KBR (KBR) Q4 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in 2025, achieving record-low TRIR of 0.033, robust cash flow, margin expansion, and backlog growth despite a challenging award environment.

• Executed disciplined strategy, advanced innovation, and maintained operational discipline while integrating LinQuest and preparing for a spin-off targeted for H2 2026.

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

• Returned $413 million to shareholders in 2025, the highest in a decade, and continued deleveraging.

Financial highlights

• FY25 revenues were $7.8B–$7.79B, up modestly year-over-year; Q4 revenues were $1.85B–$1.9B, down YoY due to slower awards and EUCOM reductions.

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

• Adjusted EPS for FY25 was $3.93, up $0.60 YoY; operating cash flow was $557M, with 110% conversion to adjusted net income.

• Backlog at year-end totaled $4.2B for Sustainable Tech (up 5% YoY) and $19.1B for Mission Tech (up 15% YoY); total backlog and options reached $23.2B, up 13%.

• Net income attributable to shareholders was $415M for the year, up 11%.

Outlook and guidance

• FY26 guidance: revenues $7.90B–$8.36B, Adjusted EBITDA $980M–$1.04B, Adjusted EPS $3.87–$4.22, and Adjusted operating cash flow $560M–$600M.

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

• Spin-off of Mission Technology Solutions targeted for completion in H2 2026; transition costs estimated at $140–$180M.

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