Want to see KBR full AI Analyst Report?
Top Page
KBR
(NYSE:KBR)
Select Model
Select Model
Rating:70Outperform
Price Target:
$40.00
▲(8.31% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial performance (strong recent growth and earnings rebound), tempered by leverage and softer recent free-cash-flow momentum. Valuation is supportive (low P/E with a modest dividend), while technicals are mixed with the stock still below its 200-day average. The latest earnings call was net positive due to reaffirmed guidance, improving margins, and high contract coverage, partially offset by protest-related timing risk and segment-level volatility.
Positive Factors
Record STS backlog and pipeline
A record STS backlog and a multi-billion-dollar pipeline provide durable revenue visibility and reduce near-term demand cyclicality. High funded contract coverage (≈80%) supports predictable revenue conversion, smoother capacity planning, and steadier margin realization over the next 2–6 months.
Negative Factors
Elevated leverage
Material debt relative to equity and trailing EBITDA constrains financial flexibility. Elevated leverage raises interest‑rate and refinancing sensitivity, limits capacity for opportunistic M&A or faster buybacks, and increases strain on cash flow if project timing or margins weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Record STS backlog and pipeline
A record STS backlog and a multi-billion-dollar pipeline provide durable revenue visibility and reduce near-term demand cyclicality. High funded contract coverage (≈80%) supports predictable revenue conversion, smoother capacity planning, and steadier margin realization over the next 2–6 months.
Read all positive factors
KBR Key Performance Indicators (KPIs)
Any
Revenue by Geography
Displays where KBR earns its revenue by country or region, highlighting geographic concentration and exposure to local economic or political conditions. Regional trends can expose dependency on particular markets or opportunities from international expansion.
Displays where KBR earns its revenue by country or region, highlighting geographic concentration and exposure to local economic or political conditions. Regional trends can expose dependency on particular markets or opportunities from international expansion.
Data provided by:
The Fly
The FlyKBR (KBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.62B
Dividend Yield1.8%
Average Volume (3M)1.71M
Price to Earnings (P/E)11.0
Beta (1Y)0.78
Revenue Growth-4.37%
EPS Growth13.37%
CountryUS
Employees36,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.32
Shares Outstanding126,067,760
10 Day Avg. Volume1,465,609
30 Day Avg. Volume1,706,044
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.25Price Target Upside25.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4
Revenue Forecast (FY)$8.05B
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed multiple strong operational and financial positives: record STS backlog (+40% YoY), a large and growing pipeline, strong contract visibility (80% of STS and 94% of MTS 2026 revenue already under contract), margin expansion at the consolidated level (Adj. EBITDA margin +60 bps) and continued progress on the planned separation (Trinzic launch, leadership hires, regulatory milestones). Offsetting items include near-term margin volatility in STS driven by procurement mix, a modest revenue decline and low book-to-bill in MTS this quarter, awarded work under protest delaying backlog recognition (~$10.6B), and temporary cash flow timing impacts from Middle East collections. Overall the positives are prominent and management reaffirmed full-year guidance, signaling confidence in execution and outlook despite some timing and mix headwinds.Positive Updates
Consolidated Revenue and Profitability Growth
Q2 consolidated revenue ~ $2.0B, up $32M (2% YoY). Excluding elevated EUCOM contingency activity from prior year, revenue rose ~ $91M (~5% YoY). Adjusted EBITDA increased $16M to $258M and adjusted EBITDA margin expanded ~60 bps to 13%. Adjusted EPS increased $0.08 to $0.99.
Negative Updates
STS Adjusted EBITDA Decline and Margin Volatility
STS adjusted EBITDA was $123M, down $11M YoY due to project mix and a higher proportion of lower-margin equipment procurement activity this quarter. Quarter-to-quarter margin variability linked to procurement vs OpEx mix remains a notable source of short-term volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Profitability Growth
Q2 consolidated revenue ~ $2.0B, up $32M (2% YoY). Excluding elevated EUCOM contingency activity from prior year, revenue rose ~ $91M (~5% YoY). Adjusted EBITDA increased $16M to $258M and adjusted EBITDA margin expanded ~60 bps to 13%. Adjusted EPS increased $0.08 to $0.99.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance for revenue, adjusted EBITDA, adjusted EPS and adjusted operating cash flow, saying H1 tracked slightly ahead of plan: Q2 revenues ≈$2.0B (+2% YoY), adjusted EBITDA $258M (up $16M) with consolidated adjusted EBITDA margin ~13% (≈+60 bps), adjusted EPS $0.99 (+$0.08), and H1 adjusted operating cash flow $183M (~74% conversion). Key segment metrics supporting the guidance include STS: Q2 revenue $676M (+10%), adjusted EBITDA $123M (18.2% margin; ~13% ex‑LNG JV; YTD ex‑LNG ~14.5%), record backlog $5.5B (+40% YoY), Q2 book‑to‑bill 1.5x (TTM 1.3x), >$6B near‑term pipeline and ~80% of STS 2026 midpoint revenue already under contract (34% of YTD bookings OpEx‑based; >$900M ME bookings H1). For MTS: Q2 revenue $1.3B, adjusted EBITDA $158M (12.1% margin), ~94% of full‑year revenue under contract, ~$10.4B awaiting award, >$25B expected 2026 bid volume (~+50% YoY), Q2 book‑to‑bill 0.8x (TTM 1.0x) and ~$10.6B of awarded work under protest. Balance‑sheet and capital‑allocation metrics cited were net leverage ~2.3x trailing adjusted EBITDA (below a 2.5x target), H1 capital deployed ~$261M ($190M investments, $71M dividends+repurchases), and $25M repurchased in Q2; management noted Middle East cash timing was temporary and reiterated confidence in delivering the reaffirmed guidance.KBR Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.72B | 7.79B | 7.74B | 6.96B | 6.56B | 7.34B |
| Gross Profit | 1.12B | 1.15B | 1.10B | 977.00M | 828.00M | 806.00M |
| EBITDA | 841.00M | 941.00M | 811.00M | 90.00M | 508.00M | 372.00M |
| Net Income | 424.00M | 415.00M | 375.00M | -265.00M | 190.00M | 27.00M |
Balance Sheet | ||||||
| Total Assets | 6.67B | 6.58B | 6.66B | 5.57B | 5.57B | 6.20B |
| Cash, Cash Equivalents and Short-Term Investments | 312.00M | 500.00M | 231.00M | 172.00M | 282.00M | 254.00M |
| Total Debt | 2.80B | 3.12B | 2.85B | 2.06B | 1.98B | 2.12B |
| Total Liabilities | 5.03B | 5.07B | 5.20B | 4.17B | 3.93B | 4.52B |
| Stockholders Equity | 1.64B | 1.50B | 1.45B | 1.38B | 1.62B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | 347.00M | 482.00M | 385.00M | 251.00M | 325.00M | 248.00M |
| Operating Cash Flow | 401.00M | 524.00M | 462.00M | 331.00M | 396.00M | 278.00M |
| Investing Cash Flow | -176.00M | 4.00M | -786.00M | -70.00M | 40.00M | -428.00M |
| Financing Cash Flow | -308.00M | -391.00M | 384.00M | -359.00M | -402.00M | 87.00M |
KBR Technical Analysis
Positive
36.93
Price Trends
35.00
Positive
35.34
Positive
38.60
Negative
Market Momentum
0.42
Negative
56.80
Neutral
69.06
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 36.93 is above the 20-day moving average (MA) of 35.94, above the 50-day MA of 35.00, and below the 200-day MA of 38.60, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.06 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.62B | 11.03 | 26.57% | 1.79% | -4.37% | 13.37% | |
70 Outperform | $15.93B | 41.39 | 10.82% | 1.01% | 0.95% | -10.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $9.30B | 17.24 | 21.32% | 1.69% | -0.38% | 2.58% | |
63 Neutral | $21.13B | 41.43 | 14.53% | ― | 23.46% | 86.29% | |
59 Neutral | $4.58B | 18.39 | 15.21% | 0.37% | 13.40% | 19.67% | |
51 Neutral | $7.01B | 24.35 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
KBR
KBR
37.83
-11.02
-22.56%
ACM
Aecom Technology
75.75
-41.69
-35.50%
FLR
Fluor
51.54
10.29
24.95%
J
Jacobs Solutions
142.68
-1.04
-0.72%
MTZ
MasTec
271.71
94.01
52.90%
PRIM
Primoris Services
90.85
-17.45
-16.11%
KBR Corporate Events
Business Operations and StrategyExecutive/Board Changes
KBR updates executive severance and change-in-control agreements
Positive
Jul 10, 2026
On July 10, 2026, KBR, Inc. amended and restated severance and change-in-control agreements for its senior executive team, including the CEO, CFO, and heads of key business units and corporate functions, replacing their prior contracts. The change...
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.