KBR (NYSE:KBR) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

KBR (NYSE:KBR) issued its earnings results on Thursday. The construction company reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.12, FiscalAI reports. KBR had a return on equity of 32.55% and a net margin of 5.49%. The company had revenue of $2.03 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter in the prior year, the business earned $1.02 earnings per share. The company’s revenue was up 5.0% compared to the same quarter last year.

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

• Positive Sentiment: KBR reported profitable third-quarter growth, with revenue up 5% to approximately $2.03 billion, adjusted EBITDA up 12% to $268 million, and adjusted EPS up 10% to $1.12. Management reaffirmed full-year 2026 guidance across all metrics.
• Positive Sentiment: Sustainable Technology Solutions remained the primary growth engine, with revenue up 26% year over year, 1.3x quarterly book-to-bill, and record backlog of $5.8 billion, up more than 50% from a year ago. Strong demand spans energy security, food security, decarbonization, and critical infrastructure, supporting continued growth into 2027.
• Negative Sentiment: Mission Technology Solutions revenue declined 5% as NASA insourcing reduced activity, and additional NASA insourcing is expected to create a larger headwind in 2027, particularly in the first two quarters. Management said procurement timelines are also extending, although funding and customer priorities remain intact.
• Positive Sentiment: The planned separation of KBR and Trinzic remains on track for January 4, with leadership teams in place, boards largely established, the Form 10 public, key systems successfully transitioned, and a Trinzic debt offering expected in mid-November.
• Negative Sentiment: Cash collection timing, particularly in the Middle East, remains a risk; delayed collections could shift approximately $25 million to $50 million of cash flow beyond year-end. Management nevertheless expects to remain within its full-year cash flow guidance range.

KBR Stock Down 5.5%

NYSE KBR traded down $2.21 during mid-day trading on Thursday, reaching $37.93. 2,292,563 shares of the company’s stock traded hands, compared to its average volume of 1,591,327. KBR has a 1-year low of $29.94 and a 1-year high of $45.37. The company has a fifty day simple moving average of $36.60 and a 200-day simple moving average of $37.26. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 1.52. The company has a market cap of $4.78 billion, a price-to-earnings ratio of 11.42, a P/E/G ratio of 2.12 and a beta of 0.47.

KBR Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Tuesday, December 15th will be issued a $0.1650 dividend. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $0.66 dividend on an annualized basis and a yield of 1.7%. KBR’s dividend payout ratio is currently 19.88%.

Analysts Set New Price Targets

KBR has been the topic of several recent research reports. Weiss Ratings raised KBR from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, September 3rd. Wall Street Zen upgraded KBR from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Citigroup lowered their price objective on shares of KBR from $49.00 to $48.00 and set a “buy” rating for the company in a research report on Friday, October 23rd. Bank of America dropped their price objective on shares of KBR from $45.00 to $40.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. Finally, UBS Group boosted their target price on shares of KBR from $36.00 to $41.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $44.83.

About KBR

KBR, Inc is a global engineering, science and technology company that provides solutions to government and commercial customers. Its services include program management, engineering and integration, consulting, mission operations, logistics, cybersecurity, digital transformation and technical support.

Through its Government Solutions business, KBR supports defense, intelligence, space, civil government and national security programs. The company provides mission support, research and development, systems engineering, training, operations and maintenance services to government agencies and other public-sector customers.

KBR’s Sustainable Technology Solutions business serves energy, chemicals and industrial customers with technology licensing, engineering, project delivery and consulting services.