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

KBR (NYSE:KBR) posted its earnings results on Thursday. The construction company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.04, FiscalAI reports. KBR had a net margin of 4.71% and a return on equity of 35.14%. The firm had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.91 billion. During the same quarter last year, the company earned $0.91 earnings per share. The company’s revenue was down 10.6% 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:

• 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

NYSE KBR traded up $0.81 on Thursday, reaching $41.62. 974,117 shares of the stock were exchanged, compared to its average volume of 1,337,384. The company’s 50-day simple moving average is $42.32 and its two-hundred day simple moving average is $44.51. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.74. The firm has a market capitalization of $5.28 billion, a PE ratio of 14.32, a PEG ratio of 1.00 and a beta of 0.51. KBR has a one year low of $39.39 and a one year high of $56.78.

KBR Announces Dividend

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

More KBR News

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 Investors Weigh In On KBR

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. boosted its stake in KBR by 3.5% during the fourth quarter. Invesco Ltd. now owns 5,736,873 shares of the construction company’s stock valued at $230,622,000 after buying an additional 192,383 shares during the last quarter. Corient Private Wealth LLC bought a new stake in shares of KBR in the 4th quarter worth about $452,000. Mercer Global Advisors Inc. ADV raised its position in shares of KBR by 35.3% during the 4th 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 position in shares of KBR in the 4th quarter valued at about $271,000. Finally, EP Wealth Advisors LLC purchased a new stake in KBR during the 4th quarter valued at $288,000. 97.02% of the stock is owned by institutional investors.

Analysts Set New Price Targets

KBR has been the topic of several research analyst reports. Truist Financial decreased their price target on shares of KBR from $62.00 to $50.00 and set a “buy” rating on the stock in a report on Friday, December 19th. Citigroup decreased their price target on shares of KBR from $57.00 to $53.00 and set a “buy” rating on the stock in a report on Monday, January 26th. Weiss Ratings raised KBR from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, February 10th. Bank of America reduced their price target on KBR from $55.00 to $45.00 and set a “neutral” rating on the stock in a research report on Thursday, November 13th. Finally, Oppenheimer initiated coverage on KBR in a research note on Tuesday, December 2nd. They set an “outperform” rating and a $60.00 target price on the stock. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, KBR has an average rating of “Hold” and a consensus target price 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.