KBR(US:KBR)2025-10-29 23:06Financial Performance - Revenues for Q3 FY 2025 were $1.9 billion, a decrease of 0% or $6 million compared to Q3 FY 2024[7] - Adjusted EBITDA was $240 million, up 10% or $21 million, with an Adjusted EBITDA margin of 12.4%[12] - Net income attributable to KBR was $115 million, an increase of 15% or $15 million compared to the previous year[8] - Adjusted earnings per share were $1.02, up 21% or $0.18 compared to the previous year[12] - Total revenues for the three months ended October 3, 2025, were $1.931 billion, slightly down from $1.937 billion for the same period in 2024[31] - Net income attributable to KBR for the three months ended October 3, 2025, was $115 million, compared to $100 million for the same period in 2024, representing a 15% increase[31] - Adjusted EBITDA for the three months ended October 3, 2025, was $240 million, up from $219 million in the same period last year, indicating a growth of approximately 9.6%[31] - Net income from continuing operations for the nine months ended October 3, 2025, was $345 million, compared to $302 million for the same period in 2024, representing a 14.2% increase[35] - Adjusted EBITDA for the nine months ended October 3, 2025, was $730 million, up from $642 million in the same period of 2024, reflecting an increase of 13.7%[39] - Adjusted EPS for the nine months ended October 3, 2025, was $2.93, compared to $2.44 for the same period in 2024, marking a 20.1% increase[41] - The company’s diluted EPS from continuing operations for the three months ended October 3, 2025, was $0.91, compared to $0.75 for the same period in 2024, representing a 21.3% increase[41] Cash Flow and Capital Management - Operating cash flows from continuing operations were $198 million, up 29% or $45 million, with an operating cash conversion of 152%[18] - Cash and equivalents increased to $539 million as of October 3, 2025, compared to $342 million at the beginning of the fiscal year[33] - Operating cash flows from continuing operations for the nine months ended October 3, 2025, totaled $506 million, compared to $409 million for the same period in 2024, indicating a 23.8% increase[43] - Cash and cash equivalents at the end of the period for continuing operations increased to $539 million from $446 million year-over-year[35] - Total cash flows provided by operating activities from continuing operations for the nine months ended October 3, 2025, were $506 million, compared to $409 million in the prior year, a 23.8% increase[35] - Total cash flows provided by investing activities for continuing operations were $47 million for the nine months ended October 3, 2025, compared to a cash outflow of $733 million in the same period of 2024[35] - KBR returned $122 million in capital to shareholders, including $100 million in share repurchases and $22 million in dividends[18] Contracts and Backlog - Bookings and options totaled $4.2 billion with a book-to-bill ratio of 1.4x for the quarter[5] - Backlog and options as of the quarter end totaled $23.4 billion[12] - KBR secured a $2.5 billion NASA contract to support astronaut health and research for future human spaceflight missions[20] Guidance and Future Outlook - The company is revising its FY 2025 guidance due to the pace of awards and unresolved bids during the U.S. Government shutdown[22] - The company projects revenues for fiscal year 2025 to be between $7.75 billion and $7.85 billion, a decrease from the prior guidance of $7.9 billion to $8.1 billion[23] - Adjusted EBITDA for fiscal year 2025 is expected to remain stable at $960 million to $980 million, consistent with the previous year's guidance[23] - Adjusted EPS is forecasted to be between $3.78 and $3.88, unchanged from the prior fiscal year guidance[23] Corporate Developments - The company announced plans to spin off its Mission Technology Solutions segment into a separate publicly-traded company, targeting completion by mid-to-late 2026[24] - The company will host a conference call on October 30, 2025, to discuss its third quarter fiscal year 2025 results[25] Assets - Total assets as of October 3, 2025, were $6.649 billion, a slight decrease from $6.663 billion at the beginning of the fiscal year[33]