Core Insights - KBR, Inc. secured a $2.459 billion contract from NASA, enhancing its backlog and potentially increasing the total contract value to approximately $3.6 billion through 2035 [1][9] - The stock price of KBR increased by 1.4% during the trading session and 1.1% in after-hours trading, reflecting positive investor sentiment due to the contract win [2] - KBR's new contract involves support services for various NASA programs, focusing on astronaut health and safety for future space missions [3][5] Backlog and Financial Performance - As of July 4, 2025, KBR's backlog rose 7.3% year-over-year to $21.57 billion, with the Mission Technology Solutions segment contributing $17.85 billion [12] - The trailing 12-month book-to-bill ratio stands at 1.0x, indicating a balanced inflow of new contracts relative to revenue [12] Partnership and Expertise - KBR has nearly six decades of experience in supporting human spaceflight operations, reinforcing its long-standing partnership with NASA [5] - Recent successful underwater tests for the Axiom Extravehicular Mobility Unit (AxEMU) demonstrate KBR's capabilities in developing next-generation spacesuits for NASA's Moon mission [6] Market Position and Stock Performance - KBR's shares have outperformed the Zacks Engineering - R and D Services industry, gaining 10.9% in the past month [8] - The company is well-positioned to benefit from favorable public spending in the U.S., despite facing macroeconomic challenges [11]

Core Points - KBR has been awarded a $2.459 billion contract by NASA to support astronaut health and research for future human spaceflight missions [1][2] - The contract has a five-year performance period starting on November 1, with options that could extend its total value to $3.6 billion through 2035 [2] - KBR will provide support services for various NASA programs, including the Human Research Program and Artemis campaign, focusing on crew health, safety, and performance [3][4] Company Overview - KBR has over 60 years of experience in supporting human spaceflight and aims to advance human health and performance in space [4] - The company employs approximately 37,000 people globally and operates in over 29 countries, providing technology and engineering solutions [5]

HOUSTON, Aug. 12, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) and Axiom Space recently completed three successful crewed underwater tests of the Axiom Extravehicular Mobility Unit (AxEMU) at NASA's Neutral Buoyancy Laboratory (NBL) at Johnson Space Center —an important milestone as both companies work to support NASA's return to the Moon. These initial crewed tests involved an astronaut being fully submerged in the NBL's 6.2-million-gallon pool while wearing Axiom Space's next-generation spacesuit, the AxEMU, ...

Core Insights - KBR has been awarded a contract by INPEX Masela Ltd. to provide front-end engineering design (FEED) for onshore liquefied natural gas facilities for the Abadi LNG project in Indonesia [1][2] - The Abadi LNG project aims for a peak production capacity of 9.5 million tons per annum of LNG and 150 million standard cubic feet per day of pipeline gas, recognized as a project of national strategic importance by the Indonesian government [2] - KBR will collaborate with Samsung E&A and PT Adhi Karya to deliver comprehensive FEED services for the project [2] Company Overview - KBR is a global leader in technology and engineering solutions, with a strong track record in LNG and the energy sector [4] - The company employs approximately 37,000 people across 29 countries, providing diverse and mission-critical roles [5] - KBR focuses on delivering technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results [5]

HOUSTON, Aug. 07, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today the appointment of Huibert H. Vigeveno to its board of directors effective August 5, 2025. Mr. Vigeveno, 55, brings a wealth of energy and industrial sector expertise to KBR’s board, a result of his 30 years of distinguished service with Shell. Mr. Vigeveno joined Shell in the U.K. in 1995 and gained significant sales, marketing, strategy and general management experience across the enterprise. Mr. Vigeveno also has substantial exper ...

Financial Data and Key Metrics Changes - The company reported revenues of $2,000,000,000 for Q2 2025, representing a 6% increase year-over-year [37] - Adjusted EBITDA was $242,000,000, up 12% with an adjusted EBITDA margin of 12.4%, an increase of 70 basis points year-over-year [37] - Year-to-date operating cash flow was $308,000,000, up 20% versus the prior year, with a conversion rate against net income of 123% [37] Business Line Data and Key Metrics Changes - In the MTS segment, revenues were $1,400,000,000, up 7% year-over-year, with adjusted EBITDA of $141,000,000, an increase of 6% [38] - The STS segment reported revenues of $540,000,000, up 2% year-over-year, with adjusted EBITDA of $129,000,000, up 17% and margins of 23.9%, an improvement of over 300 basis points [39] Market Data and Key Metrics Changes - The Middle East region saw a 20% growth on a trailing twelve months basis, with significant investments in energy security and infrastructure [20] - The company has a robust pipeline with $19,000,000,000 in bids awaiting award in the MTS segment, of which 72% represent new business [15] Company Strategy and Development Direction - The company is refocusing on its core business of MTS following the termination of the HomeSafe Alliance joint venture contract [7] - KBR aims to expand in key markets through delivery and innovation, achieving leading margins while deploying capital back to shareholders [19] - The company is prioritizing pursuits in MTS that align with the new defense budget and expanding geographical reach in STS [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the conversion of the pipeline as funding from the presidential budget and the Reconciliation Act begins to flow [58] - The geopolitical environment, particularly in the Middle East, poses risks but is also seen as an opportunity for growth [59] - The company remains committed to creating shareholder value and maintaining a disciplined approach to capital allocation [52] Other Important Information - The company updated its revenue guidance for fiscal 2025 to a range of $7,900,000,000 to $8,100,000,000, reflecting the removal of expected revenues from the HomeSafe contract [43] - The adjusted EBITDA outlook remains unchanged despite the revenue guidance reduction [47] Q&A Session Summary Question: What were the upside and downside risk factors in setting the updated guidance? - Management highlighted the importance of pipeline conversion and geopolitical movements as key factors in setting the guidance [58] Question: How does the company feel positioned to win and retain work after the HomeSafe experience? - Management believes there will be no negative impact on win rates due to strong customer relationships and increased engagement [61] Question: What is the outlook for the MTS segment regarding bookings in the second half of the year? - Management expects a more robust second half bookings environment as the award cadence picks up [71] Question: What needs to happen in the next several quarters to support the new targets for 2027? - Management indicated that conversion of the pipeline and winning a fair share of opportunities are crucial for meeting the targets [75]

Financial Data and Key Metrics Changes - The company reported revenues of $2,000,000,000 for Q2 2025, representing a 6% increase year-over-year [39] - Adjusted EBITDA was $242,000,000, up 12% with an adjusted EBITDA margin of 12.4%, an increase of 70 basis points year-over-year [39][40] - Adjusted EPS for the quarter was $0.91, reflecting a 10% increase [39] Business Line Data and Key Metrics Changes - In the MTS segment, revenues were $1,400,000,000, up 7% year-over-year, with adjusted EBITDA of $141,000,000, an increase of 6% [40] - The STS segment reported revenues of $540,000,000, a 2% increase year-over-year, with adjusted EBITDA of $129,000,000, up 17% and margins improved to 23.9% [41] Market Data and Key Metrics Changes - The company has a backlog of $21,600,000,000 and a book-to-bill ratio of 1.0 [15] - In MTS, there are $19,000,000,000 in bids awaiting award, with 72% representing new business [16] Company Strategy and Development Direction - The company is refocusing on its core business of MTS after the termination of the HomeSafe Alliance joint venture [7][8] - KBR aims to expand in key geographic markets, particularly in the Middle East, which has seen a 20% growth on a trailing twelve months basis [21] - The company is committed to disciplined capital allocation, including share repurchases and managing leverage [10][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook despite recent challenges, emphasizing the importance of geopolitical stability for future awards [64] - The company anticipates a robust second half of 2025, driven by increased bid volumes and contract awards [77] Other Important Information - The company updated its revenue guidance for fiscal 2025 to a range of $7,900,000,000 to $8,100,000,000, reflecting the removal of expected revenues from HomeSafe [46] - The adjusted EBITDA outlook remains unchanged despite the revenue guidance reduction [50] Q&A Session Summary Question: What were the upside and downside risk factors in setting the updated guidance? - Management highlighted increased conversion of the pipeline and geopolitical movements as key factors influencing the guidance [63] Question: How does the company feel about its ability to win and retain work after the HomeSafe experience? - Management does not foresee any negative impact on win rates, citing strong customer relationships [66] Question: Should a more robust second half bookings environment be anticipated? - Management expects a pickup in work cadence as the budget consolidation comes to fruition [77] Question: What needs to happen in the next several quarters to support the new targets? - Successful conversion of the pipeline and winning a fair share of upcoming contracts are crucial for meeting targets [81]

Financial Performance - Revenues for Q2 2025 reached $2.0 billion, a 6% increase year-over-year[14] - Adjusted EBITDA for Q2 2025 was $242 million, up 12% year-over-year[15] - Adjusted EBITDA margin expanded by 70 bps to 12.4%[16] - Year-to-date operating cash flow increased by 20%[46] - The company's net debt is $2.234 billion, with a net debt to TTM Adjusted EBITDA ratio of 2.4x[55] Backlog and Contract Wins - Total Backlog & Options stand at $21.6 billion[19] - The TTM Book-to-Bill ratio is 1.0x[19] - QTD Book-to-Bill ratio is 0.9x[19] - Mission Tech backlog & options is $17.8 billion[24] - Sustainable Tech backlog is $3.7 billion[24] Future Outlook - FY25 Revenues guidance is revised to $7.9 billion - $8.1 billion[56]

Group 1: Earnings Performance - KBR Inc. reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and up from $0.83 per share a year ago, representing an earnings surprise of +3.41% [1] - Over the last four quarters, KBR has surpassed consensus EPS estimates four times [2] - The company posted revenues of $1.95 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.17%, compared to year-ago revenues of $1.86 billion [2] Group 2: Stock Performance and Outlook - KBR shares have declined approximately 21.4% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $2.23 billion, and for the current fiscal year, it is $3.83 on revenues of $8.64 billion [7] - The estimate revisions trend for KBR was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Engineering - R and D Services industry, to which KBR belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Second Quarter Fiscal 2025 Highlights (All comparisons against the second quarter fiscal 2024 unless noted.) Second Quarter YTD 2025 Highlights (All comparisons against the second quarter YTD fiscal 2024 unless noted.) Revising Fiscal Year 2025 Guidance Revising previously provided outlook for the HomeSafe Alliance JV contract termination, reductions in EUCOM and logistics, and protest resolution delays Updating Fiscal Year 2027 Financial Targets Updating long-term financial targets for the HomeSafe Allianc ...