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Jun 30, 2022

KBR Q2 2022 Earnings Report

KBR delivered strong progress toward its 2025 long-term targets, posting outstanding earnings, expanding flexibility with robust cash flow, and growing its platform of long-term, strategic programs.

Key Takeaways

KBR announced strong second quarter 2022 financial results, with net income attributable to KBR of $94 million, diluted EPS of $0.61, adjusted EPS of $0.76, and adjusted EBITDA margins of 12%. The company delivered a 2.1x book-to-bill ratio and generated $344 million of deployable free cash.

Net income attributable to KBR was $94 million; diluted EPS of $0.61; adj. EPS of $0.76, an increase of 31% over 2021; and 12% adj. EBITDA margins.

Operating cash flow of $125M; added an additional $232M of deployable free cash in the quarter

Book-to-bill of 2.1x

Expanded investment in Mura Technology and acquisition of VIMA Group

Total Revenue
$1.62B
Previous year: $1.54B
+5.2%
EPS
$0.76
Previous year: $0.58
+31.0%
Adjusted EBITDA Margin
12%
Gross Profit
$201M
Previous year: $207M
-2.9%
Cash and Equivalents
$516M
Previous year: $483M
+6.8%
Free Cash Flow
$112M
Previous year: $94M
+19.1%
Total Assets
$5.52B
Previous year: $5.52B
-0.1%

KBR

KBR

KBR Revenue by Segment

Forward Guidance

KBR updated its FY 2022 guidance as follows: Consolidated revenue: $6.4 billion to $6.8 billion; Adjusted EBITDA margin: ~10%; Effective tax rate: 24% to 25%; GAAP earnings per share (EPS): $1.09 to $1.21 (updated) and adjusted EPS: $2.53 to $2.65; GAAP operating cash flow (OCF): $330 million to $370 million; adjusted OCF: $360 million to $400 million.

Positive Outlook

  • Consolidated revenue: $6.4 billion to $6.8 billion
  • Adjusted EBITDA margin: ~10%
  • Effective tax rate: 24% to 25%
  • GAAP earnings per share (EPS): $1.09 to $1.21 (updated)
  • Adjusted EPS: $2.53 to $2.65

Challenges Ahead

  • GAAP operating cash flow (OCF): $330 million to $370 million
  • Adjusted OCF: $360 million to $400 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income