At a glance
KBR Inc is worth $5.06B, about 13 times its fiscal 2025 earnings. Revenue grew 1.0% to $7.79B in fiscal 2025, with 5.3% kept as profit; over 5 years it has grown 6.2% a year. It pays a 1.69% dividend yield, raised every year for at least 6 years, and returned $1.33B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −5.1% over the past year with dividends reinvested and −0.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 58.0% in the 2020 crash (S&P 500: 33.7%) and 23.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 6 months after the lows.
The business in plain English
KBR sells engineering, science, technology and logistics services, mostly to governments. In fiscal 2025 (the year ended January 2, 2026), revenue was $7.79 billion, and the U.S. government supplied 57% of it. Clients include the U.S. Army, Navy, Air Force, Space Force and Missile Defense Agency, NASA, the U.K. Ministry of Defence and Australia's armed forces, along with commercial and industrial companies. Much of its work comes through multi-year contracts and programs, some run through joint ventures with other firms.
Mission Technology Solutions, the larger segment, brought in $5.58 billion, or 71.7% of revenue. It handles systems engineering, testing, cybersecurity, data analytics, space operations, and supply chain and logistics for military, intelligence and space agencies, mainly in the U.S., U.K. and Australia. Sustainable Technology Solutions brought in $2.21 billion, or 28.3%. It licenses more than 85 proprietary process technologies, patented methods for making ammonia and chemicals, clean refining and recycling plastics, and sells related equipment, catalysts, engineering and consulting.
By region, the United States accounted for 54.5% of revenue, Europe 20.3%, the Middle East 10.1% and Australia 7%. In September 2025, KBR announced a plan to spin off Mission Technology Solutions as a separate public company. Its 10-K, filed February 26, 2026, targeted completion in the second half of fiscal 2026, subject to board approval and other conditions.
Price history
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KBR -5.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| MTS | $5.58B | 71.7% |
| STS | $2.21B | 28.3% |
By geography
| United States | $4.24B | 54.5% |
| Europe | $1.58B | 20.3% |
| Middle East | $790.0M | 10.1% |
| Australia | $548.0M | 7% |
| Africa | $253.0M | 3.2% |
| Other | $225.0M | 2.9% |
| Asia | $142.0M | 1.8% |
Latest results
- In Q3 FY2026 (ended Oct 2, 2026), revenue was $2.03B, up 5% from a year earlier, and net income was $133.0M (+15.7%).
- For fiscal 2025, revenue was $7.79B (+1.0% year over year; +6.2% a year from FY2020 to FY2025) with a 5.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.2% good |
|---|---|
| Operating margin | 10% watch |
| Free cash flow margin | 6.6% watch |
| Return on equity (FY2025) | 27.6% good |
| Return on assets (FY2025) | 6.3% watch |
| Net cash (cash minus debt) | $-2.05B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $5.77B | $-63.0M | $347.0M |
| FY2021 | $7.34B | $27.0M | $248.0M |
| FY2022 | $6.56B | $190.0M | $325.0M |
| FY2023 | $6.96B | $-265.0M | $269.0M |
| FY2024 | $7.71B | $375.0M | $410.0M |
| FY2025 | $7.79B | $415.0M | $515.0M |
Valuation snapshot
| Market value | $5.06B |
|---|---|
| P/E ratio | 12.5 |
| Dividend yield | 1.69% |
Rank among 1514 US companies
Market value at each year end
KBR’s market value went from $2.38B at the end of 2016 to $5.06B on Oct 28, 2026, about 2.1 times as much; since the end of 2025 it is down 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.06B | -0.8% |
| 2025 | $5.10B | -33.9% |
| 2024 | $7.72B | +3.2% |
| 2023 | $7.48B | +3.3% |
| 2022 | $7.24B | +8.4% |
| 2021 | $6.68B | +51.5% |
| 2020 | $4.41B | +2.0% |
| 2019 | $4.32B | +102.1% |
| 2018 | $2.14B | -23.0% |
| 2017 | $2.78B | +16.7% |
| 2016 | $2.38B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KBR price data to Oct 28, 2026 | +1.3% | -5.1% | -9.9% | -0.3% | +11.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.3% |
| 2025 | -29.6% |
| 2024 | +5.6% |
| 2023 | +6.0% |
| 2022 | +11.9% |
| 2021 | +55.7% |
| 2020 | +3.2% |
| 2019 | +103.6% |
| 2018 | -22.0% |
| 2017 | +21.2% |
| 2016 | +0.7% |
| 2015 | +1.7% |
| 2014 | -46.1% |
| 2013 | +7.7% |
| 2012 | +8.1% |
| 2011 | -7.9% |
| 2010 | +61.7% |
| 2009 | +26.4% |
| 2008 | -60.5% |
| 2007 | +48.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 71.1% over that stretch · deepest drop along the way 77.5%, back to its old high 148.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 49.9% over that stretch · deepest drop along the way 58%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6% over that stretch · deepest drop along the way 23.6%, back to its old high 6.4 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 4 open-market purchases ($945K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 19, 2026 | Carlos A. Sabater Director | buy | $471K |
| May 13, 2026 | Shad E. Evans EVP & Chief Financial Officer | buy | $256K |
| May 20, 2026 | Jack B Moore Director | buy | $126K |
| May 14, 2026 | Thaer Lewis Von Director | buy | $92K |
Who owns it
Large shareholders (13G filings)
| FMR LLC | 15% | Jun 30, 2025 |
| Invesco Ltd. | 6.6% | Jun 30, 2026 |
| Vanguard Capital Management | 5.23% | Mar 31, 2026 |
ETFs with the most weight in KBR
| MISL First Trust Indxx Aerospace & Defense ETF | 1.81% |
| SMDX Intech S&P Small-Mid Cap Diversified Alpha ETF | 0.97% |
| PPA Invesco Aerospace & Defense ETF | 0.75% |
| NUSC Nuveen ESG Small-Cap ETF | 0.72% |
| MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF | 0.52% |
| SMMV iShares MSCI USA Small-Cap Min Vol Factor ETF | 0.47% |
| HSMV First Trust Horizon Managed Volatility Small/Mid ETF | 0.47% |
| BUYO KraneShares Man Buyout Beta Index ETF | 0.43% |
What could go wrong
- Planned spin-off could disrupt both companies. KBR announced plans to split Mission Technology Solutions into its own public company. The process could disrupt operations, and afterward both companies may carry leftover overhead, lose economies of scale and face higher costs.
- Heavy reliance on U.S. government budgets. The U.S. government supplied 57% of revenue in fiscal 2025. Budget delays, shutdowns, stopgap funding bills or spending cuts could bring canceled contracts, unused contract options, funding shortfalls or late payments.
- Lumpy, hard-to-predict contract awards. Results depend on winning new contracts in competitive bidding. Large awards are hard to predict, and delays can leave KBR paying for staff it kept ready, making quarterly results uneven.
- Fixed-price contracts can turn into losses. On fixed-price contracts, KBR agrees to a set price up front. If costs run higher because of inflation or subcontractor problems, it absorbs the overrun and may owe pre-agreed penalties for delays.
- Energy clients may delay projects. Sustainable Technology Solutions serves energy and chemical producers. Swings in commodity prices can lead those clients to delay or cancel projects, or change the timing and funding of new awards.
- A sizable debt load. As of July 3, 2026, KBR had about $2.55 billion of debt and $362 million of cash. Its credit agreement sets financial tests; failing them could cut off borrowing and limit funding for acquisitions.
Recent events
- Quarterly results released; Investor presentation or announcement
- Bylaws or fiscal year changed
- Executive or board change
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Quarterly results released
- Quarterly results released
For income and retirement investors
KBR pays a modest but growing dividend. Dividends per share rose from $0.40 in fiscal 2020 to $0.66 in fiscal 2025, about 10.5% a year, part of a streak of six straight annual increases. In fiscal 2025 the dividend took about 20% of earnings and 16% of free cash flow (cash left after capital spending). The yield was 1.69% as of October 28, 2026. Buybacks were larger: $970 million from fiscal 2021 through fiscal 2025, against $362 million in dividends, and the share count fell about 10% between October 2021 and July 2026. The 10-K notes that KBR may change its dividend policy.
The share price has fallen hard in downturns. It dropped 77.5% in the 2008 financial crisis and took more than 12 years to recover. It fell 58% in the 2020 COVID crash and 23.6% in the 2022 bear market, recovering within about 10 months each time. A single stock like KBR carries more risk than a diversified fund.
Questions investors ask
How does KBR make money?
KBR makes most of its money from government contracts for engineering, science, technology and logistics work. In fiscal 2025, Mission Technology Solutions, which serves defense, intelligence and space agencies such as the U.S. Air Force, Space Force and NASA, provided 71.7% of $7.79 billion in revenue. Sustainable Technology Solutions provided 28.3%, by licensing more than 85 proprietary process technologies for ammonia, chemicals, refining and plastics recycling, and by selling related equipment, catalysts, engineering and consulting.
Does KBR raise its dividend every year?
Yes, through fiscal 2025. KBR raised its dividend per share each year from $0.40 in fiscal 2020 to $0.66 in fiscal 2025, part of a six-year streak of increases. The yield was 1.69% as of October 28, 2026. The dividend used about 20% of fiscal 2025 earnings, a fairly low share. From fiscal 2021 to 2025, KBR spent more on buybacks than on dividends, and its 10-K warns that the dividend policy could change.
Is KBR spinning off its government business?
KBR announced a plan to do so in September 2025. The plan covers Mission Technology Solutions, its defense, intelligence and space segment and the source of 71.7% of fiscal 2025 revenue, which would become a separate U.S. public company. In a spin-off, existing shareholders usually receive shares of the new company. The 10-K filed February 26, 2026 targeted completion in the second half of fiscal 2026, subject to board approval, a favorable legal opinion or IRS ruling on taxes, and an effective SEC registration.
How much of KBR's revenue comes from the U.S. government?
About 57% of KBR's fiscal 2025 revenue came from the U.S. government. Customers include defense agencies such as the Army, Navy, Air Force, Space Force and Missile Defense Agency, intelligence agencies, and civilian agencies like NASA and the U.S. Geological Survey. KBR also works for the U.K. Ministry of Defence and Australia's armed forces. Because it relies so heavily on government work, budget delays, government shutdowns or spending cuts can lead to canceled contracts, funding shortfalls or late payments.
How has KBR stock performed?
Results have been mixed. Based on share price, KBR gained about 11.9% a year over the 10 years to October 28, 2026, or 208% in total. But it lost about 9.9% a year over three years and 5.1% over one year, and it fell 29.6% in calendar 2025. Over those three years, its deepest drop from a peak was 57.4%. On October 28, 2026, the shares traded at about 12.5 times fiscal 2025 earnings.