HOUSTON - KBR, Inc. (NYSE:KBR), a global engineering, construction, and services company, has announced amendments to its bylaws, effective immediately. The changes, adopted by the Board of Directors on Wednesday, are designed to align the company's shareholder proxy access for director nominations with the universal proxy rules of the Securities and Exchange Commission (SEC) and current market practices.
The amended bylaws also streamline the information required for stockholder director nominations and include other clarifying and procedural updates. These revisions are part of KBR's ongoing efforts to maintain governance practices that are transparent and in the best interests of its shareholders.
This move by KBR underscores the importance of governance practices that facilitate shareholder participation in the director nomination process. It also highlights the company's adherence to regulatory requirements and its responsiveness to the evolving landscape of corporate governance.
In other recent news, KBR Inc . has been making significant strides in its business operations. The company reported a 6% increase in revenue year-on-year and a 13% rise in adjusted EBITDA in the second quarter of fiscal 2024, raising its revenue expectations for the year to between $7.4 billion and $7.7 billion. However, TD Cowen downgraded KBR's stock from Buy to Hold, citing potential execution and timing risks.
KBR secured several substantial contracts recently, including a contract for the engineering and procurement services for Shell (LON:SHEL)'s Manatee gas field project in Trinidad and Tobago. In addition, the company was awarded a $230 million contract for the modernization of IT systems for the U.S. Navy's Naval Air Systems Command (NAVAIR), and a $140 million contract extension from the Air Force Life Cycle Management Center.
The company also completed the acquisition of LinQuest Corporation, enhancing its national security services. Furthermore, KBR has been awarded contracts to conduct a conceptual study on floating blue ammonia production for Samsung (KS:005930) Heavy Industries and to design topsides facilities for two floating production storage and offloading units in Brazil's Santos Basin.
InvestingPro Insights
KBR's recent bylaw amendments align with its strong financial performance and market position. According to InvestingPro data, KBR boasts a market capitalization of $9.24 billion and has demonstrated impressive revenue growth of 7.22% over the last twelve months. This growth trajectory is supported by an InvestingPro Tip indicating that net income is expected to rise this year, suggesting the company's governance improvements are complemented by solid financial fundamentals.
The company's commitment to shareholder value is further evidenced by its dividend policy. An InvestingPro Tip reveals that KBR has raised its dividend for 4 consecutive years and has maintained dividend payments for 17 consecutive years. This consistent return to shareholders aligns with the company's efforts to enhance shareholder rights through its bylaw amendments.
KBR's stock performance has been notable, with a year-to-date price total return of 24.79% as of the latest data. The stock is trading near its 52-week high, which may reflect investor confidence in the company's governance practices and financial health.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on KBR, providing deeper insights into the company's financial position and market outlook.
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