KBR (NYSE:KBR) Price Target Cut to $49.00 by Analysts at Citigroup

Key Points

• Citigroup lowered KBR’s price target to $49 from $50 but maintained a “buy” rating, implying approximately 33.8% upside from the stock’s reported $36.63 price. The broader analyst consensus is “Hold,” with a $52.50 target.
• KBR exceeded second-quarter expectations, reporting $0.99 in adjusted EPS versus roughly $0.90 expected and $1.98 billion in revenue versus $1.89 billion expected. The company reaffirmed fiscal 2026 guidance of $3.87–$4.22 EPS and $7.90–$8.36 billion in revenue.
• Backlog and restructuring plans support the outlook: total backlog and options reached approximately $23 billion, while KBR advanced plans to spin off its Mission Technology Solutions business under the name Trinzic, targeted for January 4, 2027. Margin compression and modest revenue growth remain concerns.

KBR (NYSE:KBR - Get Free Report) had its price target lowered by equities researchers at Citigroup from $50.00 to $49.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the construction company's stock. Citigroup's price target points to a potential upside of 33.76% from the stock's current price.

A number of other research analysts have also recently issued reports on KBR. Wells Fargo & Company lowered their price target on shares of KBR from $45.00 to $40.00 and set an "equal weight" rating for the company in a research report on Monday, April 13th. UBS Group decreased their target price on shares of KBR from $42.00 to $36.00 and set a "neutral" rating for the company in a research note on Thursday, May 21st. Weiss Ratings restated a "sell (d+)" rating on shares of KBR in a research note on Wednesday, June 24th. Zacks Research raised KBR from a "strong sell" rating to a "hold" rating in a research report on Friday, April 10th. Finally, Bank of America lowered their price objective on KBR from $45.00 to $40.00 and set a "neutral" rating for the company in a research note on Monday, July 20th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $52.50.

KBR Trading Up 6.6%

NYSE:KBR traded up $2.26 during midday trading on Friday, reaching $36.63. 2,514,491 shares of the stock traded hands, compared to its average volume of 1,654,017. The stock has a market capitalization of $4.64 billion, a P/E ratio of 11.72, a PEG ratio of 1.94 and a beta of 0.44. KBR has a 12 month low of $29.94 and a 12 month high of $52.23. 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 company has a fifty day moving average of $35.01 and a 200 day moving average of $37.44.

KBR (NYSE:KBR - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The construction company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.09. The business had revenue of $1.98 billion for the quarter, compared to analysts' expectations of $1.89 billion. KBR had a net margin of 5.21% and a return on equity of 33.92%. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.91 earnings per share. KBR has set its FY 2026 guidance at 3.870-4.220 EPS. On average, research analysts predict that KBR will post 4 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Shad E. Evans acquired 8,375 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $30.60 per share, with a total value of $256,275.00. Following the acquisition, the chief financial officer directly owned 43,725 shares in the company, valued at $1,337,985. This represents a 23.69% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Carlos A. Sabater purchased 14,500 shares of KBR stock in a transaction on 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 completion of the acquisition, the director owned 35,705 shares in the company, valued at $1,159,341.35. The trade was a 68.38% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have bought 29,875 shares of company stock worth $945,160. Company insiders own 1.15% of the company's stock.

Institutional Investors Weigh In On KBR

Several institutional investors have recently modified their holdings of KBR. Morgan Stanley increased its position in shares of KBR by 343.5% during the 4th quarter. Morgan Stanley now owns 2,748,597 shares of the construction company's stock valued at $110,494,000 after purchasing an additional 2,128,895 shares during the last quarter. Wellington Management Group LLP boosted its stake in KBR by 1,611.4% during the third quarter. Wellington Management Group LLP now owns 1,974,327 shares of the construction company's stock worth $93,366,000 after buying an additional 1,858,961 shares during the period. Norges Bank bought a new position in KBR during the fourth quarter valued at $71,785,000. Engine Capital Management LP increased its position in KBR by 1,129.3% during the first quarter. Engine Capital Management LP now owns 1,531,313 shares of the construction company's stock valued at $56,444,000 after acquiring an additional 1,406,746 shares during the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in shares of KBR in the third quarter valued at $54,038,000. 97.02% of the stock is owned by institutional investors.

Key Stories Impacting KBR

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Second-quarter results exceeded expectations. KBR reported adjusted EPS of $0.99, above the roughly $0.90–$0.92 analyst consensus, while revenue reached $1.98 billion versus estimates near $1.89 billion. Revenue rose 1.6% year over year, and net income attributable to KBR increased 32% to $96 million. KBR Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: Backlog supports future revenue visibility. Total backlog and options stood at approximately $23.0 billion at quarter-end, with a 1.1x book-to-bill ratio. Management cited project ramp-ups in Sustainable Technology Solutions and growth among international government clients in Mission Technology Solutions. KBR Reaffirms Guidance and Reports Backlog
• Positive Sentiment: Spin-off plans advanced. KBR named the planned independent Mission Technology Solutions company Trinzic, with the separation currently targeted for January 4, 2027. The transaction could allow investors to value KBR’s remaining businesses and the government-technology operation more independently. KBR Unveils Trinzic
• Neutral Sentiment: Fiscal 2026 guidance was reaffirmed. KBR maintained revenue guidance of $7.90 billion to $8.36 billion and EPS guidance of $3.87 to $4.22. The midpoint is broadly consistent with analyst expectations, but the range extends below the current consensus EPS estimate of about $3.97. KBR Tops Q2 Estimates
• Negative Sentiment: Margin compression tempered the strong operating update. Market commentary focused on weaker margins despite the earnings beat, raising questions about profitability as projects ramp. Investors may also remain cautious because year-over-year revenue growth was modest and the stock remains below its 200-day moving average.

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.

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