Engineering and defense contractor KBR Q3 revenue misses, cuts FY view due to US government shutdown

KBR

30/10/2025 10:13

Overview

KBR Q3 revenue of $1.9 bln missed analyst expectations

Adjusted EPS for Q3 beats analyst estimates, rising 21% yr/yr

Company revises FY 2025 guidance due to U.S. Government shutdown

Outlook

KBR revises FY 2025 revenue guidance to $7.75 bln-$7.85 bln from $7.9 bln-$8.1 bln

Company maintains FY 2025 Adjusted EBITDA guidance at $960 mln-$980 mln

KBR cites U.S. Government shutdown for revised award pace and bid resolution

Result Drivers

REVENUE DECLINE - Revenue decreased slightly due to slower award pace and EUCOM reductions, offset by growth in Defense & Intel

ADJUSTED EBITDA GROWTH - 10% increase in Adjusted EBITDA attributed to strong project execution on LNG projects

STRONG BOOK-TO-BILL - Maintained a strong book-to-bill ratio of 1.4x, indicating robust future business prospects

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.90 bln
$1.97 bln (6 Analysts)
Q3 Adjusted EPS
Beat
$1.02
$0.95 (6 Analysts)
Q3 EPS
$0.90
Q3 Net Income
$115 mln
Q3 Adjusted EBITDA
$240 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for KBR Inc is $61.00, about 29.7% above its October 29 closing price of $42.89

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX6gG6gm

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)