KBR Reports 11% Q4 Revenue Decline and 46% Net Income Surge
KBR’s Q4 revenues fell 11% to $1.9B while net income rose 46% to $111M, driving operating margin up to 10.1% and adjusted EBITDA margin to 12.6%. Full-year revenues reached $7.8B (up 1%) with net income climbing 11% to $415M and bookings holding a 1.0x book-to-bill ratio.
1. Fourth Quarter Results
Revenues for the quarter declined 11% to $1.9B due to a slower pace of awards and contingency EUCOM scope reductions. Operating income rose 36% to $191M, net income climbed 46% to $111M, adjusted EBITDA increased 5% to $238M, and diluted EPS jumped 53% to $0.87.
2. Full-Year Fiscal 2025 Performance
Full-year revenues grew 1% to $7.8B, operating income increased 18% to $778M, and net income rose 11% to $415M. Adjusted EBITDA climbed 12% to $968M and adjusted EPS reached $3.93, up 18%, reflecting margin expansion across the business.
3. Backlog and Book-to-Bill Metrics
Q4 bookings and options totaled $2.0B with a 0.9x book-to-bill ratio, while full-year bookings reached $11.1B at a 1.0x ratio. Backlog coverage remains solid, underpinning future revenue visibility and award momentum.
4. Strategic Outlook and Spin-Off Progress
Management highlighted disciplined execution in fiscal 2025, generating strong cash flow and expanding margins despite award challenges. Progress on the planned spin-off aims to sharpen focus on technology-enabled, recurring work and support long-term value creation entering fiscal 2026.