KBR (KBR) Valuation Check After New 10 Year AI Enabled Petro Rabigh Services Contract

Simply Wall St

Mon, February 23, 2026 at 4:09 PM GMT+9 2 min read

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KBR

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KBR (KBR) is in focus after securing a 10 year general maintenance services contract with Petro Rabigh, using AI and machine learning tools to support safety, reliability, and long term operational performance at key polymer plants.

See our latest analysis for KBR.

Recent contract wins with Petro Rabigh and the US Space Force, along with the reaffirmed quarterly dividend, come against a mixed share price backdrop. A 7.2% 90 day share price return contrasts with a 1 year total shareholder return decline of 11.9%, suggesting that shorter term momentum differs from weaker recent long term results.

If KBR’s mix of defense, space, and energy contracts has caught your attention, you might also want to look at a curated set of 34 AI infrastructure stocks as another way to spot potential opportunities in this area.

KBR trades at $42.71, with an estimated intrinsic value implying a 62% discount and a 28% gap to the average analyst target. Is this a mispriced contractor in defense and energy, or is the market already baking in future growth?

Most Popular Narrative: 22% Undervalued

Against KBR’s last close at $42.71, the most followed narrative puts fair value near $54.78, framing the current price as a meaningful discount.

Analyst commentary on KBR reflects a mix of optimism around valuation upside and spin-driven catalysts, balanced against concerns over a slower growth backdrop and near-term execution risks.

Read the complete narrative. Read the complete narrative.

Want to understand why this fair value sits well above today’s price? The narrative discusses steady revenue gains, firmer margins, and a future earnings profile that assumes disciplined cost control. Curious how these moving parts combine into that valuation gap? The full breakdown connects each assumption to the final number.

Result: Fair Value of $54.78 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, those upside assumptions encounter real risks, including slower government contract awards and potential setbacks on complex fixed price programs such as HomeSafe.

Find out about the key risks to this KBR narrative.

Next Steps

Does this mixed picture leave you excited or cautious? Take a closer look at the underlying data, then weigh up the 6 key rewards and 1 important warning sign to shape your own view.

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Story Continues  

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_ 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._

Companies discussed in this article include KBR.

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