KBR Q4 Earnings & Revenues Surpass Estimates, Stock Rises

KBR, Inc. KBR delivered a solid fourth-quarter 2024 performance, surpassing expectations on both revenues and earnings. The top and bottom lines increased on a year-over-year basis.See the Zacks Earnings Calendar to stay ahead of market-making news.KBR stock gained 2.1% during the trading session and 4.3% in the after-hours trading session yesterday, following the earnings release.KBR had a strong year, delivering revenue and earnings growth, margin expansion and maintaining its industry-leading safety record. The company realigned its segments to improve efficiency, expand opportunities and reduce costs. It also acquired LinQuest to enhance its capabilities in engineering, data analytics and digital solutions for national security and military space missions. KBR's business aligns well with U.S. national security and energy policy priorities, with a diversified global portfolio providing resilience. More than 60% of its 2024 Adjusted EBITDA came from non-U.S. government customers, and more than 75% of its projected 2025 revenues are already under contract.KBR, Inc. Price, Consensus and EPS Surprise KBR, Inc. price-consensus-eps-surprise-chart | KBR, Inc. QuoteInside KBR’s HeadlinesAdjusted earnings per share (EPS) of 91 cents topped the Zacks Consensus Estimate of 83 cents by 9.6% and grew 32% year over year.Total revenues of $2.12 billion also outpaced the consensus mark of $1.96 billion by 8.1% and rose 22.7% year over year. Adjusted EBITDA increased 21.3% year over year to $228 million, with adjusted EBITDA margin, however, contracting 20 basis points to 10.7%. Our model expected adjusted EBITDA to grow 14.8% year over year to $215.7 million with an adjusted EBITDA margin of 11.1%.KBR’s Segmental & Backlog DetailsRevenues in the Government Solutions or GS segment increased 20.3% year over year to $1.6 billion. Our model predicted the segment’s revenues to grow 11.4%. KBR's Government Solutions segment saw a 20% revenue increase in fourth-quarter 2024, reaching $1.6 billion, with $150 million in adjusted EBITDA and 9.4% margins. All four business units contributed, with particularly strong growth in defense and intelligence, up 33%, driven by the LinQuest acquisition and organic expansion. Key growth areas included military space, missile defense, hypersonics and digital upgrades. International revenues rose 20%, fueled by defense programs in the U.K. and Australia and infrastructure projects in Australia and the Middle East.The GS segment’s adjusted EBITDA was $150 million, up from $128 million in the prior-year quarter, with adjusted EBITDA margin contracting 20 bps year over year to 9.4%. Operating income decreased 12% year over year to $91 million in the quarter.Revenues in the Sustainable Technology Solutions or STS segment rose 30.3% year over year to $524 million. The reported figure came well ahead of our projection of $465.4 million for the segment.The STS segment’s adjusted EBITDA increased to $108 million from $85 million a year ago, with adjusted EBITDA margin contracting 50 bps year over year to 20.6%. Operating income increased 15% year over year to $93 million.As of Jan. 3, 2025, the total backlog (including award options) was $21.2 billion compared with $21.73 billion at 2023-end. Of the total backlog, Government Solutions contributed $13.55 billion and the Sustainable Technology Solutions segment contributed $3.71 billion.At the end of 2024, the company delivered a trailing 12-month book-to-bill of 1.1x.KBR’s 2024 HighlightsRevenues came in at $7.74 billion (exceeding guidance), up 11.3% from 2023. Adjusted EPS grew 14.8% to $3.34 from 2023. Adjusted EBITDA came in at $870 million, up 16% from a year ago.Liquidity & Cash Flow of KBRAs of Jan. 3, 2025, KBR’s cash and cash equivalents were $350 million, up from $304 million at 2023-end. Long-term debt was $2.53 billion at 2024-end, up from $1.8 million at 2023-end.In 2024, operating cash flow totaled $462 million, up 40% from $331 million in 2023.In fiscal 2025, KBR returned $297 million to its shareholders, including $218 million in share repurchases and $79 million in dividends.On Feb. 20, 2025, the board approved a 10% dividend increase to 16.5 cents per share quarterly (66 cents annualized), payable April 15, 2025, to its shareholders of record on March 14, 2025. The board also raised the share repurchase authorization to $750 million.Effective fiscal 2025, KBR has realigned its segments for efficiency. Government Solutions is now Mission Technology Solutions, while Sustainable Technology Solutions remains unchanged. The international business from Government Solutions has been integrated into both segments. New segment reporting will begin in first-quarter 2025.What KBR Expects for 2025KBR expects total revenues to be in the band of $8.7-$9.1 billion (depicting 12-18% growth). It anticipates adjusted EBITDA to be between $950 million and $990 million (9-14% growth).Adjusted EPS is projected to be in the band of $3.71-$3.95 (11-18% growth). Operating cash flow is expected to be in the range of $500-$550 million (8-19% growth).KBR’s Zacks Rank & Recent Construction ReleasesKBR currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quanta Services Inc. PWR reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same. Yet both the top and bottom lines grew year over year.PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenues, adjusted EBITDA and EPS growth, along with a record backlog.Gibraltar Industries, Inc.’s ROCK fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.ROCK’s quarterly bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.AECOM ACM reported impressive results for first-quarter fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue growth in its design business.As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR): Free Stock Analysis Report AECOM (ACM): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks