KBR (K6B) AI Stock Analysis

KBR

(Frankfurt:K6B)

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Positive Factors

Sustainable Tech growth and backlogSustainable Tech combines rapid revenue growth with a record backlog and 1.3x trailing book-to-bill, providing meaningful forward visibility. The backlog expansion and strong pipeline support continued growth over the next several quarters and reinforce KBR’s position in specialized infrastructure and technology markets.

Negative Factors

Elevated leverageKBR’s debt-heavy capital structure remains a constraint for a project-driven business whose profitability can vary with contract mix and execution. Although leverage improved, elevated debt can reduce financial flexibility, increase sensitivity to weaker earnings, and limit the room available for investment or unexpected requirements.

KBR (K6B) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 4.88B
Dividend Yield: 1.55%
Average Volume (3M): 5
Price to Earnings (P/E): 11.1
Beta (1Y): 0.58
Revenue Growth: -7.98%
EPS Growth: 7.72%
Country: Germany
Employees: 36,000
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

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-encompassin...

KBR Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:0.71%|Next Earnings Date:Feb 22, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Highlights significantly outweighed the challenges, with record Sustainable Tech backlog, 26% Sustainable Tech revenue growth, improved consolidated profitability, strong cash conversion, a substantial opportunity pipeline, reaffirmed full-year guidance, and continued separation progress. The main negatives were NASA-related revenue and backlog pressure, procurement delays, maintenance deferrals, the expected LNG contribution step-down in 2027, and potential cash collection timing risk.

Positive Updates

Profitable Consolidated Growth

Third-quarter revenue was approximately $2.03 billion, up $97 million or 5% year over year. Adjusted EBITDA increased $28 million to $268 million, with adjusted EBITDA margin expanding 80 basis points to 13.2%. Adjusted EPS was $1.12, up $0.10 or 10%, driven by stronger operating performance, lower below-the-line expenses, and a lower share count.

Negative Updates

NASA Insourcing Revenue Headwinds

Mission Tech revenue declined 5% as anticipated reductions in NASA-related programs, including the IMOC insourcing impact and the 2025 loss of MSOC, were only partially offset by growth elsewhere. The remaining out-of-year NASA revenue was removed from backlog, bringing reported quarterly book-to-bill to 0.6x.

Company Guidance

KBR reaffirmed its full-year 2026 guidance on all metrics, including a mid-teens full-year revenue growth outlook and a mid-teens full-year adjusted EBITDA margin outlook for Sustainable Tech, with Mission Tech expected to be flat to modestly lower sequentially and Sustainable Tech to deliver continued low double-digit sequential growth; Q4 expectations are for MTS to be flat to slightly down and STS to deliver double-digit growth, while underlying tax remains in line with the guided range of 26%-28% and full-year cash flow is expected to remain within its guidance range, although continued delays in customer collections could shift approximately $25 million-$50 million of cash flow beyond year-end; IMOC remains within the roughly $60 million impact outlined in Q1, LNG contributions are expected to be another $25 million-$35 million in Q4, depending on milestones, and the separation remains on track for the expected January 4th separation date, with the Trinzic debt offering currently expected to launch in mid-November.

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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:K6B against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTEK	74Outperform	$9.90B	23.14	23.76%	0.71%	-7.61%	105.41%
MTZ	68Neutral	$14.94B	30.11	13.99%	―	25.66%	45.34%
J	64Neutral	$18.10B	53.87	9.81%	0.91%	20.03%	-28.63%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55Neutral	$6.27B	-3.89	-57.08%	―	-4.77%	-151.32%
ACM	48Neutral	$8.15B	28.66	12.54%	1.96%	-4.24%	-44.22%

* Industrials Sector Average

Performance Comparison

DE:K6B and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:K6B	KBR Inc	35.32	0.14	0.39%
ACM	Aecom	63.34	-66.27	-51.13%
FLR	Fluor Corporation	46.86	-1.19	-2.48%
J	Jacobs Solutions Inc.	154.62	2.00	1.31%
MTZ	MasTec Inc	186.06	-15.55	-7.71%
TTEK	Tetra Tech	38.65	7.05	22.31%

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.

KBR AI Stock Analysis