Wall Street Zen Upgrades KBR (NYSE:KBR) to "Buy"

Key Points

• Wall Street Zen upgraded KBR from “hold” to “buy,” though the broader analyst consensus remains “hold,” with an average price target of $45.83.
• KBR reported quarterly EPS of $0.99 and revenue of $1.98 billion, beating estimates, while reaffirming fiscal 2026 adjusted EPS guidance of $3.87–$4.22 and revenue guidance of approximately $7.9–$8.36 billion.
• Growth drivers include a record $5.5 billion Sustainable Technology Solutions backlog and the planned January 2027 separation of Mission Technology Solutions under the new name Trinzic; however, analysts have recently reduced several price targets and cited margin pressure.

KBR (NYSE:KBR - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Several other equities analysts also recently commented on KBR. Zacks Research upgraded KBR from a "strong sell" rating to a "hold" rating in a research report on Friday, April 10th. Weiss Ratings reiterated a "sell (d+)" rating on shares of KBR in a report on Wednesday, June 24th. Bank of America cut their target price on shares of KBR from $45.00 to $40.00 and set a "neutral" rating on the stock in a research report on Monday, July 20th. Citigroup decreased their price target on shares of KBR from $50.00 to $49.00 and set a "buy" rating for the company in a research report on Friday. Finally, Wells Fargo & Company dropped 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 note on Monday, April 13th. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $45.83.

KBR Price Performance

KBR stock opened at $36.63 on Friday. The firm has a market cap of $4.64 billion, a PE ratio of 11.03, a price-to-earnings-growth ratio of 1.86 and a beta of 0.44. The company has a debt-to-equity ratio of 1.52, a current ratio of 1.15 and a quick ratio of 1.16. The stock's fifty day moving average price is $35.07 and its two-hundred day moving average price is $37.43. KBR has a one year low of $29.94 and a one year high of $52.23.

KBR (NYSE:KBR - Get Free Report) last issued its earnings results on Thursday, July 30th. The construction company reported $0.99 earnings per share for the quarter, beating analysts' consensus estimates of $0.90 by $0.09. The firm had revenue of $1.98 billion for the quarter, compared to the consensus estimate of $1.87 billion. KBR had a return on equity of 32.55% and a net margin of 5.49%.The company's revenue was up 1.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.91 EPS. KBR has set its FY 2026 guidance at 3.870-4.220 EPS. As a group, research analysts expect that KBR will post 4 EPS for the current fiscal year.

Insider Activity at KBR

In other news, CFO Shad E. Evans acquired 8,375 shares of KBR stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average cost of $30.60 per share, for a total transaction of $256,275.00. Following the transaction, the chief financial officer owned 43,725 shares of the company's stock, valued at $1,337,985. This trade represents a 23.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Jack B. Moore bought 4,000 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was purchased at an average price of $31.44 per share, for a total transaction of $125,760.00. Following the acquisition, the director directly owned 54,352 shares of the company's stock, valued at approximately $1,708,826.88. The trade was a 7.94% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 29,875 shares of company stock valued at $945,160 in the last ninety days. 1.15% of the stock is currently owned by company insiders.

Institutional Trading of KBR

Several institutional investors and hedge funds have recently modified their holdings of KBR. Royal Bank of Canada increased its holdings in shares of KBR by 11.2% in the 1st quarter. Royal Bank of Canada now owns 81,779 shares of the construction company's stock worth $4,073,000 after buying an additional 8,243 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of KBR by 50.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 627,321 shares of the construction company's stock valued at $31,247,000 after acquiring an additional 211,311 shares during the last quarter. Empowered Funds LLC purchased a new position in KBR in the first quarter worth about $349,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in KBR by 6.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 395,574 shares of the construction company's stock worth $19,704,000 after acquiring an additional 23,738 shares during the last quarter. Finally, American Century Companies Inc. increased its stake in KBR by 97.1% during the second quarter. American Century Companies Inc. now owns 46,592 shares of the construction company's stock worth $2,234,000 after acquiring an additional 22,957 shares during the last quarter. 97.02% of the stock is currently owned by institutional investors.

Key KBR News

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR reported adjusted earnings per share of $0.99 and revenue of $1.98 billion, exceeding analyst expectations of $0.90 and $1.89 billion, respectively. Adjusted EBITDA rose 7% to $258 million, while net income increased 32% year over year. KBR Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: Sustainable Technology Solutions posted a record backlog of approximately $5.5 billion and a 1.5x book-to-bill ratio, supported by awards for ammonia, sustainable aviation fuel and e-fuels projects. Companywide backlog and options totaled $23.0 billion.
• Positive Sentiment: Management reaffirmed fiscal 2026 revenue guidance of roughly $7.9 billion to $8.36 billion and adjusted EPS guidance of $3.87 to $4.22, signaling confidence despite a mixed operating environment.
• Positive Sentiment: The planned separation of Mission Technology Solutions remains on track for January 4, 2027. KBR also introduced the planned independent company’s name, Trinzic, along with its branding. KBR Unveils Trinzic
• Positive Sentiment: Citigroup maintained a “buy” rating while lowering its price target modestly from $50 to $49, still implying substantial potential upside. Two reported insider purchases over the past six months also provide a supportive signal.
• Neutral Sentiment: Analyst and institutional positioning remains mixed: several large investors added KBR shares, while others—including Franklin Resources, Morgan Stanley and Boston Partners—reduced holdings.
• Negative Sentiment: Investors noted margin pressure in parts of the business, with the quarter’s consolidated net margin at 5.21%. The lower end of the EPS outlook is also below the current consensus estimate of approximately $3.97.

KBR Company Profile

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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