KBR (NYSE:KBR) Announces Earnings Results, Beats Estimates By $0.04 EPS

KBR (NYSE:KBR) released its quarterly earnings results on Thursday. The construction company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.04, FiscalAI reports. The company had revenue of $1.89 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the previous year, the firm earned $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:

• 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 Up 3.0%

KBR stock traded up $1.22 during mid-day trading on Thursday, hitting $42.03. The company’s stock had a trading volume of 2,217,741 shares, compared to its average volume of 1,371,485. KBR has a 52-week low of $39.39 and a 52-week high of $56.78. The company has a market cap of $5.34 billion, a PE ratio of 14.44, a price-to-earnings-growth ratio of 1.00 and a beta of 0.51. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.18 and a quick ratio of 1.18. The firm’s 50 day moving average is $42.32 and its 200 day moving average is $44.51.

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 issued a dividend of $0.165 per share. The ex-dividend date is Friday, March 13th. This represents a $0.66 dividend on an annualized basis and a dividend yield of 1.6%. KBR’s payout ratio is currently 22.68%.

Hedge Funds Weigh In On KBR

Several institutional investors and hedge funds have recently modified their holdings of the stock. Voleon Capital Management LP bought a new stake in KBR during the 3rd quarter worth approximately $227,000. Fieldview Capital Management LLC bought a new position in KBR in the fourth quarter valued at approximately $223,000. Sender Co & Partners Inc. acquired a new position in shares of KBR in the third quarter valued at approximately $204,000. Osaic Holdings Inc. boosted its holdings in shares of KBR by 31.6% in the second quarter. Osaic Holdings Inc. now owns 3,642 shares of the construction company’s stock valued at $176,000 after buying an additional 875 shares during the period. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of KBR by 95.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,047 shares of the construction company’s stock worth $122,000 after acquiring an additional 1,486 shares in the last quarter. 97.02% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently commented on KBR. Oppenheimer assumed coverage on KBR in a report on Tuesday, December 2nd. They set an “outperform” rating and a $60.00 target price on the stock. Wall Street Zen upgraded KBR from a “hold” rating to a “buy” rating in a report on Saturday, February 21st. Bank of America decreased their target price on KBR from $55.00 to $45.00 and set a “neutral” rating for the company in a research note on Thursday, November 13th. Truist Financial lowered their target price on KBR from $62.00 to $50.00 and set a “buy” rating on the stock in a report on Friday, December 19th. Finally, Citigroup dropped their price target on shares of KBR from $57.00 to $53.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Five equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, KBR has a consensus rating of “Hold” and a consensus target price of $57.00.

Key Stories Impacting KBR

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Adjusted EPS and margins beat/expanded — KBR reported adjusted EPS of $0.99 (above consensus) and improved operating income and margins, supporting profitability despite lower revenue. KBR Reports Fourth Quarter and Fiscal 2025 Results
• Positive Sentiment: Contract wins — KBR announced a contract for Iraq’s Majnoon oil field, which supports future revenue recovery in energy engineering and adds visible backlog. KBR wins contract for Iraq’s Majnoon oil field
• Positive Sentiment: Spin-off preparations and 2026 revenue target — Management outlined a $7.9B–$8.36B 2026 revenue target and said spin-off preparations are advancing, which could unlock value by separating businesses and clarifying growth profiles. KBR outlines $7.9B–$8.36B 2026 revenue target as spin-off preparations advance
• Neutral Sentiment: Earnings call details — The full Q4 2025 earnings call transcript provides management commentary and Q&A that investors will parse for backlog, contract timing and spin-off timing; it’s useful but doesn’t change results. KBR, Inc. (KBR) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue decline and book-to-bill under 1 — Quarterly revenue declined ~11% YoY to ~$1.9B and bookings/options were ~$2.0B with a 0.9x book-to-bill, signaling near‑term revenue pressure until awards pick up. KBR Reports Fourth Quarter and Fiscal 2025 Results
• Negative Sentiment: FY‑2026 EPS guidance a touch soft — KBR set FY‑2026 EPS guidance of $3.87–$4.22, slightly below the Street midpoint (~$3.96), which may cap near‑term upside until guidance is validated by bookings and revenue trends. KBR outlines $7.9B–$8.36B 2026 revenue target as spin-off preparations advance

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.