KBR (KBR) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 FY26 were $2.0B, up 2% year-over-year, with net income of $96M, up 32%, and diluted EPS at $0.75; adjusted EPS rose to $0.99.

• Adjusted EBITDA for Q2 was $258M, with margin expanding to 13.0%; operating income declined 11% to $172M due to spin-off costs.

• Record backlog and robust demand across both business segments, with strong project execution and margin expansion.

• The planned separation into two companies, new KBR and Trinzic, is on track for January 2027, with leadership teams and operational readiness advancing.

• Guidance for FY26 reaffirmed, focusing on execution, cash generation, and disciplined capital allocation.

Financial highlights

• Q2 2026 revenues were $2.0B (+2% YoY); six-month revenues were $3.9B (-2% YoY due to EUCOM contingency runoff).

• Adjusted EBITDA for Q2 was $258M (up $16M YoY), with a margin of 13.0%; adjusted EPS increased to $0.99.

• Net income for Q2 was $96M (up 32% YoY); diluted EPS was $0.75 (up 34% YoY).

• Operating cash flows from continuing operations for Q2 were $50M, down 77%; adjusted operating cash flows were $64M, down 71%.

• $46M was returned to shareholders in Q2 via $25M in share repurchases and $21M in dividends.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: revenues of $7.90B–$8.36B, adjusted EBITDA of $980M–$1,040M, adjusted EPS of $3.87–$4.22, and adjusted operating cash flows of $560M–$600M.

• Approximately 89% of expected annual revenue is already under contract (80% for STS, 94% for MTS).

• Standalone outlooks for the planned spin-off will be updated in connection with the transaction.