위한 연구, 분석 및 권장 사항이 포함됩니다. KBR은 유지 관리 분석, 품질 평가, 지원 가능성 전략, 물류 관리 및 생애 주기 비용 분석을 수행할 것입니다.
CH-47 치누크는 병력 및 화물 운송, 의료 대피, 수색 및 구조, 재해 구호 작전에서 중요한 역할을 합니다. KBR은 항공 PEO를 지원한 35년 이상의 경험을 보유하고 있으며, 지난 10년간 미국 육군 CH-47 헬리콥터 작업의 현업 계약자였습니다.
KBR (NYSE: KBR) a obtenu un ordre de tâche de recompte de 229 millions de dollars dans le cadre du contrat à multiples attributs du Département de la Défense pour fournir des recherches et des analyses sur le cycle de vie des systèmes d'hélicoptères de transport de l'armée américaine. Le contrat de cinq ans sera exécuté à Huntsville, Alabama.
Le champ d'application comprend la recherche, l'analyse et des recommandations pour améliorer la disponibilité, la fiabilité et réduire les coûts de soutien pour l'hélicoptère CH-47 Chinook pour le Bureau de gestion de projet des hélicoptères de transport et les partenaires des ventes militaires étrangères. KBR effectuera des analyses de maintenabilité, des évaluations de qualité, des stratégies de soutenabilité, la gestion logistique et des analyses des coûts du cycle de vie.
Le CH-47 Chinook joue des rôles critiques dans le transport de troupes et de cargaisons, l'évacuation médicale, la recherche et le sauvetage, et les opérations de secours en cas de catastrophe. KBR apporte plus de 35 ans d'expérience au service du PEO Aviation et a été le contractant en cours pour le travail sur les hélicoptères CH-47 de l'armée américaine au cours de la dernière décennie.
KBR (NYSE: KBR) hat einen Auftrag über 229 Millionen Dollar im Rahmen des Mehrfachvergabevertrags des Verteidigungsministeriums zur Bereitstellung von Lebenszyklusforschung und -analyse für die US-Armee-Transporthelikopter-Systeme gesichert. Der fünfjährige Vertrag wird in Huntsville, Alabama, ausgeführt.
Der Umfang umfasst Forschung, Analyse und Empfehlungen zur Verbesserung der Verfügbarkeit, Zuverlässigkeit und zur Senkung der Unterstützungskosten für den CH-47 Chinook-Helikopter für das Projektmanagementbüro für Transporthelikopter und ausländische Militärverkäufe. KBR wird Analysen zur Wartungsfreundlichkeit, Qualitätsbewertungen, Unterstützungsstrategien, Logistikmanagement und Lebenszykluskostenanalysen durchführen.
Der CH-47 Chinook spielt eine entscheidende Rolle beim Transport von Truppen und Fracht, bei medizinischen Evakuierungen, Such- und Rettungsaktionen sowie bei Katastrophenhilfseinsätzen. KBR bringt über 35 Jahre Erfahrung in der Unterstützung des Aviation PEO mit und war in den letzten zehn Jahren der aktuelle Auftragnehmer für die Arbeiten an den CH-47-Hubschraubern der US-Armee.
- Secured substantial $229M contract renewal
- Five-year contract duration ensures steady revenue stream
- Maintains incumbent position on strategic military contract
- Expands Foreign Military Sales (FMS) partnership opportunities
- Contract is a recompete, not new business expansion
Insights
KBR's
The contract scope focuses on improving reliability and reducing support costs for the CH-47 Chinook helicopter fleet—a critical military asset with no planned replacement. This positions KBR in the sweet spot of DoD's current priorities: maximizing the efficiency of existing platforms rather than funding entirely new systems in a constrained budget environment.
What makes this win especially valuable is KBR's 35-year history supporting Army Aviation programs and their 10-year incumbency on predecessor contracts. This institutional knowledge creates high barriers to entry for competitors and demonstrates KBR has cultivated deep customer relationships that translate to contract retention.
The inclusion of Foreign Military Sales support adds another dimension, as international Chinook operators often pay premium rates for specialized support services, potentially enhancing margins beyond the base contract value. With work performed in Huntsville, Alabama—a lower-cost delivery location compared to traditional defense hubs—KBR can likely maintain healthy margins while meeting cost objectives.
This
First, as a recompete win, this contract requires significantly lower business development investment than new contract captures, supporting stronger margins. Second, the five-year duration enhances revenue visibility and cash flow predictability—qualities investors typically reward with higher valuation multiples in the government services sector.
The contract's focus on the CH-47 Chinook platform is strategically valuable, as helicopter support services typically involve high-complexity work that commands better margins than more commoditized defense services. The technical expertise required creates a competitive moat that protects KBR's position with this client.
KBR's decade-long incumbency on predecessor contracts indicates strong customer satisfaction and suggests the company has optimized its delivery model for profitability. The Foreign Military Sales component mentioned provides potential upside beyond the stated contract value, as international sales often involve less pricing pressure than domestic DoD contracts.
For investors, this win reinforces KBR's narrative as a stable government contractor with strong client retention—essential for maintaining the predictable cash flows that support the company's dividend and capital allocation strategy.
HOUSTON, March 18, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced it has been awarded an estimated
Under the terms of the contract, KBR will research, analyze, assess, and develop recommendations to increase availability, improve reliability, and reduce support costs for the CH-47 Chinook helicopter for Cargo Helicopter (CH) Project Management Office (PMO) and Foreign Military Sales (FMS) partners. To achieve this objective, KBR will perform maintainability, quality, supportability, and interoperability analyses and strategies. The team will also provide logistics management, testing program management, independent verification and validation, and life cycle and cost analyses to refine and improve sustainability initiatives.
The CH-47 Chinook is a critical workhorse of the Army fleet used for troop and cargo transport, medical evacuation, search and rescue, and disaster relief as well as combat operations.
“This is a significant win for KBR and we’re proud to continue supporting this important program and the wider U.S. Department of Defense,” said Stuart Bradie, KBR President and CEO. “Our subject matter experts play an important role in developing and maintaining systems for the U.S. military, which is critical for national security.”
For more than 35 years, KBR has supported the Aviation PEO and the company is a 10-year incumbent on predecessor contracts to perform work on U.S. Army CH-47 helicopters.
ABOUT THE DODIAC PROGRAM
“The DoDIAC, sponsored by the Defense Technical Information Center, provides technical data management and research support for DoD and federal government users. Established in 1946, the IAC program serves the DoD science & technology (S&T) and acquisition communities to drive innovation and technological developments by enhancing collaboration through integrated scientific and technical information development and dissemination for the DoD and broader S&T community”.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 38,000 people worldwide with customers in more than 80 countries and operations in over 29 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward-Looking Statements
The statements in this press release that are not historical statements, including statements regarding performance periods, contract values and project outcomes, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
For further information, please contact:
Investors
Jamie DuBray
Vice President, Investor Relations
713-753-5082
Investors@kbr.com
Media
Philip Ivy
Vice President, Global Communications and Marketing
713-753-3800
MediaRelations@kbr.com
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