On February 24, 2025, KBR Inc (KBR, Financial) released its 8-K filing detailing its fourth quarter and fiscal year 2024 results. KBR, a global provider of technology, integrated engineering, procurement, and construction delivery, reported a robust financial performance with significant growth in both revenue and earnings. The company operates in two main segments: government solutions and sustainable technology solutions, with operations in over 30 countries and a workforce of approximately 34,000 employees.
Performance and Challenges
KBR Inc (KBR, Financial) reported fourth-quarter revenues of $2.1 billion, a 23% increase from the previous year, surpassing the analyst estimate of $1,998.82 million. This growth was driven by on-contract growth across all Government Solutions business units and contributions from the LinQuest acquisition. However, operating income decreased by 4% to $142 million due to a $26 million resolution of an outstanding contract dispute. Despite this, net income attributable to KBR rose significantly to $76 million, a 262% increase from the prior year.
Financial Achievements
For the fiscal year 2024, KBR reported revenues of $7.7 billion, an 11% increase from the previous year, exceeding the annual estimate of $7,623.87 million. The company's adjusted EBITDA rose by 16% to $870 million, with an adjusted EBITDA margin of 11.2%. These achievements highlight KBR's ability to leverage its diverse portfolio and strategic acquisitions to drive growth in the construction industry.
Key Financial Metrics
In the fourth quarter, KBR's diluted earnings per share (EPS) was $0.57, below the estimated EPS of $0.75. However, the adjusted EPS was $0.91, surpassing the estimate. The company's operating cash flows for the fiscal year were $462 million, with a 103% operating cash conversion rate. KBR returned $297 million to shareholders through share repurchases and dividends, demonstrating a strong commitment to shareholder value.
KBR delivered sustained performance throughout the year culminating in a strong fourth quarter, with significant revenue and earnings growth as well as margin expansion," said Stuart Bradie, President and CEO.
Segment Performance
The Government Solutions segment reported revenues of $1,598 million in the fourth quarter, a 20% increase, driven by new and on-contract growth. The Sustainable Technology Solutions segment saw a 30% increase in revenues to $524 million, fueled by growing demand for sustainable technologies and services. The backlog and options for the fiscal year totaled $21.2 billion, with a book-to-bill ratio of 1.1x.
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Revenues | $2.1 billion | $7.7 billion |
| Net Income | $76 million | $375 million |
| Adjusted EBITDA | $228 million | $870 million |
| Diluted EPS | $0.57 | $2.79 |
| Adjusted EPS | $0.91 | $3.34 |
Analysis and Outlook
KBR's strong financial performance in 2024 underscores its strategic positioning and ability to capitalize on growth opportunities in both government and commercial sectors. The company's focus on sustainable technology solutions and strategic acquisitions, such as LinQuest, have bolstered its capabilities and market reach. Looking ahead, KBR's fiscal year 2025 guidance projects revenues between $8.7 billion and $9.1 billion, with adjusted EPS expected to range from $3.71 to $3.95, indicating continued confidence in its growth trajectory.
Explore the complete 8-K earnings release (here) from KBR Inc for further details.
