📊 KBR Key Takeaways
Is Kbr, Inc.. (KBR) a Good Investment?
KBR demonstrates stable financial footing with positive free cash flow generation ($86M FCF, 4.5% margin) and manageable debt servicing (5.8x interest coverage). However, anemic revenue growth of 1.0% YoY and weak capital returns (6.4% ROE, 1.5% ROA) suggest a mature, stagnant business with limited growth trajectory. Leverage of 1.63x combined with thin 5.3% net margins leaves minimal buffer for operational headwinds.
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
- Positive free cash flow generation with $86M annually available after capex
- Healthy interest coverage ratio of 5.8x providing debt servicing flexibility
- EPS growth outpacing net income growth (15.1% vs 3.0%) indicating disciplined capital management
- 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
- Anemic revenue growth of 1.0% YoY signals stagnant top-line and potential market share losses
- Weak returns on equity (6.4%) and assets (1.5%) indicate inefficient capital deployment
- High leverage (1.63x debt/equity) paired with thin operating margins (9.4%) leaves minimal buffer for margin compression or revenue declines
- 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
- Revenue growth trajectory and order backlog visibility
- Operating margin sustainability amid cost inflation pressures
- Free cash flow consistency and capital allocation priorities
- 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 4.5% 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.. shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $1.9B | $102.0M | $0.80 |
| 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 |
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
❓ 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 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KBR's key strengths?
Claude: Positive free cash flow generation with $86M annually available after capex. Healthy interest coverage ratio of 5.8x providing debt servicing flexibility. ChatGPT: Resilient operating margin (~10%) and improving EPS. High ROE with strong interest coverage (~25x).
What are the risks of investing in KBR?
Claude: Anemic revenue growth of 1.0% YoY signals stagnant top-line and potential market share losses. Weak returns on equity (6.4%) and assets (1.5%) indicate inefficient capital deployment. 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 $1.9B.
Does KBR pay dividends?
Kbr, Inc.. pays dividends, with $21.0M 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 $0.80.
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 May 2026, Kbr, Inc.. has a HOLD rating with 68% 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 6.4% (sector avg: 15%), net margin of 5.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
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 $12.0M. FCF margin is 4.5%.
How does KBR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 5.3% (avg: 10%), ROE 6.4% (avg: 15%), current ratio 1.16 (avg: 1.8).
Is Kbr, Inc.. carrying too much debt?
KBR has a debt-to-equity ratio of 1.63x, which is above the Industrial sector average of 0.7x. However, the current ratio of 1.16 suggests adequate short-term liquidity.