A month has gone by since the last earnings report for KBR Inc. (KBR) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is KBR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, estimate ...

Core Insights - KBR, Inc. has secured a $229 million recompete task order under the Department of Defense Information Analysis Center's multiple-award contract, focusing on research and analysis to improve the U.S. Army's CH-47 Chinook helicopter systems [1][2] - The contract emphasizes KBR's expertise in military aviation support and aims to enhance the availability, reliability, and cost-efficiency of the CH-47 Chinook helicopter [2][4] Company Performance - KBR's shares gained 0.8% during the trading session following the contract announcement [1] - Year-to-date, KBR's shares have lost 11.8%, compared to a 15.2% decline in the Zacks Engineering - R and D Services industry [6] - The company has a total backlog of $21.2 billion as of January 3, 2025, with Government Solutions contributing $13.55 billion [7] Financial Outlook - Earnings estimates for 2025 have increased to $3.84 per share, indicating a 15% growth from 2024 [8] - KBR's trailing 12-month book-to-bill ratio stands at 1.1x, reflecting a healthy order intake relative to revenue [7] Market Position - The contract win reinforces KBR's leadership in defense technology and logistics, supported by a 35-year partnership with the U.S. Army's Aviation Program Executive Office [4] - KBR's focus on high-end government business and technology consulting positions it well for long-term growth [6][7]

Core Points - KBR has been awarded a $229 million recompete task order to provide life cycle research and analysis for U.S. Army Cargo Helicopter Systems over a five-year period [1][2] - The contract aims to enhance the availability, reliability, and reduce support costs for the CH-47 Chinook helicopter, which is vital for various military operations [2][3] - KBR has over 35 years of experience supporting the Aviation PEO and has been a 10-year incumbent on previous contracts related to U.S. Army CH-47 helicopters [4] Company Overview - KBR employs approximately 38,000 people globally and operates in over 29 countries, providing technology and engineering solutions to governments and companies [6] - The company focuses on delivering value-added services and long-term operations and maintenance services to ensure consistent delivery with predictable results [6] Industry Context - The DoDIAC program, which KBR is part of, supports the Department of Defense by providing technical data management and research to drive innovation and technological developments [5]

Core Insights - KBR has been awarded a $176 million contract by the Air Force Research Laboratory to support operations and equipment maintenance at the Air Force Maui Optical and Supercomputing Site [1][2][3] Group 1: Contract Details - The contract is a cost plus fixed-fee, indefinite delivery indefinite quantity (IDIQ) agreement with a ceiling of $176 million, which will include multiple task orders over a seven-year period [1][2] - KBR's responsibilities under the contract include operating and maintaining advanced experimental equipment, processing and analyzing data, performing maintenance and upgrades, and managing modernization efforts for mission systems [2] Group 2: Strategic Importance - The work at AMOS is crucial for national security, focusing on monitoring man-made objects in space and developing next-generation capabilities for space domain awareness [3] - KBR's collaboration with the government aims to enhance optical imaging and space domain awareness capabilities, reflecting the company's commitment to space-related technologies [3] Group 3: Company Overview - KBR employs approximately 38,000 people globally and operates in over 29 countries, providing science, technology, and engineering solutions to various clients [4] - The company emphasizes delivering technology and value-added services to ensure consistent and predictable results for its customers [4]

KBR, Inc. (KBR) has won an $85 million firm-fixed-price task award from the U.S. Air Force to design, fabricate, and deliver critical airfield damage repair kits worldwide. The contract, known as the AM-2 Matting task award, falls under the Air Force Contract Augmentation Program (AFCAP) and reinforces KBR’s expertise in global sustainment and procurement solutions.KBR’s Role in the ContractUnder the AM-2 task award, KBR will supply and deliver essential airfield matting kits to U.S. Air Force locations wor ...

HOUSTON, March 10, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today it has been awarded a firm fixed price, $85M task award by the U.S. Air Force to procure, design and deliver critical training aids and airfield damage repair kits globally. The AM-2 Matting task award falls under the Air Force Contract Augmentation Program (AFCAP) contract. Under the AM-2 task award, KBR will fabricate, design, assemble, supply, package and deliver various types of airfield matting kits to U.S. Air Force locations ...

Core Insights - KBR has been awarded a contract for Project Management Consultancy (PMC) services by AMUFERT for the development of a fertilizer plant in Soyo, Angola, as part of a transformative $2 billion project [1][2] - The facility will produce 2,300 metric tons per day (MTPD) of ammonia and 4,000 MTPD of urea, aimed at enhancing agricultural productivity and economic growth in Angola [2] - KBR's involvement includes overseeing engineering, procurement, and construction phases, in addition to previously announced technology licensing and engineering design work [2][3] Company Overview - KBR is a global leader in ammonia technology, having licensed, engineered, or constructed over 260 grassroots ammonia plants since 1943 [3] - The company employs approximately 38,000 people and operates in over 29 countries, providing technology and engineering solutions to clients worldwide [4]

Business Strategy and Growth - KBR's operating model has shifted towards agile, technology-driven, solutions-oriented delivery, aiming for attractive returns and consistent growth with favorable cash conversion[25]. - Key strategic focus areas include National Security and Defense, Sustainable Energy and Industrial Technologies, and advanced digital solutions such as artificial intelligence and machine learning[26][27]. - KBR's acquisition strategy focuses on moving upmarket, expanding capabilities, and broadening customer sets across strategic growth vectors[27]. - The company plans to report new segment information starting in the first fiscal quarter of 2025 following a realignment of business segments[35]. - The company acquired LinQuest Corporation in fiscal 2024, enhancing capabilities in advanced technology solutions for defense and space missions[32]. Sustainability and Environmental Initiatives - KBR has achieved carbon neutrality annually since 2019 and has established a net-zero carbon ambition, positioning itself as an industry sustainability leader[29]. - The company has a portfolio of over 85 innovative, sustainable, proprietary process technologies aimed at promoting a cleaner, greener future[29]. - The Sustainable Technology Solutions segment includes over 85 proprietary technologies aimed at reducing emissions and accelerating energy transition[33]. - The company launched its Sustainable Aviation Fuel technology (PureSAF) in 2023 to enhance decarbonization efforts in the aviation sector[58]. - The company has developed proprietary technologies for converting natural gas to ammonia and for transforming waste plastics into commercial raw materials[58]. Financial Performance and Revenue - Government Solutions segment generated $4,382 million in revenue, accounting for 57% of consolidated revenues for the year ended January 3, 2025[40]. - U.K. government contracts contributed $674 million, representing 9% of consolidated revenues for the same period[40]. - Backlog of unfulfilled orders was estimated at $17,264 million as of January 3, 2025, with approximately 40% expected to be recognized as revenue in fiscal year 2025[49]. - The company recorded a net loss of $3 million for fiscal 2024, a net loss of $6 million for fiscal 2023, and a net gain of $4 million for fiscal 2022 in other non-operating income (expense) on consolidated statements of operations[292]. Operational Excellence and Capabilities - The company emphasizes operational expertise in areas such as C5ISR, cyber analytics, and military aviation support, catering primarily to U.S. and allied government agencies[26]. - KBR's competitive advantages include a distinctive team ethos, technical excellence, and strong customer relationships, which are essential for delivering mission-focused solutions[29]. - The company leverages advanced digital capabilities to improve operations, reliability, and environmental impact, including the use of virtual and augmented reality for training[29]. - Joint ventures include Aspire Defence Limited and Affinity, enhancing service delivery and risk diversification[41][43]. - The company operates under various contract types, including fixed-price and cost-reimbursable contracts, impacting revenue recognition and risk management[53][56]. Workforce and Talent Management - The company employs approximately 38,000 people across over 29 countries, with an additional 10,000 employees in unconsolidated joint ventures[65]. - In fiscal 2024, the company hired over 8,600 employees to support strategic growth targets[84]. - The employee participation rate in the People’s Perspective survey increased by 10% in fiscal 2024, with a significant majority reporting that KBR is a great place to work[81]. - The company’s Talent Calibration conversations covered over 5,000 employees, leading to individual career plans and enhanced succession planning[79]. - The company’s Global Leadership Development Program is expanding to develop future executive leaders through strategic thinking and executive skills training[78]. - The company has implemented a comprehensive Talent Acquisition strategy, resulting in improved process consistency and enhanced hiring capabilities[83]. Financial Position and Risk Management - Strong liquidity position allows for growth opportunities despite market fluctuations and procurement challenges[37][57]. - As of January 3, 2025, the company had $345 million of borrowings under the Revolver and $1,999 million outstanding under the term loan portions of the Senior Credit Facility[293]. - The company entered into additional interest rate swap agreements during fiscal 2024, with a notional amount of $400 million at a fixed rate of 0.89% and $350 million at a fixed rate of 3.43%[294]. - The fair value of the interest rate swaps at January 3, 2025, was a $37 million net asset, with $19 million included in other current assets and $18 million in other assets[294]. - The company had fixed rate debt aggregating $1,543 million and variable rate debt aggregating $1,051 million as of January 3, 2025[295]. - The weighted average interest rate for fiscal 2024 was 5.52%[295]. - If interest rates increase by 50 basis points, pre-tax interest expense would increase by approximately $5 million in the next twelve months[295]. Safety and Health Performance - The total recordable incident rate for health and safety performance was 0.050, indicating industry-leading safety performance[72].

Core Insights - KBR, Inc. delivered a strong fourth-quarter 2024 performance, exceeding expectations in both revenues and earnings, with year-over-year growth in both metrics [1][4]. Financial Performance - Adjusted earnings per share (EPS) reached 91 cents, surpassing the Zacks Consensus Estimate of 83 cents by 9.6% and growing 32% year over year [4]. - Total revenues amounted to $2.12 billion, exceeding the consensus mark of $1.96 billion by 8.1% and rising 22.7% year over year [4]. - Adjusted EBITDA increased 21.3% year over year to $228 million, although the adjusted EBITDA margin contracted by 20 basis points to 10.7% [5]. Segment Performance - Government Solutions segment revenues grew 20.3% year over year to $1.6 billion, with adjusted EBITDA of $150 million and margins of 9.4% [6][7]. - Sustainable Technology Solutions segment revenues rose 30.3% year over year to $524 million, with adjusted EBITDA increasing to $108 million [7][8]. Backlog and Future Outlook - As of January 3, 2025, KBR's total backlog was $21.2 billion, with Government Solutions contributing $13.55 billion and Sustainable Technology Solutions contributing $3.71 billion [8]. - KBR expects total revenues for 2025 to be between $8.7 billion and $9.1 billion, indicating 12-18% growth, with adjusted EBITDA projected between $950 million and $990 million [15]. Liquidity and Shareholder Returns - As of January 3, 2025, KBR's cash and cash equivalents were $350 million, up from $304 million at the end of 2023 [12]. - In 2024, KBR returned $297 million to shareholders, including $218 million in share repurchases and $79 million in dividends [12]. - The board approved a 10% dividend increase to 16.5 cents per share quarterly, payable April 15, 2025 [13].

Financial Performance - KBR delivered $2.1 billion in revenue for Q4 2024, representing a 23% increase year-over-year, and a total of $7.7 billion for the full year, which is an 11% increase [10][36] - Adjusted EBITDA for Q4 was $228 million, with a full-year total of $870 million, achieving an adjusted EBITDA margin of 11.2%, up approximately 50 basis points year-over-year [11][38] - Adjusted EPS for Q4 was $0.91, a 32% increase compared to the previous year, while full-year adjusted EPS was $3.34, up 15% [36][39] Business Segment Performance - Government Solutions segment revenues increased by 20% in Q4 to $1.6 billion, with adjusted EBITDA of $150 million and margins at 9.4% [41] - Sustainable Tech Solutions saw a 30% revenue increase in Q4, reaching $108 million in adjusted EBITDA with margins at 20.6% [45] - For the full year, Sustainable Tech revenues were $1.9 billion, up 17%, with adjusted EBITDA of $398 million and a margin of 21.3% [47] Market Performance - The company ended the year with a book-to-bill ratio of 1.1 times and over $21 billion in backlog and options [19] - International markets, particularly in defense and infrastructure, are expected to contribute significantly to growth, with increased spending anticipated from governments [76][80] Company Strategy and Industry Position - KBR is focused on advancing its growth strategy through acquisitions, such as LinQuest, and enhancing operational efficiency [12][27] - The company is well-positioned in the LNG market, anticipating a significant gap in supply through 2030, which is expected to drive demand for its services [70][72] - KBR's business model emphasizes resilience and growth, with over 60% of adjusted EBITDA generated from non-US government customers [30][62] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the 2025 outlook, projecting double-digit growth across all metrics, supported by disciplined strategic execution [13][62] - The company anticipates significant contributions from the HomeSafe program, estimating revenues between $300 million to $500 million for 2025, compared to less than $50 million in 2024 [58][66] - Management highlighted the importance of maintaining a balanced view across its portfolio amid uncertainties in government spending and contract awards [110][112] Other Important Information - KBR plans to return nearly $300 million to shareholders through buybacks and dividends, with a 10% increase in the regular dividend effective March 2025 [51][52] - The company has a disciplined approach to acquisitions, focusing on bolt-on opportunities that align strategically and culturally [52][130] Q&A Session Summary Question: Revenue outlook for 2025 and HomeSafe contribution - Management indicated that the revenue guidance for 2025 includes approximately $400 million from LinQuest and $300 million to $500 million from HomeSafe, with both performing well [66][68] Question: Growth drivers for 2025 and international contributions - Management noted that international markets, particularly in defense and sustainable technology, are expected to drive growth, with increased spending from governments [74][76] Question: Risks to government solutions guidance - Management acknowledged potential risks from a slowdown in awards but emphasized a balanced growth expectation across the portfolio [110][112] Question: Equity income performance and Plaquemines project - Management explained that lower equity income in Q4 was due to accounting adjustments and scope increases on projects, which are expected to contribute positively in the future [116][118] Question: Capital allocation and share repurchase strategy - Management confirmed a bias towards share buybacks in the current environment, with plans to leverage down from 2.6 times to around 2.1-2.2 times by year-end [130][131]