Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Example: KBR Inc. - KBR, Inc. is a global engineering and construction firm with operations in over 29 countries and customers in more than 80 countries [12] - Currently rated 3 (Hold) by Zacks, KBR has a VGM Score of A and a Growth Style Score of B, indicating potential for growth with a forecasted year-over-year earnings growth of 15.3% for the current fiscal year [12][13] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $3.85 per share further support KBR's position as a strong candidate for growth investors [13]

Core Viewpoint - KBR, Inc. reported strong year-over-year growth in earnings and cash flow for Q1 2025, although revenues slightly missed expectations, leading to a 5.1% increase in stock price following the earnings release [1][2]. Financial Performance - Adjusted earnings per share (EPS) reached 98 cents, exceeding the Zacks Consensus Estimate of 88 cents by 11.4% and reflecting a 27.3% year-over-year increase [3]. - Total revenues amounted to $2,055 million, falling short of the consensus mark of $2,066 million by 0.5%, but showing a 13% increase year-over-year [3]. - Adjusted EBITDA rose 17.4% year-over-year to $243 million, with the adjusted EBITDA margin contracting by 40 basis points to 11.8% [3]. Segment Performance - The Mission Technology Solutions segment saw revenues increase by 13.6% year-over-year to $1.5 billion, supported by strong contributions from Defense & Intelligence and the HomeSafe program [5]. - The Sustainable Technology Solutions segment reported a 12% year-over-year revenue increase to $550 million, surpassing projections [6]. - Adjusted EBITDA for the Mission Technology Solutions segment was $145 million, up from $131 million in the prior-year quarter, with an adjusted EBITDA margin of 11.8% [6]. Backlog and Operational Metrics - As of April 4, 2025, KBR's total backlog was $20.5 billion, down from $21.2 billion as of January 3, 2025, with contributions of $16.51 billion from Mission Technology Solutions and $4.03 billion from Sustainable Technology Solutions [7]. - The trailing 12-month book-to-bill ratio stood at 1.0x at the end of Q1 2025 [8]. Liquidity and Cash Flow - Cash and cash equivalents increased to $442 million as of April 4, 2025, up from $350 million on January 3, 2025 [10]. - Operating cash flow for Q1 2025 totaled $98 million, an increase from $91 million at the end of March 29, 2024 [10]. - KBR returned a total of $176 million to shareholders in Q1 2025, including $156 million through share repurchases and $20 million in dividends [11]. 2025 Outlook - KBR expects total revenues for 2025 to be in the range of $8.7-$9.1 billion, indicating 12-18% growth, with adjusted EBITDA projected between $950 million and $990 million [12]. - Adjusted EPS is anticipated to be in the range of $3.71-$3.95, reflecting 11-18% growth, and operating cash flow is expected to be between $500-$550 million, representing 8-19% growth [12].

HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today it has received NASA Super Nova Awards for 2024 Safety Excellence from the Johnson Space Center (JSC) Contractor Safety Forum on four contracts within NASA’s Human Exploration Division: the Mission Systems Operations Contract (MSOC), the Integrated Mission Operations Contract (IMOC), the Human Health and Performance Contract (HHPC), and the Extravehicular Activity Space Operations Contract (ESOC) as a major subcontractor to United Tec ...

Financial Performance - The company reported revenues of $2.1 billion for Q1 2025, representing a 13% increase year-over-year, driven by growth across both segments and the LinkWest acquisition [29] - Adjusted EBITDA was $243 million, up 17% from the previous year, with an EBITDA margin of 11.8%, an increase of 40 basis points [29] - Adjusted EPS for the quarter was $0.98, reflecting a 27% increase, primarily due to a lower share count from repurchases [29] Business Segment Performance - Mission Technology Solutions (MTS) revenues were $1.5 billion, up 14% year-over-year, with adjusted EBITDA of $145 million, an 11% increase [31] - Sustainable Technology Solutions (STS) revenues reached $550 million, a 12% increase, with adjusted EBITDA of $124 million, up 20% [32] - The Brown and Root joint venture continues to grow, approximating $1.4 billion in annualized revenue, contributing positively to STS performance [32] Market Dynamics - The company noted a growing pipeline of LNG and energy security projects, with strong demand for ammonia in the fertilizer market [21][96] - The international operating capability positions the company to capture potential geographical shifts in energy markets [24] Strategic Direction - The company is focused on executing its growth strategy, increasing bid volumes, and winning new contracts, while maintaining a balanced and resilient business portfolio [10][40] - The company is committed to returning capital to shareholders through buybacks and dividends, with over $150 million in buybacks in Q1 2025 [34] Management Commentary - Management expressed confidence in the financial outlook for 2025, reaffirming guidance for revenues between $8.7 billion and $9.1 billion [37] - The company is monitoring geopolitical factors and their potential impact on business, particularly in defense and space sectors [50][90] Other Important Information - The company achieved a record low total recordable incident rate of 0.05 in 2024, highlighting its commitment to safety [6] - The company is transitioning to a new reporting approach for disaggregated revenues, aligning with industry standards [36] Q&A Session Summary Question: Can you provide more color on the backlog growth in STS? - Management noted a shift in some geographies from energy transition projects to energy security, but remains confident in the STS portfolio [45][47] Question: How confident are you in mid-single-digit organic growth for MTS? - Management highlighted a strong alignment with defense budget priorities and increased funding for human space exploration, indicating confidence in growth [49][51] Question: What is the status of the $2 billion in awards under protest? - Management acknowledged the trend of protests in government awards and expects resolutions in the second half of the year [53][55] Question: How is customer satisfaction trending for HomeSafe? - Customer satisfaction has increased to just under 90%, driven by technology adoption and improved customer care services [78][80] Question: What is the outlook for LNG projects? - Management indicated that LNG activity has increased globally, with various projects at different stages of development [64][84]

Financial Performance - KBR reported revenues of $2.1 billion for Q1 2025, representing a 13% increase year-over-year, driven by growth across both segments and the LinkWest acquisition [29][30] - Adjusted EBITDA was $243 million, up 17% from the previous year, with an adjusted EBITDA margin of 11.8%, an increase of 40 basis points [29][30] - Adjusted EPS for the quarter was $0.98, reflecting a 27% increase, primarily due to a lower share count from repurchases [29][30] Business Segment Performance - Mission Technology Solutions (MTS) revenues were $1.5 billion, up 14% year-over-year, with adjusted EBITDA of $145 million, an 11% increase [31] - Sustainable Technology Solutions (STS) revenues reached $550 million, a 12% increase, with adjusted EBITDA of $124 million, up 20% [32] - MTS ended the quarter with a 1.0 times book-to-bill ratio, while STS had a book-to-bill ratio of 1.1 times [31][32] Market Dynamics - KBR is experiencing a shift in focus from energy transition projects to energy security initiatives in certain geographies, particularly due to affordability issues [46] - The company maintains a strong position in the military space market, highlighted by a recent $176 million contract win [21] - KBR's international operations are well-positioned to capture geographical shifts in energy markets, particularly in the global South [20][23] Company Strategy and Industry Competition - KBR is focused on executing its growth strategy, increasing bid volumes, and winning new contracts, while maintaining a balanced and resilient business portfolio [41][42] - The company is committed to disciplined capital allocation, returning record levels of capital to shareholders through buybacks and dividends [9][34] - KBR is actively pursuing bolt-on acquisitions that align with its strategic priorities, particularly in government and sustainable technology sectors [75][76] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook for 2025, reaffirming guidance for revenues between $8.7 billion and $9.1 billion and adjusted EBITDA of $950 million to $990 million [38][39] - The company is monitoring geopolitical situations, particularly troop support in Eastern Europe, but has not observed significant impacts on operations [39][92] - KBR's diversified global mix of business positions it well to navigate economic uncertainties and capitalize on strong secular growth trends [25][26] Other Important Information - KBR achieved a record low total recordable incident rate of 0.05 in 2024, significantly lower than the national average [6][7] - The company ended the quarter with over $20 billion in backlog and options, indicating strong future revenue potential [20][104] Q&A Session Summary Question: Can you provide more color on the backlog growth and energy transition delays? - Management noted a global thematic shift towards energy security over energy transition due to affordability issues, but remains confident in the STS portfolio [46][47] Question: How confident are you in mid-single-digit organic growth for MTS? - Management highlighted a strong alignment with defense budget priorities and increased funding for human space exploration, indicating confidence in growth drivers [49][50] Question: What is the status of the $2 billion in awards under protest? - Management acknowledged a trend of protests in government awards but expects resolutions in the second half of the year [53][55] Question: How is HomeSafe performing during the peak moving season? - Management reported increased customer satisfaction rates and a strong relationship with Transcom, indicating positive performance expectations [56][58] Question: Can you provide insights on LNG project timelines? - Management indicated that LNG projects are at various stages, with ongoing work in the U.S., Indonesia, and Oman, allowing for flexibility in resource allocation [84][86] Question: What is the outlook for the ammonia industry? - Management confirmed a strong ammonia market with several projects focused on fertilizer usage, indicating a positive outlook for this segment [99]

Financial Performance - Revenues for Q1 2025 were $2.1 billion, representing a 13% increase year-over-year, driven by growth across both segments and the LinkWest acquisition [27] - Adjusted EBITDA was $243 million, up 17% from the previous year, with an adjusted EBITDA margin of 11.8%, an increase of 40 basis points [27][28] - Adjusted EPS for the quarter was $0.98, reflecting a 27% increase, primarily due to a lower share count from repurchases [27][28] - Operating cash flow was $98 million, an 8% increase year-over-year, with expectations for increased cash flow in subsequent quarters [28] Business Segment Performance - Mission Technology Solutions (MTS) revenues were $1.5 billion, up 14% year-over-year, with adjusted EBITDA of $145 million, an 11% increase [30] - Sustainable Technology Solutions (STS) revenues reached $550 million, a 12% increase, with adjusted EBITDA of $124 million, up 20% [31] - MTS margins were slightly lower at 9.6%, while STS margins improved to 22.5%, up 60 basis points [30][31] Market Dynamics - The company ended the quarter with a 1.1 times trailing twelve-month book-to-bill ratio and over $20 billion in backlog and options [18] - There is a growing pipeline of LNG and energy security projects, with strong demand for ammonia noted [18][95] - The company is experiencing a shift in some geographies from energy transition projects to energy security initiatives due to affordability issues [43] Strategic Direction - The company is focused on executing its growth strategy, increasing bid volumes, and winning new contracts [39] - KBR is leveraging its strong balance sheet to return capital to shareholders through buybacks and dividends, with over $150 million in buybacks in Q1 [8][33] - The company is committed to maintaining a disciplined approach to capital allocation, targeting a leverage ratio below 2.5 times [33] Management Commentary - Management expressed confidence in the financial outlook for 2025, reaffirming guidance for revenues between $8.7 billion and $9.1 billion and adjusted EBITDA of $950 million to $990 million [36] - The company is monitoring geopolitical situations, particularly troop support in Eastern Europe, but has not observed significant impacts on operations [37][89] - Management emphasized the importance of customer satisfaction and operational excellence in the HomeSafe program, achieving a customer satisfaction rate of nearly 90% [76] Other Important Information - The company is transitioning to a new supplemental financial disclosure format, providing revenues by customer type and phasing out business unit disclosures by the end of 2025 [35] - KBR's extensive experience in LNG and advantageous commercial business model are contributing to strong financial performance [12] Q&A Session Summary Question: Insights on energy transition and backlog growth - Management noted a global shift towards energy security projects, particularly in regions like Europe, while still engaging in energy transition initiatives [43][44] Question: Confidence in mid-single-digit organic growth - Management highlighted alignment with defense budget priorities and increased funding for human space exploration, indicating strong positioning for growth [46][48] Question: Status of awards under protest - Management confirmed $2 billion in awards under protest, with expectations for resolution in the second half of the year [51][52] Question: HomeSafe program performance - Management reported strong customer satisfaction and effective synchronization with Transcom, with expectations for increased volumes in the peak moving season [53][76] Question: LNG project timelines - Management indicated that various LNG projects are at different stages, with ongoing work in the U.S., Indonesia, and Oman [80][82] Question: Ammonia industry outlook - Management confirmed a strong ammonia market, with a focus on fertilizer usage in the pipeline [95]

KBR Inc. (KBR) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.36%. A quarter ago, it was expected that this the engineering, construction company would post earnings of $0.83 per share when it actually produced earnings of $0.91, delivering a surprise of 9.64%.Over the last four q ...

May 6, 2025 Stuart Bradie, President and CEO Mark Sopp, EVP and CFO Jamie DuBray, VP of Investor Relations Forward-Looking Statements The statements in this presentation that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, award activity and backlog, program activity, our business strategy, business opportunities, interest expense, our plans for raising and deploying capital and ...

Core Insights - KBR, Inc. reported strong financial performance in the first quarter of fiscal 2025, with significant increases in revenues, net income, and adjusted EBITDA compared to the same period in fiscal 2024 [2][3][5] Financial Performance - Revenues reached $2.1 billion, reflecting a 13% increase or $237 million year-over-year, driven by growth in Defense & Intel and Sustainable Technology Solutions [4][7] - Operating income was $195 million, up 17% or $29 million, primarily due to increased gross profit and equity in earnings from unconsolidated affiliates [8] - Net income attributable to KBR was $116 million, a 25% increase or $23 million compared to the previous year [8] - Adjusted EBITDA was $243 million, up 17% or $36 million, with an adjusted EBITDA margin of 11.8% [9][10] Earnings Per Share - Diluted earnings per share (EPS) were $0.88, up 28% or $0.19, while adjusted EPS was $0.98, a 27% increase or $0.21 [9][10][46] Shareholder Returns - The company returned $176 million in capital to shareholders during the quarter, including $156 million in share repurchases and $20 million in dividends [20][19] Segment Performance - Mission Technology Solutions (MTS) revenues were $1,505 million, up 14% or $180 million, driven by the LinQuest acquisition and increased demand in Readiness & Sustainment [13] - Sustainable Technology Solutions (STS) revenues were $550 million, up 12% or $57 million, attributed to rising demand for sustainable technologies [16] Backlog and Bookings - Backlog and options totaled $20.5 billion, with a book-to-bill ratio of 1.0x for the quarter and 1.1x on a trailing-twelve-month basis [10][12] Fiscal Year Guidance - KBR reaffirmed its fiscal year 2025 guidance, projecting revenues between $8.7 billion and $9.1 billion, adjusted EBITDA between $950 million and $990 million, and adjusted EPS between $3.71 and $3.95 [21][22]

KBR Reports First Quarter Fiscal 2025 Results Exhibit 99.1 Delivered Strong Financial Performance, Consistent Execution on Major Projects, and New Contract Wins Over $150 million of Share Repurchases in the Quarter First Quarter Fiscal 2025 Highlights (All comparisons against the first quarter fiscal 2024 unless noted.) Fiscal Year 2025 Guidance • Reaffirming previously provided outlook HOUSTON, TX - May 6, 2025 - KBR, Inc. (NYSE: KBR) today announced its first quarter fiscal 2025 results. "KBR delivered st ...