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Sep 29, 2023

KBR Q3 2023 Earnings Report

KBR demonstrated strong financial performance in Q3 2023, driven by organic revenue growth and solid margins.

Key Takeaways

KBR reported a 9% organic revenue growth and strong margins in Q3 2023. The company secured $3.5 billion in bookings and options during the quarter, achieving a 1.2x trailing-twelve-months book-to-bill ratio. KBR also retired the remaining convertible debt balance, reducing financial uncertainty and demonstrating financial discipline.

Delivered 9% organic revenue growth.

Achieved strong margins.

Secured $3.5 billion in bookings and options, with a 1.2x TTM book-to-bill ratio.

Retired the remaining convertible debt balance.

Total Revenue
$1.77B
Previous year: $1.63B
+8.9%
EPS
$0.75
Previous year: $0.65
+15.4%
Adjusted EBITDA Margin
11%
Previous year: 11%
+0.0%
Gross Profit
$244M
Previous year: $225M
+8.4%
Cash and Equivalents
$348M
Previous year: $461M
-24.5%
Free Cash Flow
-$41M
Previous year: $102M
-140.2%
Total Assets
$5.97B
Previous year: $5.35B
+11.6%

KBR

KBR

KBR Revenue by Segment

Forward Guidance

KBR reaffirms its fiscal year 2023 guidance, with revenue expected to be between $6.9 billion and $7.1 billion, adjusted EBITDA between $730 million and $750 million, and adjusted EPS between $2.76 and $2.96.

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

Challenges Ahead

  • Diluted EPS: $(1.88) - $(1.68)
  • Uncertainty in predicting legal proceedings outcomes.
  • Uncertainty in predicting unusual gains and losses.
  • Uncertainty in predicting acquisition-related expenses.
  • Potential material impact on GAAP results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income