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KBR Expands Support of Australia's Critical Submarine Rotational Program, Progressing Pathway for AUKUS

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KBR (NYSE: KBR) has been awarded a contract to continue providing technical design services at HMAS Stirling for Australia's sovereign nuclear-powered submarines program. This work supports the Submarine Rotational Force (SRF) – West and accelerates Australia's ability to operate and maintain its future nuclear-powered submarine fleet. KBR will integrate capabilities from Frazer Nash Consultancy to support a safety-led approach for nuclear technical solutions.

The company's expertise includes developing solutions for maritime infrastructure, low-level radioactive waste management, submarine maintenance support facilities, estate planning, digital integration, and systems engineering requirements. This contract follows KBR's previous announcement of providing concept design services for the new nuclear-powered submarine construction yard at Osborne in South Australia.

KBR (NYSE: KBR) ha vinto un contratto per continuare a fornire servizi di design tecnico presso HMAS Stirling per il programma australiano dei sottomarini nucleari sovrani. Questo lavoro supporta la Forza Rotazionale Sottomarina (SRF) – Ovest e accelera la capacità dell'Australia di operare e mantenere la sua futura flotta di sottomarini nucleari. KBR integrerà le competenze di Frazer Nash Consultancy per supportare un approccio incentrato sulla sicurezza per le soluzioni tecniche nucleari.

La competenza dell'azienda include lo sviluppo di soluzioni per infrastrutture marittime, gestione dei rifiuti radioattivi a bassa attività, strutture di supporto alla manutenzione dei sottomarini, pianificazione immobiliare, integrazione digitale e requisiti di ingegneria dei sistemi. Questo contratto segue l'annuncio precedente di KBR riguardante la fornitura di servizi di design concettuale per il nuovo cantiere di costruzione di sottomarini nucleari a Osborne, nel Sud Australia.

KBR (NYSE: KBR) ha sido adjudicada un contrato para continuar proporcionando servicios de diseño técnico en HMAS Stirling para el programa australiano de submarinos nucleares soberanos. Este trabajo apoya la Fuerza Rotacional de Submarinos (SRF) - Oeste y acelera la capacidad de Australia para operar y mantener su futura flota de submarinos nucleares. KBR integrará capacidades de Frazer Nash Consultancy para apoyar un enfoque orientado a la seguridad para soluciones técnicas nucleares.

La experiencia de la empresa incluye el desarrollo de soluciones para infraestructura marítima, gestión de desechos radiactivos de bajo nivel, instalaciones de apoyo a la manutención de submarinos, planificación de bienes raíces, integración digital y requisitos de ingeniería de sistemas. Este contrato sigue el anuncio anterior de KBR de proporcionar servicios de diseño conceptual para el nuevo astillero de construcción de submarinos nucleares en Osborne, Australia del Sur.

KBR (NYSE: KBR)는 호주 주권 핵 잠수함 프로그램을 위해 HMAS 스털링에서 기술 설계 서비스를 지속적으로 제공하기 위한 계약을 체결했습니다. 이 작업은 잠수함 순환 군대(SRF) - 웨스트를 지원하고 호주가 향후 핵 잠수함 함대를 운영하고 유지하는 능력을 가속화합니다. KBR은 핵 기술 솔루션에 대한 안전 중심 접근 방식을 지원하기 위해 Frazer Nash Consultancy의 역량을 통합할 것입니다.

회사의 전문성은 해양 인프라, 저수준 방사성 폐기물 관리, 잠수함 유지 보수 지원 시설, 부동산 계획, 디지털 통합 및 시스템 엔지니어링 요구 사항에 대한 솔루션 개발을 포함합니다. 이 계약은 남호주 오스본에 새로 건설될 핵 잠수함 조선소를 위한 개념 설계 서비스를 제공하겠다는 KBR의 이전 발표에 이어진 것입니다.

KBR (NYSE: KBR) a été attribuée un contrat pour continuer à fournir des services de conception technique à HMAS Stirling pour le programme australien des sous-marins nucléaires souverains. Ce travail soutient la Force Rotative de Sous-marins (SRF) – Ouest et accélère la capacité de l'Australie à opérer et à entretenir sa future flotte de sous-marins nucléaires. KBR intégrera les compétences de Frazer Nash Consultancy pour soutenir une approche axée sur la sécurité pour les solutions techniques nucléaires.

L'expertise de l'entreprise comprend le développement de solutions pour infrastructure maritime, gestion des déchets radioactifs de faible niveau, installations de soutien à la maintenance des sous-marins, planification foncière, intégration numérique et exigences en ingénierie des systèmes. Ce contrat fait suite à l'annonce précédente de KBR concernant la fourniture de services de conception conceptuelle pour le nouveau chantier de construction de sous-marins nucléaires à Osborne, en Australie-Méridionale.

KBR (NYSE: KBR) wurde ein Vertrag zur weiteren Bereitstellung von technischen Entwurfsdienstleistungen in HMAS Stirling für Australien's staatliches nuklearbetriebenes U-Boot-Programm vergeben. Diese Arbeit unterstützt die U-Boot-Rotationstruppe (SRF) – West und beschleunigt Australiens Fähigkeit, seine zukünftige Flotte nuklearbetriebener U-Boote zu betreiben und zu warten. KBR wird die Fähigkeiten von Frazer Nash Consultancy integrieren, um einen sicherheitsorientierten Ansatz für nukleare technische Lösungen zu unterstützen.

Die Expertise des Unternehmens umfasst die Entwicklung von Lösungen für maritime Infrastruktur, das Management von schwach radioaktiven Abfällen, Unterstützungsanlagen zur Wartung von U-Booten, Grundstücksplanung, digitale Integration und die Anforderungen an Systemtechnik. Dieser Vertrag folgt der vorherigen Ankündigung von KBR, konzeptionelle Entwurfsdienstleistungen für den neuen Bauplatz für nuklearbetriebene U-Boote in Osborne, Südaustralien, bereitzustellen.

Positive
  • Awarded contract for technical design services at HMAS Stirling
  • Supports Australia's sovereign nuclear-powered submarines program
  • Expands KBR's role in critical national security infrastructure
  • Leverages expertise in nuclear safety and systems experience
  • Builds on existing work with Defence on Nuclear-Powered Submarine program since 2021
Negative
  • None.

Insights

This contract expansion solidifies KBR's position as a key player in Australia's nuclear submarine program, a cornerstone of the AUKUS alliance. The company's involvement in both the HMAS Stirling facility and the Osborne construction yard demonstrates its end-to-end capabilities in this critical defense initiative.

KBR's expertise in nuclear technical solutions and maritime infrastructure positions it well to capitalize on the long-term nature of submarine programs. This contract likely represents a steady revenue stream for years to come, potentially worth hundreds of millions over its lifetime.

Investors should note that while defense contracts provide stability, they can be subject to political shifts and budget constraints. However, the strategic importance of the AUKUS pact suggests strong long-term commitment to this program.

KBR's expanded role in Australia's submarine program is technically significant. The integration of Frazer Nash Consultancy's capabilities brings important nuclear expertise, essential for developing a safety-led approach in nuclear-powered submarine operations.

The scope of work, including low-level radioactive waste management and submarine maintenance support facilities, addresses critical aspects of nuclear submarine operations often overlooked. This comprehensive approach will be vital for Australia to develop sovereign capabilities in nuclear submarine technology.

The mention of digital integration and systems engineering suggests KBR is also focusing on modernizing submarine support infrastructure, which could lead to increased efficiency and reduced operational costs for Australia's future submarine fleet.

This contract expansion underscores the accelerating pace of the AUKUS agreement implementation. Australia's rapid move towards nuclear submarine capability represents a significant shift in Indo-Pacific power dynamics.

The development of facilities at both HMAS Stirling (Western Australia) and Osborne (South Australia) indicates a two-ocean strategy, enhancing Australia's strategic depth and operational flexibility. This approach aligns with broader efforts to counter China's growing naval presence in the region.

For investors, this signals long-term defense spending commitments from Australia and potentially other AUKUS partners. Companies with expertise in naval nuclear technology and infrastructure are likely to see increased opportunities in the Indo-Pacific region as geopolitical tensions persist.

HOUSTON, Sept. 10, 2024 /PRNewswire/ -- KBR (NYSE: KBR) today announced that it has been awarded a contract to continue to deliver technical design services at HMAS Stirling by the Security and Estate Group and the Australian Submarine Agency. This work will support the sovereign nuclear-powered submarines facilities and infrastructure program, enabling the Submarine Rotational Force (SRF) – West, and accelerating Australia's ability to safely own, operate, maintain and sustain its own future nuclear powered submarine fleet.

Building on the design and construction work already underway, KBR will continue to integrate the unique capabilities of Frazer Nash Consultancy, a KBR company, to support a safety-led approach for nuclear technical solutions. KBR's expertise involves developing solutions for maritime infrastructure, low-level radioactive waste management, submarine maintenance support facilities, estate planning, digital integration and systems engineering requirements.

The new work at HMAS Stirling follows KBR's announcement that the company would provide concept design services for the new nuclear-powered submarine construction yard at Osborne in South Australia, which is critical to deliver the new SSN-AUKUS submarines to the Royal Australian Navy. 

"KBR's infrastructure, design, nuclear safety and systems experience will be the cornerstone for shaping the future capability required to build and sustain nuclear powered submarines," said Jay Ibrahim, President, KBR Sustainable Technology Solutions. "KBR is delighted to have been selected to undertake this incredibly important infrastructure work. The trust that has been placed in us is testament to our long history at HMAS Stirling and the world class capabilities that we can contribute to this critical national security endeavour."

KBR has been providing infrastructure design to the Security and Estate Group and the Royal Australian Navy at HMAS Stirling for several years through the Navy Capability Infrastructure Subprogram (NCIS) and Defence Fuels Transformation Program (DFTP). The company has also been working with Defence on its Nuclear-Powered Submarine program since late 2021.   

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 80 countries and operations in over 30 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 future contractual and technological performance, 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.

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SOURCE KBR, Inc.

FAQ

What contract has KBR (NYSE: KBR) been awarded for Australia's submarine program?

KBR has been awarded a contract to continue delivering technical design services at HMAS Stirling for Australia's sovereign nuclear-powered submarines facilities and infrastructure program.

How does KBR's work support the AUKUS agreement?

KBR's work supports the AUKUS agreement by providing design services for nuclear-powered submarine facilities, accelerating Australia's ability to own, operate, and maintain its future nuclear-powered submarine fleet.

What specific expertise is KBR bringing to the Australian submarine program?

KBR is bringing expertise in maritime infrastructure, low-level radioactive waste management, submarine maintenance support facilities, estate planning, digital integration, and systems engineering requirements.

How long has KBR been involved with Australia's Nuclear-Powered Submarine program?

KBR has been working with Defence on its Nuclear-Powered Submarine program since late 2021.

KBR, Inc.

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