KBR Q2 revenue misses estimates

KBR

31/07/2025 11:11

Overview

KBR fiscal Q2 revenue up 6% to $2.0 bln, missing analyst expectations

Adjusted EPS for fiscal Q2 rises 10%, beating consensus, per LSEG data

Co revises fiscal yr 2025 guidance due to contract terminations and delays

Outlook

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

Company updates FY 2027 revenue target to $9.0 bln+

Company cites HomeSafe JV termination for guidance revision

Result Drivers

DEFENSE & INTEL GROWTH - Revenue increased 6% to $2.0 bln, driven by growth in Defense & Intel, supported by the LinQuest acquisition

STRONG PROJECT EXECUTION - Operating income rose 8% due to strong project execution on an LNG project, despite higher selling, general and administrative expenses

CONTRACT TERMINATION IMPACT - Net income fell 31% to $73 mln, primarily due to the termination of the HomeSafe contract

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2 bln
$2.08 bln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.91
$0.88 (6 Analysts)
Q2 EPS
$0.56
Q2 Net Income
$73 mln
Q2 Adjusted EBITDA
$242 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 $68.50, about 33.5% above its July 30 closing price of $45.52

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNXhvgzM

(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.)