KBR
KBR, INC.
Next earnings Jul 29, 2026 · consensus $0.90 EPS, $1.87B rev
Last earnings -5.4% on 2026-05-05
$36.41
▲ +8.01%$36.41▼ -23.22%
over 1Y
L $29.92H $50.78
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+8.0%
1W+12.9%
1M+2.4%
3M-3.9%
YTD-9.3%
1Y-23.2%
Buy
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 12 analysts
Buy
Cheap government-services compounder: 10x P/E on accelerating margins, a planned MTS spin-off catalyst, and aggressive buybacks.
P/E 10.3x · FY2026
The read
Quality fundamentals and an attractive price line up (~50% below fair value) — the rarer case where both the business and the entry look good.
KBR is trading at just 10.3x FY2026 EPS and 0.5x sales despite delivering operating income growth of 18.1% to $778M on only 1% revenue growth — exactly the margin expansion profile that gets rewarded in a government-services rerating. Operating margin expanded to 10.0% and net margin to 5.3%, while ROE hit 27.6% as buybacks shrank the share count 4.5% YoY. The MD&A confirms the mix shift driving this: Sustainable Technology Solutions (STS) operating income jumped 18% to $477M, helped by a $103M (96%) surge in equity earnings from an LNG project, and Mission Technology Solutions (MTS) operating income grew 12% to $463M with the LinQuest acquisition layering in defense and intel revenue.
The filing flags a Planned Spin-Off of MTS as a near-term structural catalyst — management already cites incremental SG&A 'expenses incurred related to the Planned Spin-Off of MTS,' meaning the split is in motion. Separating the higher-multiple STS (LNG, sustainable tech, equity-method gushers) from the steadier MTS (defense/intel cost-plus) is a textbook sum-of-the-parts unlock for a company currently lumped under 'Heavy Construction Contractors.' Cash flow supports the story: operating cash flow rose 24% to $557M against just $42M of capex, funding $329M of buybacks (+51% YoY) and $84M of dividends while still letting cash build 46% to $500M.
Is KBR a buy? The one-page verdict, explained →
The options angle
model · matches our verdictBull call spread (wide)~60d expiry
- Long call 36 @ ~2.98 est
- Short call 42 @ ~0.95 est
debit $203max +$397max −$203BE 38.03
High-conviction BUY: a wider spread keeps more of the upside while the short call still cuts cost and decay.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | $7.34B | $6.56B | $6.96B | $7.71B | $7.79B |
| Gross profit | $806M | $828M | $977M | $1.10B | $1.15B |
| Operating income | $231M | $343M | $449M | $659M | $778M |
| Net income | $27.0M | $190M | -$265M | $375M | $415M |
| Diluted EPS | $0.19 | $1.26 | -$1.96 | $2.79 | $3.21 |
| Net margin | 0.4% | 2.9% | -3.8% | 4.9% | 5.3% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$6.71B
EV / EBITDA7.1
EV / Sales0.9
EV / FCF13.0
P / FCF9.0
PEG (trailing)1.06
Earnings yield9.0%
FCF yield11.2%
Quality & risk
ROIC (est.)15.0%
Free cash flow$515M
Total debt$2.60B
Net cash-$2.10B
Altman Z-Score2.55 grey
Piotroski F-Score8/9
Capital returns
Buyback yield7.1%
Dividend yield (est.)1.8%
Shareholder yield8.9%
Shares Δ YoY-4.5%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Shareholder vote2026-05-18
Annual meeting vote results disclosed; routine governance update.
- 8-K Earnings results2026-05-05
Q1 FY26 10-Q filed; continuation of MTS/STS growth trajectory.
- 10-Q Quarterly report2026-05-05
Q1 FY26 10-Q filed; continuation of MTS/STS growth trajectory.
- DEF 14A Proxy statement2026-03-30
Proxy statement: routine annual meeting governance, exec comp items.
- 8-K Earnings results2026-02-26
FY25: rev $7.79B, op income +18%, EPS $3.21; planned MTS spin-off noted.
- 10-K Annual report2026-02-26
FY25: rev $7.79B, op income +18%, EPS $3.21; planned MTS spin-off noted.
- 8-K Earnings results2025-10-30
Q3 FY25 10-Q showing continued segment growth from LinQuest acquisition.
- 10-Q Quarterly report2025-10-30
Q3 FY25 10-Q showing continued segment growth from LinQuest acquisition.
- 8-K/A Amended 8-K2025-10-22
Amended 8-K updating prior disclosure; likely LinQuest acquisition financials.
Recent filings
all on EDGAR ↗4Period ending 2026-05-202026-05-21open ↗4Period ending 2026-05-192026-05-21open ↗8-KPeriod ending 2026-05-142026-05-18open ↗4Period ending 2026-05-142026-05-15open ↗4Period ending 2026-05-132026-05-15open ↗4Period ending 2026-05-082026-05-12open ↗4Period ending 2026-05-082026-05-12open ↗SCHEDULE 13GFiling2026-05-06open ↗10-QPeriod ending 2026-04-032026-05-05open ↗8-KPeriod ending 2026-05-052026-05-05open ↗SCHEDULE 13GFiling2026-04-30open ↗4Period ending 2026-04-152026-04-16open ↗
Frequently asked
- Is KBR, INC. (KBR) a buy?
- KBR currently carries a Buy rating with 4/5 conviction, derived from its latest SEC filings. Cheap government-services compounder: 10x P/E on accelerating margins, a planned MTS spin-off catalyst, and aggressive buybacks.
- What is KBR's fair value?
- A Modified-Graham model based on KBR's SEC fundamentals estimates a fair value of about $54.78. It is an estimate from reported earnings, not a price target.
- Is KBR overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, KBR currently appears undervalued relative to its SEC-grounded earnings power.
- What is KBR, INC.'s quality score?
- KBR scores 69.4511554019556/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001357615, latest 10-Q filed 2026-05-05) · EODHD · Proprietary analysis · as of 6/25/2026, 12:57:06 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 25, 2026, 8:57 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.