Core Insights - KBR, Inc. reported solid financial performance in the second quarter of fiscal 2025, achieving double-digit growth in earnings and EPS while expanding margins and maintaining strong cash flow [3][6][10] Financial Performance - Revenues for the second quarter were $1,952 million, up 6% from $1,847 million in the same quarter of fiscal 2024 [5][9] - Operating income increased to $194 million, an 8% rise from $180 million year-over-year [5][9] - Net income attributable to KBR, including discontinued operations, was $73 million, down 31% from $106 million, primarily due to the HomeSafe contract termination [10][11] - Adjusted EBITDA was $242 million, reflecting a 12% increase from $216 million, with an Adjusted EBITDA margin of 12.4% [6][12] - Diluted EPS, including discontinued operations, was $0.56, down 29% from $0.79, while Adjusted EPS rose to $0.91, up 10% from $0.83 [11][48] Segment Performance - Mission Technology Solutions (MTS) revenues were $1,412 million, up 7% driven by growth in Defense & Intel, while Sustainable Technology Solutions (STS) revenues were $540 million, up 2% [15][17] - MTS operating income was $110 million, down 3%, and STS operating income was $123 million, up 16% [15][17] - Backlog and options totaled $21.6 billion, with a book-to-bill ratio of 0.9x for the quarter [13][16] Guidance and Outlook - KBR revised its fiscal year 2025 guidance, projecting revenues between $7.9 billion and $8.1 billion, down from the previous range of $8.7 billion to $9.1 billion [20][21] - Long-term financial targets for fiscal year 2027 were updated, with revenues expected to exceed $9.0 billion [22][26] Capital Deployment - Operating cash flows from continuing operations for the quarter were $217 million, up 38% from $157 million [19] - The company returned $69 million in capital to shareholders, including $48 million in share repurchases and $21 million in dividends [19]