The revenue decline and reaffirmed guidance suggest limited near-term upside catalysts. Monitor the spin-off execution and any updates to standalone guidance for the remaining Sustainable Technology Solutions business. The 1.1x book-to-bill and $23.2B backlog provide some revenue visibility, but the EUCOM runoff headwind persists.
Price Chart
Executive Summary
KBR reported Q1 fiscal 2026 results with revenue of $1.923B (down 5% YoY) and GAAP diluted EPS of $0.80 (down 9% YoY), both declining due to expected EUCOM contingency runoff. Adjusted EPS of $0.96 beat consensus of $0.91 by 5.5%, and the company reaffirmed full-year fiscal 2026 guidance, but the top-line contraction and lower operating income overshadow the beat. The planned spin-off of Mission Technology Solutions remains on track for January 2027.
Key Financial Metrics
Key Facts
- Revenue of $1.923B, down 5% YoY from $2.018B, driven by expected EUCOM contingency runoff
- GAAP diluted EPS of $0.80, down 9% YoY from $0.88
- Adjusted EPS of $0.96 beat consensus estimate of $0.91 by 5.5%
- Adjusted EBITDA of $251M, up 1% YoY, with margin expanding to 13.1% from 12.3%
- Operating income of $180M, down 11% YoY; operating margin contracted to 9.4% from 10.0%
- Full-year fiscal 2026 guidance reaffirmed: revenue $7.90B-$8.36B, Adjusted EBITDA $980M-$1,040M, Adjusted EPS $3.87-$4.22
- Spin-off of Mission Technology Solutions segment targeted for completion on January 4, 2027
- Book-to-bill of 1.1x; backlog and options of $23.2B
- Operating cash flow from continuing operations of $110M, up 21% YoY
- Net leverage at 2.3x; returned $25M to shareholders via dividends and share repurchases
Financial Impact
Revenue declined $95M YoY (-5%), GAAP net income fell $14M (-12%), but Adjusted EBITDA rose $3M (+1%). The EPS beat of $0.05 vs consensus is modest.
Risk Factors
- Continued revenue pressure from EUCOM contingency scope runoff
- Execution risk and potential disruption from the Mission Technology Solutions spin-off
- U.S. government funding uncertainty and potential budget cuts under the current administration
- Elevated net leverage at 2.3x limits financial flexibility
- Tariff and trade policy impacts on international project costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287427 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Press Release | $38.19 $34.81 | ▼ −8.85% | ▼ −8.34% | $34.24 (−10.34%) |
Aug 17, 2026 6w ago | Press Release | $37.55 $36.80 | ▼ −2.00% | ▼ −0.47% | $34.24 (−8.81%) |
Aug 10, 2026 7w ago | Press Release | $38.29 $36.30 | ▼ −5.20% | ▼ −4.28% | $34.24 (−10.58%) |
Jul 27, 2026 9w ago | Press Release | $36.82 $37.69 | ▲ +2.36% | ▼ −0.94% | $34.24 (−7.01%) |
Jul 20, 2026 10w ago | Press Release | $34.57 $37.55 | ▲ +8.62% | ▲ +4.50% | $34.24 (−0.95%) |
Jul 14, 2026 11w ago | Press Release | $35.51 $37.56 | ▲ +5.77% | ▲ +3.28% | $34.24 (−3.58%) |
Jul 6, 2026 12w ago | Press Release | $37.43 $36.61 | ▼ −2.19% | ▼ −1.63% | $34.24 (−8.52%) |
Jun 9, 2026 16w ago | Press Release | $35.32 $36.67 | ▲ +3.82% | ▲ +2.38% | $34.24 (−3.06%) |
Jun 3, 2026 17w ago | Press Release | $35.73 $36.41 | ▲ +1.90% | ▲ +2.90% | $34.24 (−4.17%) |
May 28, 2026 18w ago | Press Release | $34.44 $33.37 | ▼ −3.11% | ▲ +0.04% | $34.24 (−0.58%) |
US Market Status
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