Reaffirms FY26 Revenue View of $7.90B to $8.36B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy KBR?
Reaffirms FY26 revenue view $7.90B-$8.36B, consensus $8.03B. Reaffirms FY26 adjusted EBITDA $980M-$1.040B.
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Analyst Views on KBR
Wall Street analysts forecast KBR stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 35.110
Low
45.00
Averages
53.67
High
65.00
Current: 35.110
Low
45.00
Averages
53.67
High
65.00
About KBR
KBR, Inc. is engaged in delivering science, technology, and engineering solutions to governments and companies around the world. The Company’s segments include Mission Technology Solutions and Sustainable Technology Solutions. The Mission Technology Solutions segment provides full life-cycle support solutions to defense, intelligence, space, aviation and other programs and missions for military and other government agencies, primarily in the United States, United Kingdom and Australia. The Sustainable Technology Solutions business segment is anchored by its portfolio of approximately 85 proprietary, sustainability-focused process technologies that reduce emissions, increase efficiency and/or accelerate and enable energy transition across the industrial base in four primary verticals: ammonia/syngas, chemical/petrochemicals, clean refining and circular process/circular economy solutions. It also offers services including advisory and consulting focused on energy security.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KBR Q1 2026 Earnings Call Insights
- Sustainable Tech Performance: KBR's Sustainable Tech Solutions (STS) achieved a book-to-bill ratio of 1.2 for the third consecutive quarter, indicating strong market demand that is expected to drive revenue growth in 2026, thereby enhancing the company's competitive position in this sector.
- Robust Financial Performance: Despite a $95 million year-over-year revenue decline, KBR's adjusted EBITDA margin expanded to 13.1%, with adjusted EPS at $0.96, demonstrating effective cost control and cash flow management, which bolsters investor confidence.
- Spin-off Plan Progress: KBR is targeting a spin-off date of January 4, 2027, with management emphasizing that this timing aligns better with the start of the fiscal year and provides a buffer for IT complexities, showcasing the company's strategic foresight in execution.
- Cautious Market Outlook: Management reiterated unchanged full-year guidance, expecting Mission Tech Solutions (MTS) revenue to be flat or slightly down, while Sustainable Tech Solutions (STS) is projected to achieve mid-teens year-over-year growth, reflecting a cautious stance towards market volatility and policy uncertainties.
See More
KBR Q1 Earnings Exceed Expectations
- Earnings Beat: KBR reported a Q1 non-GAAP EPS of $0.96, exceeding expectations by $0.05, demonstrating the company's resilience and profitability in the current economic climate.
- Revenue Decline: The Q1 revenue of $1.9 billion, down 7.8% year-over-year, still surpassed expectations by $20 million, indicating relative stability in market performance despite headwinds.
- Fiscal Year 2026 Guidance: KBR projects revenues between $7.90 billion and $8.36 billion for FY 2026, with adjusted EBITDA expected to be between $980 million and $1,040 million, reflecting confidence in future growth.
- Cash Flow Outlook: The adjusted EPS is forecasted to be between $3.87 and $4.22, with adjusted operating cash flows expected to range from $560 million to $600 million, showcasing the company's robust cash flow management.
See More
KBR Set to Announce Q1 Earnings on May 5
- Earnings Announcement Schedule: KBR is set to release its Q1 earnings on May 5 before market open, with consensus EPS estimate at $0.91, reflecting a 7.1% year-over-year decline, and revenue estimate at $1.88 billion, down 8.7% year-over-year.
- Historical Performance: Over the past two years, KBR has beaten EPS estimates 100% of the time, while only 38% of revenue estimates were surpassed, indicating stability in profitability but volatility in revenue.
- Estimate Revision Trends: In the last three months, KBR has seen no upward revisions in EPS estimates and six downward revisions, with revenue estimates also facing six downward adjustments, suggesting market caution regarding the company's future performance.
- Market Analysis Insights: Analysts suggest that KBR's low valuation combined with healthy long-term drivers makes it a compelling buy, despite the current downward revisions in revenue expectations.
See More
KBR Secures $449 Million Army Contract Modifications
- Significant Contract Value: KBR's Mission Technology Solutions division has been awarded two task order modifications totaling $449 million, aimed at providing intelligent, data-driven logistics support to the U.S. Army, showcasing the company's strong performance in military contracts.
- Support for European Command: Of this, $304 million is allocated to support the U.S. European Command, with KBR leveraging its AI-powered strategic asset management system to enhance the management of mission-critical infrastructure, thereby improving decision support for military operations.
- Maintenance at Training Center: KBR also secured a $145 million task order for maintenance and logistics support at the National Training Center in Fort Irwin, California, which will directly enhance brigade combat team readiness through multiple annual training rotations.
- Advantages of LOGCAP V Contract: Through the LOGCAP V contract, KBR can rapidly and flexibly provide logistics and life support solutions, further solidifying its operational capabilities in complex military environments and demonstrating the company's extensive experience and expertise in global logistics support.
See More
Engine Capital Acquires Stake in KBR, Urges Sale
- Investor Stake: Activist investor Engine Capital has acquired approximately a 2% stake in KBR, indicating its belief in the company's undervaluation, with KBR's current market value around $4.5 billion, highlighting potential growth opportunities.
- Stock Decline: KBR's stock has dropped over 25% since announcing its business separation plan last September, reflecting market skepticism about the strategy, with Engine Capital arguing that it introduces additional costs and risks.
- Acquisition Proposal: In a letter to KBR's board, Engine Capital suggested that a full-company sale could provide shareholders with immediate value realization, estimating a transaction price between $48 and $55 per share, while KBR closed at $36.02, indicating significant upside potential.
- Risk Mitigation: Engine Capital emphasized that a sale would reduce execution risks, eliminate incremental standalone costs, and allow an acquirer to optimize the business under its management structure, demonstrating confidence in the company's future prospects.
See More
Engine Capital, an activist investor, holds approximately a 2% stake in KBR - WSJ
- Investment Stake: Activist investor Engine Capital has acquired a roughly 2% stake in KBR.
- Strategic Move: This investment indicates Engine Capital's interest in influencing KBR's strategic direction and operations.
See More
KBR Q1 2026 Earnings Call Insights
- Sustainable Tech Performance: KBR's Sustainable Tech Solutions (STS) achieved a book-to-bill ratio of 1.2 for the third consecutive quarter, indicating strong market demand that is expected to drive revenue growth in 2026, thereby enhancing the company's competitive position in this sector.
- Robust Financial Performance: Despite a $95 million year-over-year revenue decline, KBR's adjusted EBITDA margin expanded to 13.1%, with adjusted EPS at $0.96, demonstrating effective cost control and cash flow management, which bolsters investor confidence.
- Spin-off Plan Progress: KBR is targeting a spin-off date of January 4, 2027, with management emphasizing that this timing aligns better with the start of the fiscal year and provides a buffer for IT complexities, showcasing the company's strategic foresight in execution.
- Cautious Market Outlook: Management reiterated unchanged full-year guidance, expecting Mission Tech Solutions (MTS) revenue to be flat or slightly down, while Sustainable Tech Solutions (STS) is projected to achieve mid-teens year-over-year growth, reflecting a cautious stance towards market volatility and policy uncertainties.
See More
KBR Q1 Earnings Exceed Expectations
- Earnings Beat: KBR reported a Q1 non-GAAP EPS of $0.96, exceeding expectations by $0.05, demonstrating the company's resilience and profitability in the current economic climate.
- Revenue Decline: The Q1 revenue of $1.9 billion, down 7.8% year-over-year, still surpassed expectations by $20 million, indicating relative stability in market performance despite headwinds.
- Fiscal Year 2026 Guidance: KBR projects revenues between $7.90 billion and $8.36 billion for FY 2026, with adjusted EBITDA expected to be between $980 million and $1,040 million, reflecting confidence in future growth.
- Cash Flow Outlook: The adjusted EPS is forecasted to be between $3.87 and $4.22, with adjusted operating cash flows expected to range from $560 million to $600 million, showcasing the company's robust cash flow management.
See More
KBR Set to Announce Q1 Earnings on May 5
- Earnings Announcement Schedule: KBR is set to release its Q1 earnings on May 5 before market open, with consensus EPS estimate at $0.91, reflecting a 7.1% year-over-year decline, and revenue estimate at $1.88 billion, down 8.7% year-over-year.
- Historical Performance: Over the past two years, KBR has beaten EPS estimates 100% of the time, while only 38% of revenue estimates were surpassed, indicating stability in profitability but volatility in revenue.
- Estimate Revision Trends: In the last three months, KBR has seen no upward revisions in EPS estimates and six downward revisions, with revenue estimates also facing six downward adjustments, suggesting market caution regarding the company's future performance.
- Market Analysis Insights: Analysts suggest that KBR's low valuation combined with healthy long-term drivers makes it a compelling buy, despite the current downward revisions in revenue expectations.
See More
KBR Secures $449 Million Army Contract Modifications
- Significant Contract Value: KBR's Mission Technology Solutions division has been awarded two task order modifications totaling $449 million, aimed at providing intelligent, data-driven logistics support to the U.S. Army, showcasing the company's strong performance in military contracts.
- Support for European Command: Of this, $304 million is allocated to support the U.S. European Command, with KBR leveraging its AI-powered strategic asset management system to enhance the management of mission-critical infrastructure, thereby improving decision support for military operations.
- Maintenance at Training Center: KBR also secured a $145 million task order for maintenance and logistics support at the National Training Center in Fort Irwin, California, which will directly enhance brigade combat team readiness through multiple annual training rotations.
- Advantages of LOGCAP V Contract: Through the LOGCAP V contract, KBR can rapidly and flexibly provide logistics and life support solutions, further solidifying its operational capabilities in complex military environments and demonstrating the company's extensive experience and expertise in global logistics support.
See More
Engine Capital Acquires Stake in KBR, Urges Sale
- Investor Stake: Activist investor Engine Capital has acquired approximately a 2% stake in KBR, indicating its belief in the company's undervaluation, with KBR's current market value around $4.5 billion, highlighting potential growth opportunities.
- Stock Decline: KBR's stock has dropped over 25% since announcing its business separation plan last September, reflecting market skepticism about the strategy, with Engine Capital arguing that it introduces additional costs and risks.
- Acquisition Proposal: In a letter to KBR's board, Engine Capital suggested that a full-company sale could provide shareholders with immediate value realization, estimating a transaction price between $48 and $55 per share, while KBR closed at $36.02, indicating significant upside potential.
- Risk Mitigation: Engine Capital emphasized that a sale would reduce execution risks, eliminate incremental standalone costs, and allow an acquirer to optimize the business under its management structure, demonstrating confidence in the company's future prospects.
See More
Engine Capital, an activist investor, holds approximately a 2% stake in KBR - WSJ
- Investment Stake: Activist investor Engine Capital has acquired a roughly 2% stake in KBR.
- Strategic Move: This investment indicates Engine Capital's interest in influencing KBR's strategic direction and operations.
See More
