KBR (KBR) AI Stock Analysis

• Market Cap: $6.59B
• Dividend Yield: 1.19%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.62
• Revenue Growth: 11.30%
• EPS Growth: N/A
• Country: US
• Employees: 38,000
• Sector: Industrials
• Sector Strength: 64
• Industry: Engineering & Construction
• EPS (TTM): 2.80
• Shares Outstanding: 129,735,170
• 10 Day Avg. Volume: 1,240,084
• 30 Day Avg. Volume: 1,398,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.86
• Price to Cash Flow (P/CF): 41.50
• P/FCF Ratio: 97.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $65.80
• Price Target Upside: 22.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

KBR's overall score is driven by strong financial performance, strategic growth initiatives, and a positive earnings outlook. The company's balanced valuation and strong cash flow generation provide a firm foundation, despite some leverage concerns and potential government funding delays. Technical indicators suggest stability but warrant cautious optimism.

Positive Factors

Acquisitions

The acquisition of LinQuest expands KBR's portfolio in military space, providing new opportunities in satellites, communications, and ground stations.

Contracted Revenue

KBR has ~75% of projected 2025 revenues already under contract (~80% in Government Solutions).

Strategic Partnerships

KBR was selected for engineering and project management roles for Shell’s Manatee LNG project, Oman LNG project and Saudi Aramco’s Shaybah Project.

Negative Factors

Market Sentiment

A less-rich catalyst roadmap and emerging risks limit upside to Street estimates, leading to a downgrade from Buy to Hold.

Military Services Demand

The Administration transition could lead to changes in military services demand, impacting more than 25% of KBR's sales.

Project Risks

Fewer catalysts and execution risks related to project timing have been highlighted, affecting the stock's potential for growth.

KBR Business Overview & Revenue Model

Company Description

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to deliver high-end systems engineering, systems assurance, and technology to customers across the defense, energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment holds a portfolio of approximately 70 proprietary process technologies for ammonia/syngas/fertilizers, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also includes advisory and consulting practices that focuses on energy transition and net-zero carbon emission consulting; and provides engineering, design, and professional services, as well as industrial solutions through KBR INSITE, a proprietary, digital, and cloud-based operations and maintenance platform that identifies opportunities for clients to achieve sustainable improvements in production, reliability, environment impact, energy efficiency, and profitability. KBR, Inc. was founded in 1998 and is headquartered in Houston, Texas.

How the Company Makes Money

KBR generates revenue through a combination of government and commercial contracts across its diverse sectors. The company's key revenue streams include engineering and construction services, technical consulting, and operations and maintenance services. Significant partnerships with entities such as the U.S. Department of Defense and NASA contribute to its earnings, as these contracts often involve long-term commitments and substantial value. Additionally, KBR earns from its technology solutions and proprietary products, particularly in the areas of energy and infrastructure, which further bolster its revenue.

KBR Financial Statement Overview

Summary

KBR's financial performance is robust, evidenced by strong revenue growth, improved net income, and efficient cash flow management. However, the company's leverage remains a consideration.

Income Statement

KBR has demonstrated strong revenue growth, with a 7.7% increase in the most recent year. The company also achieved a healthy gross profit margin of 14.2% and a significant improvement in net income from a loss to a profit of $375 million, resulting in a net profit margin of 4.8% for 2025. Additionally, the EBIT margin improved to 8.5%. However, the EBITDA margin remains low at 8.5%, indicating room for improvement in operational efficiency.

Balance Sheet

KBR's balance sheet shows a moderate debt-to-equity ratio of 1.92, reflecting a balanced approach to leveraging. The return on equity increased to 25.8%, indicating efficient use of shareholder funds. The equity ratio is at 21.8%, highlighting a stable capital structure, though there is a noticeable reliance on debt.

Cash Flow

KBR's cash flow performance is strong, with a 53.4% increase in free cash flow, driven by higher operating cash flows. The operating cash flow to net income ratio is 1.23, suggesting effective cash earnings conversion. The free cash flow to net income ratio of 1.03 indicates that the company is successfully generating cash in line with its net income.

Breakdown
Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.74B	6.96B	6.56B	7.34B	5.77B
	Gross Profit
1.10B	977.00M	828.00M	806.00M	666.00M
	EBIT
662.00M	448.00M	343.00M	231.00M	362.00M
	EBITDA
662.00M	90.00M	508.00M	372.00M	173.00M
	Net Income Common Stockholders
375.00M	-265.00M	190.00M	27.00M	-51.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
350.00M	304.00M	389.00M	370.00M	436.00M
	Total Assets
6.66B	5.57B	5.57B	6.20B	5.71B
	Total Debt
2.80B	2.06B	1.98B	2.08B	1.82B
	Net Debt
2.45B	1.75B	1.59B	1.71B	1.39B
	Total Liabilities
5.20B	4.17B	3.93B	4.50B	4.10B
	Stockholders Equity
1.45B	1.38B	1.62B	1.69B	1.58B
Cash Flow		Free Cash Flow
385.00M	251.00M	325.00M	241.00M	347.00M
	Operating Cash Flow
462.00M	331.00M	396.00M	278.00M	367.00M
	Investing Cash Flow
-776.00M	-70.00M	37.00M	-428.00M	-877.00M
	Financing Cash Flow
374.00M	-359.00M	-402.00M	87.00M	225.00M

KBR Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBR, the sentiment is Neutral. The current price of 53.5 is above the 20-day moving average (MA) of 50.22, above the 50-day MA of 50.32, and below the 200-day MA of 59.60, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KBR.

KBR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$12.47B	26.74	26.35%	0.97%	8.89%	669.67%
KBR	77 Outperform	$6.59B	18.20	26.45%	1.19%	11.30%	―
MTZ	75 Outperform	$9.03B	57.62	5.80%	―	2.56%	―
TTEK	73 Outperform	$8.22B	31.99	16.05%	0.75%	11.02%	11.33%
FLR	72 Outperform	$5.98B	2.92	72.85%	―	5.43%	2094.12%
J	68 Neutral	$14.51B	24.39	10.92%	1.00%	-13.76%	-13.39%
Sector *	63 Neutral	$4.26B	11.28	5.43%	215.24%	4.12%	-8.73%

KBR Corporate Events

KBR Realigns Business Segments and Appoints New Executives

KBR announced a strategic realignment of its business segments and executive appointments to enhance growth and streamline operations. The Government Solutions segment has been renamed Mission Technology Solutions, reflecting its focus on mission-critical capabilities in space, defense, and national security. Key executive changes include Byron Bright’s appointment as Chief Operating Officer and Stuart Bradie’s future role as Chair following the retirement of General Lester L. Lyles. These changes aim to improve operational efficiency, align capabilities with customer needs, and drive shareholder value. The company reiterated its 2027 financial targets and highlighted the anticipated benefits of its structural changes to capture global demand.