How Investors Are Reacting To KBR (KBR) Securing a New F/A-18 Support Contract for U.S. Allies

• On 4 December 2025, KBR announced it had secured an estimated US$117 million cost-plus-fixed-fee follow-on contract over five years to support Foreign Military Sales for NAVAIR's F/A-18 and EA-18G program, providing integrated program management, engineering, financial and logistics services across multiple U.S. and international locations.
• The award deepens KBR's role in sustaining Australia’s, Finland’s and Switzerland’s F/A-18 fleets, highlighting the company’s entrenched position in complex, long-duration defense support work.
• We’ll now examine how this multiyear F/A-18 support award for key U.S. allies reshapes KBR’s investment narrative and long-term outlook.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

KBR Investment Narrative Recap

To own KBR, you need to believe its mix of government solutions and energy transition work can convert a large contract pipeline into steadier revenue and margin improvement despite recent guidance cuts. The new US$117 million F/A-18 follow-on adds another multi-year, cost-plus defense program, but it is not large enough on its own to change the key near term swing factors, which remain award timing and execution on big, complex contracts.

Among recent updates, KBR’s plan to spin off its Mission Technology Solutions segment by mid to late 2026 is most relevant here, because it will likely make defense and mission support contracts like the NAVAIR F/A-18 work even more central to one of the future companies. That separation, combined with delayed award conversions and funding uncertainty, sits at the heart of the current catalysts around backlog conversion and the risk of lumpier revenues.

Yet investors should be aware that concentrated exposure to large government programs could quickly become a problem if...

Read the full narrative on KBR (it's free!)

KBR's narrative projects $9.4 billion revenue and $664.3 million earnings by 2028. This requires 5.4% yearly revenue growth and an earnings increase of about $264 million from $400.0 million today.

Uncover how KBR's forecasts yield a $55.62 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span roughly US$40 to over US$5,400 per share, underlining how far apart views on KBR can be. When you set those against the current concerns about delayed government awards and potential program defunding, it becomes clear why you may want to compare several of these perspectives before forming a view.

Explore 8 other fair value estimates on KBR - why the stock might be worth 8% less than the current price!

Build Your Own KBR Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your KBR research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.
• Our free KBR research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KBR's overall financial health at a glance.

Looking For Alternative Opportunities?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com