Revenue growth has stalled into negative territory with a 6.4% year-over-year decline in 2026Q1, while gross margins remain constrained within a narrow 13.6% to 15.4% range.
| 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 |
|---|
| Sales/Revenue | 7.69B | 7.79B | 7.74B | 6.96B | 6.56B | 7.34B | 5.77B | 5.64B | 4.91B | 4.17B | 4.27B | 5.1B | 6.37B | 7.21B | 7.77B | 9.1B | 9.96B | 12.11B | 11.58B | 8.74B | 9.63B | 10.21B | 11.96B | 5.13B |
| Revenue Growth % | -3.51% | 0.57% | 11.3% | 5.97% | -10.56% | 27.26% | 2.27% | 14.78% | 17.79% | -2.27% | -16.25% | -19.95% | -11.75% | -7.16% | -14.64% | -8.62% | -17.7% | 4.52% | 32.43% | -9.22% | -5.61% | -14.67% | 133.37% | - |
| Cost of Goods Sold | 6.58B | 6.64B | 6.64B | 5.98B | 5.74B | 6.53B | 5.1B | 4.99B | 4.33B | 3.73B | 4.16B | 4.77B | 6.43B | 6.8B | 7.25B | 8.46B | 9.27B | 11.35B | 10.82B | 8.22B | 9.29B | 9.72B | 12.17B | 5.22B |
| COGS % of Revenue | - | 85.23% | 85.75% | 85.95% | 87.39% | 89.02% | 88.45% | 88.42% | 88.11% | 89.47% | 97.38% | 93.62% | 101.02% | 94.22% | 93.33% | 92.97% | 93.08% | 93.75% | 93.43% | 94.05% | 96.39% | 95.2% | 101.76% | 101.81% |
| Gross Profit | 1.11B | 1.15B | 1.1B | 977M | 828M | 806M | 666M | 653M | 584M | 439M | 112M | 325M | -65M | 417M | 518M | 640M | 689M | 757M | 761M | 520M | 348M | 490M | -211M | -93M |
| Gross Margin % | 14.5% | 14.77% | 14.25% | 14.05% | 12.61% | 10.98% | 11.55% | 11.58% | 11.89% | 10.53% | 2.62% | 6.38% | -1.02% | 5.78% | 6.67% | 7.03% | 6.92% | 6.25% | 6.57% | 5.95% | 3.61% | 4.8% | -1.76% | -1.81% |
| Gross Profit Growth % | - | 4.26% | 12.9% | 18% | 2.73% | 21.02% | 1.99% | 11.82% | 33.03% | 291.96% | -65.54% | 600% | -115.59% | -19.5% | -19.06% | -7.11% | -8.98% | -0.53% | 46.35% | 49.43% | -28.98% | 332.23% | -126.88% | - |
| Operating Expenses | 454M | 582M | 441M | 529M | 485M | 575M | 609M | 291M | 116M | 175M | 84M | 15M | 729M | 109M | 219M | 53M | 80M | 221M | 220M | 226M | 102M | 35M | 146M | 89M |
| OpEx % of Revenue | - | 7.47% | 5.7% | 7.6% | 7.39% | 7.83% | 10.56% | 5.16% | 2.36% | 4.2% | 1.97% | 0.29% | 11.45% | 1.51% | 2.82% | 0.58% | 0.8% | 1.83% | 1.9% | 2.58% | 1.06% | 0.34% | 1.22% | 1.74% |
| Selling, General & Admin | 571M | 578M | 544M | 488M | 420M | 393M | 335M | 341M | 294M | 244M | 133M | 155M | 239M | 248M | 222M | 214M | 212M | 217M | 223M | 226M | 108M | 85M | 92M | 89M |
| SG&A % of Revenue | - | 7.42% | 7.03% | 7.02% | 6.4% | 5.36% | 5.81% | 6.05% | 5.98% | 5.85% | 3.12% | 3.04% | 3.75% | 3.44% | 2.86% | 2.35% | 2.13% | 1.79% | 1.93% | 2.58% | 1.12% | 0.83% | 0.77% | 1.74% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 4M | -103M | 41M | 65M | 182M | 274M | -50M | -178M | -69M | -49M | -140M | 490M | -139M | -3M | -161M | -132M | 4M | -3M | 0 | -6M | -50M | 54M | 0 |
| Operating Income | 709M | 568M | 662M | 448M | 343M | 231M | 57M | 362M | 468M | 264M | 28M | 310M | -794M | 308M | 299M | 587M | 609M | 536M | 541M | 294M | 246M | 455M | -357M | -182M |
| Operating Margin % | 9.22% | 7.3% | 8.55% | 6.44% | 5.23% | 3.15% | 0.99% | 6.42% | 9.53% | 6.33% | 0.66% | 6.08% | -12.47% | 4.27% | 3.85% | 6.45% | 6.11% | 4.43% | 4.67% | 3.36% | 2.55% | 4.46% | -2.98% | -3.55% |
| Operating Income Growth % | - | -14.2% | 47.77% | 30.61% | 48.48% | 305.26% | -84.25% | -22.65% | 77.27% | 842.86% | -90.97% | 139.04% | -357.79% | 3.01% | -49.06% | -3.61% | 13.62% | -0.92% | 84.01% | 19.51% | -45.93% | 227.45% | -96.15% | - |
| EBITDA | 837M | 737M | 818M | 589M | 480M | 377M | 172M | 466M | 531M | 312M | 73M | 349M | -722M | 376M | 364M | 658M | 671M | 591M | 590M | 335M | 293M | 511M | -305M | -153M |
| EBITDA Margin % | 10.88% | 9.47% | 10.57% | 8.47% | 7.31% | 5.14% | 2.98% | 8.26% | 10.81% | 7.48% | 1.71% | 6.85% | -11.34% | 5.21% | 4.68% | 7.23% | 6.74% | 4.88% | 5.09% | 3.83% | 3.04% | 5.01% | -2.55% | -2.99% |
| EBITDA Growth % | -1.65% | -9.9% | 38.88% | 22.71% | 27.32% | 119.19% | -63.09% | -12.24% | 70.19% | 327.4% | -79.08% | 148.34% | -292.02% | 3.3% | -44.68% | -1.94% | 13.54% | 0.17% | 76.12% | 14.33% | -42.66% | 267.54% | -99.35% | - |
| D&A (Non-Cash Add-back) | 128M | 169M | 156M | 141M | 137M | 146M | 115M | 104M | 63M | 48M | 45M | 39M | 72M | 68M | 65M | 71M | 62M | 55M | 49M | 41M | 47M | 56M | 52M | 29M |
| EBIT | 575M | 772M | 655M | -51M | 371M | 226M | 58M | 367M | 462M | 268M | 46M | 323M | -304M | 169M | 296M | 590M | 603M | 542M | 541M | 294M | 246M | 455M | -357M | -182M |
| Net Interest Income | -125M | -158M | -144M | -115M | -87M | -80M | -83M | -99M | -66M | -21M | -13M | -11M | 0 | -5M | -7M | -18M | -17M | -1M | 35M | 62M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 88M | 158M | 144M | 115M | 87M | 80M | 83M | 99M | 66M | 21M | 13M | 11M | 0 | 5M | 7M | 18M | 17M | 1M | 0 | 62M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -116M | 46M | -151M | -614M | -59M | -85M | -82M | -94M | -72M | -17M | 5M | 2M | 17M | -8M | -11M | -15M | -23M | -4M | 27M | 48M | -26M | -22M | -28M | 1M |
| Pretax Income | 593M | 614M | 511M | -166M | 284M | 146M | -25M | 268M | 396M | 247M | 33M | 312M | -777M | 300M | 288M | 572M | 586M | 532M | 568M | 342M | 220M | 433M | -385M | -181M |
| Pretax Margin % | 7.71% | 7.89% | 6.6% | -2.39% | 4.33% | 1.99% | -0.43% | 4.75% | 8.06% | 5.92% | 0.77% | 6.12% | -12.21% | 4.16% | 3.71% | 6.28% | 5.88% | 4.39% | 4.9% | 3.91% | 2.28% | 4.24% | -3.22% | -3.53% |
| Income Tax | 73M | 156M | 130M | 95M | 92M | 111M | 26M | 59M | 86M | -193M | 84M | 86M | 421M | 129M | 86M | 32M | 191M | 168M | 212M | 138M | 129M | 182M | -96M | -98M |
| Effective Tax Rate % | 12.31% | 25.41% | 25.44% | -57.23% | 32.39% | 76.03% | -104% | 22.01% | 21.72% | -78.14% | 254.55% | 27.56% | -54.18% | 43% | 29.86% | 5.59% | 32.59% | 31.58% | 37.32% | 40.35% | 58.64% | 42.03% | 24.94% | 54.14% |
| Net Income | 401M | 415M | 375M | -265M | 190M | 27M | -72M | 202M | 281M | 432M | -61M | 203M | -1.26B | 75M | 144M | 480M | 327M | 290M | 319M | 302M | 168M | 240M | -303M | -92M |
| Net Margin % | 5.21% | 5.33% | 4.84% | -3.81% | 2.89% | 0.37% | -1.25% | 3.58% | 5.72% | 10.36% | -1.43% | 3.98% | -19.82% | 1.04% | 1.85% | 5.27% | 3.28% | 2.4% | 2.75% | 3.45% | 1.74% | 2.35% | -2.53% | -1.8% |
| Net Income Growth % | 0.75% | 10.67% | 241.51% | -239.47% | 603.7% | 137.5% | -135.64% | -28.11% | -34.95% | 808.2% | -130.05% | 116.09% | -1782.67% | -47.92% | -70% | 46.79% | 12.76% | -9.09% | 5.63% | 79.76% | -30% | 179.21% | -229.35% | - |
| Net Income (Continuing) | 439M | 458M | 381M | -261M | 192M | 35M | -51M | 209M | 310M | 440M | -51M | 226M | -1.2B | 171M | 202M | 540M | 395M | 364M | 356M | 182M | 81M | 210M | -314M | -128M |
| Discontinued Operations | -1000K | -36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 120M | 87M | 30M | 11M | 0 |
| Minority Interest | 5M | 9M | 14M | 11M | 12M | 14M | 29M | 14M | 20M | -8M | -12M | -13M | -7M | -22M | -31M | -53M | -42M | 8M | -18M | -32M | 35M | 143M | 115M | 0 |
| EPS (Diluted) | 3.16 | 3.21 | 2.80 | -1.96 | 1.26 | 0.19 | -0.36 | 1.42 | 1.99 | 3.05 | -0.43 | 1.40 | -8.64 | 0.50 | 0.97 | 3.16 | 2.07 | 1.79 | 1.90 | 1.79 | 1.20 | 1.76 | -2.23 | -0.68 |
| EPS Growth % | 4.35% | 14.64% | 242.86% | -255.56% | 563.16% | 152.78% | -125.35% | -28.64% | -34.75% | 809.3% | -130.71% | 116.2% | -1828% | -48.45% | -69.3% | 52.66% | 15.64% | -5.79% | 6.15% | 49.17% | -31.82% | 178.92% | -227.94% | - |
| EPS (Basic) | - | 3.21 | 2.79 | -1.96 | 1.36 | 0.19 | -0.36 | 1.43 | 2.01 | 3.05 | -0.43 | 1.40 | -8.66 | 0.50 | 0.97 | 3.18 | 2.08 | 1.80 | 1.91 | 1.80 | 1.20 | 1.76 | -2.23 | -0.68 |
| Diluted Shares Outstanding | 127M | 129M | 134M | 135M | 156M | 141M | 142M | 142M | 141M | 141M | 142M | 144M | 146M | 149M | 149M | 151M | 157M | 161M | 167M | 169M | 140M | 136M | 136M | 136M |
| Basic Shares Outstanding | 127M | 129M | 134M | 135M | 139M | 140M | 142M | 141M | 140M | 141M | 141.86M | 144M | 145.73M | 148M | 148M | 150M | 156M | 160M | 166M | 168M | 140M | 136M | 136M | 136M |
| Dividend Payout Ratio | - | 20.24% | 21.07% | - | 34.74% | 225.93% | - | 22.77% | 15.66% | 10.42% | - | 23.15% | - | 48% | 25.69% | 6.25% | 9.79% | 11.03% | 16.61% | 11.59% | - | - | - | - |
Contractual Margin Volatility
As indicated by the most recent quarterly data, KBR's revenue growth has shifted into negative territory, with a 6.4% year-over-year decline in 2026Q1, marking a significant departure from the double-digit expansion observed in early 2024 and suggesting a period of consolidation within its core government services portfolio.
The transition from growth to contraction appears to reflect the company's strategic pivot away from high-risk legacy projects toward more selective, service-oriented contracts. Investors should monitor whether this deceleration is a temporary byproduct of portfolio pruning or a sign of waning demand within the government solutions segment.
Based on reported financial statements, KBR's gross margin has fluctuated within a narrow band between 13.6% and 15.4% over the last ten quarters, reflecting the inherent difficulty in scaling high-margin technology licensing against a backdrop of lower-margin, cost-reimbursable government service contracts that dominate the revenue mix.
The inability to consistently expand gross margins suggests that the company's high-value Sustainable Technology Solutions segment has yet to reach the critical mass required to meaningfully shift the consolidated margin profile. This lack of structural expansion warrants further investigation into whether competitive pressures in the defense sector are limiting pricing power.
According to the income statement history, KBR's operating income has shown significant volatility, with operating margins ranging from 6.7% to 9.9%, indicating that overhead costs are not scaling efficiently with gross profit and that the company remains sensitive to the high personnel costs of its technical workforce.
The lack of consistent operating leverage suggests that the company's SG&A expenses are largely fixed and tied to the specialized human capital required for its mission-critical government work. This implies that any future margin expansion will likely depend on achieving greater operational efficiencies rather than simple revenue growth.
While management emphasizes a shift toward higher-margin technology licensing, the data reveals that net income margins remain thin, frequently dipping below 4% in recent periods, which may indicate that the underlying business model is more susceptible to cost overruns than the current valuation might suggest.
Short-term volatility in net income, such as the sharp decline observed in 2025Q2, suggests that the company's earnings quality may be impacted by non-operating items or project-specific accounting adjustments. Investors should be wary of the potential for margin compression if the company is forced to compete more aggressively on price to maintain its backlog.
Quick answers to the most common questions about buying KBR stock.
For fiscal year 2025, KBR, Inc. (KBR) reported total revenue of $7.79B. This represents a 51.9% increase compared to $5.13B in 2002.
KBR, Inc. (KBR) is profitable, generating $415.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.3%.
KBR, Inc. (KBR) reported an operating income of $568.0M, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
KBR, Inc. (KBR) generated $1.15B in gross profit for the year, representing a gross profit margin of 14.8%. This demonstrates the company's core pricing power and production efficiency.