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

KBR (NYSE:KBR) issued its quarterly earnings data on Thursday. The construction company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.04, FiscalAI reports. The company had revenue of $1.89 billion for the quarter, compared to analyst estimates of $1.91 billion. KBR had a net margin of 4.71% and a return on equity of 35.14%. KBR’s revenue was down 10.6% compared to the same quarter last year. During the same period last year, the company posted $0.91 earnings per share. 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 Stock Performance

Shares of KBR stock traded up $0.81 during mid-day trading on Thursday, hitting $41.62. 974,117 shares of the stock were exchanged, compared to its average volume of 1,337,384. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.18 and a current ratio of 1.18. KBR has a 12-month low of $39.39 and a 12-month high of $56.78. The stock’s fifty day simple moving average is $42.32 and its two-hundred day simple moving average is $44.51. The stock has a market capitalization of $5.28 billion, a price-to-earnings ratio of 14.32, a P/E/G ratio of 1.00 and a beta of 0.51.

KBR Announces Dividend

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

Trending Headlines about KBR

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates — KBR reported adjusted EPS of $0.99, topping consensus (~$0.95), signaling underlying earnings strength. KBR Inc. (KBR) Beats Q4 Earnings Estimates
• Positive Sentiment: Profitability improved — operating income (+36%), adjusted EBITDA (+5%) and adjusted EPS (+10%) all rose year‑over‑year, showing margin improvement despite lower revenue. KBR Reports Fourth Quarter and Fiscal 2025 Results
• Positive Sentiment: New contract activity — KBR won work on Iraq’s Majnoon oil field, which supports near‑term project backlog and revenue recovery prospects in energy services. KBR wins contract for Iraq’s Majnoon oil field
• Neutral Sentiment: Business development — KBR’s Mission Technology Solutions is expanding digital engineering capabilities for the U.S. military, a strategic positive for its government‑services segment though commercialization/scale timelines are longer. KBR’s Mission Technology Solutions Announces Strategy
• Neutral Sentiment: Analyst coverage and targets remain mixed but generally constructive (median targets near $50), which may support sentiment if execution continues. KBR ($KBR) Releases Q4 2025 Earnings
• Negative Sentiment: Revenue miss and decline — Q4 revenue of ~$1.885B missed estimates (~$1.91B) and was down ~11% year‑over‑year, highlighting near‑term top‑line weakness. KBR beats fourth quarter earnings but misses on revenue
• Negative Sentiment: Bookings and book‑to‑bill are soft — bookings/options were $2.0B with a 0.9x book‑to‑bill, implying potential revenue headwinds until new awards ramp. KBR Reports Fourth Quarter and Fiscal 2025 Results
• Negative Sentiment: FY26 guidance is mixed — KBR set EPS guidance of 3.870–4.220 (slightly below consensus midpoint) and revenue guidance $7.9–$8.4B (range crosses Street), leaving room for investor caution on FY26 growth visibility. KBR Reports Fourth Quarter and Fiscal 2025 Results

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada raised its stake in KBR by 11.2% during the first quarter. Royal Bank of Canada now owns 81,779 shares of the construction company’s stock worth $4,073,000 after acquiring an additional 8,243 shares during the period. Goldman Sachs Group Inc. raised its position in shares of KBR by 50.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 627,321 shares of the construction company’s stock worth $31,247,000 after buying an additional 211,311 shares in the last quarter. Empowered Funds LLC acquired a new stake in KBR in the first quarter worth approximately $349,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in KBR by 6.4% during 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 buying an additional 23,738 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in shares of KBR by 97.1% in the 2nd quarter. American Century Companies Inc. now owns 46,592 shares of the construction company’s stock worth $2,234,000 after purchasing an additional 22,957 shares in the last quarter. 97.02% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on KBR shares. Bank of America decreased their target price on shares of KBR from $55.00 to $45.00 and set a “neutral” rating for the company in a research report on Thursday, November 13th. Wall Street Zen raised KBR from a “hold” rating to a “buy” rating in a report on Saturday, February 21st. Citigroup dropped their price objective on shares of KBR from $57.00 to $53.00 and set a “buy” rating on the stock in a research note on Monday, January 26th. Wells Fargo & Company began coverage on KBR in a report on Thursday, November 13th. They issued an “equal weight” rating and a $45.00 price objective on the stock. Finally, Weiss Ratings upgraded KBR from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, February 10th. Five research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, KBR currently has an average rating of “Hold” and an average price target of $57.00.

KBR Company Profile

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.