olivLaw · US equity research
KBR, Inc. KBR
Heavy Construction Other Than Bldg Const - Contractors · SIC 1600 · Vertical: Heavy Construction Other Than Bldg Const - Contractors (SIC 1600)
KBR delivers engineering, technology and logistics support to the U.S. government, allies and commercial clients, combining defense work with proprietary process technologies for energy and specialty chemicals. The company is preparing to spin off its Mission Technology Solutions business, with a backlog of 16,864 million USD at the end of fiscal 2025 and 57% of revenues coming from the U.S. government.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, KBR, Inc. (KBR) stock was 39.64 USD (−0.30% on the day), with market capitalisation 5.0 bn USD, P/E 11.4 on diluted EPS of 3.49 USD over the last 12 months, dividend yield 1.66%, beta 0.75, 52-week range 30.06–44.98 USD. Latest reported quarter (Q3 2027): revenue of 2.0 bn USD (+5.0% YoY), net income of 133.0 m USD (+15.7% YoY), diluted EPS 1.06 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 63.6
- strong (55–70)
- Bollinger (20, 2)
- 33.99 – 41.54
- in the upper half of the band · %B 0.75 · band width 20.0%
- SMA 50 / 200
- 36.74 / 37.07
- mixed trend
- MACD (12, 26, 9)
- 1.03 / 0.86
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.8% | −1.1% | +15.9 pp | — |
| 3 months | +9.1% | −0.5% | +9.6 pp | — |
| 6 months | +12.9% | +4.4% | +8.5 pp | — |
| Year to date | −1.4% | +12.3% | −13.7 pp | — |
| 1 year | −6.5% | +13.5% | −20.1 pp | −9.5% |
| 3 years | −21.9% | +76.4% | −98.3 pp | +63.3% |
| 5 years | −8.6% | +63.7% | −72.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2027 · 02 Oct 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 | Q3 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.1 bn | 2.0 bn | 2.0 bn | 1.9 bn | 1.9 bn | 1.9 bn | 2.0 bn | 2.0 bn |
| Cost of revenue | 1.8 bn | 1.7 bn | 1.7 bn | 1.7 bn | 1.6 bn | 1.7 bn | 1.7 bn | 1.7 bn |
| Gross profit | 291.0 m | 300.0 m | 290.0 m | 270.0 m | 290.0 m | 265.0 m | 293.0 m | 301.0 m |
| SG&A | 153.0 m | 140.0 m | 146.0 m | 145.0 m | 147.0 m | 133.0 m | 143.0 m | 154.0 m |
| Operating income | 140.0 m | 202.0 m | 194.0 m | 191.0 m | 191.0 m | 180.0 m | 172.0 m | 186.0 m |
| Depreciation & amortisation | 44.0 m | 41.0 m | 45.0 m | 43.0 m | 40.0 m | 41.0 m | 42.0 m | 43.0 m |
| Interest expense | 44.0 m | 41.0 m | 41.0 m | 39.0 m | 37.0 m | 37.0 m | 35.0 m | 36.0 m |
| Pre-tax income | 99.0 m | 164.0 m | 145.0 m | 152.0 m | 153.0 m | 143.0 m | 135.0 m | 150.0 m |
| Income tax | 22.0 m | 43.0 m | 39.0 m | 34.0 m | 40.0 m | 40.0 m | 38.0 m | 18.0 m |
| Net income | 76.0 m | 116.0 m | 73.0 m | 115.0 m | 111.0 m | 102.0 m | 96.0 m | 133.0 m |
| Diluted EPS | 0.57 ≈ | 0.88 | 0.56 | 0.90 | 0.88 ≈ | 0.80 | 0.75 | 1.06 |
| Operating cash flow | 40.0 m | 98.0 m | — | — | — | — | — | — |
| Capex | 16.0 m | 2.0 m | 14.0 m ≈ | 8.0 m ≈ | 18.0 m | 12.0 m | 16.0 m ≈ | 8.0 m ≈ |
| Dividends paid | 20.0 m | 20.0 m | 21.0 m ≈ | 22.0 m ≈ | 21.0 m | 21.0 m | 21.0 m ≈ | 21.0 m ≈ |
| Share repurchases | 51.0 m | 156.0 m | 48.0 m ≈ | 100.0 m ≈ | 25.0 m | 4.0 m | 25.0 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 28 percentile of its own 25-quarter history (min 4.3, median 17.3, max 325.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.9 bn | 5.6 bn | 5.8 bn | 7.3 bn | 6.6 bn | 7.0 bn | 7.7 bn | 7.8 bn |
| Revenue YoY | +17.8% | +14.8% | +2.3% | +27.3% | −10.6% | +6.0% | unavailable | +1.0% |
| Net income | 281.0 m | 202.0 m | -63.0 m | 27.0 m | 190.0 m | -265.0 m | 375.0 m | 415.0 m |
| Net income YoY | −35.0% | −28.1% | −131.2% | unavailable | +603.7% | −239.5% | unavailable | +10.7% |
| Diluted EPS | 1.99 | 1.41 | -0.44 | 0.19 | 1.26 | -1.96 | 2.79 | 3.21 |
| Diluted EPS YoY | −34.8% | −29.1% | −131.2% | unavailable | +563.2% | −255.6% | unavailable | +15.1% |
| net % | 5.7% | 3.6% | -1.1% | 0.4% | 2.9% | -3.8% | 4.9% | 5.3% |
| Free cash flow | 148.0 m | 236.0 m | 347.0 m | 248.0 m | 325.0 m | 269.0 m | 410.0 m | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 02 Jan 2026
- Cash
- 500.0 m USD
- Financial debt
- 2.6 bn USD
- Net debt
- 2.1 bn USD
- Equity
- 1.5 bn USD
- Total assets
- 6.6 bn USD
- Debt / equity
- 1.72x
- Current ratio
- 1.22x
- ROE
- 27.9%
- ROA
- 6.3%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.8 bn | 7.3 bn | 6.6 bn | 7.0 bn | 7.7 bn | 7.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 5.1 bn | 6.5 bn | 5.7 bn | 6.0 bn | 6.6 bn | 6.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 666.0 m | 806.0 m | 828.0 m | 977.0 m | 1.1 bn | 1.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 335.0 m | 393.0 m | 420.0 m | 487.0 m | 543.0 m | 578.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 57.0 m | 231.0 m | 343.0 m | 449.0 m | 659.0 m | 778.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 115.0 m | 146.0 m | 137.0 m | 141.0 m | 156.0 m | 169.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 172.0 m ≈ | 377.0 m ≈ | 480.0 m ≈ | 590.0 m ≈ | 815.0 m ≈ | 947.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 72.0 m | 80.0 m | 87.0 m | 115.0 m | 144.0 m | 158.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -14.0 m | 146.0 m | 284.0 m | -165.0 m | 508.0 m | 614.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 28.0 m | 111.0 m | 92.0 m | 95.0 m | 129.0 m | 156.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -63.0 m | 27.0 m | 190.0 m | -265.0 m | 375.0 m | 415.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -0.44 | 0.19 | 1.26 | -1.96 | 2.79 | 3.21 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 142.0 m | 141.0 m | 156.0 m | 135.0 m | 134.0 m | 129.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 0.40 | 0.44 | 0.48 | 0.54 | 0.60 | 0.66 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 436.0 m | 370.0 m | 389.0 m | 304.0 m | 342.0 m | 500.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 1.6 bn | 2.2 bn | 1.7 bn | 1.7 bn | 1.9 bn | 2.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 130.0 m | — | — | — | — | — | SEC (XBRL)· 25 Feb 2021verified |
| Goodwill | 1.8 bn | 2.1 bn | 2.1 bn | 2.1 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 683.0 m | 708.0 m | 645.0 m | 618.0 m | 763.0 m | 727.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 5.7 bn | 6.2 bn | 5.6 bn | 5.6 bn | 6.7 bn | 6.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 574.0 m | 1.0 bn | 637.0 m | 593.0 m | 772.0 m | 712.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 12.0 m | 16.0 m | 364.0 m | 31.0 m | 36.0 m | 49.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 1.6 bn | 1.9 bn | 1.4 bn | 1.8 bn | 2.5 bn | 2.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 1.5 bn | 1.9 bn | 1.8 bn | 1.6 bn | 1.8 bn | 1.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 4.1 bn | 4.5 bn | 3.9 bn | 4.2 bn | 5.2 bn | 5.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 1.6 bn | 1.7 bn | 1.6 bn | 1.4 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 367.0 m | 278.0 m | 396.0 m | 331.0 m | 462.0 m | — | SEC (XBRL)· 25 Feb 2025verified |
| Capex | 20.0 m | 30.0 m | 71.0 m | 62.0 m | 52.0 m | 42.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 347.0 m ≈ | 248.0 m ≈ | 325.0 m ≈ | 269.0 m ≈ | 410.0 m ≈ | — | SEC (XBRL)· 25 Feb 2025derived |
| Investing cash flow | -877.0 m | -428.0 m | 37.0 m | -70.0 m | -776.0 m | — | SEC (XBRL)· 25 Feb 2025verified |
| Financing cash flow | 225.0 m | 87.0 m | -399.0 m | -359.0 m | 374.0 m | — | SEC (XBRL)· 25 Feb 2025verified |
| Dividends paid | 54.0 m | 61.0 m | 66.0 m | 72.0 m | 79.0 m | 84.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 51.0 m | 82.0 m | 203.0 m | 138.0 m | 218.0 m | 329.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 62 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet52
- Valuation84
- Quality72
- Growth32
- Returns39
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 48.48 – 180.69 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDA48.48 – 71.64 (Mid 60.00)4 companies used · median multiple 10.8x · quartiles 9.2x – 12.4xGVA, ORN, ROAD, STRL
- Peers: P/E115.87 – 180.69 (Mid 156.85)4 companies used · median multiple 44.9x · quartiles 33.2x – 51.8xJ, ORN, ROAD, STRL
- Dividend discount (DDM)outside the aggregate8.67 – 11.66 (Mid 9.95)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 62/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 15.1% | 67 (vs peers) | 14% |
| Net margin · Quality | 5.7% | 80 (vs peers) | 9% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 3.8% | 32 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 2.3x | 67 (vs peers) | 14% |
| Interest coverage · Balance sheet | 5.0x | 54 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 0.9x | 12 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 11.4x | 85 (on a fixed band) | 14% |
| EV/EBITDA · Valuation | 7.9x | 83 (vs peers) | 14% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 2.8% | 39 (on a fixed band) | 9% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet52/100 · 3/3 factors with a value
- Growth· partial32/100 · 1/2 factors with a value
- Quality72/100 · 2/3 factors with a value
- Returns· partial39/100 · 1/2 factors with a value
- Valuation84/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KBR, Inc. (KBR). Latest full fiscal year: 2026; data up to 2026-10-02.
Figures computed from the financial statements: revenue 7.8 bn USD in 2026; YoY growth 1.0%; net margin 5.7%; ROE 27.4%; net debt/EBITDA 2.3x.
The estimated value range is 82.17–126.16 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 108.43 USD, the price of 39.64 USD leaves a potential of 173.5% (value / price − 1) and a margin of safety of 63.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 62/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 5.7%
- P/E (TTM): 11.4x
- EV/EBITDA: 7.9x
- The price is below the estimated value range
What contradicts it
- Current ratio: 0.9x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, FCF yield, Payout ratio (FCF).
Versus the vertical median
Heavy Construction Other Than Bldg Const - Contractors (SIC 1600) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| JJacobs Solutions Inc. | 18.7 bn | 54.3 | 9.6% | 2.4% | +4.6% | +19% / +52% |
| STRLSterling Infrastructure, Inc. | 8.7 bn | 15.9 | 43.3% | 12.9% | +17.7% | −18% / +347% |
| FLRFluor Corporation | 6.4 bn | — | -46.2% | -12.8% | −5.0% | +11% / +25% |
| GVAGranite Construction Inc | 5.8 bn | — | -25.2% | -5.0% | +10.4% | +23% / +188% |
| KBRKBR, Inc. | 5.0 bn | 11.4 | 27.4% | 5.7% | +1.0% | −7% / −22% |
| ROADConstruction Partners, Inc. | 1.9 bn | 38.9 | 15.0% | 4.1% | +54.2% | −9% / +137% |
| ORNOrion Group Holdings, Inc. | 318.8 m | 50.9 | 3.5% | 0.6% | +7.0% | −22% / +63% |
| SHIMShimmick Corporation | 98.8 m | — | — | -3.8% | +2.6% | −9% / −61% |
| SLNDSouthland Holdings, Inc. | 40.8 m | — | — | -67.0% | −21.2% | −76% / −86% |
| CDNLCardinal Infrastructure Group Inc | — | — | 7.4% | 2.7% | +44.7% | unavailable / unavailable |
| FERFerrovial N.V. | — | — | 14.8% | 9.2% | +5.2% | −10% / +79% |
1- and 3-year price returns: for KBR from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 23.37 Total return -40% · Per year -40% | 41.32 Total return 6% · Per year 6% | 62.26 Total return 59% · Per year 59% |
| 3 years | 22.37 Total return -40% · Per year -16% | 44.55 Total return 18% · Per year 6% | 73.74 Total return 93% · Per year 24% |
| 5 years | 21.42 Total return -40% · Per year -10% | 48.02 Total return 31% · Per year 5% | 87.34 Total return 133% · Per year 18% |
- Exit P/E± 11.14
- Net margin± 7.80
- Annual revenue growth± 6.44
- Annual dilution± 0.66
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
KBR delivers engineering, technology and logistics support to the U.S. government, allies and commercial clients, combining defense work with proprietary process technologies for energy and specialty chemicals. The company is preparing to spin off its Mission Technology Solutions business, with a backlog of 16,864 million USD at the end of fiscal 2025 and 57% of revenues coming from the U.S. government.
SWOT
Strengths
- A portfolio of proprietary technologies and recognized technical expertise, backed by long relationships with government clients 1.
- A large and stable backlog of multi-year contracts, which provides visibility on revenues 1.
- A low capital intensity business model that generates favorable operating cash flows 1.
Weaknesses
- Heavy dependence on the U.S. government, which accounts for a large share of revenues and exposes the company to budget cuts 1.
- Delays in contract awards and government payments can weigh on cash flow 3.
- Costs linked to the planned separation of Mission Technology Solutions reduced operating results in the latest quarter 3.
Opportunities
- Higher defense budgets in the U.S., the U.K. and Australia could open new opportunities in intelligence and space programs 2.
- Demand for energy security and decarbonization could support the expansion of the STS segment 1.
- Separating the two businesses could allow each to pursue its own growth strategy 3.
Risks
- Concentration on government clientshigh
Revenues depend heavily on U.S. government contracts; an interruption or reduction in funding could affect financial results 1.
- Delayed or cancelled contractshigh
Contract awards and funding may be postponed or cancelled, while costs for staff kept ready in advance can remain fixed 1.
- Separation of the businessesmedium
The separation process involves one-time costs and execution risks that could affect short-term operating results 3.
- Tariffs and international conflictsmedium
Tariffs, sanctions and instability in the Middle East and Eastern Europe could raise costs and complicate international operations 1.
- Protection of intellectual propertylow
If proprietary technologies cannot be protected, the company's competitive advantage could weaken 1.
Investment thesis
What would need to be true (bull case)
- A high backlog and growing activity in the sustainable technology segment could support revenues over the medium term 3.
- Higher proposed defense budgets and NATO commitments could open additional opportunities in the U.K. and Australia 2.
- Separating the businesses could let each company focus its resources and improve efficiency 3.
What would break the thesis
- Dependence on government budgets and delays in contract awards could limit revenue growth in defense 1.
- Lower EUCOM contingency activity and separation costs have already weighed on operating results in 2026 3.
- Contract protests and tariffs could prolong projects and raise costs, affecting short-term margins 2.
What to watch
- Completion of the Mission Technology Solutions separation and its effect on the financial structuresecond half of 2026
- Resolution of protests against contracts awarded but not yet in backlogQ3 2026
- Development of backlog and book-to-bill in the STS segmentQ3 2026
- Effect of government procurement reform on the award of new contractsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
KBR, Inc., a Delaware corporation, delivers science, technology, engineering and logistics support solutions to governments, allies and companies around the world 1. Its activity rests on long-term programs with technical, scientific or mission-specific differentiation, and on an operating model oriented toward agile, digitally enabled delivery 1. Its areas span defense, space, intelligence, energy and industrial technologies, supported by a portfolio of over 85 proprietary process technologies 1.
In fiscal 2025, revenues rose slightly to 7,786 million USD from 7,710 million USD a year earlier, helped by the LinQuest acquisition and engineering services in STS 1. In September 2025 the company announced its intention to spin off Mission Technology Solutions into a separately listed company, targeted for completion in the second half of fiscal 2026 1. The first half of 2026 showed revenues of 3.9 billion USD, down 2%, due to lower EUCOM contingency activity, while total backlog and options reached 23.0 billion USD 3.
The reporting structure includes two core segments, Mission Technology Solutions and Sustainable Technology Solutions, plus a non-core Corporate segment for unallocated costs 1. The company also operates through significant joint ventures accounted for under the equity method, such as Aspire Defence and the LNG projects in Australia and Louisiana 1.
Segments
Mission Technology Solutions
The segment provides full life-cycle support for defense, intelligence, space and aviation programs, mainly for the U.S., the U.K. and Australia 1. Segment revenues were 5,581 million USD in fiscal 2025 with operating income of 463 million USD, while in the second quarter of fiscal 2026 revenues fell 2% to 1.3 billion USD due to lower EUCOM activity 3.
Sustainable Technology Solutions
The segment relies on more than 85 proprietary sustainability-focused technologies for ammonia, petrochemicals, clean refining and circular economy, complemented by advisory and engineering services for energy transition 1. Revenues were 2,205 million USD in fiscal 2025, and in the second quarter of fiscal 2026 they grew 10% to 676 million USD, with a record backlog of 5.5 billion USD 3.
Market context
U.S. defense demand depends on annual budget appropriations; for fiscal 2026 Congress provided 839 billion USD in discretionary defense spending and the NDAA supports up to about 901 billion USD 2. The proposed fiscal 2027 budget envisages 1.5 trillion USD for defense, but it remains subject to political debate 2. In energy, structural demand is supported by energy security and decarbonization needs, and companies are evaluating options such as hydrogen and green ammonia 1.
Work for the U.K. and Australian governments is supported by NATO commitments to invest 5% of GDP in defense by 2035, and Australia plans to reach 3.00% of GDP by 2033 2. However, budget delays and U.S. acquisition reforms could postpone contract awards 1.
Trends
- Rising defense budgetstailwind
Appropriations and NATO commitments suggest sustained demand for defense and intelligence programs, which could support the company's backlog 2.
- U.S. acquisition reformheadwind
The executive order on reviewing private-sector contracts and the acquisition transformation strategy could delay contract awards or change program funding 2.
- Energy security and decarbonization demandmixed
Concern about energy security and the shift to cleaner energy supports demand for the STS segment's proprietary technologies, although client investment could be delayed by tariffs and inflation 1.
- Geopolitical conflicts and tariffsheadwind
Conflicts involving Russia, Ukraine and the Middle East, together with tariffs, could raise costs on fixed-price contracts, and their full effects cannot be predicted 1.
Competitive position
The reviewed sources do not explicitly name the company's competitors, so the list below reflects only categories of firms implied by its engineering and defense activity. The market for government and energy services is fragmented, and KBR's advantages rest on technical expertise, proprietary technologies and long-standing client relationships 1.
The company differentiates itself as a capability integrator independent of original equipment manufacturers, a position that the Department of War's acquisition strategy also emphasizes 2. Without an official competitor list, however, the intensity of competition is hard to assess precisely 1.
- Defense systems integrators
Firms competing for systems engineering and integration contracts, not named in the reviewed sources.
- Energy engineering companies
Providers of engineering and process licensing for the energy and chemical industries, not named in the sources.
- Government services providers
Contractors offering logistics and technical support to governments, not named in the documents reviewed.
- Joint-venture partners
Partners such as Elbit Systems in the Affinity venture can also be competitors on certain projects, depending on contract structure 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report16 Oct 2026Amendments to articles or bylaws · Financial statements and exhibits
- Current report01 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report10 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Current report18 May 2026Shareholder vote
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-02 · SEC / KBR, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-03 · SEC / KBR, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / KBR, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.