Overview

* KBR fiscal Q2 revenue up 6% to $2.0 bln, missing analyst expectations

* Adjusted EPS for fiscal Q2 rises 10%, beating consensus, per LSEG data

* Co revises fiscal yr 2025 guidance due to contract terminations and delays

Outlook

* KBR revises FY 2025 revenue guidance to $7.9 bln - $8.1 bln

* Company updates FY 2027 revenue target to $9.0 bln+

* Company cites HomeSafe JV termination for guidance revision

Result Drivers

* DEFENSE & INTEL GROWTH - Revenue increased 6% to $2.0 bln, driven by growth in Defense & Intel, supported by the LinQuest acquisition

* STRONG PROJECT EXECUTION - Operating income rose 8% due to strong project execution on an LNG project, despite higher selling, general and administrative expenses

* CONTRACT TERMINATION IMPACT - Net income fell 31% to $73 mln, primarily due to the termination of the HomeSafe contract

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $2 bln $2.08

Revenue bln (6

Analysts

)

Q2 Beat $0.91 $0.88 (6

Adjusted Analysts

EPS )

Q2 EPS $0.56

Q2 Net $73 mln

Income

Q2 $242 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for KBR Inc ( KBR ) is $68.50, about 33.5% above its July 30 closing price of $45.52

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)