KBR (KBR) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.84
• Revenue Growth: 9.66%
• EPS Growth: 29.01%
• Country: US
• Employees: 38,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.02
• Shares Outstanding: 126,989,630
• 10 Day Avg. Volume: 1,787,093
• 30 Day Avg. Volume: 1,421,085
• PEG Ratio: -0.09
• Price to Book (P/B): 5.44
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 20.54
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 14.97
• Enterprise Value/Ebitda: 18.03
• 1Y Price Target: $58.00
• Price Target Upside: 39.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.82
• Revenue Forecast (FY): $7.92B

• Rating: 68 Neutral
• Price Target: $45.00 ▲(7.97% Upside)

KBR's overall stock score is driven by strong earnings performance and cash flow management, despite challenges in revenue growth and leverage. The technical indicators suggest a bearish trend, which weighs down the score. Valuation metrics indicate the stock is fairly valued, providing moderate returns to investors.

Positive Factors

Strong Cash Flow Management

Strong cash generation ability ensures KBR can fund operations, invest in growth, and return capital to shareholders, supporting long-term stability.

Strategic Spin-Off Plan

The spin-off will create two focused entities, enhancing strategic focus and financial flexibility, potentially unlocking shareholder value.

Growth in Key Markets

Expanding in strategic regions and sectors strengthens KBR's market position and supports sustainable revenue growth over the long term.

Negative Factors

High Debt-to-Equity Ratio

Significant leverage can increase financial risk, limit flexibility, and strain cash flows, potentially impacting long-term financial health.

Reduced Revenue Guidance

Lowered revenue expectations may indicate challenges in maintaining growth momentum, affecting future profitability and strategic initiatives.

Challenges in Protest Resolutions

Delays in contract resolutions can lead to revenue shortfalls and operational disruptions, impacting financial performance and strategic execution.

KBR Business Overview & Revenue Model

Company Description

KBR, Inc. is a global engineering and technology company based in the United States, specializing in providing innovative solutions for the aerospace, defense, and energy sectors. The company operates through various segments, including Government Solutions, Technology Solutions, and Energy Solutions. KBR offers a range of services, from engineering and construction to consulting and project management, focusing on delivering high-quality solutions to complex challenges across multiple industries.

How the Company Makes Money

KBR generates revenue primarily through its contracts and projects in government and commercial sectors. The company earns money by providing engineering, construction, and consulting services, often through fixed-price contracts and cost-reimbursable contracts, which can vary based on project scope and duration. Key revenue streams include long-term contracts with government agencies for defense and aerospace projects, as well as contracts in the energy sector for oil and gas services, industrial processes, and technology licensing. Significant partnerships with major industry players and government entities enhance its capabilities and expand its market reach, contributing to its earnings.

KBR Financial Statement Overview

Summary

KBR demonstrates strong operational efficiency and cash flow management, with a robust free cash flow growth rate of 10.64%. However, concerns arise from a high debt-to-equity ratio of 1.95 and a decline in revenue growth by 19.8% TTM. The company shows effective use of equity with a strong ROE of 26.11%.

Income Statement

KBR's income statement shows a solid gross profit margin of approximately 14.28% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 4.71%, suggesting room for improvement in profitability. The revenue growth rate has declined by 19.8% in the TTM, which is a concern, but historical data shows periods of positive growth. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.95, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is strong at 26.11%, showing effective use of equity to generate profits. The equity ratio stands at 22.02%, suggesting a moderate level of financial stability.

Cash Flow

KBR's cash flow statement is robust, with a free cash flow growth rate of 10.64% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.31, and the free cash flow to net income ratio is 0.91, both reflecting efficient cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.88B	7.74B	6.96B	6.56B	7.34B	5.77B
Gross Profit	560.00M	1.10B	977.00M	828.00M	806.00M	666.00M
EBITDA	465.00M	811.00M	90.00M	508.00M	372.00M	173.00M
Net Income	188.00M	375.00M	-265.00M	190.00M	27.00M	-72.00M
Balance Sheet
Total Assets	6.65B	6.66B	5.57B	5.57B	6.20B	5.71B
Cash, Cash Equivalents and Short-Term Investments	539.00M	231.00M	304.00M	282.00M	254.00M	285.00M
Total Debt	2.85B	2.85B	2.06B	1.98B	2.12B	1.83B
Total Liabilities	5.18B	5.20B	4.17B	3.93B	4.52B	4.10B
Stockholders Equity	1.46B	1.45B	1.38B	1.62B	1.67B	1.58B
Cash Flow
Free Cash Flow	362.00M	385.00M	251.00M	325.00M	248.00M	347.00M
Operating Cash Flow	377.00M	462.00M	331.00M	396.00M	278.00M	367.00M
Investing Cash Flow	44.00M	-786.00M	-70.00M	40.00M	-428.00M	-877.00M
Financing Cash Flow	-334.00M	384.00M	-359.00M	-402.00M	87.00M	225.00M

KBR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.68
• 50DMA: Negative
• 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 41.68 is below the 20-day moving average (MA) of 43.33, below the 50-day MA of 46.40, and below the 200-day MA of 49.51, indicating a bearish trend. The MACD of -1.22 indicates Negative momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.93 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	$17.33B	26.60	28.17%	0.80%	1.50%	164.17%
J	77 Outperform	$18.48B	38.63	9.29%	0.81%	-30.12%	-21.04%
FLR	73 Outperform	$7.66B	1.84	102.24%	―	3.62%	943.43%
PRIM	70 Outperform	$6.92B	25.30	18.56%	0.25%	21.45%	67.31%
MTZ	69 Neutral	$15.43B	47.33	11.18%	―	12.99%	274.10%
KBR	68 Neutral	$5.43B	13.90	27.77%	1.55%	9.66%	29.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

KBR Corporate Events

KBR Inc. Reports Strong Q3 2025 Earnings Growth

KBR Inc. is a global company that provides science, technology, and engineering solutions to governments and companies, operating primarily in the technology and engineering sector with a diverse portfolio that spans over 80 countries.

KBR Announces Strategic Spin-Off Plan for MTS

KBR announced a strategic plan to spin off its Mission Technology Solutions (MTS) segment, creating two independent public companies: New KBR and SpinCo. This move, expected to be completed by mid-to-late 2026, aims to enhance strategic focus and operational independence, benefiting shareholders and unlocking value. Shad Evans will become the Chief Financial Officer of New KBR, effective January 5, 2026, succeeding Mark Sopp, who will oversee the spin-off process.

The most recent analyst rating on (KBR) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on KBR stock, see the KBR Stock Forecast page.

KBR Appoints Huibert Vigeveno to Board of Directors

On August 7, 2025, KBR announced the appointment of Huibert H. Vigeveno to its Board of Directors, effective August 5, 2025. Mr. Vigeveno, who will step down from Shell in September 2025, brings 30 years of experience in the energy sector, having held various leadership roles at Shell, including Director of Downstream, Renewables, and Energy Solutions. His expertise is expected to enhance KBR’s board as the company continues to expand its reputation in sustainable energy and energy transition solutions.

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, Inc. Reports Solid Q2 2025 Performance

KBR, Inc. is a global provider of science, technology, and engineering solutions, primarily serving government and commercial clients across various sectors, with a strong focus on defense and sustainable technologies.

KBR Inc. Balances Growth and Challenges in Earnings Call

KBR Inc. Reports Mixed Sentiment in Latest Earnings Call