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Morningstar’s Analysis

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KBR Posts Solid Q1 Results and Reaffirms Full-Year 2021 Guidance; Raising FVE

Analyst Note

| Krzysztof Smalec, CFA |

KBR posted solid first-quarter results, as its revenue of $1,460 million and adjusted EPS of $0.48 were both in line with FactSet consensus estimates.  There were no major surprises in KBR’s earnings release, as the firm's revenue, EBITDA margin, and adjusted EPS were all roughly in line with management’s previous full-year guidance. The company raised its quarterly dividend by 10%, from $0.10 per share to $0.11. After reviewing our valuation assumptions for KBR, we’ve bumped up our fair value estimate to $38 from $36, which reflects the firm’s continued solid execution, our more optimistic long-term growth assumptions, and time value of money.

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Company Profile

Business Description

KBR (formerly Kellogg, Brown & Root) is global provider of technology, integrated engineering, procurement, and construction delivery, and operations and maintenance services. The company’s business is organized into two segments: government solutions and sustainable technology solutions. KBR has customers in more than 75 countries, with operations in 40, and employs 36,000 people. The firm generated $5.8 billion in revenue in 2020.

Contact
601 Jefferson Street, Suite 3400
Houston, TX, 77002
T +1 713 753-2000
Sector Industrials
Industry Engineering & Construction
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 29,000