KBR Inc · Q3 2022 earnings

Briefing

Reported strong earnings, expanded capital base, and grew platform of long-term programs.

KBR announced strong third quarter financial results with an increase in net income attributable to KBR to $74 million and adjusted EBITDA increasing to $171 million. The company raised its FY 2022 financial guidance.

• Outstanding earnings delivering quarterly net income attributable to KBR of $74 million; $171 million adj. EBITDA, 11% adj. EBITDA margins; diluted EPS of $0.49 and adj. EPS of $0.65
• Expanding capital base with robust quarterly operating cash flow of $122 million; 111% free cash conversion
• Growing platform of long-term, strategic programs; $2.7 billion of bookings and options in the quarter
• Raising FY 2022 earnings and operating cash flow guidance

Headline financials

Revenue & EPS history

KBR updated and/or increases its FY 2022 guidance as follows: •Consolidated revenue: $6.5 billion to $6.7 billion (narrowed) •Adjusted EBITDA1 margin: ~10% •Effective tax rate: 23% to 24% (lowered) •GAAP earnings per share (EPS): $1.11 to $1.16 (updated); adjusted EPS1: $2.60 to $2.65 (raised midpoint); •GAAP operating cash flow (OCF): $345 million to $370 million (raised midpoint); adjusted OCF1: $375 million to $400 million (raised midpoint)