KBR Shares Gain On Beating Q1 Estimates, Reaffirms 2023 Guidance

KBR Inc KBR reported first-quarter revenue of $1.7 billion — a slight decline of 0.64% year-over-year, +18% ex-OAW, beating the consensus of $1.61 billion.

• Adjusted EPS improved to $0.67 compared to $0.62 in the first quarter of 2022 (Q1), beating the consensus of $0.58.
• The gross margin expanded by 295 bps to 14.4%. 
• The operating income increased to $144 million from an operating loss of $31 million, and the operating margin was 8% for the quarter.
• The adjusted EBITDA was $182 million (+18.2% Y/Y), and the margin expanded by 170 bps to 10.7%.
• KBR generated adjusted cash from operating activities for the quarter of $35 million, compared to $89 million a year ago, and adjusted free cash flow of $16 million.
• At the end of the quarter, the company's backlog and options totaled $20.9 billion. Delivered 1.4x trailing-twelve-months book-to-bill as of March 31.
• Houston-based KBR awarded $3.1 billion of bookings and options in the quarter.
• The company, which provides engineering solutions to government and private-sector clients, returned to shareholders $61 million in share repurchases plus $16 million in regular dividends, during the quarter.
• FY23 Outlook, reaffirmed: KBR expects revenue of $6.9 billion - $7.1 billion, versus the consensus of $6.99 billion. Adjusted EBITDA of $715 million — $745 million.

It expects adjusted EPS of $2.76 — $2.96, versus the consensus of $2.88, and adjusted operating cash flows of $425 million — $460 million.

Price Action: KBR shares opened Monday at $56.73.