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KBR Delivers Strong Q4 & Fiscal 2023 Results, $21.7B Backlog at Year-End; Stuart Bradie, Mark Sopp Quoted

KBR (NYSE: KBR) presented strong fourth quarter and full year 2023 results. In Q4 and full year, revenue increased 7.6 percent and 6 percent year-over-year to $1.73 billion and $6.95 billion. Besides reporting solid results, the provider of science, technology and engineering products and services to governments and industry clients shared its financial guidance for fiscal 2024.

Stuart Bradie, president and CEO of KBR, said in a statement published Tuesday, “The KBR team has shown their unwavering commitment and exceptional skills, leading to a remarkable performance this fiscal year.” As of Dec. 29, 2023, backlog and options totaled $21.7 billion, while bookings and options during the quarter reached $1.7 billion.

Bradie added that KBR avoided dilution by settling its remaining convertible notes and related warrants in cash. “We more recently extended the maturity of our term loans and revolving credit facility, fortifying our balance sheet and fueling capital deployment optionality for 2024 and beyond.” 

Mark Sopp, chief financial officer of KBR, said the 8 percent top line growth in the fourth quarter was all organic and noted that the two core business segments, Government Solutions and Sustainable Technology Solutions, contributed to the 20 percent increase in Adjusted EBITDA.

According to Sopp, the adjusted operating cash flow of $463 million was one of the year’s highlights.

Because of healthy end markets, strong offerings and new business momentum in 2023, Sopp said KBR will again set expectations for ongoing profits and cash flow growth. For fiscal 2024, the revenue guidance is between $7.4 billion and $7.7 billion, while adjusted EBITDA should be in the $810 million to $850 million range. 

On Tuesday, KBR was the top-performing GovCon Index constituent. The stock rose 3.91 percent to $57.45 following the impressive financial results and an 11 percent dividend hike, the fifth successive year of dividend increases.

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