Q4 2025 KBR Inc Earnings Call Transcript
Key Points
- KBR Inc (KBR) achieved industry-leading safety performance in 2025, with a TRIR of 0.033 and Zero Harm days reaching 96%.
- The company expanded margins by more than 100 basis points and generated operating cash flow with a conversion rate of 110%, delivering over $30 million in cost savings.
- KBR Inc (KBR) returned $413 million in capital to shareholders in 2025, the highest in the last decade.
- The Sustainable Tech segment showed resilience despite a challenging environment, with a strong book-to-bill ratio and a backlog increase of 5% year-over-year.
- Mission Tech segment improved margins and cash performance, with a backlog and options ending the year at $19.1 billion, up 15% year-over-year.
- KBR Inc (KBR) faced a challenging award environment in 2025, with a sharp decline in petrochemicals CapEx and a pause in many green projects.
- The company experienced award delays and reduced contingency activity in the Mission Tech segment, particularly in Europe.
- Revenues were down $223 million year-over-year in the fourth quarter, primarily due to award timing in MTS and reductions in EUCOM contingency scope.
- The company lost the COSMOS recompete in 2025, which was at the lower end of margin returns within the portfolio.
- KBR Inc (KBR) expects transition costs related to the spin to be approximately $140 million to $180 million, inclusive of onetime IT capital costs.
Good morning, and good afternoon, everyone. Well, thank you for joining us for KBR's fourth-quarter and full year 2025 earnings conference call. My name is Drew, and I'll be the operator on the call today. During the call after the prepared remarks, we'll have a Q&A session. (Operator Instructions)
With that, it's my pleasure to hand over to Rachael Goldwait, Head of Investor Relations, to begin. Please go ahead when you're ready.
Stuart and Shad will provide highlights from the quarter and full-year and then open the call for your questions. Today's earnings presentation is available on the Investors section of our website at kbr.com. This discussion includes forward-looking statements reflecting KBR's views about future events and their potential impact on performance as outlined on slide 2.
These matters involve risks and uncertainties that could cause actual results to differ materially from these forward-looking statements as discussed in our most recent Form 10-K available on our
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