KBR Inc
NYSE:KBR
KBR Inc
KBR Inc., once a subsidiary of the engineering and construction giant Halliburton, evolved into a formidable player in its own right after its spin-off in the mid-2000s. The company, headquartered in Houston, Texas, has charted a trajectory from its origins in oilfield services to becoming a diversified provider of technology-driven solutions across various sectors. At the core of KBR's business model is its commitment to delivering mission-critical solutions in sectors ranging from government services to technology and energy. KBR leverages its engineering prowess and technological innovations to support national defense, space exploration, and other essential infrastructure projects. This strategic diversification enables the company to remain agile and resilient, responding adeptly to evolving global demands.
Central to KBR's revenue generation is its ability to secure multi-year contracts with governmental and commercial clients. The company's Government Solutions segment plays a pivotal role, providing logistics, operations, and engineering services to military and governmental agencies worldwide. In parallel, the Sustainable Technology Solutions arm caters to energy and chemicals markets, offering technology and consulting services aimed at sustainable development. By emphasizing long-term contracts and strategic partnerships across these segments, KBR constructs a business model that not only ensures steady cash flow but also positions it as a leader in both traditional and emerging markets, ensuring adaptability in a rapidly shifting global landscape.
KBR Inc., once a subsidiary of the engineering and construction giant Halliburton, evolved into a formidable player in its own right after its spin-off in the mid-2000s. The company, headquartered in Houston, Texas, has charted a trajectory from its origins in oilfield services to becoming a diversified provider of technology-driven solutions across various sectors. At the core of KBR's business model is its commitment to delivering mission-critical solutions in sectors ranging from government services to technology and energy. KBR leverages its engineering prowess and technological innovations to support national defense, space exploration, and other essential infrastructure projects. This strategic diversification enables the company to remain agile and resilient, responding adeptly to evolving global demands.
Central to KBR's revenue generation is its ability to secure multi-year contracts with governmental and commercial clients. The company's Government Solutions segment plays a pivotal role, providing logistics, operations, and engineering services to military and governmental agencies worldwide. In parallel, the Sustainable Technology Solutions arm caters to energy and chemicals markets, offering technology and consulting services aimed at sustainable development. By emphasizing long-term contracts and strategic partnerships across these segments, KBR constructs a business model that not only ensures steady cash flow but also positions it as a leader in both traditional and emerging markets, ensuring adaptability in a rapidly shifting global landscape.
Revenue Guidance: KBR updated its 2025 revenue outlook to $7.75–$7.85 billion, with the midpoint flat year-on-year amid award delays and shutdown impacts.
Profit Metrics Reaffirmed: Despite revenue headwinds, adjusted EBITDA guidance remains at $960–$980 million, and adjusted EPS guidance is $3.78–$3.88.
Strong Cash Flow: Operating cash flow reached $506 million year-to-date (up 24%), with conversion over 130% of net income, already delivering 96% of annual cash guidance.
Book-to-Bill Strength: Q3 book-to-bill was 1.4x, and total backlog and options rose 13% to over $23 billion—the highest in recent history.
Segment Performance: Adjusted EBITDA margin hit 12.4% (up 100 bps); EPS rose 21% and cash generation was a highlight. STS delivered especially strong margins and profit.
Capital Returns: More than $360 million was returned to shareholders year-to-date through buybacks and dividends.
Spin-Off Progress: KBR’s planned spin of the Mission Technologies segment remains on track for mid- to late-2026 completion.
Resilience to Shutdown: Over 60% of adjusted EBITDA has no exposure to US government budget risk, limiting shutdown impacts.
