KBR, Inc. (KBR) AI Stock Analysis

KBR, Inc. is a global provider of scientific, technology, and engineering solutions to governments and commercial clients. Headquartered in Houston, Texas, the company operates across two primary segments: Government Solutions and Sustainable Technology Solutions. Government Solutions provides life-cycle support to defense, intelligence, space, aviation, and other government programs in the United States, the United Kingdom, and Australia, delivering systems engineering, cyber analytics, systems integration, and C4ISR support. Sustainable Technology Solutions offers over 70 proprietary process technologies spanning ammonia, syngas, fertilizers, clean refining, and circular economy solutions, alongside advisory and consulting services focused on energy transition and net-zero carbon emissions.

KBR achieved a 5-year revenue compound annual growth rate of 6.2% from FY2020 to FY2025. Annual revenue expanded from $7.34B in FY2021 to $7.79B in FY2025, while gross margin improved from 11.0% to 14.8%. Net income rose from $27.0M in FY2021 to $415.0M in FY2025, overcoming a loss of -$265.0M in FY2023. Over that period, diluted earnings per share expanded from $2.39 to $3.90. For the trailing twelve months ended June 30, 2026, revenue stood at $7.72B with an operating margin of 7.6%. In the latest quarter, revenue grew 1.6% year-over-year while quarterly earnings surged 33.1%.

As of June 30, 2026, KBR held $312.0M in cash and short-term investments against total debt of $2.80B, leaving net debt at $2.49B. Shareholders' equity was $1.64B, resulting in a debt-to-equity ratio of 1.71 and a current ratio of 1.15. In FY2025, operating cash flow reached $524.0M and free cash flow stood at $482.0M. Capital expenditures absorbed $42.0M, while KBR allocated $329.0M to share buybacks and $84.0M to dividends, contributing to a 14.1% reduction in share count over 5 years.

KBR carries a market capitalization of $4.59B and an enterprise value of $7.00B. The stock trades at a trailing price-to-earnings ratio of 10.9x and a forward price-to-earnings ratio of 8.1x, compared to medians of 24.8x and 17.2x for US-listed Industrials peers. Its enterprise value-to-EBITDA multiple of 7.8x also sits below the peer median of 13.9x, while its price-to-sales ratio is 0.6x compared to 1.5x for peers. Over the past year, KBR returned -15.4%, lagging the 16.8% return of the S&P 500 (SPY). Over 5 years, KBR returned -9.1% versus 83.0% for the S&P 500.

KBR pays an annual forward dividend of $0.66 per share, yielding 1.81% on a quarterly schedule. The payout ratio stands at 16.7%. KBR has paid consecutive dividends for 19 years and generated a 5-year annualized dividend growth rate of 10.5%. The last ex-dividend date is December 15, 2026.

Wall Street coverage includes 4 Strong Buy and 4 Hold recommendations among analysts. The mean price target of $44.29 indicates an upside of 21.7% relative to the last close of $36.38. For the fiscal year ending December 31, 2026, consensus estimates project earnings per share of $4.00 on revenue of $8.06B. For the following fiscal year, 9 analysts project revenue of $8.52B and EPS of $4.08. KBR beat consensus earnings estimates in all 4 of its last 4 quarters, with the next earnings release scheduled for October 29, 2026.

This page is an AI-written research summary of KBR, Inc. (KBR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: KBR income statement, KBR balance sheet, KBR key metrics, KBR analyst forecast, KBR chart. See the KBR stock overview for the latest quote and news.