Overview
Engineering solutions provider's Q4 revenue slightly missed analyst expectations, down 11% yr/yr
Adjusted EPS for Q4 beat analyst expectations, rising 10%
Company made progress on planned spin-off, enhancing strategic focus
Outlook
KBR issues fiscal 2026 revenue guidance of $7.90 bln to $8.36 bln
Company expects fiscal 2026 adjusted EBITDA between $980 mln and $1,040 mln
KBR plans to spin off Mission Technology Solutions in the second half of 2026
Result Drivers
REVENUE DECLINE - Revenue fell 11% due to slower award pace and EUCOM scope reductions
OPERATING INCOME GROWTH - Operating income rose 36% due to increased earnings from affiliates and reduced expenses
SEGMENT PERFORMANCE - MTS revenue down 14% due to procurement delays; STS revenue down 2% due to capital allocation reassessment
Company press release: ID:nGNX3S00Bb
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $1.90 bln | $1.91 bln (9 Analysts) |
Q4 Adjusted EPS | Beat | $0.99 | $0.95 (9 Analysts) |
Q4 EPS | $0.87 | ||
Q4 Net Income | $111 mln | ||
Q4 Adjusted EBITDA | $238 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for KBR Inc is $51.50, about 26.2% above its February 25 closing price of $40.81
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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