KBR earnings analysis
What we found in KBR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
KBR reported Q1 2026 revenues of $1.923 billion and EPS of $0.80, a 5% decrease from $2.018 billion in revenue and a 12% drop in EPS from $0.91 year-over-year. The company continues to face headwinds in revenue stemming from reduced activity in its Mission Technology Solutions segment, which saw a $85 million revenue decline.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Total revenue decreased by $95 million, or 5%, to $1.923 billion in Q1 2026 from $2.018 billion in Q1 2025.
- Decreased Gross Profit
- Gross profit fell by $35 million, or 12%, to $265 million compared to $300 million in the prior year.
- Operating Income Down
- Operating income decreased by $22 million, or 11%, to $180 million in Q1 2026, down from $202 million in Q1 2025.
- Equity Earnings Increased
- Equity in earnings of unconsolidated affiliates grew by $9 million, or 21%, to $51 million for Q1 2026.
- Operating Cash Flow Up
- Cash flow from operating activities increased to $110 million in Q1 2026 from $91 million in Q1 2025.
- Cash Balance Decrease
- Cash and cash equivalents decreased to $380 million from $500 million between January 2, 2026 and April 3, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Revenue from MTS
- Revenue from Mission Technology Solutions decreased by $85 million, or 6%, indicating a potential ongoing decline in operations.
- Rising Operating Expenses
- Selling, general, and administrative expenses decreased by only $7 million (5%), reducing overall profitability amid declining revenues.
- Planned Spin-Off Expenses
- Increased corporate losses by $6 million, highlighting the financial impact of the upcoming spin-off of the Mission Technology Solutions segment.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.8
- Gross margin
- 13.8%
- Operating margin
- 9.35%
- Segment
- Mission Technology Solutions
- Segment
- Sustainable Technology Solutions
What they said about what is next.
KBR reaffirms fiscal 2026 guidance with no changes.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- KBR is executing a strategic shift toward technology-driven, upmarket services centered on national security, defense modernization and sustainable technology, and announced a planned tax-free spin-off of its Mission…
- 10-Q · May 6, 2025
- KBR reported first-quarter revenue of $2,055 million (up $237 million, +13.0% vs. $1,818 million a year ago) and diluted EPS of $0.88 (up $0.19, +27.5% vs. $0.69). Both core segments grew: Mission Technology Solutions…
- 10-K · February 25, 2025
- KBR’s 10-K (period ended January 3, 2025) emphasizes a strategic shift up‑market toward technology-driven, full‑life‑cycle solutions in national security, space, and sustainable energy while prioritizing organic growth,…
- 10-Q · April 30, 2024
- KBR reported Q1 revenue of $1,818 million (up $115 million, +6.8% vs. Q1 2023) and GAAP diluted EPS of $0.69 (up $0.13 vs. $0.56 in Q1 2023). Operating income increased to $166 million (from $144 million) while gross…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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