KBR Reports Third Quarter Fiscal 2025 Results
October 30, 2025
Third Quarter Fiscal 2025 Highlights
(All comparisons against the third quarter fiscal 2024 unless noted.)
Revenues of $1.9 billion
- Net income attributable to KBR (including discontinued operations) of $115 million; Adjusted EBITDA2 of $240 million, up 10% with an Adjusted EBITDA2 margin of 12.4%
- Diluted EPS (including discontinued operations) of $0.90; Adjusted EPS2 of $1.02, up 21%
- Bookings and options1 of $4.2 billion with 1.4x book-to-bill1
Third Quarter YTD 2025 Highlights
(All comparisons against the third quarter YTD fiscal 2024 unless noted.)
- Revenues of $5.9 billion, up 5%
- Net income attributable to KBR (including discontinued operations) of $304 million; Adjusted EBITDA2 of $730 million, up 14% with an Adjusted EBITDA2 margin of 12.4%
- Diluted EPS (including discontinued operations) of $2.33; Adjusted EPS2 of $2.93, up 20%
- Bookings and options1 of $9.1 billion with 1.1x book-to-bill1
Revising Fiscal Year 2025 Guidance
- Revising previously provided outlook for the pace of awards across both segments and the resolution of bids won under protest, which will not be resolved during the U.S. Government shutdown.
HOUSTON, Oct. 30, 2025 (GLOBE NEWSWIRE) — KBR, Inc. (NYSE: KBR) today announced its third quarter fiscal 2025 results.
“Despite revenue headwinds, KBR achieved year on year double digit Adjusted EBITDA growth, strong cash conversion and maintained operational momentum with a strong book to bill. Our diverse portfolio, prudent cost management and focus on value-add for our customers delivered enhanced margins in line with our strategy,” said Stuart Bradie, Chairman, President & CEO.
Mr. Bradie added, “Our focus on operational, mission-critical priorities, combined with 60% of Adjusted EBITDA coming from non-U.S. government customers, positions us to maintain stability during a temporary government shutdown.”
1 As used throughout this release, book-to-bill and bookings and options exclude long-term UK PFIs and the Plaquemines LNG project.
2 As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Operating cash conversion are non-GAAP financial measures. All non-GAAP financial measures reflect results from continuing operations. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.
Third Quarter Fiscal 2025 Consolidated Results Review
(All comparisons against the third quarter fiscal 2024 unless noted.)
Revenues were $1.9 billion, down 0% or $6 million, due to the slower pace of awards in the first half of the year across both segments and EUCOM reductions in Readiness & Sustainment, partially offset by growth in Defense & Intel both in the U.S. and internationally.
Operating income was $191 million, up 10% or $18 million, primarily due to increases in Equity in earnings of unconsolidated affiliates due to strong project execution on an LNG project, partially offset by decreases in gross profit and increases in Selling, general and administrative expenses.
Net income attributable to KBR (including loss from discontinued operations) was $115 million, up 15% or $15 million, primarily due to increases in Operating income noted above.
Net income attributable to KBR from continuing operations was $116 million, up 16% or 16 million, in line with Net income attributable to KBR (including loss from discontinued operations) noted above.
Diluted earnings per share attributable to KBR (including loss from discontinued operations) were $0.90, up 20% or $0.15, in line with increased Net income attributable to KBR (including loss from discontinued operations) noted above and lower diluted weighted average common shares outstanding due to open market share repurchases.
Diluted earnings per share from continuing operations were $0.91, up 21% or $0.16, in line with Diluted earnings per share attributable to KBR (including loss from discontinued operations) noted above.
Adjusted EBITDA2 was $240 million, up 10% or $21 million, primarily due to the increase in Operating income noted above. Adjusted EBITDA2 margin was 12.4%, up from the prior year due to strong operating performance in the current year period.
Adjusted earnings per share2 were $1.02, up 21% or $0.18, due to the increase in Adjusted EBITDA2 noted above and lower adjusted weighted average common shares outstanding due to open market share repurchases.
Backlog and options as of the quarter end totaled $23.4 billion. Book-to-bill1 was 1.4x for the quarter.
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