KBR Q4 Earnings & Revenues Surpass Estimates, Stock Rises

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].