KBR | 8-K: FY2027 Q2 Revenue Misses Estimate at USD 1.984 B

Revenue: As of FY2027 Q2, the actual value is USD 1.984 B, missing the estimate of USD 1.985 B.

EPS: As of FY2027 Q2, the actual value is USD 0.75, missing the estimate of USD 0.8747.

EBIT: As of FY2027 Q2, the actual value is USD 207 M.

Second Quarter Fiscal 2026 Consolidated Results

Operational Metrics

• Net income attributable to KBR, Inc. was $96 million, marking a 32% increase.
• Operating income for KBR, Inc. was $172 million, an 11% decrease, with an operating income margin of 8.7%.
• Adjusted EBITDA was $258 million, up 7%, with an Adjusted EBITDA margin of 13.0%.
• Gross profit was $293 million.
• Equity in earnings of unconsolidated affiliates was $52 million.
• Selling, general and administrative expenses were - $143 million.
• Spin-off costs and other charges amounted to - $31 million.
• Interest expense was - $35 million.
• Income from continuing operations before income taxes was $135 million.
• Provision for income taxes was - $38 million.
• Net income from continuing operations was $97 million.
• Net income (loss) from discontinued operations, net of tax, was $2 million.
• Total net income was $99 million.

Bookings

• Bookings and options totaled $1.8 billion, resulting in a book-to-bill ratio of 1.1x.

Cash Flow

• Operating cash flows from continuing operations for the quarter were $50 million, a decrease of 77%.
• Adjusted operating cash flows were $64 million, down 71%.

Capital Deployment

• KBR, Inc. returned $46 million in capital to shareholders, including $25 million in share repurchases and $21 million in regular dividends.

Year-to-Date Fiscal 2026 Consolidated Results

Operational Metrics

• Net income attributable to KBR, Inc. was $198 million, an increase of 5%.
• Operating income was $352 million, down 11%, with an operating income margin of 9.0%.
• Adjusted EBITDA was $509 million, up 4%, with an Adjusted EBITDA margin of 13.0%.
• Gross profit was $558 million.
• Equity in earnings of unconsolidated affiliates was $103 million.
• Selling, general and administrative expenses were - $262 million.
• Spin-off costs and other charges amounted to - $46 million.
• Interest expense was - $72 million.
• Income from continuing operations before income taxes was $278 million.
• Provision for income taxes was - $78 million.
• Net income from continuing operations was $200 million.
• Total net income was $200 million.

Bookings

• Bookings and options for the year-to-date period totaled $3.7 billion, with a book-to-bill ratio of 1.1x.

Cash Flow

• Operating cash flows from continuing operations were $160 million, down from $308 million in the prior year.
• Adjusted operating cash flows were $183 million, a decrease from $308 million in the prior year.

Capital Deployment

• Payments to repurchase common stock totaled $29 million.
• Payments of dividends to shareholders were $42 million.

Balance Sheet (as of July 3, 2026)

Liquidity

• KBR, Inc.’s liquidity totaled approximately $0.9 billion, comprising $625 million in borrowing capacity and $312 million in cash and cash equivalents.

Debt

• Net debt was $2,258 million.
• Trailing-twelve months (TTM) Adjusted EBITDA was $987 million.
• Net leverage ratio was 2.3x.

Other Balance Sheet Items

• Total current assets were $1,978 million.
• Total assets were $6,667 million.
• Total liabilities were $5,025 million.
• Total KBR shareholders’ equity was $1,636 million.

Segment Performance (Second Quarter Fiscal 2026)

Mission Technology Solutions (MTS)

• Segment Revenue: Revenues were $1.3 billion, a 2% decrease, primarily due to lower EUCOM contingency-related activity, partially offset by growth in International Government Clients.
• Operational Metrics: Operating income was $116 million, up 7%, with an operating income margin of 8.9%.
• Adjusted EBITDA: Adjusted EBITDA was $158 million, up 16%, with an Adjusted EBITDA margin of 12.1%.
• Backlog: Backlog and options totaled $17.5 billion, with a book-to-bill ratio of 0.8x.

Sustainable Technology Solutions (STS)

• Segment Revenue: Revenues were $676 million, a 10% increase, driven by project execution in the Middle East, Latin America, Australia, and Asia.
• Operational Metrics: Operating income was $103 million, an 18% decrease, reflecting the timing and mix of work.
• Adjusted EBITDA: Adjusted EBITDA was $123 million, an 8% decrease, with an Adjusted EBITDA margin of 18.2%.
• Backlog: Backlog reached a record $5.5 billion, with a book-to-bill ratio of 1.5x.

Outlook / Guidance

KBR, Inc. reaffirmed its full-year fiscal 2026 guidance. Revenues are projected to be between $7.90 billion and $8.36 billion. Adjusted EBITDA is expected to range from $980 million to $1,040 million, and Adjusted operating cash flows are anticipated to be $560 million to $600 million.