Operating cash flow to net income ranged from 0.44 to 2.51 across recent quarters and free cash flow margin reached 8.0% in 2026Q3, indicating conversion that appears volatile and driven largely by working capital swings.
KBR, Inc. (KBR) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'02 |
|---|
| Cash from Operations | 377M | 524M | 462M | 331M | 396M | 278M | 367M | 256M | 165M | 193M | 61M | 47M | 170M | 297M | 142M | 650M | 549M | -36M | 124M | 248M | 931M | 527M | -61M | 0 |
| Operating CF Margin % | - | 6.73% | 5.97% | 4.76% | 6.03% | 3.79% | 6.36% | 4.54% | 3.36% | 4.63% | 1.43% | 0.92% | 2.67% | 4.12% | 1.83% | 7.14% | 5.51% | -0.3% | 1.07% | 2.84% | 9.66% | 5.16% | -0.51% | - |
| Operating CF Growth % | -52.34% | 13.42% | 39.58% | -16.41% | 42.45% | -24.25% | 43.36% | 55.15% | -14.51% | 216.39% | 29.79% | -72.35% | -42.76% | 109.15% | -78.15% | 18.4% | 1625% | -129.03% | -50% | -73.36% | 76.66% | 963.93% | - | - |
| Net Income | 442M | 403M | 374M | -265M | 189M | 27M | -72M | 202M | 281M | 434M | -61M | 203M | -1.26B | 75M | 144M | 478M | 327M | 290M | 308M | 182M | 54M | 210M | -314M | 0 |
| Depreciation & Amortization | 166M | 169M | 156M | 141M | 137M | 146M | 115M | 104M | 63M | 48M | 45M | 39M | 72M | 68M | 65M | 71M | 62M | 55M | 49M | 41M | 47M | 56M | 52M | 29M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 52M | 60M | 1M | 14M | 37M | 47M | -40M | -14M | 26M | -322M | 18M | 14M | 353M | 18M | 18M | -173M | 14M | 65M | 88M | -27M | 12M | 3M | 26M | 0 |
| Other Non-Cash Items | -166M | -189M | -66M | 437M | 147M | 269M | 251M | 58M | -57M | 22M | -69M | -135M | 498M | -22M | 90M | -82M | -34M | 49M | -1M | -42M | 63M | -58M | 80M | -29M |
| Working Capital Changes | -126M | 81M | -3M | 4M | -114M | -211M | 113M | -94M | -148M | 11M | 128M | -74M | 509M | 158M | -175M | 356M | 180M | -495M | -320M | 94M | 755M | 316M | 95M | 0 |
| Change in Receivables | -264M | -5M | -97M | 12M | 426M | -524M | 195M | -8M | -175M | 532M | 129M | 265M | 63M | 140M | -247M | 226M | -182M | 107M | -124M | -143M | 281M | 203M | -101M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 116M | -70M | 148M | -49M | -376M | 447M | -40M | 23M | 112M | -193M | -6M | -274M | -10M | 49M | -14M | -110M | -177M | -355M | 214M | -92M | -187M | -420M | 450M | 0 |
| Cash from Investing | -254M | 4M | -786M | -70M | 40M | -428M | -877M | -157M | -491M | -12M | -981M | 61M | -44M | -62M | 52M | -88M | -375M | -9M | -556M | 293M | 225M | 20M | -85M | 0 |
| Capital Expenditures | -54M | -42M | -77M | -80M | -71M | -37M | -20M | -20M | -17M | -8M | -11M | -10M | -53M | -78M | -75M | -83M | -66M | -41M | -37M | -43M | -57M | -76M | -74M | -161M |
| CapEx % of Revenue | 0.69% | 0.54% | 0.99% | 1.15% | 1.08% | 0.5% | 0.35% | 0.35% | 0.35% | 0.19% | 0.26% | 0.2% | 0.83% | 1.08% | 0.97% | 0.91% | 0.66% | 0.34% | 0.32% | 0.49% | 0.59% | 0.74% | 0.62% | 3.14% |
| Acquisitions | -1M | -14M | -741M | 0 | -23M | -355M | -831M | 10M | -329M | -4M | -909M | 90M | 0 | 6M | 0 | 0 | -299M | 0 | -519M | 337M | 282M | 113M | -8M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -128M | 67M | 1M | -11M | -3M | 0 | 0 | -1M | 199M | 0 | 0 | 0 | 9M | 0 | 0 | 0 | 22M | 0 | 0 | -1M | 0 | -17M | -3M | 161M |
| Cash from Financing | -215M | -391M | 384M | -359M | -402M | 87M | 225M | -134M | 654M | -290M | 584M | -152M | -210M | -148M | -116M | -377M | -336M | -166M | -244M | -150M | -139M | -375M | -83M | 0 |
| Debt Issued (Net) | -66M | -22M | 727M | -415M | -122M | 256M | 333M | -70M | 798M | -189M | 641M | -11M | -11M | -14M | -14M | -15M | -13M | 0 | 0 | -7M | -19M | -21M | -61M | 0 |
| Equity Issued (Net) | -54M | -329M | -218M | -133M | -198M | -70M | -47M | 1M | 21M | -53M | -4M | -61M | -102M | -1M | -33M | -111M | -228M | -29M | -193M | 6M | 512M | 0 | 0 | 0 |
| Dividends Paid | -84M | -84M | -79M | -72M | -66M | -61M | -54M | -46M | -44M | -45M | -46M | -47M | -47M | -36M | -37M | -30M | -32M | -32M | -53M | -35M | 0 | 0 | 0 | 0 |
| Share Repurchases | -54M | -329M | -218M | -138M | -203M | -82M | -51M | -4M | -3M | -53M | -4M | -62M | -106M | -7M | -40M | -118M | -233M | -31M | -196M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -11M | 44M | -46M | 261M | -16M | -38M | -7M | -19M | -121M | -3M | -7M | -33M | -50M | -97M | -32M | -221M | -63M | -105M | 2M | -114M | -629M | -354M | -22M | 0 |
| Net Change in Cash | -100M | 150M | 46M | -85M | 19M | -66M | -276M | -27M | 300M | -99M | -347M | -102M | -119M | 51M | 86M | 172M | -179M | -169M | -716M | 400M | 1.07B | 394M | 0 | -161M |
| Free Cash Flow | 323M | 482M | 385M | 251M | 325M | 248M | 347M | 236M | 148M | 185M | 50M | 37M | 117M | 219M | 67M | 567M | 483M | -77M | 87M | 205M | 874M | 451M | -135M | 0 |
| FCF Margin % | 4.13% | 6.19% | 4.97% | 3.61% | 4.95% | 3.38% | 6.02% | 4.19% | 3.01% | 4.44% | 1.17% | 0.73% | 1.84% | 3.04% | 0.86% | 6.23% | 4.85% | -0.64% | 0.75% | 2.34% | 9.07% | 4.42% | -1.13% | - |
| FCF Growth % | -32% | 25.19% | 53.39% | -22.77% | 31.05% | -28.53% | 47.03% | 59.46% | -20% | 270% | 35.14% | -68.38% | -46.58% | 226.87% | -88.18% | 17.39% | 727.27% | -188.51% | -57.56% | -76.54% | 93.79% | 434.07% | - | - |
| FCF per Share | 2.56 | 3.74 | 2.87 | 1.86 | 2.08 | 1.76 | 2.44 | 1.66 | 1.05 | 1.31 | 0.35 | 0.26 | 0.80 | 1.47 | 0.45 | 3.75 | 3.08 | -0.48 | 0.52 | 1.21 | 6.24 | 3.32 | -0.99 | - |
| FCF Conversion (FCF/Net Income) | 0.73x | 1.26x | 1.23x | -1.25x | 2.08x | 10.30x | -5.10x | 1.27x | 0.59x | 0.45x | -1.00x | 0.23x | -0.13x | 3.96x | 0.99x | 1.35x | 1.68x | -0.12x | 0.39x | 0.82x | 5.54x | 2.20x | 0.20x | - |
| Interest Paid | 0 | 0 | 124M | 102M | 66M | 63M | 53M | 80M | 52M | 21M | 12M | 10M | 11M | 12M | 15M | 22M | 16M | 7M | 5M | 4M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 82M | 52M | 47M | 49M | 49M | 54M | 21M | 144M | 49M | 66M | 37M | 127M | 81M | 201M | 64M | 166M | 200M | 229M | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying KBR stock.
KBR, Inc. (KBR) generated $524.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KBR, Inc. (KBR) generated $482.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
KBR, Inc. (KBR) spent $42.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, KBR, Inc. (KBR) returned $84.0M to shareholders via cash dividends and spent $329.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Volatile quarterly cash conversion
Metrics are mathematically derived from official filings.
Cash Conversion Swings Between Quarters
According to KBR's reported quarterly cash flow statements, operating cash flow to net income ratios ranged from 0.44 to 2.51 across the last ten quarters, indicating earnings quality that is difficult to read from any single period.
The most recent quarter converted 1.28 times net income into operating cash flow, which looks favorable, but the preceding two quarters fell to 0.52 and 1.06, suggesting working capital timing is driving much of the variance. Over the full window, the average conversion appears adequate rather than strong, and investors should monitor whether the high readings reflect durable collections or temporary unwinds of receivables.
Free Cash Flow Margins Remain Thin
Based on KBR's reported figures, free cash flow margins have ranged from roughly 0.8% to 9.6% quarterly, with the latest quarter at 8.0%, a band that appears wide relative to the company's stable top line.
Free cash flow has been lumpy, with two quarters near or below 2% margin offset by several above 9%, which suggests the average masks substantial timing dependence. Capital expenditure remains light at under 1.1% of revenue in most periods, so the swings appear driven by working capital and acquisition-related items rather than investment intensity. Sustained margins above 9% would be needed to signal a structurally improved cash profile.
Working Capital Drives Cash Volatility
As reported in KBR's cash flow statements, working capital changes have swung from a $89.0M inflow to a $70.0M outflow in consecutive quarters, making it the dominant source of period-to-period cash variance.
Large outflows in the second quarter of 2026 and the fourth quarter of 2025 coincide with weak operating cash flow, while the inflows in the third quarters of 2025 and 2026 align with strong readings, suggesting a recurring seasonal or contract-billing pattern. This pattern appears to indicate reliance on milestone billing and receivable collection timing rather than a steady cash generation engine. Investors should monitor whether the outflows reverse within the following quarter.
Dividend Steady While Buybacks Are Opportunistic
According to KBR's reported cash flow data, dividend payments have held near $20M to $22M per quarter, while share repurchases were absent in most periods and reached $25M in two quarters.
Dividends appear consistently covered on a full-period basis, though quarters with negative free cash flow required funding from balance sheet liquidity or other sources. Acquisition spending was concentrated in 2024 and 2025, including a $749M outflow in the third quarter of 2024 and a $204M inflow in the third quarter of 2025 that may reflect divestiture proceeds. The pattern suggests capital returns are subordinate to portfolio restructuring, warranting continued monitoring.
Cash Figures Obscure Separation Costs
Based on reported figures, the absence of stock-based compensation entries in the cash flow data limits visibility into equity-related cash adjustments that may affect true owner earnings.
The reported stock-based compensation field shows zero across all periods, which may reflect a data gap rather than an absence of equity awards, so the true cash-adjusted earnings cannot be verified from this dataset. Given the planned separation of the two core businesses and the leverage highlighted in prior analysis, separation-related cash costs may emerge outside the operating line and could compress future free cash flow. Investors should review the filings for separation charges and any financing commitments before relying on the trailing cash profile.