KBR's Backlog Jumps 10% In FY23, Dividend Raised By 11%

KBR, Inc. KBR reported fourth-quarter adjusted earnings per share of 69 cents, in line with the street view. 

Quarterly sales of $1.73 billion missed the analyst consensus of $1.787 billion. Revenue rose 8% year over year.

Operating income of $147 million is higher than $122 million a year ago. Adjusted EBITDA was $188 million, up 20% year over year, with margins of 10.9%, up 110 bps.

Adjusted operating cash flows were $83 million, down 6% year over year.

Total backlog and options as of December 29, 2023, totaled $21.7 billion, up 10% compared to December 31, 2022.

Dividend: On February 19, 2024, the company approved an increase of quarterly regular dividend from $0.135 per share to $0.15 per share effective for the record date and payment date of the next scheduled distribution on March 15, 2024, and April 15, 2024, respectively. 

This represents the fifth successive year of dividend increases, representing an 11% increase from the previous regular dividend amount.

Additionally, on February 19, 2024, the Board of Directors authorized replenishment of its share repurchase authorization to $500 million.

Outlook: KBR expects FY24 revenue of $7.4 billion-$7.7 billion (estimate $7.73 billion). The company sees adjusted EPS of $3.10-$3.30 (estimate $3.26).

Price Action: KBR shares are trading higher by 4.33% to $57.69 on the last check Tuesday.