KBR (KBR) AI Stock Analysis

• Market Cap: $6.40B
• Dividend Yield: 1.22%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.72
• Revenue Growth: 11.30%
• EPS Growth: N/A
• Country: US
• Employees: 34,000
• Sector: Industrials
• Sector Strength: 66
• Industry: Construction
• EPS (TTM): 2.80
• Shares Outstanding: 132,441,670
• 10 Day Avg. Volume: 2,787,459
• 30 Day Avg. Volume: 1,860,848
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.83
• Price to Cash Flow (P/CF): 40.00
• P/FCF Ratio: 94.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $73.33
• Price Target Upside: 46.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

KBR demonstrates a strong financial foundation with robust earnings and strategic growth plans, which are significant strengths. However, the stock's technical indicators suggest current bearish momentum, and its valuation is somewhat high. Despite challenges, the positive earnings outlook supports a solid overall stock score.

Positive Factors

Government Solutions

KBR's exposure to US Government spending is strong, focusing on mission-critical activities, with a significant portion of earnings coming from Sustainable Technology Solutions and international Government Solutions.

Strategic Partnerships

KBR signed a global agreement with BP, indicating strong execution and strategic partnerships.

Negative Factors

Execution Risks

Fewer catalysts and execution risks related to project timing have been highlighted, affecting the stock's potential for growth.

KBR Business Overview & Revenue Model

Company Description

KBR, Inc. engages in the provision of differentiated professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. It operates through the following segments: Government Solutions, Technology Solutions, Energy Solutions, Non-strategic Business, and Other. The Government Solutions segment provides full life-cycle support solutions to defense, space, aviation, and other programs and missions for military and other government agencies. The Technology Solutions segment combines KBR's proprietary technologies, equipment, and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic, and specialty chemicals as well as gasification, syngas, ammonia, nitric acid, and fertilizers. The Energy Solutions segment provides full life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets. The Non-strategic Business segment represents the operations or activities which the company intends to exit upon completion of existing contracts. The Other segment includes corporate expenses and general and administrative expenses not allocated to the business segments above. The company was founded on March 21, 2006 and is headquartered in Houston, TX.

How the Company Makes Money

KBR generates revenue through a combination of government and commercial contracts across its diverse sectors. The company's key revenue streams include engineering and construction services, technical consulting, and operations and maintenance services. Significant partnerships with entities such as the U.S. Department of Defense and NASA contribute to its earnings, as these contracts often involve long-term commitments and substantial value. Additionally, KBR earns from its technology solutions and proprietary products, particularly in the areas of energy and infrastructure, which further bolster its revenue.

KBR Financial Statement Overview

Summary

KBR's financial performance is robust, evidenced by strong revenue growth, improved net income, and efficient cash flow management. However, the company's leverage remains a consideration.

Income Statement

KBR has demonstrated strong revenue growth, with a 7.7% increase in the most recent year. The company also achieved a healthy gross profit margin of 14.2% and a significant improvement in net income from a loss to a profit of $375 million, resulting in a net profit margin of 4.8% for 2025. Additionally, the EBIT margin improved to 8.5%. However, the EBITDA margin remains low at 8.5%, indicating room for improvement in operational efficiency.

Balance Sheet

KBR's balance sheet shows a moderate debt-to-equity ratio of 1.92, reflecting a balanced approach to leveraging. The return on equity increased to 25.8%, indicating efficient use of shareholder funds. The equity ratio is at 21.8%, highlighting a stable capital structure, though there is a noticeable reliance on debt.

Cash Flow

KBR's cash flow performance is strong, with a 53.4% increase in free cash flow, driven by higher operating cash flows. The operating cash flow to net income ratio is 1.23, suggesting effective cash earnings conversion. The free cash flow to net income ratio of 1.03 indicates that the company is successfully generating cash in line with its net income.

Breakdown
Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.74B	6.96B	6.56B	7.34B	5.77B
	Gross Profit
1.10B	977.00M	828.00M	806.00M	666.00M
	EBIT
662.00M	448.00M	343.00M	231.00M	362.00M
	EBITDA
662.00M	90.00M	508.00M	372.00M	173.00M
	Net Income Common Stockholders
375.00M	-265.00M	190.00M	27.00M	-51.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
350.00M	304.00M	389.00M	370.00M	436.00M
	Total Assets
6.66B	5.57B	5.57B	6.20B	5.71B
	Total Debt
2.80B	2.06B	1.98B	2.08B	1.82B
	Net Debt
2.45B	1.75B	1.59B	1.71B	1.39B
	Total Liabilities
5.20B	4.17B	3.93B	4.50B	4.10B
	Stockholders Equity
1.45B	1.38B	1.62B	1.69B	1.58B
Cash Flow		Free Cash Flow
385.00M	251.00M	325.00M	241.00M	347.00M
	Operating Cash Flow
462.00M	331.00M	396.00M	278.00M	367.00M
	Investing Cash Flow
-776.00M	-70.00M	37.00M	-428.00M	-877.00M
	Financing Cash Flow
374.00M	-359.00M	-402.00M	87.00M	225.00M

KBR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBR, the sentiment is Negative. The current price of 50.17 is below the 20-day moving average (MA) of 51.28, below the 50-day MA of 54.91, and below the 200-day MA of 62.15, indicating a bearish trend. The MACD of -1.88 indicates Negative momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBR.

KBR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$12.48B	26.76	21.55%	0.95%	8.89%	669.67%
DHI	78 Outperform	$39.68B	8.90	18.28%	1.11%	2.12%	1.63%
CBRE	74 Outperform	$41.88B	44.38	11.51%	―	11.95%	-1.25%
KBR	73 Outperform	$6.40B	17.31	25.81%	1.22%	11.30%	―
FLR	72 Outperform	$6.06B	2.94	54.32%	―	5.43%	2094.12%
J	62 Neutral	$15.04B	25.28	14.66%	0.95%	-13.76%	-13.39%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

KBR Corporate Events

KBR Realigns Business Segments and Appoints New Executives

KBR announced a strategic realignment of its business segments and executive appointments to enhance growth and streamline operations. The Government Solutions segment has been renamed Mission Technology Solutions, reflecting its focus on mission-critical capabilities in space, defense, and national security. Key executive changes include Byron Bright’s appointment as Chief Operating Officer and Stuart Bradie’s future role as Chair following the retirement of General Lester L. Lyles. These changes aim to improve operational efficiency, align capabilities with customer needs, and drive shareholder value. The company reiterated its 2027 financial targets and highlighted the anticipated benefits of its structural changes to capture global demand.

KBR Announces Leadership Changes and Board Restructuring

KBR announced the retirement of General Lester L. Lyles from its Board of Directors, effective after the 2025 Annual Meeting. Lyles, who joined the board in 2007 and served as Chair since 2019, is stepping down without any disagreements over the company’s policies. Consequently, the board will reduce its size from ten to nine members. Additionally, KBR appointed Byron Bright as the new Chief Operating Officer, effective May 2025. Bright, who has been with KBR since 2010, will oversee the Government Solutions and Sustainable Technology Solutions businesses, signaling a strategic emphasis on these areas.

KBR Board Member Mark E. Baldwin Retires

Mark E. Baldwin is retiring from KBR’s Board of Directors after a decade of service, having played key roles in the Audit and Sustainability & Corporate Responsibility Committees. His departure is not due to any disputes with KBR, and the board will reduce its size to ten members. KBR’s leadership praised Baldwin’s invaluable insights and leadership, contributing significantly to the company’s growth and transformation.