KBR (NYSE:KBR) Releases Earnings Results, Beats Expectations By $0.04 EPS

KBR (NYSE:KBR) released its quarterly earnings data on Thursday. The construction company reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.04, FiscalAI reports. KBR had a return on equity of 35.14% and a net margin of 4.71%.The business had revenue of $1.89 billion during the quarter, compared to analysts’ expectations of $1.91 billion. During the same period in the prior year, the firm posted $0.91 EPS. The business’s quarterly revenue was down 10.6% compared to the same quarter last year. KBR updated its FY 2026 guidance to 3.870-4.220 EPS.

Here are the key takeaways from KBR’s conference call:

• KBR expanded margins and generated strong cash in FY25 — adjusted EBITDA rose about $100M year‑over‑year, adjusted EPS was $3.93 (+$0.60), Q4 margin improved to 12.6% (+190 bps), and operating cash flow was $557M (110% conversion), enabling a record $413M returned to shareholders and a $0.66 annual dividend for 2026.
• FY26 consolidated guidance calls for revenue of $7.9B–$8.36B, adjusted EBITDA $980M–$1.04B, adjusted EPS $3.87–$4.22 and operating cash flow $560M–$600M, while management expects spin transition costs of $140M–$180M and an effective tax rate of 26%–28%.
• The planned spin remains on track for H2 2026 with carve‑out audits and Form 10 preparations underway, an interim spin CEO appointed, and perimeter changes (Frazer‑Nash and U.K. civil nuclear moved into STS) to strengthen standalone positioning.
• Sustainable Tech showed resilience and momentum by pivoting to the Global South, LNG, ammonia and OpEx offerings — Q4 book‑to‑bill was 1.6x, backlog ended at $4.2B (up 5% YoY) and management targets STS margins of 20%+ by 2027.
• Mission Tech backlog and pipeline are large but timing is a near‑term risk — backlog/options rose to $19.1B (+15% YoY) with ~$17B bids awaiting award and work under contract covering ~82% of 2026 guidance, but award delays, protests and reduced contingency activity pressured near‑term revenue timing with expected improvement in H2 2026.

KBR Price Performance

NYSE KBR opened at $42.03 on Friday. The firm has a market cap of $5.34 billion, a P/E ratio of 14.44, a price-to-earnings-growth ratio of 1.01 and a beta of 0.51. The stock’s 50-day moving average is $42.31 and its two-hundred day moving average is $44.49. KBR has a fifty-two week low of $39.39 and a fifty-two week high of $56.78. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.18 and a quick ratio of 1.18.

KBR Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Friday, March 13th will be paid a $0.165 dividend. The ex-dividend date is Friday, March 13th. This represents a $0.66 dividend on an annualized basis and a yield of 1.6%. KBR’s payout ratio is 22.68%.

Wall Street Analyst Weigh In

A number of research analysts have commented on KBR shares. Oppenheimer initiated coverage on shares of KBR in a research note on Tuesday, December 2nd. They issued an “outperform” rating and a $60.00 price objective on the stock. Weiss Ratings downgraded KBR from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday. Wells Fargo & Company initiated coverage on KBR in a research note on Thursday, November 13th. They set an “equal weight” rating and a $45.00 price target on the stock. Wall Street Zen upgraded shares of KBR from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. Finally, Bank of America dropped their price target on KBR from $55.00 to $45.00 and set a “neutral” rating for the company in a research report on Thursday, November 13th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $57.00.

Hedge Funds Weigh In On KBR

Several large investors have recently bought and sold shares of KBR. Invesco Ltd. increased its position in shares of KBR by 3.5% in the fourth quarter. Invesco Ltd. now owns 5,736,873 shares of the construction company’s stock valued at $230,622,000 after acquiring an additional 192,383 shares during the last quarter. Corient Private Wealth LLC acquired a new position in KBR in the 4th quarter valued at $452,000. Mercer Global Advisors Inc. ADV raised its position in shares of KBR by 35.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,762 shares of the construction company’s stock valued at $433,000 after buying an additional 2,807 shares in the last quarter. Caitlin John LLC bought a new stake in shares of KBR in the fourth quarter valued at approximately $271,000. Finally, EP Wealth Advisors LLC acquired a new stake in KBR during the fourth quarter worth approximately $288,000. 97.02% of the stock is currently owned by institutional investors and hedge funds.

Key KBR News

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR beat quarterly EPS expectations (adjusted EPS ~$0.99) and reported stronger operating income, adjusted EBITDA and margins, which supports near‑term profitability narratives. MarketBeat Earnings Summary
• Positive Sentiment: Management outlined a 2026 revenue target of ~$7.9B–$8.36B and reaffirmed progress on a planned spin‑off, which could unlock value and simplify the business for investors. Spin‑off / Revenue Target Article
• Positive Sentiment: Operational wins include a new contract for Iraq’s Majnoon oil field — a concrete backlog/award that supports future revenue recovery. Contract Win
• Neutral Sentiment: KBR issued FY‑2026 guidance of $3.870–4.220 EPS (slightly below street at ~3.96) and revenue guidance roughly in line with management’s stated $7.9B–$8.36B range — guidance provides a framework but contains conservative elements. Guidance Coverage
• Neutral Sentiment: Stock also drew attention from index flows/coverage as the NYSE Composite moved, which can amplify intraday moves but is not fundamental. Index/Attention Article
• Negative Sentiment: Revenue missed estimates (Q4 revenue ~$1.885B vs. ~1.91B consensus) and was down ~10–11% year‑over‑year, reflecting slower award pace and scope reductions — a headwind for near‑term top‑line growth. Revenue Miss
• Negative Sentiment: Bookings and options were $2.0B with a 0.9x book‑to‑bill, signaling order intake below revenue and raising concerns about backlog momentum. Bookings / Book‑to‑Bill
• Negative Sentiment: Quiver/filings show notable institutional rebalancing with several large sellers in the quarter — investor outflows could pressure the stock if they persist. Institutional Activity

About KBR

KBR, Inc is a global engineering, procurement, construction and services (EPC&S) company headquartered in Houston, Texas. The firm delivers integrated solutions and technologies across the full project lifecycle for customers in the energy, government, industrial and infrastructure sectors. Its offerings span feasibility studies, front-end engineering design, detailed design, procurement, fabrication, construction, commissioning and operations support.

The company is organized into business segments that include Energy Solutions, which focuses on oil and gas processing, liquefied natural gas (LNG) facilities and petrochemical plants; Government Solutions, providing logistics, sustainment, training and mission support for defense, intelligence and civilian agencies; and Sustainable Technology, delivering chemical process technologies, water treatment and lower-carbon fuels expertise.