KBR (NYSE:KBR) Stock Price Down 8.4% - Here's What Happened

Key Points

• KBR shares fell 8.4% to about $32.91 in midday trading, despite trading volume running well below its daily average.
• KBR beat second-quarter expectations with adjusted EPS of $0.99 and revenue of $1.98 billion, while net income rose 32% and backlog plus options reached $23.0 billion. However, revenue growth was only 1.6% year over year, and the low end of its FY 2026 EPS guidance is below analyst consensus.
• Analysts maintain a consensus “Hold” rating, with several firms recently cutting price targets. KBR also plans to spin off its Mission Technology Solutions business as “Trinzic” by January 4, 2027, creating potential upside but adding execution uncertainty.

KBR, Inc. (NYSE:KBR - Get Free Report)'s stock price fell 8.4% during trading on Thursday . The stock traded as low as $32.13 and last traded at $32.9080. 288,433 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 1,624,267 shares. The stock had previously closed at $35.93.

More KBR News

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR reported second-quarter adjusted EPS of $0.99, above analysts’ $0.90–$0.92 expectations and up from $0.91 a year earlier. Revenue of $1.98 billion also exceeded the roughly $1.87 billion consensus estimate. KBR Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Underlying results improved: reported net income rose 32% to $96 million, diluted EPS increased 34% to $0.75, and backlog plus options reached $23.0 billion with a 1.1x book-to-bill ratio. Growth was attributed to Sustainable Technology Solutions project ramp-ups and Mission Technology Solutions demand from international government clients. KBR Q2 Revenue Rises to $2 Billion as Net Income Jumps 32%
• Positive Sentiment: Full-year revenue guidance of $7.9 billion to $8.4 billion brackets and modestly exceeds the approximately $8.0 billion consensus at its midpoint. Analysts’ average price target implies about 25% potential upside, while favorable earnings-estimate revisions could support sentiment. Analyst Price Target and Earnings Revisions
• Neutral Sentiment: KBR introduced “Trinzic” as the name of its planned independent Mission Technology Solutions company. The spin-off is targeted for completion on January 4, 2027, creating a potential catalyst but also adding transaction and execution uncertainty. KBR Announces Trinzic
• Negative Sentiment: Although revenue increased approximately 1.6% year over year, the pace was limited. The FY 2026 EPS outlook of $3.87–$4.22 also leaves a lower bound below the roughly $3.97 analyst consensus, potentially prompting investors to focus on forecast risk despite the quarterly beat. KBR Second-Quarter Fiscal 2026 Results

Analyst Ratings Changes

KBR has been the topic of several recent analyst reports. Zacks Research upgraded shares of KBR from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. Wells Fargo & Company decreased their target price 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. UBS Group dropped their price objective 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 report on Wednesday, June 24th. Finally, Citigroup decreased their price target on KBR from $53.00 to $50.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, KBR has a consensus rating of "Hold" and an average price target of $52.62.

KBR Price Performance

The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 1.59. The company's 50 day moving average is $34.96 and its 200 day moving average is $37.51. The firm has a market capitalization of $4.27 billion, a price-to-earnings ratio of 10.75, a P/E/G ratio of 2.02 and a beta of 0.44.

KBR (NYSE:KBR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The construction company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.09. The business had revenue of $1.98 billion during the quarter, compared to analysts' expectations of $1.87 billion. KBR had a return on equity of 33.92% and a net margin of 5.21%.The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.91 earnings per share. KBR has set its FY 2026 guidance at 3.870-4.220 EPS. On average, equities research analysts anticipate that KBR, Inc. will post 4 earnings per share for the current fiscal year.

KBR Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were issued a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, June 15th. KBR's dividend payout ratio is 21.09%.

Insiders Place Their Bets

In other KBR news, Director Thaer Lewis Von purchased 3,000 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were bought at an average price of $30.77 per share, for a total transaction of $92,310.00. Following the purchase, the director owned 10,358 shares in the company, valued at approximately $318,715.66. This trade represents a 40.77% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jack B. Moore bought 4,000 shares of the stock in a transaction on Wednesday, May 20th. The shares were acquired at an average cost of $31.44 per share, with a total value of $125,760.00. Following the purchase, the director owned 54,352 shares of the company's stock, valued at approximately $1,708,826.88. This represents a 7.94% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders bought 29,875 shares of company stock worth $945,160. 1.15% of the stock is owned by company insiders.

Institutional Investors Weigh In On KBR

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Farther Finance Advisors LLC grew its stake in shares of KBR by 89.8% in the 4th quarter. Farther Finance Advisors LLC now owns 611 shares of the construction company's stock worth $25,000 after buying an additional 289 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in KBR by 432.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 607 shares of the construction company's stock worth $29,000 after buying an additional 493 shares during the period. Anchor Investment Management LLC increased 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. Caitong International Asset Management Co. Ltd boosted its position in KBR by 101,600.0% in the third 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 during the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in KBR during the 4th quarter valued at approximately $51,000. 97.02% of the stock is owned by hedge funds and other institutional investors.

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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