KBR (KBR) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 and FY2024 results, exceeding guidance with double-digit growth in revenue, Adjusted EBITDA, and Adjusted EPS, along with margin expansion.

• Achieved significant contract wins in defense, sustainable tech, and energy, supporting future growth.

• Completed LinQuest acquisition, enhancing digital, engineering, and space capabilities, and completed segment realignment to improve agility and market alignment.

• Diversified business model with over 60% of Adjusted EBITDA from non-U.S. government customers, providing resilience.

• Ended 2024 with over $21 billion in backlog and options, and more than 75% of 2025 work under contract.

Financial highlights

• Q4 2024 revenue: $2.1B (up 23% YoY, 15% organic); FY2024 revenue: $7.7B (up 11% YoY, 9% organic).

• Q4 Adjusted EBITDA: $228M (up 21% YoY); FY Adjusted EBITDA: $870M (up 16% YoY); margins expanded to 11.2%.

• Q4 Adjusted EPS: $0.91 (up 32% YoY); FY Adjusted EPS: $3.34 (up 15% YoY).

• Operating cash flow for FY2024: $462M, with 103% cash conversion; free cash flow: $385M.

• Returned ~$300M to shareholders via share repurchases and dividends in FY2024.

Outlook and guidance

• FY2025 guidance: revenue $8.7B–$9.1B (up 15% at midpoint), Adjusted EBITDA $950M–$990M (up 11% at midpoint), Adjusted EPS $3.71–$3.95 (up 15% at midpoint), operating cash flow $500M–$550M.

• CapEx expected at $50M–$65M; effective tax rate 25%–27%; targeting net leverage below 2.5x by year-end 2025.

• Over 75% of projected FY2025 revenues already under contract.

• Guidance assumes continued demand in national security, space, and energy, with HomeSafe ramping up and minimal impact from tariffs or FX.