HOUSTON, Oct. 30, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) today announced the opening of a new office in Rosslyn, Virginia, in The Towers at 1100 Wilson Boulevard. The office, five minutes from the Pentagon, 10 minutes from the White House and 15 minutes from the U.S. Capitol building, will allow the company to engage further with congressional and executive stakeholders, in addition to proximity for government customers, including the Department of War and intelligence community, among many others. The ne ...

Company Leadership Transition - Science Applications International Corporation (SAIC) has appointed James ("Jim") Reagan as Interim Chief Executive Officer, succeeding Toni Townes-Whitley [2][3] - The Board of Directors expressed gratitude for Townes-Whitley's contributions and confidence in Reagan's ability to lead the company during this transition [3][4] - Reagan has nearly two decades of senior leadership experience in the defense and government services industry, previously serving as Executive Vice President & Chief Financial Officer for Leidos Holdings [2][4] Company Performance and Guidance - SAIC is reaffirming its fiscal year 2026 guidance initially provided on September 4, 2025, although a prolonged federal government shutdown could impact this guidance [5] - The company has a strong customer-focused foundation, with a solid pipeline and backlog of pending awards, indicating potential for growth and shareholder value creation [4][5] Company Overview - SAIC is a premier Fortune 500 company with annual revenues of approximately $7.5 billion, focusing on technology and innovation across defense, space, civilian, and intelligence markets [6][7] - The company employs around 24,000 people and integrates emerging technology into mission-critical operations [7]

Core Viewpoint - KBR, Inc. is facing a class action lawsuit from investors who purchased securities during the specified class period, following a significant drop in stock price due to the termination of a key contract [1][3]. Group 1: Class Action Details - The Portnoy Law Firm is advising KBR investors of a class action for those who bought securities between May 6, 2025, and June 19, 2025 [1]. - Investors have until November 18, 2025, to file a lead plaintiff motion [1]. Group 2: Stock Price Impact - On June 20, 2025, KBR's stock price fell by $3.85 per share, or 7.29%, closing at $48.93 per share after the announcement of the termination of HomeSafe's role in a significant contract [3]. Group 3: Legal Representation - The Portnoy Law Firm offers complimentary case evaluations for investors to discuss their legal rights and options for recovering losses [2]. - The firm has a history of recovering over $5.5 billion for aggrieved investors [4].

Core Insights - Science Applications International Corporation (SAIC) reported mixed results for Q2, with a 3% year-on-year sales decline to $1.77 billion, missing the analyst consensus estimate of $1.86 billion, while adjusted EPS of $3.63 exceeded the consensus estimate of $2.24 [1] - The company revised its 2026 revenue outlook to $7.250 billion-$7.325 billion, down from a prior estimate of $7.60 billion-$7.75 billion, which is below the analyst consensus estimate of $7.65 billion [1] - SAIC updated its annual adjusted EPS outlook to $9.40-$9.60, an increase from the previous range of $9.10-$9.30, and above the analyst consensus estimate of $9.17 [2] Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for SAIC, with Stifel maintaining a Buy rating and lowering the price target from $130 to $128, while UBS maintained a Neutral rating and reduced the price target from $111 to $110 [5] - SAIC shares fell 1.7% to trade at $104.41 after the earnings report [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 declined by 2.7% year over year, primarily due to a 3% headwind from Cloud WAN compute and store revenue, not fully offset by new business volume [16][18] - Adjusted EBITDA for Q2 was $185 million, resulting in an adjusted EBITDA margin of 10.5%, reflecting an increase of 180 basis points quarter over quarter and 80 basis points year over year [17] - Free cash flow improved to $150 million in Q2, despite challenges related to the timing of invoice payments [17][20] Business Line Data and Key Metrics Changes - On contract revenue growth slowed to 3% in Q2 from 8% in Q1, impacting overall revenue performance [16][18] - The company experienced program disruptions that contributed to the revenue decline, particularly in areas with significant government transformation initiatives [8][16] Market Data and Key Metrics Changes - The company anticipates organic revenue to decline by approximately 5.54% in Q3 and Q4 of FY 2026, with revised revenue guidance for FY 2026 set between $7.25 billion and $7.325 billion [18][19] - The outlook for FY 2027 assumes a more subdued contribution from on contract growth of 2% to 3% and a modest benefit from new business [18] Company Strategy and Development Direction - The company is focusing on cost efficiency initiatives to align its cost structure with the challenging revenue environment, aiming to mitigate the impact on EBITDA and free cash flow [10][19] - There is a strong emphasis on leveraging artificial intelligence to drive efficiency across core operations, which is expected to provide incremental benefits in the coming years [13][46] Management's Comments on Operating Environment and Future Outlook - Management noted a more challenging environment than previously forecasted, citing slower conversion of on contract growth opportunities, increased program disruptions, and delays in new business awards [6][9] - Despite current market volatility, management remains optimistic about the execution of their strategy and the potential for normalization in revenue growth over time [11][12] Other Important Information - The company is increasing its FY 2026 adjusted EPS guidance to a range of $9.4 to $9.6, benefiting from a favorable tax settlement [19][20] - The capital deployment plans remain focused on driving long-term value for shareholders, with a commitment to share repurchases and capability-focused M&A [20] Q&A Session Summary Question: Can you comment on the impacts on on contract growth? - Management indicated that delays in government transformation initiatives, particularly in the Army and civilian sectors, have hindered on contract growth, attributing it to efficiency efforts by the government rather than a shift in market share [22][25] Question: How do you see the structure of the industry changing? - Management acknowledged the volatility in the market and the impact of reduced government personnel, suggesting that while it is too soon to determine structural changes, they expect normalization in FY 2027 [30][33] Question: What are your expectations for the government fiscal year end flush? - Management noted that the flush environment has been irregular and does not expect significant opportunities from it, while a continuing CR is anticipated [80][82] Question: How would a government shutdown impact the P&L? - Management indicated that a traditional shutdown would likely have a marginal impact on revenues but little to no impact on cash flow [82][83] Question: Has there been a change in customer attitudes towards procurement? - Management stated that while there hasn't been an incremental change in the last ninety days, delays in customer interactions and new business ramp-ups have been significant indicators for adjusting revenue guidance [88][92]