8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                         PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 31, 2000

                       STEWART & STEVENSON SERVICES, INC.
             (Exact name of registrant as specified in its charter)

TEXAS                        0-8493                       74-1051605
(State or other       (Commission File Number)           (I.R.S.  Employer
jurisdiction                                              Identification No.)
of incorporation)

2707 NORTH LOOP WEST
HOUSTON, TEXAS                                            77008
(Address of principal executive offices)                 (Zip code)

       Registrant's telephone number, including area code: (713) 868-7700



Item 5.  Other Events.
         ------------
On August 31, 2000, Stewart & Stevenson Services, Inc. (the "Company") issued
the press release attached hereto as Exhibit 99.1 announcing the Company's
Receipt of an Order for $23.6 Million in Oilfield Equipment.

Item 7.  Exhibits.
         --------

Exhibit 99.1 Company Press Release dated August 31, 2000, titled "Stewart &
Stevenson Services Receives Confirmation of Financing For Gazprom's Recent Order
of $23.6 Million in Oilfield Equipment."



SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                     STEWART & STEVENSON SERVICES, INC.



Date:  August 31, 2000             By:  /s/ JOHN H. DOSTER
                                         Name:  John H. Doster
                                         Title: Senior Vice President
                                                and Chief Financial
                                                Officer

EX-99.1

EXHIBIT INDEX

Company Press Release August 31, 2000, titled "Stewart & Stevenson Services
Receives Confirmation of Financing For Gazprom's Recent Order of $23.6 Million
in Oilfield Equipment."

                              Client:        Stewart & Stevenson Services, Inc.

                              Contacts:      David Stewart, Treasurer
                                             Stewart & Stevenson Services, Inc.
                                             713-868-7657

                                             Ken Dennard / kdennard@easterly.com
                                             Lisa Elliott / lisae@easterly.com
                                             Easterly Investor Relations
                                             713-529-6600

STEWART & STEVENSON SERVICES RECEIVES CONFIRMATION OF FINANCING FOR GAZPROM'S
RECENT ORDER OF $23.6 MILLION IN OILFIELD EQUIPMENT

 ORDER TO RUSSIA'S LEADING NATURAL GAS PRODUCER INCLUDES MULTIPLE PRODUCT LINES

     HOUSTON - AUGUST 31, 2000 - Stewart & Stevenson Services, Inc.
(NASDAQ:SSSS), a leading manufacturer and distributor of industrial and energy
related equipment, announced today that its Petroleum Equipment Division has
received confirmation of financing for a $23.6 million order from Gazprom,
Russia's largest natural gas producer and transporter. The sale, scheduled to be
completed by the end of January 2001, includes pumpers, blenders and associated
stimulation equipment; coiled tubing units for drilling and workovers; and
oiltool products, including blowout preventers, gate valves, control systems and
other well safety units for hydrogen sulfide gas control.

     "We are pleased to announce that financing for this Gazprom order is now
confirmed and we expect to complete all shipments by the end of our fiscal
year," said Tommy Wall, vice president of Stewart & Stevenson's Petroleum
Equipment Division. "By purchasing multiple products from a single supplier,
Gazprom will have fewer logistical problems. We feel this is not only more
convenient for the customer, but will also prove to be less expensive and take
less time to deliver the products than if the purchases had been through several
manufacturers."

     Stewart & Stevenson has been an established supplier of oilfield equipment
to Russia and the former Soviet Union since the early 1970s. The equipment will
be used in major gas fields near the cities of Astrakhan, near the Caspian Sea;
Tyumen in western Siberia; and Orenburg, in the Volga-Urals region southeast of
Moscow. Some of the world's largest gas fields are found in western Siberia,
while the region near Orenburg contains the largest Russian gas field outside of
Siberia.

     The Petroleum Equipment Division of Stewart & Stevenson manufactures and
distributes a full line of well servicing products and drilling equipment backed
by dependable, long-term customer support. Since the late 1940s, the Company has
been a leader in providing innovative products and solutions to the oil
industry. For more information about petroleum products and services, visit
www.ssss.com/petro/petro.html Stewart & Stevenson Services, Inc., founded in
1902, is a billion-dollar company that manufactures and distributes a wide range
of industrial products and diesel-powered equipment to key industries worldwide,
including petroleum, power generation, defense, airline, marine and
transportation. Visit the Company's corporate Web site at www.ssss.com

This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
expressed in these statements, are based on reasonable assumptions regarding the
risks and uncertainties inherent in achieving those expectations. These
statements are not, however, guarantees of future performance and actual results
may differ materially. The most important factors that may cause actual results
to differ from our expectations are the risks of cancellation, adjustment or
termination of the contracts with Gazprom; restrictions, limitations or changes
in regulations relating to the exportation of oilfield equipment to or
importation of oilfield equipment into the former soviet states; the stability
and economic responsibility of former soviet states; and the availability of raw
materials, supplies, components, transportation, and labor in the amounts and at
the times necessary to perform the contracts. Other risk factors are listed in
Stewart & Stevenson Services, Inc. annual report to the Securities and Exchange
Commission on Form 10-K for the year ended January 31, 2000, and Quarterly
Report to the Securities and Exchange Commission on Form 10-Q for the three
months ended April 29, 2000.