# KBR (KBR.US)

Canonical: https://gigainvestors.com/s/KBR

Analysis as of: 2026-10-16T07:29:34.765Z. Financial observations: FY2002–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $36.44 per share; close as of 2026-10-15.

Estimated value: low $27.36 per share, central $30.96 per share, high $35.76 per share. Buy at or below the central value $30.96 per share. Valuation as of 2026-10-16T07:29:34.765Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 0.52×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: 0.06×

- FY2018: 0.10×

- FY2019: 0.06×

- FY2020: 0.01×

- FY2021: 0.03×

- FY2022: 0.05×

- FY2023: 0.06×

- FY2024: 0.09×

- FY2025: 0.07×

### moat: pass

- ROIC, median of available years: 28.8%

- ROIC, second-lowest year: 10.2%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 11.7%

- Recent gross margin (lower of latest and 3-year median): 14.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.4%

- ROIC including acquisitions, ten-year median: 8.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: 67.5%

- FY2018: 28.5%

- FY2019: 17.9%

- FY2020: 3.3%

- FY2021: 10.2%

- FY2022: 18.8%

- FY2023: 30.6%

- FY2024: 34.1%

- FY2025: 29.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.60×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $742M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -3.5 pp

- Working capital / revenue, final three-year average: 8.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 5.04×

- FY2022: 1.35×

- FY2023: 0.77×

- FY2024: 1.21×

- FY2025: 1.31×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 67.5% vs 30.6%

- Per-share earnings: 1.41 to 2.80 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.1%

- Ordinary dilution, 5-year annual growth: -1.9%

- Market cap gain: $2.7B

- Cumulative retained earnings: $1.2B

- Diluted shares, 10-year annual growth: -1.1%

- Diluted shares, 5-year annual growth: -1.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: $1.39

- Per-share value, starting three-year median: $1.41

- Per-share value, ending three-year median: $2.80

- Buybacks concentrated in cheaper years (correlation): 0.22

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.3B

- Cumulative net income, 10 years: $1.5B

- ROIC, first three-year median: 67.5%

- ROIC, last three-year median: 30.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.43

- FY2017: $3.06

- FY2018: $1.99

- FY2019: $1.42

- FY2020: -$0.51

- FY2021: $0.19

- FY2022: $1.22

- FY2023: -$1.96

- FY2024: $2.80

- FY2025: $3.22

### accounting: pass

- Sloan accruals: -1.7%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: 6.5%

- FY2018: 2.3%

- FY2019: -1.0%

- FY2020: -7.7%

- FY2021: -4.0%

- FY2022: -3.7%

- FY2023: -10.7%

- FY2024: -1.3%

- FY2025: -1.7%

## Holders

- [Leon Cooperman](https://gigainvestors.com/oa): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 47% since Aug 2024 · "KBR Q3 Deep Dive: Revenue Guidance Cut as Award Delays and Contract Protests Weigh" (finance.yahoo.com, Oct 2025) · sales +0.6%

Story as of 2026-10-16T09:59:00.335Z; price observation 2026-10-15.

Price needs cash profits to grow 3% a year for ten years

- 2025-06-23: KeyBanc downgrades KBR stock rating after HomeSafe program termination ([investing.com](https://www.investing.com/news/analyst-ratings/keybanc-downgrades-kbr-stock-rating-after-homesafe-program-termination-93CH-4104912))

- 2025-07-31: KBR updates 2027 targets to $9B+ revenues and $1.15B adjusted EBITDA following HomeSafe exit ([seekingalpha.com](https://seekingalpha.com/news/4475821-kbr-updates-2027-targets-to-9b-revenues-and-1_15b-adjusted-ebitda-following-homesafe-exit?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-14: Big Win for KBR as NASA Hands Over $2.5B Space Support Contract ([finance.yahoo.com](https://finance.yahoo.com/news/big-win-kbr-nasa-hands-171200032.html))

- 2025-10-31: KBR Q3 Deep Dive: Revenue Guidance Cut as Award Delays and Contract Protests Weigh ([finance.yahoo.com](https://finance.yahoo.com/news/kbr-q3-deep-dive-revenue-142143104.html))

- 2026-01-06: KBR Secures Up to $350M USGS Technical Support Services Contract ([finance.yahoo.com](https://finance.yahoo.com/news/kbr-secures-350m-usgs-technical-170500323.html))

- 2026-04-27: KBR’s Mission Technology Solutions Awarded $200 Million to Accelerate Safer, Smarter US Transportation Systems ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/kbr-mission-technology-solutions-awarded-100000721.html))

### Sales · FY2024–2025

sales +0.6%; source https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm; observed 2026-02-26.

- FY2016: $4.3B 

- FY2017: $4.2B 

- FY2018: $4.9B 

- FY2019: $5.6B 

- FY2020: $5.8B 

- FY2021: $7.3B 

- FY2022: $6.6B 

- FY2023: $7.0B 

- FY2024: $7.7B 

- FY2025: $7.8B 

### Gross margin · FY2025

gross margin 14.8%; source https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm; observed 2026-02-26.

- FY2016: 2.6% 

- FY2017: 10.5% 

- FY2018: 11.9% 

- FY2019: 11.6% 

- FY2020: 11.5% 

- FY2021: 11.0% 

- FY2022: 12.6% 

- FY2023: 14.0% 

- FY2024: 14.2% 

- FY2025: 14.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are USD 7.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm (filed 2026-02-26); FY2025: revenue 7786000000; grossProfit 1150000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KBR.US: KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through Government Solutions and Sustainable Technology Solutions segments. It offers research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, data analytics and integration, systems integration and program management, global supply chain management, operations readiness and support, and professional advisory services, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies. The company also operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. In addition, it provides synergistic services, including energy security, broad-based energy transition and net-zero carbon emission solutions, high-end engineering, design and program management centered around decarbonization, energy efficiency, and environmental impact and asset optimization, as well as digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.

### Why customers stay

Margins ranged from 14% to 14.8% during 2023–25; it earns 28.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 14%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 14.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,1.6545454545454545],[2017,0.6751918158567775],[2018,0.2846648301193756],[2019,0.17856165094829457],[2020,0.0329407461594733],[2021,0.10179661016949153],[2022,0.18822023047375158],[2023,0.30563039723661484],[2024,0.34110927933764035],[2025,0.2921981354599573]]; median 0.28843148278966646. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 2.6% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 8000000; cash acquisitions 4000000; owner earnings 472000000. Growth capex plus acquisitions / owner earnings = 0.00847457627118644.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 17000000; cash acquisitions 354000000; owner earnings 327000000. Growth capex plus acquisitions / owner earnings = 1.0825688073394495.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 20000000; cash acquisitions 0; owner earnings 286000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 20000000; cash acquisitions 832000000; owner earnings 23000000. Growth capex plus acquisitions / owner earnings = 36.17391304347826.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 37000000; cash acquisitions 399000000; owner earnings 136000000. Growth capex plus acquisitions / owner earnings = 2.9338235294117645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 71000000; cash acquisitions 73000000; owner earnings 256000000. Growth capex plus acquisitions / owner earnings = 0.28515625.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 77000000; cash acquisitions 738000000; owner earnings 454000000. Growth capex plus acquisitions / owner earnings = 1.6255506607929515.

- Source: https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 42000000; cash acquisitions 14000000; owner earnings 542000000. Growth capex plus acquisitions / owner earnings = 0.025830258302583026.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,46000000],[2017,45000000],[2018,44000000],[2019,46000000],[2020,54000000],[2021,61000000],[2022,66000000],[2023,72000000],[2024,79000000],[2025,84000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm (filed 2026-02-26); FY2025: cash repurchases 329000000 USD.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KBR.US SharesStats.PercentInsiders = 1.21 percentage points; cache date 2026-10-16.

### What could break it

No other customers represented 10% or more of consolidated revenues in any of the periods presented.

- Source: https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm (filed 2026-02-26); Geological Survey and National Oceanic and Atmospheric Administration; and from the U.K government. No other customers represented 10% or more of consolidated revenues in any of the periods presented. The following table summarizes our revenues from contracts with U.S. and U.K. government agencies for which we are the prime contractor, as well as for those contracts in which we are a subcontractor and the ultimate customer is a U.S. or U.K. government agency, respectively.

### What the price says

The price assumes cash profits grow 3% yearly over ten years; actual growth was 10.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.03017767908558533. Price 36.44; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.6111111111111112 → FY2025 4.2015503875969. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.81 per share

- 2016-11: $16.71 per share

- 2016-12: $16.69 per share

- 2017-01: $17.01 per share

- 2017-02: $15.05 per share

- 2017-03: $15.03 per share

- 2017-04: $14.05 per share

- 2017-05: $13.63 per share

- 2017-06: $15.22 per share

- 2017-07: $14.92 per share

- 2017-08: $16.27 per share

- 2017-09: $17.88 per share

- 2017-10: $19.63 per share

- 2017-11: $18.75 per share

- 2017-12: $19.83 per share

- 2018-01: $20.34 per share

- 2018-02: $15.14 per share

- 2018-03: $16.19 per share

- 2018-04: $16.69 per share

- 2018-05: $18.42 per share

- 2018-06: $17.92 per share

- 2018-07: $19.98 per share

- 2018-08: $20.98 per share

- 2018-09: $21.13 per share

- 2018-10: $19.78 per share

- 2018-11: $18.57 per share

- 2018-12: $15.18 per share

- 2019-01: $17.20 per share

- 2019-02: $19.76 per share

- 2019-03: $19.09 per share

- 2019-04: $22.22 per share

- 2019-05: $22.22 per share

- 2019-06: $24.94 per share

- 2019-07: $26.38 per share

- 2019-08: $25.52 per share

- 2019-09: $24.54 per share

- 2019-10: $28.16 per share

- 2019-11: $29.77 per share

- 2019-12: $30.50 per share

- 2020-01: $27.20 per share

- 2020-02: $25.96 per share

- 2020-03: $20.68 per share

- 2020-04: $20.26 per share

- 2020-05: $23.45 per share

- 2020-06: $22.55 per share

- 2020-07: $22.24 per share

- 2020-08: $24.99 per share

- 2020-09: $22.36 per share

- 2020-10: $22.29 per share

- 2020-11: $27.77 per share

- 2020-12: $30.93 per share

- 2021-01: $29.05 per share

- 2021-02: $31.00 per share

- 2021-03: $38.39 per share

- 2021-04: $39.56 per share

- 2021-05: $40.74 per share

- 2021-06: $38.15 per share

- 2021-07: $38.70 per share

- 2021-08: $38.94 per share

- 2021-09: $39.40 per share

- 2021-10: $42.44 per share

- 2021-11: $44.00 per share

- 2021-12: $47.62 per share

- 2022-01: $43.40 per share

- 2022-02: $49.64 per share

- 2022-03: $54.73 per share

- 2022-04: $49.23 per share

- 2022-05: $49.76 per share

- 2022-06: $48.39 per share

- 2022-07: $53.23 per share

- 2022-08: $48.30 per share

- 2022-09: $43.22 per share

- 2022-10: $49.77 per share

- 2022-11: $51.67 per share

- 2022-12: $52.80 per share

- 2023-01: $51.23 per share

- 2023-02: $55.11 per share

- 2023-03: $55.05 per share

- 2023-04: $56.73 per share

- 2023-05: $59.02 per share

- 2023-06: $65.06 per share

- 2023-07: $61.49 per share

- 2023-08: $61.52 per share

- 2023-09: $58.94 per share

- 2023-10: $58.15 per share

- 2023-11: $51.67 per share

- 2023-12: $55.41 per share

- 2024-01: $52.11 per share

- 2024-02: $60.03 per share

- 2024-03: $63.66 per share

- 2024-04: $64.94 per share

- 2024-05: $65.66 per share

- 2024-06: $64.14 per share

- 2024-07: $66.59 per share

- 2024-08: $69.36 per share

- 2024-09: $65.13 per share

- 2024-10: $67.01 per share

- 2024-11: $60.83 per share

- 2024-12: $57.93 per share

- 2025-01: $54.42 per share

- 2025-02: $49.03 per share

- 2025-03: $49.81 per share

- 2025-04: $52.81 per share

- 2025-05: $52.19 per share

- 2025-06: $47.94 per share

- 2025-07: $46.74 per share

- 2025-08: $50.46 per share

- 2025-09: $47.29 per share

- 2025-10: $42.84 per share

- 2025-11: $41.22 per share

- 2025-12: $40.20 per share

- 2026-01: $42.81 per share

- 2026-02: $42.23 per share

- 2026-03: $36.86 per share

- 2026-04: $37.49 per share

- 2026-05: $34.95 per share

- 2026-06: $34.53 per share

- 2026-07: $36.61 per share

- 2026-08: $37.50 per share

- 2026-09: $35.16 per share

- 2026-10: $36.44 per share

## Annual estimated value (USD per share)

- FY2016: low $5.74 per share, central $6.15 per share, high $6.69 per share

- FY2017: low $5.00 per share, central $5.40 per share, high $5.94 per share

- FY2018: low $19.63 per share, central $22.02 per share, high $25.20 per share

- FY2019: low $24.40 per share, central $27.44 per share, high $31.48 per share

- FY2020: low $23.71 per share, central $26.81 per share, high $30.95 per share

- FY2021: low $29.61 per share, central $33.59 per share, high $38.89 per share

- FY2022: low $18.90 per share, central $21.38 per share, high $24.67 per share

- FY2023: low $10.68 per share, central $12.12 per share, high $14.03 per share

- FY2024: low $12.27 per share, central $13.88 per share, high $16.03 per share

- FY2025: low $28.40 per share, central $31.95 per share, high $36.67 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1357615/000135761526000051/kbr-20260102.htm); period 2026-01-02, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.