KBR Inc. reported fourth‑quarter and fiscal 2025 results on February 26, 2026. The company posted an adjusted earnings per share of $0.99, beating the consensus estimate of $0.95 by $0.04, or roughly 4.2%. Revenue for the quarter was $1.885 billion, falling short of the $1.91‑$1.924 billion consensus range by about $25‑$39 million, a miss of 1.3‑2.3%.
The earnings beat was driven by disciplined cost control and margin expansion. Operating margin rose to 10.1% from 6.7% in the same quarter a year earlier, while adjusted EBITDA margin climbed to 12.6% from 10.7% year‑ago. The company’s adjusted EPS of $0.99 also eclipsed the Q3 2025 adjusted EPS of $1.02, indicating that the company maintained profitability even as revenue slipped.
Segment analysis shows that Government Solutions and Sustainable Technology Solutions contributed the bulk of revenue, while Mission Technology Solutions, which is slated for a spin‑off later in 2026, generated a smaller share. The mix shift toward higher‑margin segments helped offset the revenue decline caused by award timing issues and a slower pace of new contracts.
Looking ahead, KBR guided fiscal 2026 revenue to $7.9 billion–$8.36 billion, a range that aligns with or slightly exceeds analyst expectations. Adjusted EPS guidance of $4.05 and adjusted EBITDA guidance of $1.01 billion at the midpoint signal confidence in continued growth and operational efficiency.
CEO Stuart Bradie emphasized that the company’s disciplined execution and strategic portfolio positioning enabled it to navigate a challenging award environment. CFO Mark Sopp highlighted strong cash flow and shareholder returns, noting that the company expects Q1 2026 to be largely in line with Q4 2025.
The results underscore KBR’s resilience amid a tough award landscape. While revenue fell due to award timing and reduced contingency activities, margin expansion and a focus on high‑margin segments provide a buffer. The planned spin‑off of Mission Technology Solutions is expected to unlock value and allow each entity to concentrate on its core strengths.
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