KBR (NYSE:KBR) Releases Quarterly Earnings Results

Key Points

• KBR beat Q1 estimates — adjusted EPS was $0.96 versus $0.92 expected and revenue was $1.92B versus $1.88B, but revenue fell ~4.7% YoY and the stock dropped ~7.6% after management issued a cautious FY2026 guidance range of $3.87–$4.22 EPS (revenues $7.9B–$8.4B).
• Margins and cash flow were strong — adjusted EBITDA margin expanded to 13.1% and adjusted operating cash flow was $119M with ~98% OCF conversion, while Sustainable Tech backlog rose ~9% to ~$4.7B and the near‑term pipeline exceeds $5B.
• Corporate actions and risks — KBR is progressing a planned tax‑free spin targeted for Jan 4, 2027 and has net leverage ~2.3x, but Mission Tech faces timing/program risks (including protests and potential NASA insourcing) that could reduce near‑term revenue.

KBR (NYSE:KBR - Get Free Report) released its earnings results on Tuesday. The construction company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.04, FiscalAI reports. KBR had a return on equity of 35.22% and a net margin of 5.30%.The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.88 billion. During the same period in the prior year, the company posted $1.01 earnings per share. KBR's quarterly revenue was down 4.7% 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:

• Margins and cash generation were strong — adjusted EBITDA margin expanded to 13.1%, adjusted EPS was $0.96, and adjusted operating cash flow was $119M with ~98% OCF conversion.
• Sustainable Tech (STS) momentum — STS book-to-bill ex-LNG was 1.2x, backlog rose to ~$4.7B (+9% YoY), near-term pipeline >$5B, and work under contract covers ~67% of 2026 STS revenue guidance.
• Mission Tech faces timing and program risks — MTS awards are uneven (book-to-bill 1.0), protests and delays have slowed ramps, and potential NASA insourcing could reduce KBR revenue by roughly $50–60M in 2026.
• Spin process progressing toward value creation — KBR targets a tax-free spin effective January 4, 2027, has resubmitted confidential filings to the SEC, is advancing IRS PLR work, and plans investor days in November to outline standalone plans.
• Balance sheet and allocation discipline — net leverage ended at ~2.3x (below the 2.5x ceiling) after the Brown & Root investment, with continued focus on disciplined capital allocation, JV growth, and selective M&A.

KBR Stock Down 7.6%

Shares of NYSE:KBR traded down $2.93 during midday trading on Tuesday, reaching $35.74. The company's stock had a trading volume of 1,926,855 shares, compared to its average volume of 1,436,863. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.68. The firm has a 50 day moving average of $37.88 and a 200-day moving average of $40.87. The firm has a market capitalization of $4.53 billion, a P/E ratio of 11.15, a PEG ratio of 2.21 and a beta of 0.47. KBR has a 12-month low of $34.75 and a 12-month high of $56.78.

KBR Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th were given a $0.165 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.66 dividend on an annualized basis and a dividend yield of 1.8%. KBR's dividend payout ratio is currently 20.56%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Wells Fargo & Company dropped their price objective on KBR from $45.00 to $40.00 and set an "equal weight" rating on the stock in a report on Monday, April 13th. Zacks Research upgraded shares of KBR from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. Weiss Ratings cut shares of KBR from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 27th. Wall Street Zen lowered shares of KBR from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. Finally, Citigroup reduced their price target on KBR from $57.00 to $53.00 and set a "buy" rating on the stock in a report on Monday, January 26th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, KBR has an average rating of "Hold" and a consensus target price of $56.50.

Hedge Funds Weigh In On KBR

A number of institutional investors and hedge funds have recently made changes to their positions in KBR. Jain Global LLC bought a new position in KBR during the 4th quarter valued at approximately $462,000. Mercer Global Advisors Inc. ADV boosted its position in shares of KBR by 35.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,762 shares of the construction company's stock worth $433,000 after acquiring an additional 2,807 shares during the last quarter. Dark Forest Capital Management LP bought a new stake in KBR in the 3rd quarter valued at $414,000. Scientech Research LLC purchased a new stake in KBR in the 3rd quarter worth $376,000. Finally, Empowered Funds LLC bought a new position in shares of KBR during the 1st quarter valued at about $349,000. Institutional investors own 97.02% of the company's stock.

Key Stories Impacting KBR

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Q1 adjusted EPS of $0.96 beat the $0.92 consensus and revenue of ~$1.92B also topped estimates, showing the company still delivered above-street results versus expectations. KBR Inc. (KBR) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: KBR won two LOGCAP task order modifications with a combined ceiling of $449M to continue Army logistics support — a meaningful, near-term government backlog win for Mission Technology Solutions. KBR Mission Technology Solutions Awarded $449 Million Army LOGCAP Extension
• Neutral Sentiment: The company posted its full Q1 slide deck and earnings call transcript — useful for investors parsing management commentary on EUCOM contingency runoff, margins and backlog drivers. KBR, Inc. (KBR) Q1 2026 Earnings Call Transcript KBR, Inc. 2026 Q1 - Results - Earnings Call Presentation
• Negative Sentiment: Underlying trends were weaker: revenue down ~5% YoY, net income down ~12%, adjusted EPS down ~5% and adjusted EBITDA roughly flat — signals of margin pressure and lower organic growth that weighed on sentiment. KBR Reports First Quarter Fiscal 2026 Results
• Negative Sentiment: KBR reported bookings of $1.9B with a 1.1x book-to-bill — modest backlog growth that may temper near-term revenue visibility and investor enthusiasm. KBR Reports First Quarter Fiscal 2026 Results
• Negative Sentiment: FY-2026 guidance came as a range (EPS 3.87–4.22; revenues $7.9B–$8.4B). Although the midpoint is close to consensus, the wide range and cautious tone (management cited contingency runoff impacts) likely spooked traders looking for clearer upside. KBR FY2026 Guidance / Press Materials
• Negative Sentiment: Institutional activity shows notable reductions by several large funds in recent quarters, a backdrop that can amplify downside on mixed results. KBR ($KBR) Releases Q1 2026 Earnings

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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