KBR (NYSE:KBR) Posts Earnings Results

KBR (NYSE:KBR) issued its quarterly earnings results on Thursday. The construction company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.09, FiscalAI reports. KBR had a return on equity of 33.92% and a net margin of 5.21%.During the same period in the previous year, the business earned $0.91 earnings per share. The company’s revenue was up 1.6% on a year-over-year basis. KBR updated its FY 2026 guidance to 3.870-4.220 EPS.

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

• Strong first-half performance: Revenue rose 2% year over year to approximately $2.0 billion, adjusted EBITDA increased 7% to $258 million, and margins expanded to 13%. KBR reaffirmed its full-year revenue, EBITDA, EPS, and adjusted operating cash flow guidance.
• STS demand and visibility remain robust: Sustainable Technology Solutions posted 1.5x quarterly book-to-bill, record backlog of $5.5 billion—up 40% year over year—and a pipeline exceeding $6 billion. Management expects mid-teens full-year revenue growth, though quarterly margins may vary with project and procurement mix.
• MTS has substantial awarded and potential work: Approximately 94% of full-year MTS revenue guidance is under contract, with $1.6 billion of awarded programs currently under protest and roughly $10.4 billion awaiting award. Management said defense, space, modernization, and mission operations demand remains healthy.
• Planned separation remains on track: KBR continues targeting a January 4, 2027 spin-off, with IRS and SEC processes, systems separation, contract bifurcation, organizational design, and leadership appointments progressing. The MTS spin-off will be named Trinzic, with investor days planned for November.
• Cash flow and execution risks remain: First-half operating cash flow conversion was 74%, affected by delayed STS Middle East collections linked to regional conflict, although management characterized the issue as timing-related and maintained its full-year outlook. MTS awards under protest and the eventual wind-down of the Plaquemines project also create timing and replacement-work uncertainties.

KBR Stock Down 4.4%

KBR stock traded down $1.56 during midday trading on Thursday, reaching $34.37. The stock had a trading volume of 3,960,004 shares, compared to its average volume of 1,535,275. KBR has a 12 month low of $29.94 and a 12 month high of $52.23. The company has a market capitalization of $4.36 billion, a P/E ratio of 10.98, a PEG ratio of 1.94 and a beta of 0.44. The company has a fifty day moving average price of $35.01 and a two-hundred day moving average price of $37.44. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 1.59.

KBR Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were paid a $0.165 dividend. The ex-dividend date was Monday, June 15th. This represents a $0.66 annualized dividend and a dividend yield of 1.9%. KBR’s dividend payout ratio (DPR) is currently 21.09%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on KBR. Weiss Ratings reiterated a “sell (d+)” rating on shares of KBR in a report on Wednesday, June 24th. Wells Fargo & Company cut their price target on shares of KBR from $45.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Monday, April 13th. Zacks Research upgraded KBR from a “strong sell” rating to a “hold” rating in a report on Friday, April 10th. UBS Group lowered their price objective on KBR from $42.00 to $36.00 and set a “neutral” rating for the company in a research report on Thursday, May 21st. Finally, Citigroup dropped their price objective on KBR from $53.00 to $50.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $52.62.

KBR News Roundup

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR reported second-quarter fiscal 2026 adjusted earnings of $0.99 per share, ahead of the $0.90-$0.92 analyst consensus, while revenue reached approximately $1.98 billion, also exceeding expectations. EPS rose from $0.91 a year earlier. KBR Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Net income attributable to KBR increased 32% to $96 million, supported by project ramp-ups in Sustainable Technology Solutions and growth in Mission Technology Solutions’ international government business. Backlog and options totaled a strong $23.0 billion, with a 1.1x book-to-bill ratio. KBR Q2 Revenue Rises as Net Income Jumps
• Positive Sentiment: Analysts’ average price target implies roughly 25% potential upside, and recent earnings-estimate revisions have trended positively. KBR Analyst Price Target
• Neutral Sentiment: KBR reaffirmed fiscal 2026 revenue guidance of $7.9 billion to $8.4 billion and EPS guidance of $3.87 to $4.22. The guidance midpoint is modestly above consensus, but the wide range leaves room for uncertainty.
• Neutral Sentiment: The company introduced Trinzic as the planned name for its Mission Technology Solutions spin-off, which remains targeted for completion on January 4, 2027. The separation could unlock value but adds execution and transition considerations. KBR Unveils Trinzic
• Negative Sentiment: Revenue increased only about 1.6%-2% year over year, which may have disappointed investors seeking stronger top-line growth. The market’s negative reaction suggests the earnings beat and outlook were not sufficient to overcome growth or execution concerns.

Insider Buying and Selling at KBR

In other KBR news, Director Thaer Lewis Von acquired 3,000 shares of KBR stock in a transaction dated Thursday, May 14th. The stock was purchased at an average cost of $30.77 per share, for a total transaction of $92,310.00. Following the completion of the acquisition, the director directly owned 10,358 shares of the company’s stock, valued at $318,715.66. This represents a 40.77% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Shad E. Evans bought 8,375 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was acquired at an average price of $30.60 per share, for a total transaction of $256,275.00. Following the acquisition, the chief financial officer directly owned 43,725 shares in the company, valued at $1,337,985. The trade was a 23.69% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have acquired 29,875 shares of company stock worth $945,160. Company insiders own 1.15% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Royal Bank of Canada lifted its stake in KBR by 11.2% during the 1st quarter. Royal Bank of Canada now owns 81,779 shares of the construction company’s stock valued at $4,073,000 after acquiring an additional 8,243 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of KBR by 50.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 627,321 shares of the construction company’s stock worth $31,247,000 after acquiring an additional 211,311 shares in the last quarter. Empowered Funds LLC bought a new stake in shares of KBR in the 1st quarter worth $349,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of KBR by 6.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 395,574 shares of the construction company’s stock valued at $19,704,000 after purchasing an additional 23,738 shares during the last quarter. Finally, American Century Companies Inc. lifted its position in shares of KBR by 97.1% during the second quarter. American Century Companies Inc. now owns 46,592 shares of the construction company’s stock valued at $2,234,000 after purchasing an additional 22,957 shares in the last quarter. Hedge funds and other institutional investors own 97.02% of the company’s stock.

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.