KBR Q3 2022 Earnings Report
Key Takeaways
KBR announced strong third quarter financial results with an increase in net income attributable to KBR to $74 million and adjusted EBITDA increasing to $171 million. The company raised its FY 2022 financial guidance.
Outstanding earnings delivering quarterly net income attributable to KBR of $74 million; $171 million adj. EBITDA, 11% adj. EBITDA margins; diluted EPS of $0.49 and adj. EPS of $0.65
Expanding capital base with robust quarterly operating cash flow of $122 million; 111% free cash conversion
Growing platform of long-term, strategic programs; $2.7 billion of bookings and options in the quarter
Raising FY 2022 earnings and operating cash flow guidance
KBR
KBR
KBR Revenue by Segment
Forward Guidance
KBR updated and/or increases its FY 2022 guidance as follows: •Consolidated revenue: $6.5 billion to $6.7 billion (narrowed) •Adjusted EBITDA1 margin: ~10% •Effective tax rate: 23% to 24% (lowered) •GAAP earnings per share (EPS): $1.11 to $1.16 (updated); adjusted EPS1: $2.60 to $2.65 (raised midpoint); •GAAP operating cash flow (OCF): $345 million to $370 million (raised midpoint); adjusted OCF1: $375 million to $400 million (raised midpoint)
Positive Outlook
- Consolidated revenue: $6.5 billion to $6.7 billion (narrowed)
- Adjusted EBITDA margin: ~10%
- Effective tax rate: 23% to 24% (lowered)
- GAAP earnings per share (EPS): $1.11 to $1.16 (updated)
- Adjusted EPS: $2.60 to $2.65 (raised midpoint)
Challenges Ahead
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Revenue & Expenses
Visualization of income flow from segment revenue to net income