KBR, Inc. (KBR - $30.50 - NYSE) (KBR, Financial) has transitioned from an engineering and construction (E&C) business to a government service business under new CEO, Stuart Bradie, which led to its recent reclassification from the Industrial to the Technology sector. KBR had a strong year in its Government Services segment securing more business than expected under the LOGCAP V military base contract. With the reclassification and Government Services a larger mix of the total company, the company has received a higher valuation versus the core E&C peers. In addition, the company was able to complete the work on the Ichthys LNG contract which has plagued the engineering and construction side of the business for years.
From Keeley Asset Management's Keeley Small-Mid Cap Value Fund fourth-quarter 2019 shareholder commentary.
