NYSE · KBR

KBR, Inc.

Industrials · Engineering & Construction

$35.54▼ 3.16% ($1.16)at close

As of 4:00 PM ET

52-week

$29.94$52.23

Market cap

$4.48B

P/E

What the market price implies · Reverse DCF

To support a price of $35.54, this model requires revenue to grow by -3.34%/yr over the next 10 years, compounded annually.

Historical revenue grew by 1.49%/yr over the past 4 years. The required annual growth rate is 4.83 percentage points lower.

Selected forecast · Base scenario

1.94%/yr · actual 10-year annualized revenue growth

Year 1 growth: 3.03%

Market-implied · Base operating assumptions + edited margins

-3.34%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$35.54

Estimated value / share

$63.51

Base scenario

This estimate is 78.7% above the price used.

USD · TTM ending 2026-07-04

Year 1 growth 3.03% · Ending margin 6% · Discount rate 6.56%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 18, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-07-04
Data refreshed: Sep 18, 2026, 11:35 PM UTC · provider

Why this method?

FCFF is positive, but it is still too unstable and too short-lived to anchor even a normalized FCFF DCF. Use revenue and margin assumptions instead of compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 4 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 564.1%.

Do you have 5+ years of positive FCFF history? Only 4 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Likely fundamental deteriorationHigh confidence

1Y Price: -28.01%Revenue (TTM): -4.37%FCF (TTM): -19.49%P/FCF: 27th pct

What changed

The stock fell 28.01% over the last year. Revenue declined 4.37% over the trailing twelve months. Operating margin moved from 8.72% to 8.93%. Free cash flow declined 19.49% over the trailing twelve months.

What the market seems to be pricing

The market is reacting to weaker business momentum more than just compressing the valuation multiple. Even if the shares already screen cheap on P/FCF, investors are still discounting lower future earnings power.

What would invalidate this read

Operating margin stands at 8.93%. Revenue declined 4.37% — this read reverses if that trend stabilizes. Free cash flow fell 19.49% — a return toward positive territory would undermine the deterioration thesis. If margins and cash flow stabilize while the stock stays depressed, the gap shifts from fundamental damage toward pure multiple compression.

Performance

Return analysis

Company profile

KBR, Inc. delivers advanced scientific, technological, and engineering solutions globally to both government entities and commercial enterprises.

CEOStuart John Baxter Bradie

SectorIndustrials

IndustryEngineering & Construction

Employees36,000

IPO dateNov 16, 2006

https://www.kbr.com

Market multiples

Forward P/E—

EV/EBITDA8.34

Enterprise value$7.85B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth1.64%

Gross margin (FY2025)14.77%▲0.5ppvs FY2024

Operating margin (FY2025)7.3%▼1.3ppvs FY2024

ROE27.15%▼0.9ppvs FY2025

Analyst consensus

RatingBuy

Target price$41.00▲15.36%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 29, 2026

Q4 FY26 · EPS est $1.02 · Revenue est $2.05B

View

Dividends

$0.66/shareQuarterlyDividend Achiever · 17yrSafe

KBR pays a dividend with a 1.86% dividend yield, 17 consecutive years of growth, growing at 8.95% annually, covered 5.7× by free cash flow.

Dividend Yield

1.86%

Annual Div / Share

$0.66

5yr CAGR

+8.95%

Doubles every ~8.1yr

Payout Ratio

20.05%

Safe

Dividend Growth Rate

3yr CAGR

+7.93%

5yr CAGR

+8.95%

10yr CAGR

+7.51%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.66+2.3%

2025$0.65+10.3%

2024$0.59+11.4%

2023$0.53+11.7%

2022$0.47+9.3%

2021$0.43+13.2%

2020$0.38+18.8%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$19/yr

$2/mo

In 5 yrs

$29/yr+53%

$2/mo

In 10 yrs

$44/yr+136%

$4/mo

Today	In 5 yrs	In 10 yrs
$19/yr $2/mo	$29/yr+53% $2/mo	$44/yr+136% $4/mo

Yield-on-cost grows from 1.86% → 4.37% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

KBR has raised its dividend for 17 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 5.7× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.95% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · KBR

KBR, Inc.

Industrials · Engineering & Construction

$35.54▼ 3.16% ($1.16)at close

As of 4:00 PM ET

52-week

$29.94$52.23

Market cap

$4.48B

P/E

What the market price implies · Reverse DCF

To support a price of $35.54, this model requires revenue to grow by -3.34%/yr over the next 10 years, compounded annually.

Historical revenue grew by 1.49%/yr over the past 4 years. The required annual growth rate is 4.83 percentage points lower.

Selected forecast · Base scenario

1.94%/yr · actual 10-year annualized revenue growth

Year 1 growth: 3.03%

Market-implied · Base operating assumptions + edited margins

-3.34%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$35.54

Estimated value / share

$63.51

Base scenario

This estimate is 78.7% above the price used.

USD · TTM ending 2026-07-04

Year 1 growth 3.03% · Ending margin 6% · Discount rate 6.56%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 18, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-07-04
Data refreshed: Sep 18, 2026, 11:35 PM UTC · provider

Why this method?

FCFF is positive, but it is still too unstable and too short-lived to anchor even a normalized FCFF DCF. Use revenue and margin assumptions instead of compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 4 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 564.1%.

Do you have 5+ years of positive FCFF history? Only 4 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Likely fundamental deteriorationHigh confidence

1Y Price: -28.01%Revenue (TTM): -4.37%FCF (TTM): -19.49%P/FCF: 27th pct

What changed

What the market seems to be pricing

What would invalidate this read

Performance

Return analysis

Company profile

KBR, Inc. delivers advanced scientific, technological, and engineering solutions globally to both government entities and commercial enterprises.

CEOStuart John Baxter Bradie

SectorIndustrials

IndustryEngineering & Construction

Employees36,000

IPO dateNov 16, 2006

https://www.kbr.com

Market multiples

Forward P/E—

EV/EBITDA8.34

Enterprise value$7.85B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth1.64%

Gross margin (FY2025)14.77%▲0.5ppvs FY2024

Operating margin (FY2025)7.3%▼1.3ppvs FY2024

ROE27.15%▼0.9ppvs FY2025

Analyst consensus

RatingBuy

Target price$41.00▲15.36%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 29, 2026

Q4 FY26 · EPS est $1.02 · Revenue est $2.05B

View

Dividends

$0.66/shareQuarterlyDividend Achiever · 17yrSafe

KBR pays a dividend with a 1.86% dividend yield, 17 consecutive years of growth, growing at 8.95% annually, covered 5.7× by free cash flow.

Dividend Yield

1.86%

Annual Div / Share

$0.66

5yr CAGR

+8.95%

Doubles every ~8.1yr

Payout Ratio

20.05%

Safe

Dividend Growth Rate

3yr CAGR

+7.93%

5yr CAGR

+8.95%

10yr CAGR

+7.51%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.66+2.3%

2025$0.65+10.3%

2024$0.59+11.4%

2023$0.53+11.7%

2022$0.47+9.3%

2021$0.43+13.2%

2020$0.38+18.8%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$19/yr

$2/mo

In 5 yrs

$29/yr+53%

$2/mo

In 10 yrs

$44/yr+136%

$4/mo

Today	In 5 yrs	In 10 yrs
$19/yr $2/mo	$29/yr+53% $2/mo	$44/yr+136% $4/mo

Yield-on-cost grows from 1.86% → 4.37% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

KBR has raised its dividend for 17 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 5.7× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.95% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.