KBR (NYSE:KBR) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

KBR (NYSE:KBR) posted its quarterly earnings data on Thursday. The construction company reported $0.99 EPS for the quarter, beating the consensus estimate of $0.90 by $0.09, FiscalAI reports. The firm had revenue of $1.98 billion during the quarter, compared to the consensus estimate of $1.89 billion. KBR had a return on equity of 33.92% and a net margin of 5.21%.The firm’s revenue was up 1.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.91 EPS. KBR updated its FY 2026 guidance to 3.870-4.220 EPS.

Here are the key takeaways from KBR’s conference call:

• Strong first-half performance: Revenue rose 2% year over year to approximately $2.0 billion, adjusted EBITDA increased 7% to $258 million, and margins expanded to 13%. KBR reaffirmed its full-year revenue, EBITDA, EPS, and adjusted operating cash flow guidance.
• STS demand and visibility remain robust: Sustainable Technology Solutions posted 1.5x quarterly book-to-bill, record backlog of $5.5 billion—up 40% year over year—and a pipeline exceeding $6 billion. Management expects mid-teens full-year revenue growth, though quarterly margins may vary with project and procurement mix.
• MTS has substantial awarded and potential work: Approximately 94% of full-year MTS revenue guidance is under contract, with $1.6 billion of awarded programs currently under protest and roughly $10.4 billion awaiting award. Management said defense, space, modernization, and mission operations demand remains healthy.
• Planned separation remains on track: KBR continues targeting a January 4, 2027 spin-off, with IRS and SEC processes, systems separation, contract bifurcation, organizational design, and leadership appointments progressing. The MTS spin-off will be named Trinzic, with investor days planned for November.
• Cash flow and execution risks remain: First-half operating cash flow conversion was 74%, affected by delayed STS Middle East collections linked to regional conflict, although management characterized the issue as timing-related and maintained its full-year outlook. MTS awards under protest and the eventual wind-down of the Plaquemines project also create timing and replacement-work uncertainties.

KBR Stock Up 5.0%

Shares of KBR stock traded up $1.71 during trading hours on Friday, reaching $36.08. The company had a trading volume of 1,170,032 shares, compared to its average volume of 1,646,675. The stock’s fifty day simple moving average is $35.01 and its 200 day simple moving average is $37.44. The company has a market capitalization of $4.57 billion, a P/E ratio of 11.50, a price-to-earnings-growth ratio of 1.94 and a beta of 0.44. The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.16 and a current ratio of 1.16. KBR has a twelve month low of $29.94 and a twelve month high of $52.23.

KBR Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th were given a $0.165 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.66 annualized dividend and a yield of 1.8%. KBR’s dividend payout ratio (DPR) is 21.09%.

Key KBR News

Here are the key news stories impacting KBR this week:

• Positive Sentiment: Q2 earnings and revenue topped expectations. Adjusted EPS was $0.99 versus the $0.90 consensus estimate, while revenue reached $1.984 billion, above the roughly $1.89 billion forecast. Revenue increased 1.6% year over year, and profitability improved, with net income attributable to KBR rising 32% to $96 million. KBR Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: Backlog supports future growth. KBR reported $23.0 billion in backlog and options, with a 1.1x book-to-bill ratio. Growth was driven by project ramp-ups in Sustainable Technology Solutions and stronger demand from international government clients in Mission Technology Solutions. KBR Reaffirms 2026 Guidance and Reports Backlog
• Positive Sentiment: Full-year guidance was reaffirmed at a level above consensus. KBR expects fiscal 2026 adjusted EPS of $3.87-$4.22 and revenue of $7.90-$8.36 billion. The midpoint of each range is modestly ahead of analyst expectations, helping support confidence in the earnings outlook. KBR Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Analyst expectations remain supportive. The average Wall Street price target implies potential upside of approximately 25%, while positive earnings-estimate revisions could provide an additional catalyst. KBR Analyst Price Target
• Neutral Sentiment: Spin-off preparations advanced. KBR named the planned independent Mission Technology Solutions company Trinzic, targeting completion on January 4, 2027. The separation may highlight the value of the business, but investors will continue to monitor execution and transition costs. KBR Unveils Trinzic

Insider Activity

In other news, Director Jack B. Moore bought 4,000 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was acquired at an average cost of $31.44 per share, for a total transaction of $125,760.00. Following the completion of the purchase, the director owned 54,352 shares of the company’s stock, valued at $1,708,826.88. This trade represents a 7.94% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carlos A. Sabater purchased 14,500 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The shares were purchased at an average cost of $32.47 per share, for a total transaction of $470,815.00. Following the purchase, the director directly owned 35,705 shares in the company, valued at $1,159,341.35. This trade represents a 68.38% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 29,875 shares of company stock valued at $945,160. 1.15% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in KBR. EverSource Wealth Advisors LLC raised its stake in KBR by 432.5% during the second quarter. EverSource Wealth Advisors LLC now owns 607 shares of the construction company’s stock valued at $29,000 after buying an additional 493 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of KBR by 101,600.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 1,017 shares of the construction company’s stock worth $48,000 after purchasing an additional 1,016 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in shares of KBR by 98.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,228 shares of the construction company’s stock valued at $59,000 after buying an additional 608 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in KBR during the fourth quarter worth about $51,000. Finally, Wilmington Savings Fund Society FSB bought a new position in shares of KBR during the third quarter valued at approximately $70,000. 97.02% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on KBR. Wells Fargo & Company decreased their price objective on KBR from $45.00 to $40.00 and set an “equal weight” rating on the stock in a report on Monday, April 13th. Bank of America decreased their target price on shares of KBR from $45.00 to $40.00 and set a “neutral” rating on the stock in a research report on Monday, July 20th. Citigroup reduced their price target on shares of KBR from $53.00 to $50.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Zacks Research upgraded shares of KBR from a “strong sell” rating to a “hold” rating in a report on Friday, April 10th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of KBR in a research report on Wednesday, June 24th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $52.62.

KBR Company Profile

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.