📊 KBR Key Takeaways
Is Kbr, Inc.. (KBR) a Good Investment?
KBR demonstrates solid operational fundamentals with exceptional 27.6% ROE and outstanding 25.1x interest coverage, enabling effective leverage management. However, anemic 1.0% revenue growth combined with critically weak free cash flow of $56M (0.7% FCF margin) raises concerns about organic expansion capacity and long-term sustainability of the 1.73x debt-to-equity structure.
KBR shows solid profitability with a 10% operating margin, high ROE, and strong interest coverage, indicating durable core earnings power. However, muted top-line growth and very weak cash conversion (OCF and FCF) raise earnings quality concerns, especially alongside elevated leverage. Near-term upside hinges on converting earnings to cash and sustaining backlog-driven revenue growth.
Why Buy Kbr, Inc.. Stock? KBR Key Strengths
- Exceptional return on equity of 27.6% demonstrates superior capital efficiency within the construction sector
- Outstanding interest coverage ratio of 25.1x provides substantial cushion for debt servicing
- Strong EPS growth of 15.1% YoY despite low revenue growth shows effective operational leverage and share management
- Positive operating margins of 10.0% and net margins of 5.3% are respectable for heavy construction contractors
- Resilient operating margin (~10%) and improving EPS
- High ROE with strong interest coverage (~25x)
- Disciplined cost structure supporting margin stability
KBR Stock Risks: Kbr, Inc.. Investment Risks
- Stagnant revenue growth of 1.0% YoY indicates limited organic expansion and market momentum
- Critically weak free cash flow margin of only 0.7% raises sustainability concerns given 1.73x leverage ratio
- Significant gap between operating income ($778M) and operating cash flow ($98M) suggests working capital conversion challenges
- Tight current ratio of 1.22x provides limited liquidity cushion for operational disruptions
- Elevated debt-to-equity of 1.73x limits financial flexibility for strategic investments or downturns
- Very weak cash conversion and low FCF margin (0.7%)
- Elevated leverage (D/E 1.73x) despite manageable interest
- Low revenue growth (+1% YoY) increases reliance on margin expansion and contract timing
Key Metrics to Watch
- Free cash flow generation and FCF-to-net income conversion ratio
- Revenue growth trajectory and contract backlog indicators
- Operating cash flow as percentage of operating income
- Debt reduction progress relative to FCF generation
- Working capital management efficiency metrics
- Free cash flow conversion (OCF/Net Income)
- Backlog and revenue growth (book-to-bill)
Kbr, Inc.. (KBR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.7% FCF margin may limit capital allocation flexibility.
KBR Profit Margin, ROE & Profitability Analysis
KBR vs Industrial Sector: How Kbr, Inc.. Compares
How Kbr, Inc.. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kbr, Inc.. Stock Overvalued? KBR Valuation Analysis 2026
Based on fundamental analysis, Kbr, Inc.. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kbr, Inc.. Balance Sheet: KBR Debt, Cash & Liquidity
KBR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kbr, Inc..'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $-1.96 indicates the company is currently unprofitable.
KBR Revenue Growth, EPS Growth & YoY Performance
KBR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.9B | $100.0M | $0.75 |
| Q2 2025 | $1.8B | $73.0M | $0.56 |
| Q1 2025 | $1.8B | $93.0M | $0.69 |
| Q3 2024 | $1.8B | -$21.0M | $-0.16 |
| Q2 2024 | $1.8B | $106.0M | $0.79 |
| Q1 2024 | $1.7B | $86.0M | $0.56 |
| Q3 2023 | $1.6B | -$21.0M | $-0.16 |
| Q2 2023 | $1.6B | $23.0M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kbr, Inc.. Dividends, Buybacks & Capital Allocation
KBR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kbr, Inc.. (CIK: 0001357615)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 30, 2026 | DEF 14A | tmb-20260514xdef14a.htm | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772674992.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772674987.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772674980.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772674974.xml | View → |
❓ Frequently Asked Questions about KBR
What is the AI rating for KBR?
Kbr, Inc.. (KBR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KBR's key strengths?
Claude: Exceptional return on equity of 27.6% demonstrates superior capital efficiency within the construction sector. Outstanding interest coverage ratio of 25.1x provides substantial cushion for debt servicing. ChatGPT: Resilient operating margin (~10%) and improving EPS. High ROE with strong interest coverage (~25x).
What are the risks of investing in KBR?
Claude: Stagnant revenue growth of 1.0% YoY indicates limited organic expansion and market momentum. Critically weak free cash flow margin of only 0.7% raises sustainability concerns given 1.73x leverage ratio. ChatGPT: Very weak cash conversion and low FCF margin (0.7%). Elevated leverage (D/E 1.73x) despite manageable interest.
What is KBR's revenue and growth?
Kbr, Inc.. reported revenue of $7.8B.
Does KBR pay dividends?
Kbr, Inc.. pays dividends, with $84.0M distributed to shareholders in the trailing twelve months.
Where can I find KBR SEC filings?
Official SEC filings for Kbr, Inc.. (CIK: 0001357615) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KBR's EPS?
Kbr, Inc.. has a diluted EPS of $3.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KBR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kbr, Inc.. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KBR stock overvalued or undervalued?
Valuation metrics for KBR: ROE of 27.6% (sector avg: 15%), net margin of 5.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy KBR stock in 2026?
Our dual AI analysis gives Kbr, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KBR's free cash flow?
Kbr, Inc..'s operating cash flow is $98.0M, with capital expenditures of $42.0M. FCF margin is 0.7%.
How does KBR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 5.3% (avg: 10%), ROE 27.6% (avg: 15%), current ratio 1.22 (avg: 1.8).
Is Kbr, Inc.. carrying too much debt?
KBR has a debt-to-equity ratio of 1.73x, which is above the Industrial sector average of 0.7x. However, the current ratio of 1.22 suggests adequate short-term liquidity.
Why is KBR's return on equity (ROE) so high?
Kbr, Inc.. has a return on equity of 27.6%, significantly above the Industrial sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 5.3% net margin.