KBR Inc (KBR)
NYSE:KBR
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KBR
(NYSE:KBR)
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Rating:69Neutral
Price Target:
$41.00
▲(11.81% Upside)
Action:DowngradedDate:02/27/26
The score is driven primarily by solid financial performance (improving profitability and strong free cash flow) and a constructive earnings outlook with clear FY2026 guidance and backlog momentum. These positives are tempered by high leverage and weak technical trend signals (below key moving averages with negative MACD). Valuation is supportive but not a major catalyst.
Positive Factors
Strong free cash flow
KBR’s rising operating and free cash flow, with FCF close to reported earnings and ~10% FCF growth in 2026, provides durable internal funding for dividends, the planned spin, and selective M&A. High cash conversion supports capital allocation and reduces reliance on external financing over the medium term.
Negative Factors
Elevated leverage
Meaningful leverage increases earnings and cash‑flow volatility in a project‑driven business and limits strategic optionality. While cash generation is strong, operating cash flow covers a modest portion of total debt, so deleveraging will be gradual and heightens sensitivity to contract delays or margin hits.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
KBR’s rising operating and free cash flow, with FCF close to reported earnings and ~10% FCF growth in 2026, provides durable internal funding for dividends, the planned spin, and selective M&A. High cash conversion supports capital allocation and reduces reliance on external financing over the medium term.
Read all positive factors
KBR (KBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.64B
Dividend Yield1.65%
Average Volume (3M)1.43M
Price to Earnings (P/E)12.6
Beta (1Y)0.85
Revenue Growth9.66%
EPS Growth29.01%
CountryUS
Employees38,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.99
Shares Outstanding126,466,140
10 Day Avg. Volume1,191,822
30 Day Avg. Volume1,425,337
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 Cap1.57
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit6.34
Enterprise Value/Ebitda7.72
Forecast
1Y Price Target
$50.60Price Target Upside37.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4.01
Revenue Forecast (FY)$8.03B
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 segme...
How the Company Makes Money
KBR makes money mainly by delivering contracted services and project work to government and commercial clients, generating revenue based on the terms of each contract. In its Government Solutions business, revenue is largely driven by U.S. governm...
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.
Data provided by:
The Fly
The FlyKBR Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasizes disciplined execution and improving quality of earnings despite a challenging external award environment. Key positives include margin expansion (up ~100–190 bps), strong cash conversion (110%), backlog growth (STS +5% YoY, MTS +15% YoY), a robust bids pipeline, strategic M&A (SWAT) and on-track spin preparations. Lowlights include a Q4 revenue decline (-$223M), award timing/protest risks (material awards under protest), market pressure in petrochemical and green projects, and near-term spin transition costs ($140M–$180M). Given the balance of stronger profitability, cash generation, backlog/pipeline momentum and clear 2026 guidance that offsets several the near-term headwinds, the highlights materially outweigh the lowlights and the overall tone is constructive.Positive Updates
Industry-leading Safety Performance
TRIR reached an all-time low of 0.033 and Zero Harm days hit an all-time high of 96%, demonstrating strong safety culture and operational discipline.
Negative Updates
Revenue Decline in Q4
Q4 revenues were $1.85B, down $223M year-over-year (primarily due to award timing in MTS and reductions in EUCOM contingency scope).
Read all updates
Q4-2025 Updates
Positive
Negative
Industry-leading Safety Performance
TRIR reached an all-time low of 0.033 and Zero Harm days hit an all-time high of 96%, demonstrating strong safety culture and operational discipline.
Read all positive updates
Company Guidance
KBR provided consolidated fiscal‑2026 guidance of $7.90–$8.36 billion in revenues, $980–1,040 million of adjusted EBITDA, $3.87–4.22 adjusted EPS and $560–600 million of adjusted operating cash flow (midpoint implying ~4% y/y growth), with transition/spin costs of $140–180 million included; capital expenditures of $40–50 million; an effective tax rate of 26–28%; an estimated adjusted share count of 127 million; and a 2026 dividend of $0.66 per share ($0.165 quarterly). Management expects revenues/adjusted EPS to be ~46% H1 / 54% H2, Q1 roughly in line with Q4 ’25, and noted first‑half comps include elevated EUCOM contingency of ~$60–70 million per quarter; modeling assumptions include resolution of outstanding protests in H1, all material programs remaining in place, modest improvement in interest rates in H2 and stable FX. They also framed segment expectations: STS assumed to grow low double‑digits at normative margins of 20%+, MTS low single‑digits at 10%+ (work‑under‑contract already covers ~63% of STS’s 2026 guide and ~82% of MTS’s), and the company will introduce adjusted operating and free cash flow metrics that add back spin‑related cash outflows.KBR Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.79B | 7.74B | 6.96B | 6.56B | 7.34B |
| Gross Profit | 1.15B | 1.10B | 977.00M | 828.00M | 806.00M |
| EBITDA | 941.00M | 811.00M | 90.00M | 508.00M | 372.00M |
| Net Income | 415.00M | 375.00M | -265.00M | 190.00M | 27.00M |
Balance Sheet | |||||
| Total Assets | 6.58B | 6.66B | 5.57B | 5.57B | 6.20B |
| Cash, Cash Equivalents and Short-Term Investments | 500.00M | 231.00M | 304.00M | 282.00M | 254.00M |
| Total Debt | 3.12B | 2.85B | 2.06B | 1.98B | 2.12B |
| Total Liabilities | 5.07B | 5.20B | 4.17B | 3.93B | 4.52B |
| Stockholders Equity | 1.50B | 1.45B | 1.38B | 1.62B | 1.67B |
Cash Flow | |||||
| Free Cash Flow | 482.00M | 385.00M | 251.00M | 325.00M | 248.00M |
| Operating Cash Flow | 524.00M | 462.00M | 331.00M | 396.00M | 278.00M |
| Investing Cash Flow | 4.00M | -786.00M | -70.00M | 40.00M | -428.00M |
| Financing Cash Flow | -391.00M | 384.00M | -359.00M | -402.00M | 87.00M |
KBR Technical Analysis
Negative
36.67
Price Trends
39.56
Negative
40.87
Negative
43.72
Negative
Market Momentum
-0.54
Negative
40.92
Neutral
45.88
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 36.67 is below the 20-day moving average (MA) of 37.25, below the 50-day MA of 39.56, and below the 200-day MA of 43.72, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $28.50B | 42.42 | 13.08% | ― | 12.99% | 274.10% | |
74 Outperform | $8.74B | 24.39 | 17.49% | 0.25% | 21.45% | 67.31% | |
69 Neutral | $4.64B | 12.59 | 28.27% | 1.65% | 9.66% | 29.01% | |
68 Neutral | $10.81B | 42.33 | 19.75% | 1.06% | 0.21% | 53.80% | |
68 Neutral | $14.43B | 30.11 | 11.80% | 0.94% | -23.00% | -61.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.07B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
KBR
KBR
36.67
-13.17
-26.42%
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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.