KBR Inc (KBR) Relased Q4 2025 Earnings

KBR Inc. (NYSE:KBR) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

KBR released its Q4 2025 earnings on February 26, which were headlined by a 10% YoY increase in adjusted diluted earnings per share, beating the street consensus estimate of $0.99.

Margin expansion, especially from the mission tech segment, was the key driver for this beat. Strong project execution kept costs in check, while portfolio discipline ensured that new projects were margin accretive (or at the very least, not dilutive). This margin expansion more than offset the revenue decline, which was caused by NASA funding restrictions and procurement delays.

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The strong earnings translated into a 24% YoY increase in operating cash flows. This strong cash flow generation allowed the company, in FY 2025, to delever its balance sheet (below 2.5x net debt to EBITDA), fund organic growth, and return capital to shareholders (to the tune of $84 million in dividends and $329 million in share buybacks).

For 2026, management expects revenue, EBITDA, earnings, and operating cash flows to grow by ~3% to 4%, supported by backlog coverage and margin discipline. They also expect to fully execute the spin-off of KBR’s mission tech segment, initially announced on September 24 last year, by the 2^nd half of 2026.

KBR Inc. (NYSE:KBR) provides science, technology, engineering, and logistics support solutions to the government and enterprises, through its two main segments: Sustainable Tech and Mission Tech. The company is based in Houston, Texas, and was founded in March 2006.

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