KBR
KBR, Inc.

KBR, Inc.KBR

Industrials · Engineering & Construction
37.17USD
-2.29%
Nov 08, 2026
KBR overview ready
Government Mission Engineering and Digital Integration Services Provider
KBR is a direct government-services contractor supplying life-cycle mission engineering, digital integration, analytics, cyber, space-domain and readiness support to U.S.
Primary theme is lagging
Defense / Drones is lagging (+0.2pp vs SPY over 21 sessions; 13 of 25 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of daily reclaim.
Attractive valuation
Current market expectations look undemanding relative to how its multiples compare with businesses of the same kind.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on U.S. Government defense spending levels.
Market Nov 6Filing Oct 2Price action Nov 7Research Sep 2

Conviction Level

PriceAction9.4BusinessPerformance7.0BusinessQuality7.6Valuation8.3ThemeMomentum1.0Improving — Revenue growth has accelerated across 4 consecutive quarters, rising from -11% to +5.0% year over year. Diluted EPS is up 18% year over year ($1.06), but growth has slowed from +34%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+0.2pp
Theme return
−4.8%
Beating SPY
13 of 25
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of daily reclaim.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$4.7B
Avg Volume (60D)
1.7M
60 sessions
Revenue Growth YoY
+1.0%
FY2026 vs FY2025
Gross Margin
+14.7%
Trailing twelve months
Operating Margin
+9.3%
Trailing twelve months
Free Cash Flow Yield
+7.0%
Distance from 200DMA
+1.1%
P/E
10.6x
EV / EBITDA
7.6x
EV / Sales
0.9x
Market metrics as of Nov 6, 2026
Financial results for the period ended Oct 2, 2026
Filed balance-sheet data as of Oct 2, 2026

Business Performance

Improving

Revenue growth has accelerated across 4 consecutive quarters, rising from -11% to +5.0% year over year. Diluted EPS is up 18% year over year ($1.06), but growth has slowed from +34%.

Latest reported: Q3 FY2026, ended Oct 2
Revenue growthAccelerating
+5.0%
$2.03B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. -11%
  2. -4.7%
  3. +1.6%
  4. +5.0%
Earnings growthSlowing
+18%
Diluted EPS $1.06 vs $0.90 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +53%
  2. -9.1%
  3. +34%
  4. +18%
Operating marginStable
9.2%
-0.7 pp YoY · gross margin 14.8% (+0.9 pp)

Business Quality

7.6 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; own history is the dissenting view.
KBR, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to how its multiples compare with businesses of the same kind.

Company Research

Thesis
KBR is a direct government-services contractor supplying life-cycle mission engineering, digital integration, analytics, cyber, space-domain and readiness support to U.S. Allied defense, intelligence, space and aviation customers.
Opportunity
High opportunity
Defense and intelligence modernization spending on the engineering, systems integration, test, data, cyber, command-and-control, and mission-support services required to field and operate increasingly software-defined, space-enabled military capabilities.
Key risk
Dependence on U.S. Government defense spending levels.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Engineering & Construction
What they do

KBR, Inc. provides scientific, technology, and engineering solutions primarily to government and commercial customers worldwide, operating through Government Solutions and Sustainable Technology Solutions segments.

How it earns

Project-based contracts and service agreements with government and commercial clients.

Products & services
Research and development
Advanced prototyping
Acquisition support
Systems engineering
Cyber analytics
Space domain awareness
Test and evaluation
Data analytics and integration
Systems integration and program management
Global supply chain management
Operations readiness and support
Professional advisory services
Command, control, communications services
Customers & end markets
U.S. and allied defense agencies
Intelligence community
Space and aviation sectors
Commercial government contractors
Market position

Established government-services contractor with a strong presence in defense mission engineering and digital integration.

Demand drivers
Medium cyclicality

Business depends on government defense budgets which can fluctuate with political and economic cycles.