•
Jun 30, 2023

KBR Q2 2023 Earnings Report

Announced second quarter 2023 financial results and raised FY 2023 financial guidance for Adjusted EBITDA.

Key Takeaways

KBR announced strong second quarter results with revenue up 8% and adjusted EBITDA up 3%. The company raised its FY 2023 Adjusted EBITDA guidance due to strong core business performance. Net income was negatively impacted by losses associated with convertible notes and the settlement of a legacy legal matter.

Delivered strong revenue and cash flow in the first half of 2023.

Increased FY 2023 Adjusted EBITDA guidance.

Resolved legacy litigation and repurchased $100 million in convertible notes.

Bookings and options totaled $21.1 billion, with a 1.1x trailing-twelve-months book-to-bill.

Total Revenue
$1.75B
Previous year: $1.62B
+8.5%
EPS
$0.74
Previous year: $0.76
-2.6%
Adjusted EBITDA Margin
11%
Previous year: 12%
-8.3%
Gross Profit
$251M
Previous year: $201M
+24.9%
Cash and Equivalents
$539M
Previous year: $516M
+4.5%
Free Cash Flow
$234M
Previous year: $112M
+108.9%
Total Assets
$6.29B
Previous year: $5.52B
+13.9%

KBR

KBR

KBR Revenue by Segment

Forward Guidance

KBR updated its fiscal 2023 guidance, with revenue remaining at $6.9B - $7.1B, Adjusted EBITDA raised to $730M - $750M, Adjusted EPS at $2.76 - $2.96, effective tax rate at 24% - 25%, and Adjusted operating cash flows at $425M - $460M.

Positive Outlook

  • Revenue: $6.9B - $7.1B
  • Adjusted EBITDA: $730M - $750M
  • Adjusted EPS: $2.76 - $2.96
  • Effective tax rate: 24% - 25%
  • Adjusted operating cash flows: $425M - $460M

Revenue & Expenses

Visualization of income flow from segment revenue to net income