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KBR (KBR) investor relations material

KBR Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Delivered strong operational and financial performance in 2025, achieving margin expansion, robust cash flow, and backlog growth despite a challenging award environment, with disciplined execution across both business segments.

  • Advanced innovation initiatives, including the launch of INSITE 3.0, digital engineering, and AI-driven solutions.

  • Successfully integrated LinQuest, expanded globally, and executed the SWAT acquisition, more than doubling EBITDA in the BRIS JV.

  • Progressed spin-off preparations, targeting distribution in the second half of 2026, with regulatory filings, carve-out audits, and leadership appointments underway.

  • Both business segments enter 2026 with improving momentum, strong backlog, and pipeline visibility.

Financial highlights

  • FY25 revenues reached $7.8B, up 1% year-over-year; Q4 revenues were $1.89B, down year-over-year due to award timing and reduced contingency scope.

  • Adjusted EBITDA for FY25 was $968M, up $100M (margin 12.4%); Q4 Adjusted EBITDA was $238M (margin 12.6%).

  • Adjusted EPS for FY25 was $3.93, up $0.60; Q4 Adjusted EPS was $0.99, up $0.09.

  • Operating cash flow for FY25 was $557M, representing 110% conversion to adjusted net income.

  • Returned a record $413M to shareholders through buybacks and dividends in 2025.

Outlook and guidance

  • 2026 guidance: revenues $7.90B–$8.36B, adjusted EBITDA $980M–$1.04B, adjusted EPS $3.87–$4.22, and adjusted operating cash flow $560M–$600M.

  • Guidance assumes 4% year-over-year growth at the midpoint across key metrics.

  • CapEx projected at $40–$50M; effective tax rate expected at 26–28%; D&A ~$165M.

  • Revenues and EPS expected to be weighted 46% in H1 and 54% in H2 of 2026.

  • Spin-off of Mission Technology Solutions targeted for completion in H2 2026.

Drivers of Q4 operating income margin expansion
MTS vs STS award momentum differences
Rationale for spin-off perimeter changes
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Frequently asked questions

KBR Inc provides engineering, construction, and technology services to the government, defense, and energy sectors. The company offers mission-critical solutions in logistics, systems integration, space exploration, and process engineering. It operates worldwide through a mix of service contracts and proprietary technologies. The company is headquartered in Houston, Texas, and its shares are listed on the NYSE.

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