KBR Inc

Latest Results (12.05.2026):

KBR, Inc.'s first quarter fiscal 2026 results show a solid operational quarter with revenue of $1.923 billion (down 5% year-over-year) and net income attributable to KBR of $102 million (down 12%). Adjusted EBITDA was $251 million (up 1%) and adjusted EPS was $0.96 (down 5%). The company generated stronger cash from operations, maintained roughly $1.0 billion of liquidity, reaffirmed full‑year fiscal 2026 guidance, and continued progress on the planned spin‑off of Mission Technology Solutions targeting January 4, 2027.

Top-line and earnings

Revenues: $1.923B (-5% vs. Q1 FY2025) driven by expected EUCOM contingency runoff. Net income attributable to KBR: $102M (-12%). Diluted EPS attributable to KBR: $0.80 (-9%). Adjusted EPS: $0.96 (-5%).

Profitability and margins

Operating income: $180M (-11%) with operating margin of 9.4%. Adjusted EBITDA: $251M (+1%) and adjusted EBITDA margin improved to 13.1% (from 12.3% prior year).

Cash flow, liquidity & leverage

Operating cash flow from continuing operations: $110M (+21%); adjusted operating cash flow: $119M (+31%) and adjusted operating cash conversion 98% (vs. 68% prior). Liquidity ≈ $1.0B (≈$380M cash + $605M revolver capacity). Net debt: $2.222B; net leverage ~2.3x (TTM adjusted EBITDA $971M).

Segments and notable awards

Mission Technology Solutions (MTS): Revenues $1.296B (-6%), operating income $111M, adjusted EBITDA $138M. Sustainable Technology Solutions (STS): Revenues $627M (-2%), operating income $113M, adjusted EBITDA $137M. New awards include multiple U.S. government IDIQs and task orders, US DOT and US Space Force work, large LOGCAP V mods, and several major STS contracts in the Middle East, Libya and Iraq; MTS supported NASA’s Artemis II mission.

Backlog, bookings and book-to-bill

Backlog and options: $23.2B; backlog (end of quarter) $17.322B. Bookings and options for the quarter: $1.9B, producing a book-to-bill of 1.1x (MTS 1.0x; STS 1.2x).

Capital deployment & shares

Returned $25M to shareholders in Q1 (≈$4M share-withhold/repurchase and $21M dividends). Diluted weighted average shares down to 127M (from 132M) reflecting buybacks; adjusted share count used in non-GAAP metrics also 127M.

Guidance and strategic actions

KBR reaffirmed FY2026 guidance: revenues $7.90B–$8.36B; adjusted EBITDA $980M–$1,040M; adjusted EPS $3.87–$4.22; adjusted operating cash flows $560M–$600M. The company reiterated intent to spin off Mission Technology Solutions (target closing January 4, 2027) and implemented perimeter moves to align businesses ahead of separation.