KBR, Inc. (KBR)
NYSEIndustrialsEngineering & ConstructionSnapshot 2026-09-09
$36.14-2.43%
Close 2026-09-09 · 1-day change
NYSEIndustrialsEngineering & ConstructionSnapshot 2026-09-09
Warn: Recent financial performance slipped notably this past month, though still top-half.
KBR keeps winning big government contracts, like the B-52 support deal. Revenue is expected near $8.15 billion in 2026. The company maintains a stable dividend of $0.165 per share. Cash from operations is improving, supporting financial flexibility.
Revenue fell 5% year-over-year in Q1 2026, showing demand weakness. Profit growth is modest with EPS guidance nearly flat. The sector faces headwinds, and KBR’s risk is elevated with thin free cash flow yield.
The price is about 39% below our fair value near $62. Analysts expect roughly 7% revenue growth. Our view aligns with this but sees risk from sector headwinds and modest margin expansion.
Breaks if: Cash from operations falls below $98 million next year
Breaks if: Dividend per share cut below $0.165
Breaks if: Revenue falls below $7.75 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable compounder with a focus on operational efficiency and strategic growth. The current thesis state is cautious, as recent performance has shown some weakness, although management remains committed to key priorities.
The market currently prices KBR as cheap compared to its peers, with a slight expectations gap indicating that some negative performance may already be accounted for. The valuation has recently declined, suggesting that investors may be cautious about future earnings.
KBR's fundamentals are expected to remain stable, with a focus on completing the spin-off of its Mission Technology Solutions segment. However, there are mixed results in cost management and efficiency, which could impact overall performance in the near term.
The future of KBR hinges on the performance of sector bellwethers like PWR, FIX, and EME. If these companies continue to perform well, KBR may benefit, but any negative guidance from them could pose risks to KBR's outlook.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. KBR's recent contract wins enhance its backlog and growth potential in core markets. There are no significant threats noted at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
In the next 1 to 3 years, KBR's performance will depend on effective execution of management priorities and the broader industrial sector's health. Not investment advice.