KBR reported $2.1 billion in fiscal 2024 fourth-quarter revenue, up 23 percent from the prior-year period, and saw its full-year revenues increase 11 percent to $7.7 billion, reflecting a 9 percent organic growth.
Q4, Full-Year Financial Highlights
In an earnings release published Monday, the Houston-based engineering contractor said Q4 net income was $76 million and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, was $228 million during the quarter, up 21 percent from the prior-year period.
For the quarter, KBR posted diluted earnings per share of $0.57, adjusted EPS of $0.91 and $2 billion in bookings and options with a book-to-bill of 1.0x.
For the full FY 2024, net income was $375 million and adjusted EBITDA was $870 million, reflecting a 16 percent rise with a margin of 11.2 percent.
KBR recorded operating cash flows of $462 million and $8.8 billion in bookings and options for the entire year.
The company returned to shareholders a total of $297 million in capital through regular dividends and share repurchases.
Government Solutions Unit’s Financial Results
The company’s government solutions unit reported $1.6 billion in Q4 revenues, up 20 percent driven by contract growth across all business units and $140 million from the LinQuest acquisition.
In September 2024, KBR closed its $737 million purchase of LinQuest to expand its engineering, data analytics and digital integration capabilities for the Department of Defense and Intelligence Community agencies.
The business segment’s operating income for the quarter dropped 12 percent to $91 million and its adjusted EBITDA was $150 million, up 17 percent.
As of the fiscal year end, the government unit’s backlog and options totaled $17.5 billion with 0.9x book-to-bill and 1.1x on a trailing-12-month basis.
New awards booked by the government solutions unit during the quarter include a $445 million recompete task order to help expand capabilities for DOD’s Joint Mission Environment Test Capability Program; a $187 million task order with the State Department for medical support services in Iraq; and a potential $88 million task order with Naval Air Systems Command for rapid prototyping support.
Mark Sopp on Government Solutions Unit’s Financial Results
During Monday’s earnings call, Mark Sopp, executive vice president and chief financial officer of KBR, discussed the financial performance of the company’s government solutions unit, particularly the 20 percent growth in Q4 revenues.
“As you see all four business units contributed. Defense and intel revenue growth was particularly strong as you see up 33% supported by the LinQuest acquisition and also organic growth. Primary drivers here include military space, missile defense and support of advanced technologies including hypersonics and digital upgrades on various military platforms,” Sopp, a three-time Wash100 awardee, told analysts.
“International also performed well with an increase of 20% driven by core UK and Australia defense programs and healthy increases in infrastructure work in Australia and the Middle East,” the CFO added.
The KBR executive also mentioned the realignment of business segments that the company announced in early January.
The company renamed the Government Solutions segment Mission Technology Solutions, or MTS, as part of a realignment effort to streamline operations and advance the company’s strategic direction.
As part of the changes, KBR will now operate with two business segments: MTS and Sustainable Technology Solutions, or STS. The company integrated its international business unit within government solutions into MTS and STS segments and announced plans to start reporting new segment information by the first quarter of fiscal year 2025.
