Company Reports

KBR’s second-quarter adjusted EBITDA increased by 13% from the same period last year. We haven’t materially changed our long-term outlook after the earnings release, but we’ve bumped up our fair value estimate to $69 from $68 due to time value of money.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

After reviewing KBR's investor day presentation, we've raised our fair value estimate to $68 from $65, which reflects our more optimistic long-term revenue growth and operating margin expectations.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

KBR posted solid first-quarter results, as adjusted EBITDA increased by 14% year over year. While nothing in the firm’s results materially alters our long-term outlook for the firm, we’ve slightly increased our fair value estimate to $65 from $64 due to the time value of money. We see the name as fairly valued, with shares currently trading in 3-star territory.

KBR posted solid fourth-quarter results featuring a roughly 20% year-over-year increase in adjusted EBITDA. After rolling our model forward one year, we’ve raised our fair value estimate to $64 per share from $62, which reflects our slightly more optimistic near-term expectations as well as the time value of money.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

We’ve lowered our fair value estimate for KBR to $62 from $64 after the company reported third-quarter results. The fair value adjustment reflects our more muted revenue growth projections for 2024 and 2025, partially offset by the time value of money.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

KBR grew its second-quarter revenue by 8% from the same period last year, and 11% excluding the completion of work related to the Operation Allies Welcome, or OAW, program. KBR’s GAAP net income included a $144 million cash charge related to the settlement of a legacy legal matter as well as a $314 million noncash charge related to the retirement of convertible notes.

KBR started the year with a strong first quarter, delivering 18% year-over-year revenue growth excluding the completion of work related to the Operation Allies Welcome, or OAW, program. We’ve raised our fair value estimate to $60 from $58, which reflects our slightly more optimistic revenue growth projections as well as time value of money.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

KBR ended 2022 with a strong fourth quarter, as its adjusted EPS of $0.69 beat our estimate by $0.06. After rolling our model forward one year, we’ve increased our fair value estimate for KBR to $58 from $56, mostly due to time value of money.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

There were no major surprises in KBR’s third-quarter results, as the company posted adjusted EPS of $0.65, up from $0.64 in the prior-year period (and up 12% year over year excluding the Operation Allies Welcome, or OAW, program). We’ve increased our fair value estimate to $56 from $55, which mostly reflects time value of money. We see the name as modestly undervalued at current levels, with shares trading in 4-star territory.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.

Under the leadership of CEO Stuart Bradie, who took the helm in 2014, KBR has focused on shifting its portfolio toward differentiated government solutions. The portfolio rebalancing, which included the acquisitions of Wyle and HTSI in 2016, SGT in 2018, and Centauri in 2020, has already started to bear fruit and led to improved results in recent quarters. In 2020, KBR restructured its portfolio into two segments: government solutions and sustainable technology solutions.