| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 100 | 10.2x | 17.3x | Top tier | |
Growth | 0 | -3.4% | 7.1% | Bottom tier | |
Quality | 100 | 13.1% | 4.5% | Top tier | |
Safety | 100 | 2.9x | 2.6x | Top tier | |
Capital Return | 8 | 1.95% | 0.18% | Bottom tier | |
Momentum | 0 | -22.2% | 1.1% | Bottom tier | |
Sentiment | 100 | 6 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
13% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
KBR, Inc. operates through two main businesses. Sustainable Technology Solutions provides licensed technologies, engineering services, project execution, specialized equipment, and operations and maintenance solutions for the energy, ammonia, fertilizer, liquefied natural gas, and sustainability markets, while Mission Technology Solutions serves the defense, space, and government operations sectors through systems modernization, mission support, software, and artificial intelligence. The company is preparing to spin off MTS under the name Trinzic on January 4, 2027, with the STS business remaining within New KBR.
In Q2 fiscal 2026, revenue was approximately $2.0 billion, up 2% year over year, or about 5% excluding the exceptional EUCOM activity, and the company reported gross profit of $293 million, net income of $96 million, and earnings per share of $0.75 according to EDGAR data. This equates to a gross profit margin of approximately 14.7% and a net income margin of approximately 4.8%, while adjusted earnings before interest, taxes, depreciation, and amortization reached $258 million at a 13% margin, up approximately 60 basis points year over year, and adjusted earnings per share increased to $0.99.
MTS represented approximately two-thirds of the revenue mix, with revenue of $1.3 billion, down $28 million year over year, but generated adjusted earnings before interest, taxes, depreciation, and amortization of $158 million and a margin of 12.1%. STS generated revenue of $676 million, up 10% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization of $123 million at a margin of 18.2%, with its margin excluding joint venture liquefied natural gas project earnings reaching approximately 13%. On a trailing twelve-month basis through the 2026 data, revenue was $7.7 billion, gross profit was $1.1 billion, net income was $387 million, and earnings per share were approximately $3.05.
The analyst consensus is Buy, with a unified price target of $41; the upper and lower bounds of the range are both $41, meaning the available data provide no dispersion that can be used to measure differences in opinion. This target lies within the 52-week range of $29.94–$52.23 and is approximately 21% below the annual high, while the valuation reflects a combination of STS’s record backlog and revenue visibility on one hand, and the risks of MTS contract protests, the Plaquemines wind-down, and separation execution on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
KBR’s revenue was approximately $2.0 billion, up 2% year over year, while net income was $96 million and earnings per share according to EDGAR were $0.75. Excluding the exceptional EUCOM activity, the company estimated revenue growth at approximately 5%. Adjusted earnings before interest, taxes, depreciation, and amortization increased to $258 million, with the margin expanding by approximately 60 basis points to 13% due to project execution, portfolio mix, and cost controls.
STS revenue increased 10% year over year to $676 million in Q2 fiscal 2026 and rose 8% from the previous quarter. The segment’s backlog reached a record $5.5 billion, up 40% year over year, while the near-term opportunity pipeline exceeded $6 billion. Sources of demand include Middle East contracts, whose bookings exceeded $900 million in the first half, the first commercial PureSAF licenses, and ammonia technologies, including the Pampa Energia award.
KBR intends to spin off the MTS business under the name Trinzic on January 4, 2027, making Trinzic and New KBR independent companies, each with its own strategy and capital structure. On July 30, 2026, the company said the separation of systems, contracts, procurement, budgets, and organizational design was progressing according to plan. Michael LaRouche will be Trinzic’s CEO-designate effective September 2026, while Nick Veasey joined as CFO-designate, and the company is targeting rate neutrality to avoid weakening competitiveness after the separation.
Automated analysis for informational purposes only — not investment advice.
Approximately 94% of expected MTS revenue for fiscal 2026 was under contract when Q2 results were announced, and the segment also had approximately $10.4 billion of opportunities awaiting award. In addition, there is approximately $10.6 billion of awarded work that is not yet reflected in backlog because of protests, including the National Science Foundation program in Antarctica and the Iraq and Paycom Logistics programs. The Antarctica program is valued at $8 billion over 20 years, but management explained that operations would ramp up during the first two years and that the timing of protest resolution is outside its control.
The consolidated adjusted margin was 13% in Q2 fiscal 2026, compared with full-year guidance of 12.4%, so management maintained its guidance rather than raising it. In STS, the margin was 18.2%, but declined to approximately 13% when excluding joint venture liquefied natural gas project earnings due to higher lower-margin equipment procurement, while the year-to-date margin was 14.5% on the same basis. In MTS, the margin reached 12.1%, supported by contract mix, cost controls, and contract closeout settlements, while management’s long-term estimate remained above 10%.
Adjusted operating cash flow was $183 million in the first half of fiscal 2026, equivalent to cash conversion of 74%, and was affected by the timing of collections from STS customers in the Middle East. Management said on July 30, 2026 that collections began improving during July, but acknowledged that regional volatility could persist, while keeping its annual cash flow outlook unchanged. Net leverage was approximately 2.3 times adjusted earnings before interest, taxes, depreciation, and amortization, below the 2.5 times target, and the company repurchased approximately $25 million of shares during the quarter.
