KBR (NYSE:KBR) Shares Down 5.4% - What's Next?

Key Points

• Shares fell 5.4% intraday to about $36.59 after KBR reported Q1 results that beat estimates on EPS and revenue but showed year‑over‑year revenue weakness and the company cut its FY‑2026 EPS guidance to $3.87–$4.22, slightly below street expectations.
• KBR secured material defense work — roughly $1.15 billion in AI‑driven contracts plus $449 million in LOGCAP task‑order modifications — which should bolster near‑term funded backlog.
• Analysts have trimmed ratings and targets (Wells Fargo cut its target to $40, Citi to $53), leaving an average MarketBeat target of $56.50 and a consensus rating of Hold.

KBR, Inc. (NYSE:KBR - Get Free Report)'s stock price dropped 5.4% during mid-day trading on Tuesday . The company traded as low as $36.90 and last traded at $36.5860. Approximately 783,483 shares traded hands during trading, a decline of 45% from the average daily volume of 1,421,713 shares. The stock had previously closed at $38.67.

More KBR News

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR won large defense contracts that should support future revenue and backlog — a reported US$1.15 billion in AI‑driven defense contracts was announced and highlighted by media as a material win. Read More.
• Positive Sentiment: The company’s Mission Technology Solutions unit received LOGCAP V task‑order modifications with a combined ceiling of $449 million to support U.S. Army operations in Europe and North America, adding near‑term funded work. Read More.
• Neutral Sentiment: Q1 results beat consensus on the headline adjusted EPS ($0.96 vs $0.92) and revenue ($1.92B vs ~$1.88B estimate), showing operational resilience despite a year‑over‑year revenue decline. Adjusted EBITDA margin was roughly steady. Read More.
• Neutral Sentiment: Management hosted an earnings call and published slides with more color on contingency runoffs (EUCOM) and the revenue mix; the full transcript and presentation are available for investors reviewing guidance assumptions. Read More.
• Negative Sentiment: KBR cut its FY‑2026 EPS range to $3.87–$4.22 (consensus ~$3.99) and provided revenue guidance slightly below some Street expectations, which pressured sentiment because it implies more modest near‑term EPS growth than investors had hoped. Read More.
• Negative Sentiment: On a year‑over‑year basis GAAP net income and diluted EPS were down and revenue fell about 4–5%, reflecting EUCOM contingency runoff — investors focused on the YoY decline despite the quarter beating estimates. Read More.

Analyst Upgrades and Downgrades

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

KBR Stock Performance

The business has a fifty day simple moving average of $37.88 and a two-hundred day simple moving average of $40.87. 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 company has a market cap of $4.63 billion, a P/E ratio of 11.34, a P/E/G ratio of 2.21 and a beta of 0.47.

KBR (NYSE:KBR - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The construction company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.92 by $0.04. KBR had a return on equity of 35.22% and a net margin of 5.30%.The firm had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.88 billion. During the same quarter last year, the company earned $1.01 earnings per share. The business's revenue for the quarter was down 4.7% compared to the same quarter last year. KBR has set its FY 2026 guidance at 3.870-4.220 EPS. On average, sell-side analysts anticipate that KBR, Inc. will post 4.01 EPS for the current year.

KBR Announces Dividend

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio raised its stake in shares of KBR by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 40,133 shares of the construction company's stock worth $1,898,000 after buying an additional 249 shares during the period. Anchor Investment Management LLC grew its position in shares of KBR by 27.5% during the first quarter. Anchor Investment Management LLC now owns 1,275 shares of the construction company's stock worth $47,000 after purchasing an additional 275 shares in the last quarter. Jones Financial Companies Lllp grew its position in shares of KBR by 6.4% during the third quarter. Jones Financial Companies Lllp now owns 4,785 shares of the construction company's stock worth $227,000 after purchasing an additional 289 shares in the last quarter. Farther Finance Advisors LLC grew its position in shares of KBR by 89.8% during the fourth quarter. Farther Finance Advisors LLC now owns 611 shares of the construction company's stock worth $25,000 after purchasing an additional 289 shares in the last quarter. Finally, Truist Financial Corp grew its position in shares of KBR by 1.9% during the fourth quarter. Truist Financial Corp now owns 17,342 shares of the construction company's stock worth $697,000 after purchasing an additional 317 shares in the last quarter. Institutional investors own 97.02% of the company's stock.

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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