KBR(KBR)2025-02-24 21:01Financial Performance - Revenues for Q4 2024 were $2.1 billion, up 23% year-over-year, with a 15% organic growth[4] - Adjusted EBITDA for Q4 2024 was $228 million, an increase of 21%, resulting in an Adjusted EBITDA margin of 10.7%[6] - Net income attributable to KBR for Q4 2024 was $76 million, up 262% compared to the prior year[5] - Full fiscal year 2024 revenues reached $7.7 billion, an 11% increase, with Adjusted EBITDA of $870 million, up 16%[3] - Total revenues for the three months ended January 3, 2025, were $2.122 billion, compared to $1.730 billion for the same period in 2023, marking a year-over-year increase of approximately 23%[24] - Net income attributable to KBR for the year ended January 3, 2025, was $375 million, a significant recovery from a net loss of $265 million in the previous year[24] - Adjusted EBITDA for the year ended January 3, 2025, was $870 million, up from $747 million in the prior year, representing a growth of approximately 16%[24] - The company reported a diluted EPS of $2.79 for the year ended January 3, 2025, compared to a diluted loss per share of $1.96 in the previous year[24] - Net income for the year ended January 3, 2025, was $381 million, a significant improvement from a net loss of $261 million for the year ended December 29, 2023[28] - Adjusted EPS for the year ended January 3, 2025, was $3.34, compared to $2.91 for the year ended December 29, 2023, indicating improved earnings performance[36] Shareholder Returns - The company returned $297 million to shareholders in fiscal year 2024 through share repurchases and dividends[13] - A 10% increase in the quarterly dividend to $0.165 per share was approved, payable on April 15, 2025[14] Guidance and Projections - KBR's fiscal year 2025 revenue guidance is projected to be between $8.7 billion and $9.1 billion, representing a growth of 12% to 18% with a midpoint increase of 15%[17] - Adjusted EBITDA for fiscal year 2025 is expected to range from $950 million to $990 million, indicating a growth of 9% to 14% with a midpoint increase of 11%[17] - Adjusted EPS is forecasted to be between $3.71 and $3.95, reflecting an increase of 11% to 18% with a midpoint growth of 15%[17] - Operating cash flows are anticipated to be between $500 million and $550 million, showing growth of 8% to 19% with a midpoint increase of 14%[17] Backlog and Bookings - Bookings and options for Q4 2024 totaled $2.0 billion, maintaining a book-to-bill ratio of 1.0x[6] - KBR's backlog and options as of the fiscal year end totaled $21.2 billion, with a book-to-bill ratio of 1.1x on a trailing-twelve-month basis[4] Acquisitions and Strategic Moves - KBR acquired LinQuest, enhancing its capabilities in advanced engineering and data analytics for national security[2] - The company executed a realignment of its segments to enhance customer service and reduce costs, effective for fiscal 2025[15] Cash Flow and Assets - KBR's total assets increased to $6.663 billion as of January 3, 2025, compared to $5.565 billion as of December 29, 2023, reflecting a growth of approximately 19.7%[26] - Total cash flows provided by operating activities increased to $462 million for the year ended January 3, 2025, compared to $331 million for the previous year[28] - Cash and cash equivalents at the end of the period increased to $350 million from $304 million at the beginning of the period[28] Liabilities and Debt - KBR's total liabilities increased to $5.196 billion as of January 3, 2025, up from $4.171 billion as of December 29, 2023, indicating a growth of approximately 24.5%[26] - The company reported a total of $574 million in borrowings on short-term and long-term debt for the year ended January 3, 2025, compared to no borrowings in the previous year[28] - Interest expense increased to $144 million for the year ended January 3, 2025, from $115 million for the previous year, indicating higher borrowing costs[32] Operating Performance - Operating income for the Global Solutions segment was $453 million for the year ended January 3, 2025, compared to $285 million for the previous year, showing strong growth[34] - Operating cash flows for the three months ended January 3, 2025, were $40 million, down from $83 million for the same period in 2023[39] - Adjusted operating cash flows for the year ended January 3, 2025, were $462 million, slightly down from $463 million in 2023[39] - Operating cash conversion for the three months ended January 3, 2025, was 33%, significantly lower than 88% in the same period of 2023[39] - Adjusted operating cash conversion for the year ended January 3, 2025, was 103%, down from 117% in 2023[39] - Operating cash flow per adjusted share for the three months ended January 3, 2025, was $0.30, compared to $0.61 in the same period of 2023[39] - Adjusted operating cash flow per adjusted share for the year ended January 3, 2025, was $3.45, up from $3.40 in 2023[39] Legal Settlements - The legacy legal settlement after tax was $132 million in 2023, which did not recur in 2025[39]