KBR (KBR) Q3 2026 Earnings Report
MX:KBR Q3 2026 EPS Results
- Actual EPS
- MXN 21.04
- Consensus EPS
- MXN 18.82
- Beat/Miss
- Beat by +MXN 2.22
- One Year Ago EPS
- MXN 19.16
MX:KBR Q3 2026 Revenue Results
- Actual Revenue
- MXN 38.10B
- Expected Revenue
- MXN 38.38B
- Beat/Miss
- Missed by -MXN 277.82M
- YoY Revenue Growth
- +5.02%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
KBR's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
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.
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.
- Profitable Consolidated GrowthThird-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.
- Strong Cash Flow ConversionYear-to-date adjusted operating cash flow was $371 million, with conversion at 95%, reflecting improved collections during the quarter. The company remains on pace to deliver its full-year cash flow outlook, with cash flow expected to be weighted toward the fourth quarter.
- Sustainable Tech Revenue and Backlog MomentumSustainable Tech revenue increased $157 million or 26% to $762 million. Quarterly revenue increased 13% sequentially, book-to-bill was 1.3x, trailing 12-month book-to-bill was also 1.3x, and backlog reached a record $5.8 billion, up more than 50% from a year ago. Excluding the Brown & Root Joint Venture, year-to-date book-to-bill was 1.5x.
- Sustainable Tech Growth OutlookStrong bookings over the last 12 months are translating into accelerating revenue growth, keeping the company on track for a mid-teens full-year revenue growth outlook. Management expects continued low double-digit sequential growth in Sustainable Tech and said the record backlog and strong pipeline provide increasing visibility into growth in Q4 and into 2027.
- Sustainable Tech ProfitabilitySustainable Tech adjusted EBITDA increased $19 million or 15% to $147 million. Excluding the LNG joint venture, quarterly adjusted EBITDA margin was 13.9%, up 80 basis points from the prior quarter, while year-to-date adjusted EBITDA margin was 14.3%, consistent with the mid-teens full-year adjusted EBITDA margin outlook.
- Energy and Food Security AwardsThe company won new PMC awards with ADNOC in Abu Dhabi and expanded its role on Aramco's Marjan offshore field. SABIC selected KBR's Purifier technology for a new 3,500 metric ton per day facility, its second large-scale ammonia award of the year after the Pampa award in Argentina. KBR also announced ammonia revamp wins in Europe and another PureSAF award for Kazakhstan's first sustainable aviation fuel project.
- Critical Infrastructure WinsSustainable Tech secured a central program management role at Diriyah Gate, one of Saudi Arabia's largest giga-projects, and a major program engineering and integration award in Texas. Management said both awards extend KBR's role in delivering complex critical infrastructure.
- Mission Tech Profitability and ExecutionMission Tech revenue was approximately $1.27 billion, down $60 million or 5%, but adjusted EBITDA increased $7 million or 5% to $145 million. Adjusted EBITDA margin expanded 110 basis points to 11.5%, reflecting higher unconsolidated joint venture contributions, favorable portfolio mix from the roll-off of lower-margin NASA programs, and earlier-than-expected favorable closeouts.
- Mission Tech Contract Wins and Technology ValidationMission Tech secured work supporting PATRIOT air and missile defense and mission-critical radio frequency engineering. FIREFLY was selected as one of four directed-energy systems for a Pentagon counter-drone pilot focused on homeland defense, following its selection to protect launches at Cape Canaveral.
- International Mission Tech PerformanceThe U.K. and Australian businesses performed well, with strong execution and healthy pipelines entering Q4 and 2027.
- Mission Tech Opportunity PipelineThe company ended the quarter with $9.9 billion of submitted proposals awaiting customer decisions. Together with wins under protest, this represented $20.5 billion of opportunity outside backlog, approximately 80% of which was new business.
- NSF Antarctica Re-awardKBR secured the National Science Foundation Antarctica Support Contract through re-award following the GAO protest process. The company is working with the customer on transition.
- Strong Balance Sheet and Financial FlexibilityNet leverage ended the quarter at 2.1x, below the company's 2.5x target, providing financial flexibility ahead of the separation. KBR returned $21 million to shareholders through its regular dividend during the quarter.
- Full-Year Guidance ReaffirmedBased on year-to-date performance and current visibility, KBR reaffirmed its full-year 2026 guidance on all metrics. The outlook assumes flat to modestly lower sequential revenue in Mission Tech and continued low double-digit sequential growth in Sustainable Tech.
- Separation Progress Remains on TrackLeadership teams are fully in place, the boards have largely been established, the Form 10 is public, and the company has resolved the SEC's comments to date. The successful cut-over of key systems, including Trinzic's payroll systems, was completed, and the organizations are increasingly operating as standalone businesses ahead of the expected January 4 separation date.
- Regulatory and Financing MilestonesThe private letter ruling process continues to progress, with formal notification regarding the spin's tax-free treatment expected soon. Preparations for Trinzic's debt offering are moving forward, with launch currently expected in mid-November, and management reported strong market interest.
MX:KBR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 18.86- | 18.6 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 18.8221.04 | 19.16 | 9.80% (+1.88) | |
| Jul 30, 2026 | 2026 (Q2) | 16.8318.60 | 17.1 | 8.79% (+1.50) | |
| May 05, 2026 | 2026 (Q1) | 17.1018.04 | 18.41 | -2.04% (-0.38) | |
| Feb 26, 2026 | 2025 (Q4) | 17.8118.60 | 17.1 | 8.79% (+1.50) | |
| Oct 30, 2025 | 2025 (Q3) | 17.9219.16 | 15.78 | 21.43% (+3.38) | |
| Jul 31, 2025 | 2025 (Q2) | 16.6117.10 | 15.59 | 9.64% (+1.50) | |
| May 06, 2025 | 2025 (Q1) | 16.1918.41 | 14.47 | 27.27% (+3.95) | |
| Feb 24, 2025 | 2024 (Q4) | 15.3517.10 | 12.96 | 31.88% (+4.13) | |
| Oct 23, 2024 | 2024 (Q3) | 15.7615.78 | 14.09 | 12.00% (+1.69) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.