#United States #KBR #Houston #financial results #fiscal year 2024

KBR Reports Fourth Quarter and Fiscal Year 2024 Results

KBR, Inc., a global leader in technology and engineering solutions, recently published outstanding results for its fourth quarter and full fiscal year 2024. The company demonstrated robust financial performance, marked by a substantial increase in revenues and earnings compared to the previous year, proving its resilient business model and adeptness in navigating a challenging market environment.

Key Highlights

During the fourth quarter, KBR recorded revenues of $2.1 billion, reflecting a remarkable 23% growth from the prior year. This increase was driven by on-contract growth across all government services, as well as contributions from the recent LinQuest acquisition, which is enhancing KBR’s capabilities in engineering and data analytics for national security and military space missions.

The net income attributable to KBR for this quarter reached $76 million, signifying an impressive increase of 262% year-over-year. This surge in profitability coincided with an uptick in the adjusted EBITDA, which hit $228 million, a 21% increase from the same quarter last year. Notably, the adjusted EBITDA margin was 10.7%, consistent with previous performance levels. Adjusted earnings per share (EPS) also saw robust growth, surging to $0.91—up 32% from $0.69 a year ago. These figures underscore KBR's effective cost management and operational efficiencies across its business segments.

Annual Performance

For the entire fiscal year, KBR reported revenues of $7.7 billion, up 11% from 2023, with net income of $375 million, a significant turnaround from a net loss of $265 million in the prior year. The company generated an operating cash flow of $462 million, representing a solid conversion rate of 103%, further highlighting its effective cash management capabilities. KBR returned $297 million to shareholders through share buybacks and dividends during the year, reflecting its commitment to delivering value to investors.

In addition to strong results, KBR’s backlog remains robust at approximately $21.2 billion, indicating sustained demand and growth potential across its portfolio. The company's diversified client base—more than 60% of adjusted EBITDA comes from non-U.S. government customers—positions it well to navigate future market fluctuations.

Strategic Realignment and Future Outlook

KBR’s President and CEO, Stuart Bradie, remarked on the company's continuous improvements, emphasizing a realignment of service segments aimed at enhancing customer focus and operational efficiency. The shift to a two-segment model of Mission Technology Solutions and Sustainable Technology Solutions is expected to provide a more streamlined approach to business operations.

Looking ahead, KBR has issued guidance for fiscal year 2025, projecting revenue growth to between $8.7 billion and $9.1 billion, with adjusted EBITDA expected to range from $950 million to $990 million. This guidance reflects management's confidence in their strategic direction and the strengthened pipeline of opportunities in key sectors including national security and energy policy.

Conclusion

In conclusion, KBR’s impressive performance in the fourth quarter and throughout fiscal year 2024 demonstrates the company's strong market position and operational resilience. By continuing to focus on strategic acquisitions and core service enhancements, KBR is well-positioned to drive growth and achieve its ambitious targets for the upcoming year. Investors and stakeholders can anticipate an exciting future as KBR capitalizes on new business opportunities and innovations in the technology and engineering space.