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Apr 04

KBR Q1 2025 Earnings Report

KBR reported higher revenue, EPS, and net income in Q1 FY2025 compared to the same period last year.

Key Takeaways

KBR delivered strong Q1 FY2025 results, with double-digit growth in revenue and earnings driven by robust demand in both Mission Technology and Sustainable Technology segments. Operating income and adjusted EBITDA also showed solid improvements.

Revenue increased 13% YoY to $2.055 billion.

Adjusted EPS rose to $0.98 from $0.77, a 27% increase.

Net income attributable to KBR grew 25% to $116 million.

Strong segment performance in both Mission Technology and Sustainable Technology drove earnings growth.

Total Revenue
$2.06B
Previous year: $1.82B
+13.0%
EPS
$0.98
Previous year: $0.77
+27.3%
Adj. EBITDA Margin
11.8%
Previous year: 11.4%
+3.5%
Operating Income Margin
9.5%
Previous year: 9.1%
+4.4%
Operating Cash Conversion
76%
Previous year: 87%
-12.6%
Gross Profit
$298M
Previous year: $248M
+20.2%
Cash and Equivalents
$442M
Previous year: $314M
+40.8%
Free Cash Flow
$89M
Previous year: $66M
+34.8%
Total Assets
$6.85B
Previous year: $5.62B
+21.8%

KBR

KBR

KBR Revenue by Segment

Forward Guidance

KBR reaffirmed its full-year FY2025 outlook with expectations of continued growth in revenue, adjusted EBITDA, and adjusted EPS.

Positive Outlook

  • Full-year revenue expected between $8.7B and $9.1B.
  • Adjusted EBITDA projected at $950M to $990M.
  • Adjusted EPS guidance range remains $3.71 to $3.95.
  • Operating cash flow outlook is $500M to $550M.
  • Strong backlog and new business wins support future growth.

Challenges Ahead

  • Volatile U.S. government funding environment persists.
  • No material cuts yet, but caution is maintained.
  • Managing indirect costs under macroeconomic uncertainty.
  • Segment realignment complexity could affect near-term reporting.
  • Geopolitical tensions may pose ongoing operational risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income