GICS Sector : Industrials
KBR, Inc.provides scientific, technology, and engineering solutions to governments and commercial customers worldwide.The company operates through Government Solutions and Sustainable Technology Solutions segments.
KBR reported revenue of $1.9 billion for the third quarter of 2025, flat year-over-year, and adjusted EBITDA of $240 million, up 10% year-over-year, with margins at 12.4%, an increase of over 100 basis points. Adjusted EPS was $1.02, beating analyst estimates of $0.95. The company's operating cash flow was $506 million year-to-date, a 24% increase from the prior year, with a conversion rate of over 130% against net income.
Publication Date: Nov -03
The company secured several new contracts, including a $2.5 billion ceiling value base period contract with NASA and extensions of existing contracts in the Middle East. KBR's book-to-bill in the quarter was 1.4x, with a trailing 12 months of 1.0x. Backlog and options now stand at over $23 billion, a 13% increase since the prior year-end, indicating future growth and earnings potential.
KBR updated its 2025 guidance, with revenue in the range of $7.75 billion to $7.85 billion and adjusted EBITDA between $960 million and $980 million. The company reconfirmed its adjusted EPS guidance of $3.78 to $3.88 and operating cash flow in the range of $500 million to $550 million, assuming the government shutdown is resolved in November. For 2026, analysts estimate revenue growth at 4.0%, driven by continued momentum in the Sustainable Technology Solutions business and growth in the Mission Technologies segment.
With a P/E Ratio of 14.43 and an EV/EBITDA of 8.68, the market appears to be pricing in moderate growth expectations. KBR's ROE of 26.11% and ROIC of 11.02% indicate strong profitability. The company's dividend yield is 1.51%, and the free cash flow yield is 9.17%, suggesting a reasonable return for investors. As KBR continues to return capital to shareholders, with over $360 million returned year-to-date, and progresses with its spin-off plans, investors will be watching for further updates on the company's strategy and outlook.
KBR is spinning off its Mission Technologies segment into a separate company, SpinCo, with the remaining business, New KBR, comprising the Sustainable Technology Solutions business. The separation is expected to result in two pure-play public companies with enhanced strategic focus, operational independence, and financial flexibility, and is expected to be tax-free and completed by mid- to late 2026.
KBR Enhancing F/A-18 Foreign Military Sales with Contract for NAVAIR
Dec -04
KBR and Axiom Space Successfully Test Next-Generation Spacesuit in Critical Step Toward Returning to the Moon
Nov -20
KBR, Inc. Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - KBR
Nov -18
KBR Investors Have Opportunity to Lead KBR, Inc. Securities Fraud Lawsuit with the Schall Law Firm
Nov -18
Lost Money on KBR, Inc. (KBR)? Contact Levi & Korsinsky Before November 18, 2025 to Join Class Action
Nov -18
KBR DEADLINE TODAY: ROSEN, THE FIRST FILING FIRM, Encourages KBR, Inc. Investors to Secure Counsel Before Important November 18 Deadline in Securities Class Action First Filed by the Firm - KBR
Nov -18
DEADLINE ALERT for NX, JSPR, and KBR: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders
Nov -18
KBR INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that KBR, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
Nov -18
KBR's Government Solutions segment growth is driven by increasing demand for defense and intelligence services, expansion of logistics and engineering capabilities, and strategic acquisitions. Growing presence in high-growth markets, such as cybersecurity and data analytics, also contributes to the segment's growth. Additionally, the company's strong relationships with government agencies and its ability to provide innovative solutions to complex problems further support its growth.
KBR's Sustainable Technology Solutions segment growth is driven by increasing demand for environmentally friendly solutions, government regulations and incentives for clean energy, and the company's strategic partnerships and investments in renewable energy technologies, such as carbon capture and hydrogen production.
KBR provides a range of services to government agencies, including engineering, logistics, and operations and maintenance support.
KBR offers a range of services to the oil and gas industry, including engineering, procurement, and construction (EPC) services.
KBR provides engineering, procurement, and construction (EPC) services for infrastructure projects, including roads, bridges, and buildings.
KBR offers a range of services to industrial clients, including maintenance, repair, and operations (MRO) services.
KBR licenses its proprietary technologies to clients in the oil and gas, petrochemical, and fertilizer industries.
KBR provides consulting services to clients in the oil and gas, petrochemical, and fertilizer industries.
KBR, Inc. operates in a highly competitive industry, and there are many substitutes available for its services. However, the company's strong brand reputation and long-standing relationships with clients help to mitigate the threat of substitutes.
KBR, Inc.'s customers are primarily government agencies and large corporations, which have limited bargaining power due to the specialized nature of the company's services.
KBR, Inc. relies on a diverse range of suppliers for its operations, and while some suppliers may have significant bargaining power, the company's scale and diversification help to mitigate this risk.
The barriers to entry in KBR, Inc.'s industry are relatively high, due to the need for specialized expertise and significant capital investment, which limits the threat of new entrants.
The engineering and construction industry is highly competitive, with many established players competing for a limited number of contracts, which increases the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 56.98% |
| Debt Cost | 3.95% |
| Equity Weight | 43.02% |
| Equity Cost | 8.56% |
| WACC | 5.93% |
| Leverage | 132.47% |
Value: 3.5
Growth: 5.7
Quality: 5.2
Yield: 1.0
Momentum: 8.0
Volatility: 9.7
1-Year Total Return ->
Value: 2.5
Growth: 6.4
Quality: 6.4
Yield: 0.0
Momentum: 8.5
Volatility: 8.3
1-Year Total Return ->
Value: 5.8
Growth: 6.4
Quality: 5.0
Yield: 3.0
Momentum: 1.0
Volatility: 7.7
1-Year Total Return ->
Value: 3.2
Growth: 4.9
Quality: 5.8
Yield: 0.0
Momentum: 9.5
Volatility: 4.7
1-Year Total Return ->
Value: 1.5
Growth: 8.6
Quality: 3.4
Yield: 0.0
Momentum: 9.0
Volatility: 4.7
1-Year Total Return ->
Value: 6.0
Growth: 6.0
Quality: 6.7
Yield: 0.0
Momentum: 3.0
Volatility: 3.3
1-Year Total Return ->