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KBR Inc (KBR)
NYSE:KBR
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KBR (KBR) AI Stock Analysis

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KBR

KBR

(NYSE:KBR)

Rating:72Outperform
Price Target:
$55.00
▲(9.47% Upside)
KBR's overall stock score reflects strong financial performance and strategic growth initiatives, offset by leverage risks and recent operational challenges. The technical indicators suggest caution due to potential overbought conditions, while the valuation remains fair. The earnings call and corporate events provide a balanced view with both positive developments and challenges.
Positive Factors
Segment Performance
The STS segment appears to be holding up better, but in our view is still reliant on Lake Charles FID proceeding as planned this year.
Negative Factors
Financial Performance
KBR is expected to de-book backlog and take a non-cash charge as it writes down the capital expenditure investment in the joint venture related to HomeSafe.
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 Outlook
Uncertainties in policy and administration priorities, including the FY26 budget, are affecting other parts of KBR's portfolio, weighing on their market outlook.

KBR (KBR) vs. SPDR S&P 500 ETF (SPY)

KBR Business Overview & Revenue Model

Company DescriptionKBR, 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 MoneyKBR 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 Key Performance Indicators (KPIs)

Any
Any
Government Solutions Revenue by Business Unit
Government Solutions Revenue by Business Unit
Chart Insights
Data provided by:Main Street Data

KBR Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
KBR demonstrated strong financial performance and maintained a resilient business model despite encountering significant challenges, including the termination of the HomeSafe contract and reduced revenue guidance. The company's commitment to growth and shareholder value, along with a positive pipeline, indicates a balanced outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
KBR delivered solid performance with $2 billion in revenue and adjusted EBITDA of $242 million, resulting in a margin of 12.4%, up 70 basis points year-over-year.
Growth in Key Markets
KBR continues to execute its growth strategy with success in the Middle East and key defense areas, and won major contracts including the Djibouti based operations contract worth $476 million.
Resilient Business Model
Despite challenges, KBR maintains a balanced and resilient business portfolio, with strong performance in unconsolidated joint ventures, particularly in LNG, driving a 23.9% margin improvement in STS.
Positive Pipeline and Bidding Environment
KBR has a record $19 billion in bids awaiting award in MTS, with 72% representing new business, and expects to increase bid submittals by 30% in 2025.
Commitment to Shareholder Value
The company executed a balanced capital deployment strategy, with $245 million returned to shareholders year-to-date and a 3% reduction in share count.
Negative Updates
Termination of HomeSafe Alliance JV Contract
KBR faced the unexpected termination of the HomeSafe Alliance joint venture contract by U.S. TRANSCOM, resulting in a $36 million year-to-date after-tax loss on discontinued operations.
Reduced Revenue Guidance
Revenue guidance for fiscal 2025 was lowered from a range of $8.7 billion to $9.1 billion to a new range of $7.9 billion to $8.1 billion due to the termination of HomeSafe, DoD defunding, and delayed protest resolutions.
Challenges in Protest Resolutions
KBR faced extended delays in the resolution of $2 billion in contracts awarded under protest, contributing to revenue shortfalls.
Company Guidance
In the second quarter of fiscal 2025, KBR delivered a solid performance with revenues of $2 billion and an adjusted EBITDA of $242 million, reflecting a margin of 12.4%, up 70 basis points year-over-year. The company's guidance update included a revenue range of $7.9 billion to $8.1 billion for 2025, adjusting for the termination of the HomeSafe Alliance JV contract and other operational impacts. Despite a reduction in revenue outlook, KBR maintained its adjusted EBITDA and EPS guidance, demonstrating resilience. The company has a robust pipeline with $19 billion in bids awaiting award in MTS and $4.5 billion in opportunities for STS for the latter half of 2025. KBR is strategically positioned to capitalize on new defense and intelligence funding from the Reconciliation Act, with a focus on key markets, including the Middle East, and maintaining disciplined capital allocation. The long-term revenue target was adjusted to $9 billion-plus by 2027, with segment growth CAGRs set at 5% to 8% for MTS and 11% to 15% for STS, while EBITDA targets remain robust at $1.15 billion.

KBR Financial Statement Overview

Summary
KBR demonstrates strong financial performance with robust profitability and efficient cash flow management. The company shows consistent revenue and profit growth, supported by effective cost and cash management strategies. However, the balance sheet's reliance on debt poses a potential risk.
Income Statement
85
Very Positive
KBR demonstrates a solid income statement with a strong Gross Profit Margin of 14.5% and Net Profit Margin of 5.9% for TTM (Trailing-Twelve-Months). The Revenue Growth Rate of 4.3% from the previous annual report indicates a stable upward trend. The EBIT and EBITDA Margins are also robust at 8.7% and 10.7%, respectively, reflecting efficient operations and cost management.
Balance Sheet
70
Positive
The company maintains a moderate Debt-to-Equity Ratio of 1.90, which is typical for the industry but suggests some leverage risk. The Return on Equity (ROE) for TTM stands at 32.0%, showcasing efficient use of equity to generate profits. However, the Equity Ratio is relatively low at 21.9%, indicating a higher reliance on debt financing.
Cash Flow
80
Positive
KBR exhibits a strong cash flow position with a Free Cash Flow Growth Rate of 17.1%. The Operating Cash Flow to Net Income Ratio is favorable at 1.07, indicating effective cash generation relative to net income. Additionally, the Free Cash Flow to Net Income Ratio is a robust 0.95, highlighting the company's capability to convert income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.08B7.74B6.96B6.56B7.34B5.77B
Gross Profit1.17B1.10B977.00M828.00M806.00M666.00M
EBITDA899.00M662.00M90.00M508.00M372.00M173.00M
Net Income365.00M375.00M-265.00M190.00M27.00M-51.00M
Balance Sheet
Total Assets6.79B6.66B5.57B5.57B6.20B5.71B
Cash, Cash Equivalents and Short-Term Investments285.00M350.00M304.00M389.00M370.00M436.00M
Total Debt2.83B2.85B2.06B1.98B2.08B1.82B
Total Liabilities5.30B5.20B4.17B3.93B4.50B4.10B
Stockholders Equity1.49B1.45B1.38B1.62B1.69B1.58B
Cash Flow
Free Cash Flow451.00M385.00M251.00M325.00M241.00M347.00M
Operating Cash Flow509.00M462.00M331.00M396.00M278.00M367.00M
Investing Cash Flow-811.00M-776.00M-70.00M37.00M-428.00M-877.00M
Financing Cash Flow313.00M374.00M-359.00M-402.00M87.00M225.00M

KBR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price50.24
Price Trends
50DMA
48.38
Positive
100DMA
50.44
Negative
200DMA
52.66
Negative
Market Momentum
MACD
0.67
Negative
RSI
54.12
Neutral
STOCH
48.47
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 50.24 is above the 20-day moving average (MA) of 50.19, above the 50-day MA of 48.38, and below the 200-day MA of 52.66, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 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 44 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$16.54B25.4028.17%0.80%1.50%164.17%
77
Outperform
$6.40B26.9217.01%0.26%15.08%55.10%
73
Outperform
$17.48B36.549.29%0.86%-30.12%-21.04%
72
Outperform
$6.50B17.2227.41%1.25%12.59%98.20%
72
Outperform
$14.34B53.929.38%7.08%3273.27%
64
Neutral
$10.74B15.628.14%2.00%2.79%-14.82%
54
Neutral
$6.63B1.69102.24%3.62%943.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KBR
KBR
50.24
-15.74
-23.86%
ACM
Aecom Technology
124.94
29.44
30.83%
FLR
Fluor
41.74
-5.18
-11.04%
J
Jacobs Solutions
145.23
25.00
20.79%
MTZ
MasTec
180.00
76.07
73.19%
PRIM
Primoris Services
116.00
65.26
128.62%

KBR Corporate Events

Executive/Board Changes
KBR Appoints Huibert Vigeveno to Board of Directors
Positive
Aug 7, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
KBR COO Byron Bright Resigns Amidst Restructuring
Neutral
Jul 9, 2025

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.

Business Operations and Strategy
KBR’s Role in TRANSCOM Contract Terminated
Negative
Jun 20, 2025

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.

Executive/Board Changes
KBR Announces Resignation of Chief Accounting Officer
Neutral
Jun 2, 2025

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.

Executive/Board ChangesShareholder Meetings
KBR Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 19, 2025

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.

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.Date of analysis: Aug 14, 2025