KBR (NYSE:KBR) Releases FY 2026 Earnings Guidance

KBR (NYSE:KBR) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 3.870-4.220 for the period, compared to the consensus estimate of 3.990. The company issued revenue guidance of $7.9 billion-$8.4 billion, compared to the consensus revenue estimate of $8.0 billion.

KBR Stock Down 1.3%

NYSE KBR traded down $0.46 during trading hours on Wednesday, reaching $36.12. 366,955 shares of the company’s stock were exchanged, compared to its average volume of 1,447,158. The company’s 50-day moving average is $37.75 and its two-hundred day moving average is $40.82. KBR has a one year low of $34.75 and a one year high of $56.78. The company has a debt-to-equity ratio of 1.68, a quick ratio of 1.22 and a current ratio of 1.22. The company has a market capitalization of $4.58 billion, a price-to-earnings ratio of 11.28, a price-to-earnings-growth ratio of 2.28 and a beta of 0.47.

KBR (NYSE:KBR) last posted its earnings results on Tuesday, May 5th. The construction company reported $0.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.04. KBR had a return on equity of 35.22% and a net margin of 5.30%.The business had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.88 billion. During the same period in the prior year, the business earned $1.01 EPS. KBR’s revenue for the quarter was down 4.7% compared to the same quarter last year. KBR has set its FY 2026 guidance at 3.870-4.220 EPS. On average, analysts forecast that KBR will post 4.01 EPS for the current fiscal year.

KBR Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Friday, March 13th were given a dividend of $0.165 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.66 dividend on an annualized basis and a yield of 1.8%. KBR’s dividend payout ratio is 20.56%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Zacks Research raised KBR from a “strong sell” rating to a “hold” rating in a research report on Friday, April 10th. Citigroup reaffirmed a “buy” rating on shares of KBR in a research report on Wednesday. Weiss Ratings downgraded KBR from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 27th. Wells Fargo & Company cut their price objective on KBR from $45.00 to $40.00 and set an “equal weight” rating for the company in a report on Monday, April 13th. Finally, Wall Street Zen downgraded KBR from a “buy” rating to a “hold” rating in a report on Sunday, March 1st. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $56.50.

Key Headlines Impacting KBR

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Q1 adjusted EPS beat estimates and revenue slightly topped expectations, showing operational resilience despite lower top‑line year/year. KBR Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: Large contract flow: reporting of roughly $1.15B in AI‑driven defense contracts and a separate $449M LOGCAP V task‑order modification should support near‑term revenue visibility in defense services. KBR Is Up After Securing US$1.15B In AI-Driven Defense Contracts KBR Secures $449M LOGCAP V Task Order Modifications
• Positive Sentiment: Management highlighted cash strength and steady margins on the earnings call, which provided some reassurance about balance‑sheet flexibility. KBR Earnings Call: Cash, Margins Up Amid Headwinds
• Neutral Sentiment: Management reaffirmed FY‑2026 guidance (EPS range $3.87–$4.22) and set a Mission Technologies spinoff target (Jan. 4, 2027); the guidance narrows visibility but preserves the company’s longer‑term plan. KBR targets January 4, 2027 Mission Tech spin while reaffirming 2026 guidance
• Negative Sentiment: Revenue and net income declined year/year (revenue down ~5%, net income down ~12%); book‑to‑bill at ~1.1x is modest, raising near‑term growth concerns. KBR Reports First Quarter Fiscal 2026 Results
• Negative Sentiment: Guidance midpoint sits slightly below sell‑side consensus, which can pressure the stock while investors digest full‑year outlook. MarketBeat KBR summary
• Negative Sentiment: Planned spinoff timing and reported NASA changes to target contractor workforce add execution uncertainty for the Mission Tech carve‑out and may prompt short‑term de‑risking by investors. KBR targets January 2027 for spinoff as NASA changes target contractor workforce

Hedge Funds Weigh In On KBR

Several large investors have recently modified their holdings of KBR. Public Employees Retirement System of Ohio lifted its holdings in shares of KBR by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 40,133 shares of the construction company’s stock worth $1,898,000 after buying an additional 249 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of KBR by 27.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,561 shares of the construction company’s stock worth $74,000 after buying an additional 333 shares in the last quarter. Merit Financial Group LLC lifted its holdings in shares of KBR by 7.3% during the third quarter. Merit Financial Group LLC now owns 4,955 shares of the construction company’s stock worth $234,000 after buying an additional 337 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of KBR by 432.5% during the second quarter. EverSource Wealth Advisors LLC now owns 607 shares of the construction company’s stock worth $29,000 after buying an additional 493 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its holdings in shares of KBR by 0.5% during the third quarter. CANADA LIFE ASSURANCE Co now owns 97,298 shares of the construction company’s stock worth $4,566,000 after buying an additional 530 shares in the last quarter. 97.02% of the stock is owned by institutional investors.

About KBR

KBR, Inc is a global engineering, procurement, construction and services (EPC&S) company headquartered in Houston, Texas. The firm delivers integrated solutions and technologies across the full project lifecycle for customers in the energy, government, industrial and infrastructure sectors. Its offerings span feasibility studies, front-end engineering design, detailed design, procurement, fabrication, construction, commissioning and operations support.

The company is organized into business segments that include Energy Solutions, which focuses on oil and gas processing, liquefied natural gas (LNG) facilities and petrochemical plants; Government Solutions, providing logistics, sustainment, training and mission support for defense, intelligence and civilian agencies; and Sustainable Technology, delivering chemical process technologies, water treatment and lower-carbon fuels expertise.