KBR Q2 Bottom-Line Tops Street View; Misses On Revenue

KBR, Inc. KBR reported second-quarter revenue growth of 5.2% year-over-year to $1.62 billion, missing the consensus of $1.63 billion.
Adjusted EPS was $0.76, beating the consensus of $0.65
The gross margin contracted by 104 bps to 12.4%.
Adjusted EBITDA improved by 19.2% Y/Y to $186 million, and margin expanded by 135 bps to 11.5%.
KBR’s adjusted operating cash flows year-to-date totaled $214 million, compared to $165 million a year ago. Adjusted free cash flow was $195 million.
The company’s exit from commercial activities in Russia resulted in a predominantly non-cash pretax charge of $12 million in Q2 2022.
During the quarter, KBR delivered book-to-bill of 2.1x and recorded $2.9 billion of awards and options. Total backlog and options were $19.21 billion at the end of the quarter.
FY22 Guidance: KBR expects consolidated revenue of $6.4 billion - $6.8 billion versus the consensus of $6.63 billion; Adjusted EBITDA margin of 10%.
It expects GAAP EPS of $1.09 - $1.21 (prior $1.02 - $1.14) and adjusted EPS of $2.53 - $2.65 vs. the consensus of $2.61.
GAAP operating cash flow of $330 million - $370 million; adjusted OCF of $360 million - $400 million.
Price Action: KBR shares are trading higher by 0.53% at $52.78 on the last check Tuesday.

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