KBR (KBR) AI Stock Analysis

• Market Cap: $6.02B
• Dividend Yield: 1.42%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.60
• Revenue Growth: 12.84%
• EPS Growth: N/A
• Country: US
• Employees: 38,000
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.98
• Shares Outstanding: 129,736,070
• 10 Day Avg. Volume: 1,229,805
• 30 Day Avg. Volume: 1,388,918
• PEG Ratio: 2.38
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.56
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 3.11
• 1Y Price Target: $61.80
• Price Target Upside: 33.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $54.00 ▲(16.30%Upside)

KBR exhibits strong financial performance and positive sentiment from the latest earnings call, supported by robust revenue growth and profitability. However, bearish technical indicators and the recent termination of a contract pose risks, resulting in a moderate overall stock score.

Positive Factors

Contracted Revenue

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

Strategic Partnerships

KBR also signed a global agreement with BP, indicating strong execution and strategic partnerships.

Negative Factors

Financial Projections

The termination of the HomeSafe contract by DOD will have a bigger impact on 2026 and 2027 estimates, but there will be a charge in 2025.

Government Contracts

The Department of Defense formally terminated KBR's HomeSafe program for cause, which was unable to fulfill its obligations of delivering high-quality service.

Market Uncertainty

Uncertainties in policy and administration priorities, including the FY26 budget, are affecting other parts of KBR's portfolio, weighing on their market outlook.

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 diverse range of services and solutions offered across its key operating segments. The company earns money primarily through government contracts, providing mission-critical services and solutions to defense, space, and other government-related sectors. Additionally, KBR leverages its engineering and construction expertise to serve clients in the energy and industrial sectors, offering project management, consulting, and technology solutions. Significant partnerships with government agencies, defense organizations, and industrial clients contribute to KBR's revenue streams. The company benefits from long-term contracts and recurring revenue from its government services and technology segments, which are pivotal to its financial performance.

KBR Financial Statement Overview

Summary

KBR displays solid financial health with significant revenue growth and improved profitability margins. While leverage remains high, the company shows good equity returns and strong cash flow generation, balancing potential risks and providing a stable financial outlook.

Income Statement

The company demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 15% compared to the previous year. Gross profit margin is healthy at 14.4% for TTM, indicating efficient cost management. Net profit margin improved to 5% in TTM, recovering from previous negative values. EBITDA margin also shows improvement at 10.6% in TTM, signaling better operating performance.

Balance Sheet

The debt-to-equity ratio stands at 2.09 for TTM, highlighting a high leverage, which is a potential risk if not managed properly. Return on Equity (ROE) improved to 28.1% in TTM, showing efficient use of equity. The equity ratio is at 20.7% in TTM, indicating moderate financial stability.

Cash Flow

There is a consistent growth in free cash flow, with a growth rate of 6% in TTM. The operating cash flow to net income ratio is 1.18, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.03, reflecting efficient cash management.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.98B	7.74B	6.96B	6.56B	7.34B	5.77B
Gross Profit	1.15B	1.10B	977.00M	828.00M	806.00M	666.00M
EBITDA	844.00M	662.00M	90.00M	508.00M	372.00M	173.00M
Net Income	398.00M	375.00M	-265.00M	190.00M	27.00M	-51.00M
Balance Sheet
Total Assets	6.85B	6.66B	5.57B	5.57B	6.20B	5.71B
Cash, Cash Equivalents and Short-Term Investments	315.00M	350.00M	304.00M	389.00M	370.00M	436.00M
Total Debt	2.96B	2.85B	2.06B	1.98B	2.08B	1.82B
Total Liabilities	5.42B	5.20B	4.17B	3.93B	4.50B	4.10B
Stockholders Equity	1.42B	1.45B	1.38B	1.62B	1.69B	1.58B
Cash Flow
Free Cash Flow	408.00M	385.00M	251.00M	325.00M	241.00M	347.00M
Operating Cash Flow	469.00M	462.00M	331.00M	396.00M	278.00M	367.00M
Investing Cash Flow	-796.00M	-776.00M	-70.00M	37.00M	-428.00M	-877.00M
Financing Cash Flow	459.00M	374.00M	-359.00M	-402.00M	87.00M	225.00M

KBR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 46.43 is below the 20-day moving average (MA) of 49.11, below the 50-day MA of 51.57, and below the 200-day MA of 56.00, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 32.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.49 is Neutral, 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	$15.30B	25.22	28.07%	0.91%	4.55%	―
MTZ	73 Outperform	$13.32B	62.85	7.70%	―	3.03%	―
KBR	72 Outperform	$6.02B	15.51	28.18%	1.42%	12.84%	―
J	71 Outperform	$16.21B	37.27	8.46%	0.95%	-22.81%	-30.13%
TTEK	71 Outperform	$9.64B	52.69	11.91%	0.71%	10.35%	-29.34%
FLR	70 Outperform	$8.57B	5.01	66.58%	―	7.16%	523.56%
Sector *	67 Neutral	£2.82B	10.41	4.69%	3.50%	2.40%	-24.53%

KBR Corporate Events

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.