KBR Q4 revenue slightly misses on slower pace of awards

KBR

26/02/2026 11:14

Overview

Engineering solutions provider's Q4 revenue slightly missed analyst expectations, down 11% yr/yr

Adjusted EPS for Q4 beat analyst expectations, rising 10%

Company made progress on planned spin-off, enhancing strategic focus

Outlook

KBR issues fiscal 2026 revenue guidance of $7.90 bln to $8.36 bln

Company expects fiscal 2026 adjusted EBITDA between $980 mln and $1,040 mln

KBR plans to spin off Mission Technology Solutions in the second half of 2026

Result Drivers

REVENUE DECLINE - Revenue fell 11% due to slower award pace and EUCOM scope reductions

OPERATING INCOME GROWTH - Operating income rose 36% due to increased earnings from affiliates and reduced expenses

SEGMENT PERFORMANCE - MTS revenue down 14% due to procurement delays; STS revenue down 2% due to capital allocation reassessment

Company press release: ID:nGNX3S00Bb

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$1.90 bln
$1.91 bln (9 Analysts)
Q4 Adjusted EPS
Beat
$0.99
$0.95 (9 Analysts)
Q4 EPS
$0.87
Q4 Net Income
$111 mln
Q4 Adjusted EBITDA
$238 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "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 $51.50, about 26.2% above its February 25 closing price of $40.81

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)