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KBR
(NYSE:KBR)
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Rating:62Neutral
Price Target:
$38.00
▲(4.34% Upside)
Action:Reiterated
Date:05/19/26
The score is driven by improved profitability and solid cash generation alongside reaffirmed 2026 guidance and healthy contract coverage. Offsetting these strengths are elevated leverage and notably weak technical trends, even with oversold signals. Valuation is a supportive positive.
Positive Factors
Strong cash generation and FCF conversion
High TTM operating cash flow and FCF that closely tracks net income indicate durable cash conversion. This strengthens the company’s ability to service debt, fund project execution, support the planned spin, and invest in backlog conversion without relying on external financing.
Negative Factors
Elevated leverage and net debt levels
Material leverage increases sensitivity to execution setbacks or higher rates. Elevated debt ratios constrain financial flexibility for opportunistic investments or spin-related costs, and raise the impact of margin or cash-flow volatility on solvency and credit metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
High TTM operating cash flow and FCF that closely tracks net income indicate durable cash conversion. This strengthens the company’s ability to service debt, fund project execution, support the planned spin, and invest in backlog conversion without relying on external financing.
Read all positive factors
KBR Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyKBR (KBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.60B
Dividend Yield1.65%
Average Volume (3M)1.94M
Price to Earnings (P/E)11.5
Beta (1Y)0.78
Revenue Growth-3.61%
EPS Growth10.17%
CountryUS
Employees38,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.12
Shares Outstanding126,789,955
10 Day Avg. Volume2,052,532
30 Day Avg. Volume1,939,729
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)3.48
Price to Sales (P/S)0.67
P/FCF Ratio10.84
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit6.09
Enterprise Value/Ebitda7.92
Forecast
1Y Price Target
$47.20Price Target Upside29.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)3.96
Revenue Forecast (FY)$7.98B
KBR Business Overview & Revenue Model
Company Description
KBR, Inc. delivers advanced scientific, technological, and engineering solutions globally to both government entities and commercial enterprises. The company operates through two main divisions: The Government Solutions segment offers all-encompas...
How the Company Makes Money
KBR makes money primarily by delivering services under contracts and task orders for government and commercial customers, recognizing revenue as it performs work. A significant portion of its revenue is generated from U.S. government contracting, ...
KBR Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call reflects solid underlying operational and financial resilience — margin expansion, higher adjusted operating cash flow and strong STS bookings/backlog were notable positives. MTS showed healthy backlog and contract coverage but faced slower award flow, protests, and NASA‑related mix risk. Management reaffirmed 2026 guidance, is advancing the spin, and maintained disciplined leverage and capital allocation. While there are clear near‑term timing and mix headwinds (EUCOM reduction, NASA uncertainty, LNG roll‑off and protest delays), the improvements in cash, margins, bookings and contract coverage materially outweigh the challenges discussed.Positive Updates
Strong cash generation and margin expansion
Adjusted operating cash flow of $119 million, up $28 million year‑over‑year, with 98% adjusted OCF conversion. Adjusted EBITDA increased by $3 million YoY and adjusted EBITDA margin expanded to 13.1% from 12.3% (≈+80 basis points).
Negative Updates
Consolidated revenue decline driven by EUCOM reduction
Consolidated revenues declined $95 million year‑over‑year, driven primarily by the planned reduction in EUCOM contingency work. Mission Tech revenues were down ~$85 million YoY largely for the same reason; Sustainable Tech revenues down ~$10 million YoY as some new awards are still ramping.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash generation and margin expansion
Adjusted operating cash flow of $119 million, up $28 million year‑over‑year, with 98% adjusted OCF conversion. Adjusted EBITDA increased by $3 million YoY and adjusted EBITDA margin expanded to 13.1% from 12.3% (≈+80 basis points).
Read all positive updates
Company Guidance
KBR reaffirmed its full‑year 2026 guidance across all metrics, saying work under contract already covers ~67% of STS’s and ~91% of MTS’s 2026 revenue guidance; STS delivered Q1 book‑to‑bill ex‑LNG of 1.2x (trailing‑12m 1.2x) with backlog ≈$4.7B (+9% YoY) and a >$5B pipeline (~80% repeat customers), while MTS posted Q1 book‑to‑bill 1.0 (trailing‑12m 1.0) with backlog+options of $18.5B (39% funded ex‑PFIs), $16B of bids/awards outstanding and progress toward a $25B 2026 bid‑volume goal; consolidated Q1 revenue fell $95M YoY but adjusted EBITDA rose $3M, expanding margin to 13.1% (from 12.3%), adjusted EPS was $0.96 (down $0.05 YoY), adjusted operating cash flow was $119M (up $28M YoY) with 98% adjusted OCF conversion, and net leverage ended ~2.3x trailing adjusted EBITDA (below a 2.5x ceiling); outlook assumes MTS revenue flat to modestly down while Sustainable Tech (STS) is expected to deliver mid‑teens revenue growth, STS underlying margins were ~16.1% ex‑LNG (with the LNG project adding ~500 bps) and the company expects a >20% weighted STS margin profile in 2026, with revenue phasing ~47% H1 / 53% H2 and possible Q2 OCF volatility as Middle East conditions resolve—yet no changes to adjusted EBITDA, adjusted EPS or adjusted OCF guidance.KBR Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.69B | 7.79B | 7.74B | 6.96B | 6.56B | 7.34B |
| Gross Profit | 1.11B | 1.15B | 1.10B | 977.00M | 828.00M | 806.00M |
| EBITDA | 857.00M | 941.00M | 811.00M | 90.00M | 508.00M | 372.00M |
| Net Income | 401.00M | 415.00M | 375.00M | -265.00M | 190.00M | 27.00M |
Balance Sheet | ||||||
| Total Assets | 6.63B | 6.58B | 6.66B | 5.57B | 5.57B | 6.20B |
| Cash, Cash Equivalents and Short-Term Investments | 321.00M | 500.00M | 231.00M | 304.00M | 282.00M | 254.00M |
| Total Debt | 2.81B | 3.12B | 2.85B | 2.06B | 1.98B | 2.12B |
| Total Liabilities | 5.04B | 5.07B | 5.20B | 4.17B | 3.93B | 4.52B |
| Stockholders Equity | 1.58B | 1.50B | 1.45B | 1.38B | 1.62B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | 489.00M | 482.00M | 385.00M | 251.00M | 325.00M | 248.00M |
| Operating Cash Flow | 534.00M | 524.00M | 462.00M | 331.00M | 396.00M | 278.00M |
| Investing Cash Flow | -175.00M | 4.00M | -786.00M | -70.00M | 40.00M | -428.00M |
| Financing Cash Flow | -428.00M | -391.00M | 384.00M | -359.00M | -402.00M | 87.00M |
KBR Technical Analysis
Positive
36.42
Price Trends
34.25
Positive
36.14
Negative
39.48
Negative
Market Momentum
0.52
Negative
55.56
Neutral
69.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBR, the sentiment is Positive. The current price of 36.42 is above the 20-day moving average (MA) of 34.56, above the 50-day MA of 34.25, and below the 200-day MA of 39.48, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBR.
KBR Risk Analysis
KBR disclosed 54 risk factors in its most recent earnings report. KBR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KBR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $30.26B | 66.56 | 14.53% | ― | 22.59% | 111.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.73B | 16.20 | 21.32% | 1.06% | -0.38% | 2.58% | |
62 Neutral | $4.60B | 11.48 | 26.57% | 1.65% | -3.61% | 10.17% | |
61 Neutral | $4.86B | 19.48 | 15.21% | 0.25% | 13.40% | 19.67% | |
60 Neutral | $15.32B | 38.60 | 10.82% | 0.94% | 0.95% | -10.51% | |
50 Neutral | $6.92B | 24.37 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
KBR
KBR
35.82
-10.56
-22.77%
ACM
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FLR
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J
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125.84
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-6.65%
MTZ
MasTec
384.72
215.95
127.96%
PRIM
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89.43
4.64
5.47%
KBR Corporate Events
Executive/Board ChangesShareholder Meetings
KBR Shareholders Approve Directors, Pay and Auditor Slate
Positive
May 18, 2026
At its 2026 Annual Meeting of Stockholders, KBR, Inc. reported that shareholders elected all nominated directors to one-year terms ending at the 2027 annual meeting, with each candidate receiving strong support from the 115.8 million shares repres...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.