KBR, INC. SEC 10-Q Report
KBR, INC., a global provider of differentiated professional services and technologies across the asset and program life cycle within the government services and technology sectors, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational achievements for the three months ended July 4, 2025.
Financial Highlights
Revenues: KBR reported revenues of $1,952 million for the three months ended July 4, 2025, reflecting an increase from $1,847 million for the same period in 2024. This growth was driven by both the Mission Technology Solutions and Sustainable Technology Solutions segments.
Gross Profit: The company achieved a gross profit of $290 million, up from $270 million in the same period in 2024, indicating improved cost management and operational efficiency.
Operating Income: Operating income rose to $194 million, compared to $180 million for the same period in 2024, highlighting effective cost control and increased profitability.
Net Income: Net income was $58 million, down from $107 million for the same period in 2024, primarily due to losses from discontinued operations.
Net Income Attributable to KBR: The net income attributable to KBR was $73 million, compared to $106 million for the same period in 2024, reflecting the impact of discontinued operations.
Basic Earnings Per Share from Continuing Operations: Basic earnings per share from continuing operations were $0.81, slightly higher than $0.79 for the same period in 2024, indicating stable earnings performance.
Diluted Earnings Per Share from Continuing Operations: Diluted earnings per share from continuing operations were $0.81, consistent with $0.79 for the same period in 2024, showing steady earnings per share performance.
Business Highlights
Revenue Segments: The Mission Technology Solutions (MTS) segment generated $1,412 million in revenue, with significant contributions from Defense & Intel at $785 million. The Sustainable Technology Solutions (STS) segment contributed $540 million, driven by commercial and infrastructure clients.
Geographical Performance: The United States remains the largest market, contributing $1,110 million in revenue. Europe and the Middle East also showed strong performance, with revenues of $356 million and $205 million, respectively.
Customer Segments: U.S. Government Defense and Intelligence Clients were the largest customer segment, contributing $856 million in revenue. Commercial and Infrastructure Clients contributed $600 million, highlighting the diversification of KBR's customer base.
Future Outlook: The company anticipates continued opportunities in defense modernization, national security space superiority, and sustainable energy solutions. The U.S. government's fiscal year 2026 budget request includes significant funding for defense and intelligence, which is expected to benefit KBR's operations.
Mission Technology Outlook: The U.S. government has enacted a continuing resolution funding measure through September 30, 2025, providing stability for KBR's government contracts. Internationally, defense spending is expected to increase, particularly in the U.K. and Australia, supporting KBR's growth in these regions.
Sustainable Technology Outlook: Global demand for energy transition and climate-related solutions is expected to drive growth in KBR's Sustainable Technology Solutions segment. The focus on decarbonization, carbon capture, and clean energy alternatives aligns with KBR's strategic priorities.
New Acquisitions: KBR acquired Infrastar Limited on May 17, 2025, for $35 million, enhancing its capabilities in the Mission Technology Solutions segment. The acquisition is expected to provide future growth opportunities and synergies.
SEC Filing: KBR, INC. [ KBR ] - 10-Q - Jul. 31, 2025