KBR, Inc. (KBR) Bundle
A Brief History of KBR, Inc.
KBR, Inc., originally founded as Kellogg Brown & Root, has evolved significantly since its inception in 1901. Over the decades, it has established itself as a leader in delivering technology and engineering solutions across various sectors, including government services and sustainable technology solutions.
Key Milestones
- 1901: Founded as a partnership between two engineers, the company initially focused on construction and engineering.
- 1998: Merged with Halliburton Company, significantly expanding its capabilities and global reach.
- 2006: Became an independent publicly traded company after a spin-off from Halliburton.
- 2020: Acquisition of the government services company, Wyle, enhancing its portfolio in government solutions.
- 2024: Acquired LinQuest Corporation, a strategic move to bolster its defense and intelligence capabilities.
Financial Performance
As of September 27, 2024, KBR reported revenues of $5.62 billion for the nine months ended, marking an increase of 8% compared to $5.23 billion in the same period in 2023. The gross profit for the same period was $810 million, reflecting a 9% increase from $740 million the previous year.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $5,620 million | $5,226 million | $394 million | 8% |
| Cost of Revenues | $4,810 million | $4,486 million | $324 million | 7% |
| Gross Profit | $810 million | $740 million | $70 million | 9% |
| Net Income | $303 million | ($282 million) | $585 million | n/m |
Business Segments
KBR operates through two main segments: Government Solutions (GS) and Sustainable Technology Solutions (STS). For the three months ended September 27, 2024, the revenues from GS were $1.49 billion, an increase of 11% from $1.34 billion in the same period in 2023. The STS segment also saw growth, with revenues of $457 million, up 8% from $425 million.
| Segment | 2024 Revenues | 2023 Revenues | Change ($) | Change (%) |
|---|---|---|---|---|
| Government Solutions | $1,490 million | $1,345 million | $145 million | 11% |
| Sustainable Technology Solutions | $457 million | $425 million | $32 million | 8% |
Backlog and Future Prospects
KBR's total backlog as of September 27, 2024, was $17.9 billion, up from $17.3 billion in the previous year. This backlog includes $10.1 billion of funded government contracts, indicating strong future revenue potential.
| Backlog Metrics | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Total Backlog | $17,900 million | $17,335 million | $565 million |
| Government Solutions Backlog | $14,150 million | $12,790 million | $1,360 million |
| Sustainable Technology Solutions Backlog | $3,750 million | $4,545 million | ($795 million) |
KBR's strategic growth areas include defense modernization, space superiority, and sustainable technology, positioning the company for continued expansion in key markets.
A Who Owns KBR, Inc. (KBR)
Ownership Structure
KBR, Inc. is publicly traded on the New York Stock Exchange under the symbol KBR. As of 2024, the ownership of KBR is comprised of various institutional and individual shareholders. The largest shareholders include institutional investors, mutual funds, and individual stakeholders.
Major Shareholders
As of the latest data in 2024, the following table summarizes the major shareholders of KBR, Inc.:
| Shareholder | Type of Ownership | Percentage Ownership | Number of Shares Owned (millions) |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8.5% | 15.5 |
| BlackRock, Inc. | Institutional | 7.2% | 13.1 |
| State Street Corporation | Institutional | 5.8% | 10.5 |
| Wellington Management Group LLP | Institutional | 5.0% | 9.0 |
| Invesco Ltd. | Institutional | 4.9% | 8.8 |
| Individual Shareholders | Individual | 68.6% | 123.6 |
Recent Financial Performance
KBR, Inc. reported significant financial metrics for the nine months ended September 27, 2024. The following table outlines key financial figures:
| Metric | Amount (in millions) |
|---|---|
| Total Revenues | $5,620 |
| Gross Profit | $810 |
| Operating Income | $520 |
| Net Income Attributable to KBR | $299 |
| Basic Earnings per Share | $2.22 |
| Diluted Earnings per Share | $2.22 |
Stock Performance
The stock performance of KBR, Inc. has shown resilience in the market. As of September 27, 2024, the following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $64.05 |
| Market Capitalization | $8.5 billion |
| 52-Week High | $71.50 |
| 52-Week Low | $50.00 |
| Dividend Yield | 0.23% |
Dividend Policy
KBR, Inc. has a consistent dividend policy, with dividends declared as follows:
| Year | Quarterly Dividend (per share) |
|---|---|
| 2024 | $0.150 |
| 2023 | $0.135 |
KBR, Inc. (KBR) Mission Statement
KBR, Inc. is committed to delivering technology and expertise that meets the evolving needs of our customers while ensuring the safety, security, and sustainability of the environments in which we operate. Our mission is to leverage our engineering and operational capabilities to provide innovative solutions across various sectors, including defense, space, and energy, while fostering a culture of collaboration, integrity, and excellence.
Financial Performance Overview
As of 2024, KBR reported significant financial performance metrics, reflecting a robust operational strategy:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $5,620 million | $5,226 million | $394 million | 8% |
| Gross Profit | $810 million | $740 million | $70 million | 9% |
| Operating Income | $520 million | $301 million | $219 million | 73% |
| Net Income Attributable to KBR | $299 million | ($286 million) | $585 million | n/m |
Business Segments Analysis
KBR operates through two primary segments: Government Solutions (GS) and Sustainable Technology Solutions (STS). The financial contributions of these segments for the nine months ended September 27, 2024, are detailed below:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Government Solutions | $4,273 million | $4,025 million | $248 million | 6% |
| Sustainable Technology Solutions | $1,347 million | $1,201 million | $146 million | 12% |
Key Financial Metrics
In addition to revenue and profit metrics, KBR's performance can be further analyzed through the following key financial indicators:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Basic Earnings per Share | $2.22 | ($2.10) |
| Diluted Earnings per Share | $2.22 | ($2.10) |
| Cash Dividends Declared per Share | $0.450 | $0.405 |
Backlog and Future Prospects
KBR's backlog as of September 27, 2024, stands at $17.9 billion, indicating a strong pipeline of future work:
| Backlog Category | Amount ($ billion) |
|---|---|
| Total Backlog | $17.9 |
| Funded Backlog | $10.1 |
| Unfunded Backlog | $7.8 |
As of September 27, 2024, approximately 36% of the backlog is expected to be executed within one year, showcasing KBR's commitment to timely project delivery and customer satisfaction.
Conclusion
KBR, Inc. continues to position itself as a leader in engineering solutions, with a clear mission to provide innovative and sustainable services while achieving significant financial milestones in 2024.
How KBR, Inc. (KBR) Works
Business Overview
KBR, Inc. operates primarily through two segments: Government Solutions (GS) and Sustainable Technology Solutions (STS). The GS segment focuses on providing high-end defense engineering, classified intelligence, and international programs, while the STS segment offers technology sales, engineering, and professional services.
Financial Performance
For the nine months ended September 27, 2024, KBR reported the following financial results:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Revenues | $5,620 | $5,226 | $394 | 8% |
| Cost of Revenues | $(4,810) | $(4,486) | $(324) | 7% |
| Gross Profit | $810 | $740 | $70 | 9% |
| Operating Income | $520 | $301 | $219 | 73% |
| Net Income Attributable to KBR | $299 | $(286) | $585 | n/m |
Segment Performance
KBR's performance by segment for the nine months ended September 27, 2024 is as follows:
| Segment | Revenues (in millions) | Operating Income (in millions) | Change in Revenues ($ millions) | Change in Operating Income ($ millions) |
|---|---|---|---|---|
| Government Solutions | $4,273 | $362 | $248 | $180 |
| Sustainable Technology Solutions | $1,347 | $277 | $146 | $34 |
Cash Flow and Investments
During the nine months ended September 27, 2024, KBR's cash flow activities were as follows:
| Activity | Cash Flow (in millions) |
|---|---|
| Cash Flows from Operating Activities | $422 |
| Cash Flows from Investing Activities | $(751) |
| Cash Flows from Financing Activities | $475 |
Balance Sheet Highlights
As of September 27, 2024, KBR's balance sheet included:
| Asset/Liability | Amount (in millions) |
|---|---|
| Total Assets | $6,781 |
| Total Liabilities | $(5,267) |
| Total Shareholders' Equity | $1,514 |
Market Position and Backlog
KBR's backlog represents the estimated dollar amount of revenues expected from unfilled orders. The growth in the backlog and the strong performance in both segments highlight KBR's strategic positioning in the market.
The company's recent acquisition of LinQuest contributed $41 million in revenue, enhancing its capabilities in defense and technology solutions.
Dividends and Share Repurchases
KBR declared a cash dividend of $0.150 per share for the third quarter of 2024, compared to $0.135 per share in the same period of 2023. The share repurchase activities included:
| Period | Shares Repurchased | Average Price per Share | Total Cost (in millions) |
|---|---|---|---|
| Three Months Ended September 27, 2024 | 137,303 | $64.05 | $9 |
| Nine Months Ended September 27, 2024 | 2,671,069 | $62.47 | $167 |
Overall, KBR's strategic focus on high-end defense and sustainable technology solutions, coupled with solid financial performance and effective cash management, positions the company favorably in the current market landscape.
How KBR, Inc. (KBR) Makes Money
Overview of Revenue Streams
KBR, Inc. generates revenue primarily through two business segments: Government Solutions (GS) and Sustainable Technology Solutions (STS). For the nine months ended September 27, 2024, KBR reported total revenues of $5,620 million, an increase of 8% compared to $5,226 million for the same period in 2023.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change ($ in millions) | Change (%) |
|---|---|---|---|---|
| Government Solutions | $4,273 | $4,025 | $248 | 6% |
| Sustainable Technology Solutions | $1,347 | $1,201 | $146 | 12% |
| Total | $5,620 | $5,226 | $394 | 8% |
Government Solutions Segment
The Government Solutions segment focuses on high-end defense engineering, classified intelligence, and international programs. In 2024, this segment saw revenue growth primarily due to:
- Increased demand for defense and intelligence services.
- Recognition of $41 million in revenue from the LinQuest acquisition.
- Overall operating income for this segment increased to $362 million in 2024 from $182 million in 2023, marking a growth of 99%.
Sustainable Technology Solutions Segment
This segment specializes in technology sales and engineering services aimed at sustainability. The growth was attributed to:
- Increased revenues from technology sales and engineering services.
- Operating income rose from $243 million in 2023 to $277 million in 2024, a 14% increase.
Operating Income and Profitability
KBR's overall operating income for the nine months ended September 27, 2024, was $520 million, up from $301 million in the same period of 2023, reflecting a 73% increase.
Gross profit also increased from $740 million to $810 million, representing a 9% growth, driven by higher revenue in both segments and a favorable mix of services.
Equity in Earnings of Unconsolidated Affiliates
KBR reported equity in earnings of unconsolidated affiliates of $97 million for the nine months ended September 27, 2024, compared to $78 million in 2023, reflecting a 24% increase. This increase is mainly attributed to earnings from an LNG project within the STS segment.
Cost Management
For the nine months ended September 27, 2024, KBR's selling, general, and administrative expenses rose to $390 million from $370 million in 2023, a 5% increase. This was primarily due to additional expenses to support growth in both business segments.
Legal Settlements and Charges
KBR did not incur any legal settlement charges in 2024, contrasting with a $144 million legal settlement recorded in 2023, contributing to the improved net income.
Net Income Performance
KBR's net income attributable to the company for the nine months ended September 27, 2024, was $299 million, compared to a net loss of $286 million in the same period of 2023, marking a substantial turnaround in profitability.
Net income per share for the nine months ended September 27, 2024, was $2.22, a notable improvement from a net loss of $2.10 per share in 2023.
| Financial Metrics | 2024 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Net Income | $299 | ($286) |
| Earnings Per Share (EPS) | $2.22 | ($2.10) |
| Gross Profit | $810 | $740 |
| Operating Income | $520 | $301 |
Backlog of Unfilled Orders
KBR's total backlog stood at $17.9 billion as of September 27, 2024, an increase from $17.3 billion in December 2023. This backlog includes:
- Government Solutions: $14.15 billion
- Sustainable Technology Solutions: $3.75 billion
Approximately 36% of this backlog is expected to be executed within one year, indicating strong future revenue visibility.
KBR, Inc. (KBR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- KBR, Inc. (KBR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of KBR, Inc. (KBR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View KBR, Inc. (KBR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.