KBR, Inc. reported strong financial performance in the second quarter of fiscal 2025, with revenues of $2.0 billion, up 6%. Net income was $73 million, and adjusted EBITDA reached $242 million, up 12%. Bookings and options totaled $3.5 billion, with a book-to-bill ratio of 0.9x.
For the second quarter year-to-date, revenues were $4.0 billion, up 8%, with net income of $189 million. Adjusted EBITDA was $490 million, up 16%, and adjusted EPS reached $1.91, up 20%. Bookings and options totaled $4.9 billion, with a book-to-bill ratio of 0.9x.
KBR is revising its fiscal year 2025 guidance due to factors such as the HomeSafe Alliance JV contract termination and protest resolution delays. The company is updating its long-term financial targets for fiscal year 2027 following the termination of the HomeSafe Alliance JV contract.
The company’s operating cash flows from continuing operations for the quarter were $217 million, with an operating cash conversion of 185%. KBR returned $69 million in capital to shareholders during the quarter, including share repurchases and dividend payments.
Adjusted EBITDA for the quarter was $242 million, up 12% from the previous year, driven by strong performance in the Defense & Intel sector. Adjusted EBITDA margins reached 12.4%, reflecting operational excellence and cost management efforts.
KBR’s segment results for Mission Technology Solutions and Sustainable Technology Solutions showed revenue growth and improved operating income. The company announced several new business awards, including contracts to expand psychological health services for the Army and support Air Force research initiatives.
KBR’s balance sheet showed liquidity of approximately $1.008 billion as of July 4, 2025, with a net leverage ratio of 2.4x. The company’s long-term financial targets include revenue growth and adjusted EBITDA margin expansion through 2027, reflecting its strategic direction and growth opportunities in key defense markets.
Read more at GlobeNewswire: KBR Reports Second Quarter Fiscal 2025 Results