KBR Q2 revenue misses estimates
Overview
KBR fiscal Q2 revenue up 6% to $2.0 bln, missing analyst expectations
Adjusted EPS for fiscal Q2 rises 10%, beating consensus, per LSEG data
Co revises fiscal yr 2025 guidance due to contract terminations and delays
Outlook
KBR revises FY 2025 revenue guidance to $7.9 bln - $8.1 bln
Company updates FY 2027 revenue target to $9.0 bln+
Company cites HomeSafe JV termination for guidance revision
Result Drivers
DEFENSE & INTEL GROWTH - Revenue increased 6% to $2.0 bln, driven by growth in Defense & Intel, supported by the LinQuest acquisition
STRONG PROJECT EXECUTION - Operating income rose 8% due to strong project execution on an LNG project, despite higher selling, general and administrative expenses
CONTRACT TERMINATION IMPACT - Net income fell 31% to $73 mln, primarily due to the termination of the HomeSafe contract
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $2 bln | $2.08 bln (6 Analysts) |
Q2 Adjusted EPS | Beat | $0.91 | $0.88 (6 Analysts) |
Q2 EPS | $0.56 | ||
Q2 Net Income | $73 mln | ||
Q2 Adjusted EBITDA | $242 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for KBR Inc is $68.50, about 33.5% above its July 30 closing price of $45.52
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
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