KBR Earnings Prediction
The chart below shows how KBR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KBR sees a -2.63% change in stock price 10 days leading up to the earnings, and a +0.44% change 10 days following the report. On the earnings day itself, the stock moves by -0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
KBR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.85B
5.82%
2.04%
Gross Margin
14.61%
2.03%
7.11%
Operating Margin
7.60%
1.74%
6.29%
Net Margin
5.77%
128.89%
11.61%
EPS
0.79
130.38%
14.49%
No Data Available
KBR Earnings Analysis
KBR, Inc. Corporation (KBR.N) Earnings Conference Call
Positive
KBR received high participation levels in their people survey, with over 70% participation, indicating a strong sense of belonging and positive feedback from employees on being part of the company.
Participation in the people survey increased by 10% to over 70%, the highest level to date.
84% of team members feel KBR is a great place to work and would recommend it to friends.
85% of team members feel they can be themselves and are heard, emphasizing a culture of inclusion and belonging.
KBR's Q2 performance exceeded expectations, with revenue up 6% year-on-year and adjusted EBITDA up 13%, indicating strong growth and profitability.
Revenue increased by 6% year-on-year, while adjusted EBITDA was up 13% with margins improving by 75 bps.
Year-to-date cash conversion was at a strong 121%, reflecting efficient financial management.
Group book-to-bill ratio was at 1, showcasing a strong quarter with increased bid volume and work under contract for 2024 at 92%.
KBR's business segments, especially Sustainable Tech and Government Solutions, demonstrated growth and profitability in Q2, contributing to the overall positive performance.
Sustainable Tech segment showed double-digit year-over-year growth, with revenues up 14% and margins at 21.4%.
Government Solutions segment saw a 3% revenue growth, with international defense and intelligence segments leading the growth.
Operating cash flow of $170 million in Q2 and increased buybacks and dividends highlight strong financial performance.
KBR announced the acquisition of LinQuest, a strategic move that is expected to enhance synergies, growth, and margin improvements for the company.
LinQuest acquisition brings 1,500 employees, double-digit margins, and high growth potential to KBR.
Feedback on the acquisition has been positive, with common values and a commitment to mission, indicating a good cultural fit.
Integration with LinQuest is expected to be smooth due to shared ERP platforms, reducing risks and burdens on the integration teams.
Negative
- STS book-to-bill ratio was only 1.1 for the quarter, which is lower compared to the trailing 12-month basis of 1.2 times. This indicates a potential slowdown in new project bookings.
- The government segment revenue saw a contraction in readiness and sustainment, particularly for UCOM activity, attributing to funding delays related to the Ukraine conflict. This impacted the overall revenue growth for the government segment.
- Profit margins for government segment remained at 10.4%, which was in line with expectations for Q2. However, areas such as readiness and sustainment saw sequential growth from Q1 attributed to the Ukraine conflict, indicating ongoing challenges in some sectors of the government business.
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KBR Earning Call Sentiment
KBR, Inc. (KBR) Q2 2024 Earnings Call Transcript
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KBR.N
-1.14%Positive
The earnings call summary highlights strong financial performance, including a 6% revenue increase and a 13% rise in adjusted EBITDA. The share buyback program and increased dividends indicate positive shareholder returns. The Q&A section suggests optimism in growth prospects, particularly in the Middle East and U.S. The reaffirmed revenue guidance and improved leverage ratio further support a positive outlook. However, geopolitical and integration risks are noted, but overall sentiment remains positive due to strong operational performance and shareholder-friendly actions.
