KBR (NYSE:KBR) Releases Quarterly Earnings Results

KBR (NYSE:KBR) announced its earnings results on Thursday. The construction company reported $0.99 earnings per share for the quarter, topping analysts’ consensus estimates of $0.90 by $0.09, FiscalAI reports. KBR had a return on equity of 33.92% and a net margin of 5.21%.KBR’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.91 EPS. 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 Performance

NYSE KBR traded down $1.56 on Thursday, hitting $34.37. 3,960,004 shares of the stock traded hands, compared to its average volume of 1,535,275. The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.16 and a current ratio of 1.16. The business’s fifty day moving average is $35.01 and its two-hundred day moving average is $37.44. KBR has a 12 month low of $29.94 and a 12 month high of $52.23. The firm has a market capitalization of $4.36 billion, a price-to-earnings ratio of 10.98, a PEG ratio of 1.94 and a beta of 0.44.

KBR Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th were issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Monday, June 15th. KBR’s dividend payout ratio is 21.09%.

Key Headlines Impacting KBR

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 Transactions at KBR

In other news, Director Carlos A. Sabater purchased 14,500 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $32.47 per share, for a total transaction of $470,815.00. Following the purchase, the director owned 35,705 shares of the company’s stock, valued at $1,159,341.35. The trade was a 68.38% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Thaer Lewis Von acquired 3,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was purchased at an average cost of $30.77 per share, with a total value of $92,310.00. Following the acquisition, the director owned 10,358 shares in the company, valued at $318,715.66. The trade was a 40.77% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders have bought 29,875 shares of company stock valued at $945,160. Corporate insiders own 1.15% of the company’s stock.

Hedge Funds Weigh In On KBR

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KBR. EverSource Wealth Advisors LLC increased its stake in shares of KBR by 432.5% in the second quarter. EverSource Wealth Advisors LLC now owns 607 shares of the construction company’s stock worth $29,000 after purchasing an additional 493 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of KBR by 101,600.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,017 shares of the construction company’s stock valued at $48,000 after buying an additional 1,016 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in KBR by 98.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,228 shares of the construction company’s stock worth $59,000 after buying an additional 608 shares during the period. Aster Capital Management DIFC Ltd bought a new position in KBR in the 4th quarter worth approximately $51,000. Finally, Wilmington Savings Fund Society FSB purchased a new position in KBR in the 3rd quarter valued at approximately $70,000. Institutional investors own 97.02% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on KBR. Wells Fargo & Company cut their price objective on KBR from $45.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Monday, April 13th. Bank of America decreased their target price on KBR from $45.00 to $40.00 and set a “neutral” rating for the company in a research report on Monday, July 20th. Zacks Research upgraded KBR from a “strong sell” rating to a “hold” rating in a research note on Friday, April 10th. Citigroup cut their price target on shares of KBR from $53.00 to $50.00 and set a “buy” rating on the stock in a report on Wednesday, May 6th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of KBR in a research report on Wednesday, June 24th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $52.62.

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.