KBR (KBR) investor relations material

Executive summary

• Q3 revenue rose 5% YoY to $2.028B; net income attributable to KBR increased 16% to $133M, adjusted EBITDA rose 12% to $268M, and adjusted EPS advanced 10% to $1.12.

• Sustainable Tech growth offset lower Mission Tech revenue; Mission Tech margins expanded despite expected NASA-related headwinds.

• FY2026 guidance was reaffirmed as separation preparations progressed toward a January 4, 2027 target.

Financial highlights

• Operating income fell 3% to $186M; higher gross profit was partly offset by increased spin-off costs and SG&A.

• Q3 continuing-operations net income was $132M versus $118M; diluted EPS was $1.06 versus $0.90.

• Nine-month revenue rose 1% to $5.935B and attributable net income rose 9% to $331M, while operating income declined 8% to $538M.

• Q3 spin-off costs and other charges were $24M; nine-month charges totaled $70M, including planned separation costs and lease impairments.

Outlook and guidance

• FY2026 guidance reaffirmed: revenue $7.90B–$8.36B, adjusted EBITDA $980M–$1.04B, adjusted EPS $3.87–$4.22, and adjusted operating cash flow $560M–$600M.

• Q4 assumes flat to modestly lower sequential Mission Tech revenue and continued low-double-digit sequential Sustainable Tech growth.

• Full-year cash flow is expected within guidance, though delayed Middle East collections could shift $25M–$50M beyond year-end.

• NASA insourcing is expected to be completed this year; first-half 2027 comparisons will be challenging, with further potential headwinds in 2027.