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…
Earnings analysis · 10-Q
KBR earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.8
- Segment
- Mission Technology Solutions
- Segment
- Sustainable Technology Solutions
What stood out
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Revenue Decline
Total revenue decreased by $95 million, or 5%, to $1.923 billion in Q1 2026 from $2.018 billion in Q1 2025.
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Decreased Gross Profit
Gross profit fell by $35 million, or 12%, to $265 million compared to $300 million in the prior year.
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Operating Income Down
Operating income decreased by $22 million, or 11%, to $180 million in Q1 2026, down from $202 million in Q1 2025.
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Equity Earnings Increased
Equity in earnings of unconsolidated affiliates grew by $9 million, or 21%, to $51 million for Q1 2026.
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Operating Cash Flow Up
Cash flow from operating activities increased to $110 million in Q1 2026 from $91 million in Q1 2025.
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Cash Balance Decrease
Cash and cash equivalents decreased to $380 million from $500 million between January 2, 2026 and April 3, 2026.
What to watch
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Decreased Revenue from MTS
Revenue from Mission Technology Solutions decreased by $85 million, or 6%, indicating a potential ongoing decline in operations.
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Rising Operating Expenses
Selling, general, and administrative expenses decreased by only $7 million (5%), reducing overall profitability amid declining revenues.
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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.
Management's outlook
KBR reaffirms fiscal 2026 guidance with no changes.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.