KBR's Q1 Earnings Surpass Estimates, Revenues Miss, Both Up Y/Y

KBR, Inc. KBR reported first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, both top and bottom lines increased on a year-over-year basis. KBR stock gained 5.1% during yesterday’s trading session, following the earnings release.

The company kicked off the year with a solid first-quarter performance, posting year-over-year growth in revenues, margins, earnings and cash flow. KBR attributed these gains to strong execution across key projects and effective internal management strategies. Leadership highlighted the benefits of sustained demand for LNG, particularly as activity ramps up at the Plaquemines project, driving higher profitability and cash generation. KBR also saw increased volumes in its HomeSafe program during the quarter, accompanied by improved customer satisfaction. Moreover, the company reported healthy bidding activity and continued success in securing strategic new contracts, signaling steady operational momentum.

Inside KBR’s Headlines

Adjusted earnings per share (EPS) of 98 cents topped the Zacks Consensus Estimate of 88 cents by 11.4% and grew 27.3% year over year.

Total revenues of $2,055 million missed the consensus mark of $2,066 million by 0.5%. However, the figure rose 13% year over year. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Adjusted EBITDA increased 17.4% year over year to $243 million, with adjusted EBITDA margin contracting 40 basis points to 11.8%. Our model expected adjusted EBITDA to grow 5.3% year over year to $217.9 million with an adjusted EBITDA margin of 10.7%.

KBR’s Segment Realignment

Effective from fiscal 2025, KBR implemented a segment realignment aimed at streamlining its business structure. As part of this change, the former Government Solutions segment has been renamed Mission Technology Solutions, while the Sustainable Technology Solutions segment retains its original name. The company has also redistributed its international operations, previously housed under Government Solutions, across both of the newly aligned segments.

KBR’s Segmental & Backlog Details

Revenues in the Mission Technology Solutions segment increased 13.6% year over year to $1.5 billion. Our model predicted the segment’s revenues to grow 12.7%. The segment’s performance was aided by strong contributions from Defense & Intelligence, boosted by the LinQuest acquisition and increased activity in Readiness & Sustainment tied to rising move volumes under the HomeSafe program.

The Mission Technology Solutions segment’s adjusted EBITDA was $145 million, up from $131 million in the prior-year quarter, with adjusted EBITDA margin expanding 40 bps to 11.8%. Operating income increased 8% year over year to $114 million in the quarter.

Revenues in the Sustainable Technology Solutions (“STS”) segment rose 12% year over year to $550 million. The reported figure beat our projection of $480.1 million for the segment.

The STS segment’s adjusted EBITDA increased to $124 million, up 20% year over year, with adjusted EBITDA margin expanding 160 bps to 22.5%. Operating income increased 27% year over year to $119 million.

As of April 4, 2025, the total backlog (including award options) was $20.5 billion compared with $21.2 billion as of Jan. 3, 2025. Of the total backlog, Mission Technology Solutions and the Sustainable Technology Solutions contributed $16.51 billion and $4.03 billion, respectively.

At the end of first-quarter 2025, the company delivered a trailing 12-month book-to-bill ratio of 1.0x.

Liquidity & Cash Flow of KBR

As of April 4, 2025, KBR’s cash and cash equivalents were $442 million, up from $350 million as of Jan. 3, 2025. Long-term debt was $2.71 billion as of Apr 4, 2025, up from $2.53 million as of Jan. 3, 2025.

In first-quarter 2025, operating cash flow totaled $98 million, up from $91 million at the end of March 29, 2024.

In the first quarter, KBR returned a total of $176 million to its shareholders, including $156 million through share repurchases (including withholding to cover shares) and $20 million in dividend payments.

KBR Reaffirms its 2025 Outlook

KBR continues to expect total revenues to be in the band of $8.7-$9.1 billion (depicting 12-18% growth). It continues to anticipate 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 Releases

KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MasTec, Inc. MTZ reported impressive results for the first quarter of 2025, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

MasTec reported a strong financial performance in the first quarter, which was marked by solid year-over-year growth in key metrics. Both revenues and adjusted EBITDA achieved mid-single-digit gains, while EPS notably surpassed prior guidance. The company highlighted record consolidated backlog levels, with a particularly sharp increase, more than double, in the Pipeline Infrastructure segment since year-end.

Quanta Services Inc. PWR reported solid results for the first quarter of 2025, wherein both adjusted earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also grew year over year.

Quanta has raised its 2025 revenue outlook, now projecting between $26.7 billion and $27.2 billion, up from the previous range of $26.6 billion to $27.1 billion.  The company reported revenues of $23.67 billion in 2024. Quanta expects adjusted EPS in the range of $10.05-$10.65 (compared with the earlier projection of $9.90-$10.50), representing an increase from $8.97 in 2024.

Gibraltar Industries, Inc.’s ROCK first-quarter 2025 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.

Gibraltar’s quarterly results reflect stable demand and performance in line with internal plans. Backlog increased 30% year over year to $434 million, reaching a record high. The company reported solid contributions from the Lane Supply acquisition. Gibraltar also carried out restructuring actions and completed two additional acquisitions in the Residential segment to expand its presence in the metal roofing market.

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