11 Best Engineering Stocks to Invest in Now

3. KBR Inc. (NYSE:KBR)

Number of Hedge Fund Holders: 56

KBR Inc. (NYSE:KBR) delivers advanced scientific, technology, and engineering solutions, with a focus on government and commercial projects globally. Its expertise encompasses systems engineering, cyber analytics, and program management for defense and space sectors. It also offers proprietary process technologies and sustainable solutions for the energy and industrial markets.

The company’s Sustainable Technology Solutions (STS) segment experienced growth in 2024, with Q4 revenues increasing by 30% year-over-year and full-year revenues rising by 17%. This was driven by the demand for the company’s ammonia, energy security, and decarbonization offerings, which include LNG projects. Key engineering projects in the past quarter included the deployment of the company’s ammonia process technology in Angola and Kazakhstan. This showcased its expertise in complex chemical plant design and construction.

KBR Inc.’s (NYSE:KBR) involvement in LNG projects like Shell’s Manatee LNG and Oman LNG highlights its proficiency in large-scale energy infrastructure engineering. The partnership with Mura Technology, which uses its Hydro-PRT advanced plastics recycling process, demonstrates the company’s commitment to developing and deploying cutting-edge chemical engineering solutions for sustainability.

Cove Street Capital Small Cap Value Fund stated the following regarding KBR Inc. (NYSE:KBR) in its Q2 2024 investor letter:

“On the plus side, KBR, Inc. (NYSE:KBR) has been a strong performer so far YTD on the back of an investor day in the second quarter that highlighted the success of the last four-year plan (2020-2023) before laying out ambitious but credible targets for the next 4 years (2024- 2027). Since 2020, KBR has pivoted their commercial business away from high-risk EPC projects to a more differentiated IP-first consulting approach that now sees 20% EBIT margins and contributes 40% of their overall profitability. KBR has cleaned up their balance sheet by settling convertible notes and warrants and now sits at a healthy 2x net leverage. With the upcoming ramp of a $20B government services contract with the U.S. army, the company is well positioned to generate cash and return value to shareholders.”