KBR Reports Fourth Quarter and Fiscal Year 2024 Results

Core Insights - KBR, Inc. reported strong financial performance for the fourth quarter and fiscal year 2024, with significant revenue and earnings growth, as well as margin expansion [2][4][7] - The company has issued guidance for fiscal year 2025, projecting revenue growth of 12% to 18% and adjusted EBITDA growth of 9% to 14% [20] Fiscal Year 2024 Highlights - Revenues for the fourth quarter reached $2.1 billion, a 23% increase from the previous year, driven by growth across all Government Solutions business units and contributions from the LinQuest acquisition [4][10] - Adjusted EBITDA for the fourth quarter was $228 million, up 21%, with an adjusted EBITDA margin of 10.7% [6][7] - Net income attributable to KBR for the fourth quarter was $76 million, a 262% increase compared to the prior year [5][7] - For the full fiscal year 2024, revenues totaled $7.7 billion, an 11% increase, and adjusted EBITDA was $870 million, up 16% [7][8] Segment Performance - Government Solutions segment revenues were $1.6 billion for the fourth quarter, up 20%, with adjusted EBITDA of $150 million [10][11] - Sustainable Technology Solutions segment revenues reached $524 million, a 30% increase, with adjusted EBITDA of $108 million [12][13] Cash Flow and Capital Deployment - Operating cash flows for the fiscal year were $462 million, with a cash conversion rate of 103% [15][40] - The company returned $297 million to shareholders through share repurchases and dividends during the fiscal year [15][18] Backlog and Bookings - As of the fiscal year end, backlog and options totaled $21.2 billion, with a book-to-bill ratio of 1.0x for the quarter [8][12] - Bookings for the fourth quarter were $2.0 billion, maintaining a book-to-bill ratio of 1.0x [7][8] Fiscal Year 2025 Guidance - KBR projects revenues between $8.7 billion and $9.1 billion for fiscal year 2025, with adjusted EBITDA expected to be between $950 million and $990 million [20][21] - The company anticipates adjusted EPS to range from $3.71 to $3.95, reflecting an increase of 11% to 18% [20]