KBR Q1 Revenue Drops 5% to $1.92B While Adjusted EBITDA Rises 1% to $251M
KBR’s Q1 fiscal 2026 revenues fell 5% to $1.923B while adjusted EBITDA rose 1% to $251M, boosting margins to 13.1%. Net income dropped 12% to $102M with diluted EPS at $0.80, and backlog reached $23.2B as the engineering firm secured $295M in new U.S. government contracts.
1. Consolidated Q1 Fiscal 2026 Results
KBR reported Q1 fiscal 2026 revenues of $1.923B, down 5% year-over-year, operating income of $180M (9.4% margin) and net income of $102M, down 12%, with diluted EPS of $0.80. Adjusted EBITDA rose 1% to $251M, lifting margin to 13.1%, and adjusted EPS declined 5% to $0.96.
2. Segment Performance
Mission Technology Solutions delivered $1.296B in revenues, down 6%, with adjusted EBITDA of $138M and a 10.6% margin, while Sustainable Technology Solutions posted $627M in revenues, a 2% decline, and achieved $137M of adjusted EBITDA with a 21.9% margin.
3. Backlog and Contract Awards
Total backlog and options stood at $23.2B with a book-to-bill ratio of 1.1x for the quarter. During Q1, KBR secured a $200M AI-enabled IT and systems engineering contract for the U.S. Department of Transportation’s Volpe Center and a $95M digital engineering award for the U.S. Space Force.
4. Cash Flow and Leverage
Operating cash flow from continuing operations rose to $110M, with adjusted operating cash flow at $119M. Net debt reached $2.222B, resulting in a 2.3x net leverage ratio, and capital returns included $4M in share repurchases and $21M in dividends.