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KBR
(NYSE:KBR)
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Rating:70Outperform
Price Target:
$44.00
▲(15.21% Upside)
Action:Reiterated
Date:10/02/26
The score is driven primarily by solid financial performance and a positive earnings outlook (reaffirmed guidance, strong backlog/contract coverage), plus an attractive valuation (low P/E and a dividend). These positives are tempered by weak technical signals (below key moving averages with negative MACD) and ongoing balance-sheet/cash-flow variability risks (leverage, recent FCF decline, and timing/protest-related uncertainty).
Positive Factors
Backlog and Contract Visibility
Record STS backlog, a 1.5x quarterly book-to-bill, and extensive contracted revenue provide durable workload visibility. This supports planning, resource allocation, and revenue resilience over the next several quarters while reducing dependence on immediate award timing.
Negative Factors
Elevated Leverage
KBR's elevated debt and leverage increase sensitivity to weaker project execution or softer operating conditions. Interest and refinancing obligations can constrain capital allocation, leaving less flexibility to absorb volatility or fund opportunities internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Contract Visibility
Record STS backlog, a 1.5x quarterly book-to-bill, and extensive contracted revenue provide durable workload visibility. This supports planning, resource allocation, and revenue resilience over the next several quarters while reducing dependence on immediate award timing.
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
$5.05B
Dividend Yield1.65%
Average Volume (3M)1.55M
Price to Earnings (P/E)12.1
Beta (1Y)0.69
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. Volume1,427,073
30 Day Avg. Volume1,553,279
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 Cap1.41
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit6.37
Enterprise Value/Ebitda8.45
Forecast
1Y Price Target
$43.50Price Target Upside13.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4
Revenue Forecast (FY)$8.06B
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 mainly by providing contracted services and solutions under long-term and task-based agreements, with revenue generally recognized as work is performed (e.g., over time on service contracts) and tied to delivery milestones, labor h...
KBR Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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 | 842.00M | 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
38.19
Price Trends
36.50
Positive
36.02
Positive
36.94
Positive
Market Momentum
1.00
Negative
75.17
Negative
94.16
Negative
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 38.19 is above the 20-day moving average (MA) of 36.33, above the 50-day MA of 36.50, and above the 200-day MA of 36.94, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 75.17 is Negative, neither overbought nor oversold. The STOCH value of 94.16 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.51B | 22.23 | 23.76% | 0.74% | -7.61% | 105.41% | |
70 Outperform | $5.05B | 12.05 | 27.41% | 1.65% | -4.37% | 13.37% | |
65 Neutral | $13.86B | 27.18 | 15.30% | ― | 23.46% | 86.29% | |
64 Neutral | $17.22B | 51.27 | 9.81% | 0.95% | 20.03% | -28.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $6.00B | -3.72 | -57.08% | 6.65% | -4.77% | -151.32% | |
51 Neutral | $7.81B | 27.48 | 12.54% | 2.04% | -4.24% | -44.22% |
* Industrials Sector Average
KBR
KBR
40.02
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-5.41%
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MTZ
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172.59
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TTEK
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37.13
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14.90%
KBR Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
KBR Updates Corporate Bylaws and Governance Provisions
Neutral
Oct 16, 2026
On October 13, 2026, KBR, Inc.’s board of directors approved amended and restated bylaws that took effect immediately upon adoption. The revisions refine governance procedures, particularly around shareholder director nominations and jurisdi...
Business Operations and StrategyExecutive/Board Changes
KBR Appoints Rami Qasem to Board of Directors
Positive
Oct 1, 2026
On October 1, 2026, KBR appointed veteran energy and technology executive Rami Qasem to its board of directors, with his term running until the 2027 annual meeting of stockholders. The board has designated Qasem, a former senior leader at General ...
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.