Cash flow conversion remains highly volatile, evidenced by an operating cash flow to net income ratio that swung from a low of 0.44 in 2025Q4 to a high of 3.95 in 2023Q4.
| 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 | 536M | 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 % | 62.89% | 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 | 401M | 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 | 167M | 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 | 59M | 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 | -232M | -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 | 108M | 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 | 72M | -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 | -81M | -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 | -175M | 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 | -45M | -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 | 0.59% | 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 | -12M | -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 | -129M | 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 | -428M | -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) | -479M | -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) | 131M | -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 | -85M | -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 | 127M | -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 | 5M | 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 | -64M | 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 | 491M | 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 % | 6.38% | 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 % | 17.18% | 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 | 3.87 | 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) | 1.22x | 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 |
Working capital volatility
As reported in quarterly filings, KBR's operating cash flow to net income ratio has fluctuated wildly, ranging from a low of 0.44 in 2025Q4 to a high of 3.95 in 2023Q4, suggesting that reported earnings are frequently decoupled from actual cash generation capabilities.
The significant variance in the OCF/NI ratio indicates that accrual-based accounting adjustments, likely related to project milestones and contract accounting, create substantial noise in the bottom line. Investors should monitor whether this divergence reflects genuine timing differences in project billing or a more persistent difficulty in converting contract revenue into realized cash.
Based on the provided cash flow data, free cash flow margins have exhibited extreme instability, swinging from a peak of 9.6% in 2025Q3 to a trough of 0.8% in 2024Q4, highlighting the company's vulnerability to project-specific cash flow timing and working capital requirements.
The lack of a consistent FCF trajectory suggests that KBR's cash generation is highly sensitive to the operational cadence of its government and technology projects. This volatility complicates valuation models that rely on steady-state cash flow assumptions, as the company appears unable to maintain high conversion rates across consecutive quarters.
According to historical cash flow statements, working capital changes have been a primary driver of liquidity, with quarterly fluctuations as large as $89 million, which directly dictates the company's ability to fund operations and return capital to shareholders without relying on external financing.
The erratic nature of these working capital movements suggests that KBR's cash position is heavily dependent on the timing of government contract payments and the management of project-related payables. Such swings may indicate that the company is acting as a financing vehicle for its own projects, which warrants further investigation into the underlying contract terms.
As evidenced by recent financial statements, KBR has aggressively utilized cash for share repurchases, including a notable $204 million outflow in 2025Q3, even as operating cash flow remains inconsistent, suggesting a management preference for returning capital over maintaining a liquidity buffer for operational contingencies.
The decision to prioritize buybacks during periods of volatile cash flow may limit the company's flexibility to pursue strategic acquisitions or invest in R&D for its STS segment. Investors should consider whether this capital allocation strategy is sustainable if the current trend of inconsistent cash conversion persists.
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.