KBR, Inc. (KBR) · Q2 2026 results and valuation

At 5.9% growth a year (3-year revenue growth), the model's fair value is $53.53 a share — the stock trades 32% below it. Today's price assumes 2.1% growth a year.

1. Key theme

   KBR has strong visibility across both businesses, supported by record backlog in STS and significant awarded work in MTS…

   Source quote

   “Second, we have strong visibility across both businesses, supported by record backlog in STS and significant awarded work in MTS... First, we delivered a strong first half with the results tracking slightly ahead of our planned cadence. Third, our planned separation remains firmly on track, with transaction, leadership and Day 1 readiness milestones continuing to advance.”

2. Guidance

   Expected bids in 2026 rose to over $25 billion, up about 50% from last year.

   Source quote

   “We have roughly $10.4 billion awaiting award, and we expect more than $25 billion of bid volume in 2026, and that's up approximately 50% year-over-year, with significant submissions...”

3. Guidance

   KBR reported revenue is lagging now but should catch up as customers eventually pay.

   Source quote

   “But overall, in terms of revenue and EBITDA performance and the customers are paying eventually, and so we expect to catch up as we progress.”

4. Dropped

   Most importantly, it helped us stay closely connected with KBR's teams in the region and all of its people have remained…

   Source quote

   “Most importantly, it helped us stay closely connected with our teams in the region and all of our people have remained... When the conflict in the Middle East escalated, Pulse quickly became a critical channel for sharing timely updates on guidance. Pulse helps us reach employees who are not sitting at desks and reinforces our ability to act as one team, even in the most challenging environments.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“First half results demonstrate the strength of the portfolio, profitable growth, margin expansion and solid momentum heading into the back half of the year.”

“Both businesses continue to execute well, deliver profitable growth and maintain strong momentum as we move through the back half of the year.”

“More broadly, many of these opportunities build on relationships that begin with technology licensing, studies or engineering services and ultimately expand into larger project execution or aftermarket scopes, creating additional...”