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

KBR (NYSE:KBR) announced its quarterly earnings data on Thursday. The construction company reported $0.99 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.09, FiscalAI reports. KBR had a return on equity of 33.92% and a net margin of 5.21%.The company’s revenue was up 1.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $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 Trading Down 4.4%

Shares of NYSE:KBR traded down $1.56 during trading on Thursday, reaching $34.37. 3,960,004 shares of the company traded hands, compared to its average volume of 1,535,275. The business’s fifty day moving average is $35.01 and its 200-day moving average is $37.44. KBR has a 52-week low of $29.94 and a 52-week high of $52.23. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 1.59. The firm has a market capitalization of $4.36 billion, a price-to-earnings ratio of 10.98, a P/E/G ratio of 1.94 and a beta of 0.44.

KBR Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were paid a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Monday, June 15th. KBR’s dividend payout ratio is 21.09%.

KBR News Summary

Here are the key news stories impacting KBR this week:

• Positive Sentiment: KBR reported second-quarter fiscal 2026 adjusted earnings of $0.99 per share, ahead of the $0.90-$0.92 analyst consensus, while revenue reached approximately $1.98 billion, also exceeding expectations. EPS rose from $0.91 a year earlier. KBR Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Net income attributable to KBR increased 32% to $96 million, supported by project ramp-ups in Sustainable Technology Solutions and growth in Mission Technology Solutions’ international government business. Backlog and options totaled a strong $23.0 billion, with a 1.1x book-to-bill ratio. KBR Q2 Revenue Rises as Net Income Jumps
• Positive Sentiment: Analysts’ average price target implies roughly 25% potential upside, and recent earnings-estimate revisions have trended positively. KBR Analyst Price Target
• Neutral Sentiment: KBR reaffirmed fiscal 2026 revenue guidance of $7.9 billion to $8.4 billion and EPS guidance of $3.87 to $4.22. The guidance midpoint is modestly above consensus, but the wide range leaves room for uncertainty.
• Neutral Sentiment: The company introduced Trinzic as the planned name for its Mission Technology Solutions spin-off, which remains targeted for completion on January 4, 2027. The separation could unlock value but adds execution and transition considerations. KBR Unveils Trinzic
• Negative Sentiment: Revenue increased only about 1.6%-2% year over year, which may have disappointed investors seeking stronger top-line growth. The market’s negative reaction suggests the earnings beat and outlook were not sufficient to overcome growth or execution concerns.

Insider Activity

In other news, Director Carlos A. Sabater bought 14,500 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was bought at an average cost of $32.47 per share, for a total transaction of $470,815.00. Following the completion of the acquisition, the director owned 35,705 shares in the company, valued at approximately $1,159,341.35. This trade represents a 68.38% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Shad E. Evans bought 8,375 shares of the company’s stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average price of $30.60 per share, with a total value of $256,275.00. Following the completion of the acquisition, the chief financial officer owned 43,725 shares of the company’s stock, valued at $1,337,985. This trade represents a 23.69% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders acquired 29,875 shares of company stock worth $945,160. 1.15% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio grew its position in shares of KBR by 0.6% in the 3rd 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 during the last quarter. Northwestern Mutual Wealth Management Co. raised 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 valued at $74,000 after acquiring an additional 333 shares in the last quarter. Merit Financial Group LLC raised 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 valued at $234,000 after acquiring an additional 337 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in KBR by 432.5% in the second quarter. EverSource Wealth Advisors LLC now owns 607 shares of the construction company’s stock valued at $29,000 after acquiring an additional 493 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co boosted its stake in shares of KBR by 0.5% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 97,298 shares of the construction company’s stock valued at $4,566,000 after purchasing an additional 530 shares in the last quarter. Institutional investors own 97.02% of the company’s stock.

Wall Street Analysts Forecast Growth

KBR has been the topic of a number of recent research reports. Bank of America reduced their price target 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 lowered their price objective on shares of KBR from $53.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of KBR in a research note on Wednesday, June 24th. Zacks Research raised shares of KBR from a “strong sell” rating to a “hold” rating in a report on Friday, April 10th. Finally, Wells Fargo & Company decreased their target price on shares of KBR from $45.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Monday, April 13th. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, 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.