KBR (KBR) AI Stock Analysis

• Market Cap: $6.27B
• Dividend Yield: 1.37%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.62
• Revenue Growth: 12.59%
• EPS Growth: 98.20%
• Country: US
• Employees: 38,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.91
• Shares Outstanding: 128,841,630
• 10 Day Avg. Volume: 1,122,449
• 30 Day Avg. Volume: 1,073,323
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 9.54
• 1Y Price Target: $59.33
• Price Target Upside: 26.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $55.00 ▲(17.02% Upside)

KBR's overall stock score reflects strong financial performance and strategic growth initiatives, offset by leverage risks and recent operational challenges. The technical indicators suggest caution due to potential overbought conditions, while the valuation remains fair. The earnings call and corporate events provide a balanced view with both positive developments and challenges.

Positive Factors

Strong Cash Flow Position

KBR's strong cash flow position, highlighted by a 17.1% growth rate, ensures financial flexibility and supports strategic investments.

Strategic Contract Wins

Winning significant contracts like the Djibouti operations contract strengthens KBR's market position and drives long-term revenue growth.

Sustainable Technology Growth

Growth in the STS segment with high margins indicates strong execution and positions KBR well in the sustainable technology market.

Negative Factors

Termination of Key Contract

The termination of the HomeSafe Alliance contract impacts revenue guidance and highlights potential volatility in government contract dependencies.

Revenue Guidance Reduction

Lowered revenue guidance reflects challenges in contract execution and external factors, potentially affecting future growth projections.

Leverage Risk

A high Debt-to-Equity Ratio indicates reliance on debt, which can constrain financial flexibility and increase risk during economic downturns.

KBR Business Overview & Revenue Model

Company Description

KBR, Inc. is a global engineering and technology company based in the United States, specializing in providing innovative solutions for the aerospace, defense, and energy sectors. The company operates through various segments, including Government Solutions, Technology Solutions, and Energy Solutions. KBR offers a range of services, from engineering and construction to consulting and project management, focusing on delivering high-quality solutions to complex challenges across multiple industries.

How the Company Makes Money

KBR generates revenue primarily through its contracts and projects in government and commercial sectors. The company earns money by providing engineering, construction, and consulting services, often through fixed-price contracts and cost-reimbursable contracts, which can vary based on project scope and duration. Key revenue streams include long-term contracts with government agencies for defense and aerospace projects, as well as contracts in the energy sector for oil and gas services, industrial processes, and technology licensing. Significant partnerships with major industry players and government entities enhance its capabilities and expand its market reach, contributing to its earnings.

KBR Financial Statement Overview

Summary

KBR demonstrates strong financial performance with robust profitability and efficient cash flow management. The company shows consistent revenue and profit growth, supported by effective cost and cash management strategies. However, the balance sheet's reliance on debt poses a potential risk.

Income Statement

KBR demonstrates a solid income statement with a strong Gross Profit Margin of 14.5% and Net Profit Margin of 5.9% for TTM (Trailing-Twelve-Months). The Revenue Growth Rate of 4.3% from the previous annual report indicates a stable upward trend. The EBIT and EBITDA Margins are also robust at 8.7% and 10.7%, respectively, reflecting efficient operations and cost management.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio of 1.90, which is typical for the industry but suggests some leverage risk. The Return on Equity (ROE) for TTM stands at 32.0%, showcasing efficient use of equity to generate profits. However, the Equity Ratio is relatively low at 21.9%, indicating a higher reliance on debt financing.

Cash Flow

KBR exhibits a strong cash flow position with a Free Cash Flow Growth Rate of 17.1%. The Operating Cash Flow to Net Income Ratio is favorable at 1.07, indicating effective cash generation relative to net income. Additionally, the Free Cash Flow to Net Income Ratio is a robust 0.95, highlighting the company's capability to convert income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.08B	7.74B	6.96B	6.56B	7.34B	5.77B
Gross Profit	1.17B	1.10B	977.00M	828.00M	806.00M	666.00M
EBITDA	899.00M	662.00M	90.00M	508.00M	372.00M	173.00M
Net Income	365.00M	375.00M	-265.00M	190.00M	27.00M	-51.00M
Balance Sheet
Total Assets	6.79B	6.66B	5.57B	5.57B	6.20B	5.71B
Cash, Cash Equivalents and Short-Term Investments	285.00M	350.00M	304.00M	389.00M	370.00M	436.00M
Total Debt	2.83B	2.85B	2.06B	1.98B	2.08B	1.82B
Total Liabilities	5.30B	5.20B	4.17B	3.93B	4.50B	4.10B
Stockholders Equity	1.49B	1.45B	1.38B	1.62B	1.69B	1.58B
Cash Flow
Free Cash Flow	451.00M	385.00M	251.00M	325.00M	241.00M	347.00M
Operating Cash Flow	509.00M	462.00M	331.00M	396.00M	278.00M	367.00M
Investing Cash Flow	-811.00M	-776.00M	-70.00M	37.00M	-428.00M	-877.00M
Financing Cash Flow	313.00M	374.00M	-359.00M	-402.00M	87.00M	225.00M

KBR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBR, the sentiment is Negative. The current price of 47 is below the 20-day moving average (MA) of 49.15, below the 50-day MA of 48.77, and below the 200-day MA of 51.48, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBR.

KBR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	17.15B	26.33	24.63%	0.78%	1.50%	164.17%
J	73 Outperform	17.63B	36.85	13.06%	0.85%	-30.12%	-21.04%
MTZ	73 Outperform	16.25B	60.65	9.01%	―	7.08%	3273.27%
TTEK	73 Outperform	8.84B	41.70	12.41%	0.74%	7.91%	-25.17%
KBR	72 Outperform	$6.27B	16.60	27.41%	1.37%	12.59%	98.20%
FLR	62 Neutral	7.07B	1.75	69.52%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

KBR Corporate Events

KBR Appoints Huibert Vigeveno to Board of Directors

On August 7, 2025, KBR announced the appointment of Huibert H. Vigeveno to its Board of Directors, effective August 5, 2025. Mr. Vigeveno, who will step down from Shell in September 2025, brings 30 years of experience in the energy sector, having held various leadership roles at Shell, including Director of Downstream, Renewables, and Energy Solutions. His expertise is expected to enhance KBR’s board as the company continues to expand its reputation in sustainable energy and energy transition solutions.

The most recent analyst rating on (KBR) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.

KBR COO Byron Bright Resigns Amidst Restructuring

On July 8, 2025, Byron Bright, the Chief Operating Officer of KBR, announced his resignation, effective July 11, 2025. His departure follows a company realignment in January 2025, where KBR restructured its portfolio into two segments: Mission Technology Solutions (MTS) and Sustainable Technology Solutions (STS). Despite the leadership change, KBR expects no operational disruptions, with Doug Hill and Mark Kavanaugh leading the MTS segment. The company views this transition as an opportunity to focus on growth and margin expansion.

The most recent analyst rating on (KBR) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.

KBR’s Role in TRANSCOM Contract Terminated

On June 18, 2025, HomeSafe Alliance, a joint venture of KBR, was informed by the U.S. Transportation Command (TRANSCOM) that its role in the Global Household Goods Contract was terminated. This contract aimed to enhance the moving system for military service members and their families. KBR stated that this development will not materially affect its adjusted EBITDA outlook for 2025, as the program was not expected to contribute to profits in its initial year.

The most recent analyst rating on (KBR) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.

KBR Announces Resignation of Chief Accounting Officer

On May 27, 2025, KBR, Inc. announced the resignation of Alison Vasquez from her role as Senior Vice President, Chief Accounting Officer, effective June 18, 2025, as she pursues another opportunity. Shad E. Evans, currently Senior Vice President of Financial Operations, will serve as interim Chief Accounting Officer until July 31, 2025, after which Jennefer Taylor will assume the role on August 1, 2025. Taylor, who has been with KBR since 2019, will bring her extensive experience in accounting and finance to the position, with a compensation package that includes a base salary, incentive plans, and stock awards.

The most recent analyst rating on (KBR) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.

KBR Stockholders Approve Key Proposals at Annual Meeting

At the Annual Meeting of Stockholders of KBR, Inc. on March 17, 2025, stockholders voted on four key proposals. All director nominees were elected for a one-year term, executive compensation was approved, KPMG LLP was ratified as the independent auditor, and an amended certificate of incorporation was adopted to limit certain officers’ liability.

The most recent analyst rating on (KBR) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.