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's fourth quarter 2025 financial performance was highlighted by revenues of $1.85 billion and adjusted EPS of $0.99, beating analyst estimates of $0.95. For the full year 2025, revenues reached $7.8 billion, with adjusted EBITDA of $100 million higher than the previous year, and adjusted EPS of $3.93. The company's guidance for 2026 indicates revenues of $7.9 billion to $8.36 billion, adjusted EBITDA of $980 million to $1.04 billion, and adjusted EPS of $3.87 to $4.22.
Publication Date: Mar -01
In Sustainable Tech, KBR delivered a strong book-to-bill in both the third and fourth quarters, exiting the year with solid work under contract for 2026. Backlog ended the year at $4.2 billion, up 5% year-over-year. In Mission Tech, revenue held up year-over-year, margins improved, and cash performance was excellent. The company secured positions on key multiple award contract vehicles and defended several important recompetes.
For 2026, KBR expects low double-digit growth in Sustainable Tech and low single-digit growth in Mission Tech. Capital expenditures are expected to be $40 million to $50 million for the year. The company returned a record $413 million to shareholders in 2025 and approved an annual dividend of $0.66 per share for 2026. KBR's effective tax rate for 2026 is expected to be 26% to 28%, higher than the current year.
With a P/E Ratio of 13.06 and an EV/EBITDA of 8.1, KBR's valuation appears reasonable. The company's ROE of 28.41% and ROIC of 11.66% indicate strong profitability. The Dividend Yield is 1.56%, and the Free Cash Flow Yield is 9.03%. Analysts estimate next year's revenue growth at 3.7%, which is slightly below KBR's guided growth rate.
KBR's spin-off transaction remains on track, with a targeted distribution in the second half of 2026. The company has made a confidential filing with the SEC and expects to file an amendment incorporating full-year audited 2025 financials in March 2026. KBR is moving towards more fixed-price work and increasing its mix of recurring OpEx and digital solutions, with a growing focus on digital solutions driving long-term contracts and higher visibility of earnings and cash.
The company reported several large contracts in protest, including a $1 billion Mission Iraq award and a classified program called K2A. KBR is taking a disciplined approach to AI, focusing on use case solutions driving ROI. The company's pipeline is strong, with a global business and significant opportunity across the globe and across its capability set.
KBR, Inc. (KBR) Q4 2025 Earnings Call Transcript
Feb -26
KBR Inc. (KBR) Beats Q4 Earnings Estimates
Feb -26
KBR Reports Fourth Quarter and Fiscal 2025 Results
Feb -26
KBR's Mission Technology Solutions Announces Strategy for Expanding Digital Engineering Capabilities for the US Military
Feb -24
KBR Stock Down 20% as Investor Slashes $41 Million Stake Despite $23 Billion Backlog
Feb -23
KBR Awarded Transformational Oil Development Project in Iraq
Feb -23
Hillsdale Investment Management Inc. Purchases 15,800 Shares of KBR, Inc. $KBR
Feb -23
Financial Analysis: TSS (NASDAQ:TSSI) vs. KBR (NYSE:KBR)
Feb -20
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: 4.8
Growth: 6.4
Quality: 4.9
Yield: 1.0
Momentum: 6.0
Volatility: 8.3
1-Year Total Return ->
Value: 2.3
Growth: 6.4
Quality: 4.8
Yield: 0.0
Momentum: 9.0
Volatility: 7.7
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Value: 6.4
Growth: 6.4
Quality: 5.0
Yield: 3.0
Momentum: 1.0
Volatility: 8.0
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Value: 3.3
Growth: 4.9
Quality: 6.0
Yield: 0.0
Momentum: 9.0
Volatility: 4.3
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Value: 1.8
Growth: 9.1
Quality: 3.9
Yield: 0.0
Momentum: 7.0
Volatility: 4.7
1-Year Total Return ->
Value: 7.7
Growth: 6.0
Quality: 5.5
Yield: 0.0
Momentum: 3.0
Volatility: 3.3
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