KBR (KBR) AI Stock Analysis

• Market Cap: $6.76B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.63
• Revenue Growth: 11.30%
• EPS Growth: N/A
• Country: US
• Employees: 38,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 0.98
• Shares Outstanding: 129,735,170
• 10 Day Avg. Volume: 1,169,899
• 30 Day Avg. Volume: 1,327,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.40
• Price Target Upside: 24.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

KBR's overall stock score reflects strong financial performance and positive earnings call highlights, which are key strengths. The company's strategic initiatives and contract wins support a solid growth outlook. While technical indicators suggest some caution, and valuation metrics indicate a fair market price, these factors collectively contribute to a healthy stock assessment.

Positive Factors

Energy Transition

KBR is well positioned as a key player throughout all stages of the energy transition, with strong opportunities in energy advisory consulting.

Financial Performance

KBR 4Q results revealed a +4% EBITDA beat despite an LNG project scope increase that was an accounting headwind to equity income.

Strategic Partnerships

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

Negative Factors

Catalyst Roadmap

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

Market Valuation

Despite an upward stock re-rating, the gap between KBR's targets and consensus EPS gains is noteworthy, indicating potential valuation concerns.

Project Execution

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. is a global technology and engineering solutions company headquartered in Houston, Texas. It operates in various sectors, including aerospace and defense, technology and consulting, and energy. KBR provides a broad range of services, including scientific research, project management, and engineering design, catering to both government and commercial clients. The company is known for delivering innovative solutions and services that drive advancements in mission-critical operations.

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, driven by strong revenue growth, improved net income, and efficient cash flow management. However, leverage is a key consideration due to a moderate debt-to-equity ratio.

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: Negative
• Last Price: 51.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 51.57 is above the 20-day moving average (MA) of 50.92, above the 50-day MA of 50.47, and below the 200-day MA of 59.18, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 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	$13.58B	29.12	26.35%	0.94%	8.89%	669.67%
KBR	77 Outperform	$6.76B	18.66	26.45%	1.18%	11.30%	―
TTEK	75 Outperform	$8.30B	32.34	16.05%	0.75%	11.02%	11.33%
FLR	72 Outperform	$6.01B	3.30	66.58%	―	7.16%	523.56%
J	71 Outperform	$15.52B	26.10	10.92%	0.94%	-13.76%	-13.39%
MTZ	69 Neutral	$11.12B	53.01	7.70%	―	3.03%	―
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%

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.