$KBR

KBR, INC.

CIK:0001357615|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2026	Jul. 04, 2025	Jul. 03, 2026	Jul. 04, 2025
Income Statement [Abstract]
Revenues	$ 1,984	$ 1,952	$ 3,907	$ 3,970
Cost of revenues	(1,691)	(1,662)	(3,349)	(3,380)
Gross profit	293	290	558	590
Equity in earnings of unconsolidated affiliates	52	51	103	93
Selling, general and administrative expenses	(143)	(146)	(262)	(286)
Spin-off costs and other charges	(31)	0	(46)	0
Other operating income (expense)	1	(1)	(1)	(1)
Operating income	172	194	352	396
Interest expense	(35)	(41)	(72)	(82)
Other non-operating expense	(2)	(8)	(2)	(5)
Income (loss) from continuing operations before income taxes	135	145	278	309
Provision for income taxes	(38)	(39)	(78)	(82)
Net income (loss) from continuing operations	97	106	200	227
Net income (loss) from discontinued operations, net of tax	2	(48)	0	(54)
Net income	99	58	200	173
Less: Net income attributable to noncontrolling interests included in continuing operations	2	1	2	2
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations	1	(16)	0	(18)
Net income attributable to KBR	$ 96	$ 73	$ 198	$ 189
Net income attributable to KBR per share
Basic earnings per share from continuing operations (in usd per share)	$ 0.74	$ 0.81	$ 1.55	$ 1.72
Basic earnings (loss) per share from discontinued operations (in usd per share)	0.01	(0.25)	0	(0.27)
Basic earnings per share attributable to KBR (in usd per share)	0.75	0.56	1.55	1.45
Diluted earnings per share from continuing operations (in usd per share)	0.74	0.81	1.55	1.71
Diluted earnings (loss) per share from discontinued operations (in usd per share)	0.01	(0.25)	0	(0.27)
Diluted earnings per share attributable to KBR (in usd per share)	$ 0.75	$ 0.56	$ 1.55	$ 1.44
Basic weighted average common shares outstanding (in shares)	126	129	127	130
Diluted weighted average common shares outstanding (in shares)	127	129	127	131
Cash dividends declared per share (in usd per share)	$ 0.165	$ 0.165	$ 0.330	$ 0.330

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 03, 2026	Jul. 04, 2025	Jul. 03, 2026	Jul. 04, 2025	Jan. 02, 2026
Cash flows from operating activities:
Net income	$ 99	$ 58	$ 200	$ 173
Net loss from discontinued operations, net of tax	(2)	48	0	54
Net income from continuing operations	97	106	200	227
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42	45	83	86
Equity in earnings of unconsolidated affiliates	(52)	(51)	(103)	(93)
Deferred income tax			31	26
Other charges associated with lease right-of-use asset impairment			17	0
Other			(2)	4
Changes in operating assets and liabilities, net of acquired business:
Accounts receivable, net of allowance for credit losses			(26)	(128)
Contract assets			(80)	(6)
Accounts payable			40	25
Contract liabilities			31	(2)
Accrued salaries, wages and benefits			(21)	(9)
Payments on operating lease liabilities			(40)	(41)
Payments from unconsolidated affiliates, net			5	5
Distributions of earnings from unconsolidated affiliates			97	124
Other assets and liabilities			(72)	90
Total cash flows provided by operating activities - continuing operations			160	308
Cash flows from investing activities:
Purchases of property, plant and equipment			(28)	(16)
Return of (investment in) equity method investments, net			(128)
Return of (investment in) equity method investments, net				3
Acquisition of business, net of cash acquired			0	(11)
Purchases of available-for-sale debt securities			(49)	0
Purchases of other investments			(13)	0
Other			2	0
Total cash flows used in investing activities - continuing operations			(216)	(24)
Cash flows from financing activities:
Borrowings on Revolver			141	373
Payments on short-term and long-term debt			(25)	(18)
Payments on Revolver			(161)	(323)
Payments to repurchase common stock			(29)	(204)
Payments of dividends to shareholders			(42)	(41)
Other			(12)	(6)
Total cash flows used in financing activities - continuing operations			(128)	(219)
Total operating cash flows from discontinued operations			(2)	(27)
Total investing cash flows from discontinued operations			0	(12)
Total financing cash flows from discontinued operations			0	8
Total cash flows from discontinued operations			(2)	(31)
Effect of exchange rate changes on cash			(4)	20
Increase (decrease) in cash and cash equivalents			(190)	54
Cash and cash equivalents at beginning of period			505	350	$ 350
Cash and cash equivalents at end of period	315	404	315	404	$ 505
Less: cash and cash equivalents at end of period for discontinued operations	3	1	3	1
Cash and cash equivalents at end of period for continuing operations	312	403	312	403
Noncash financing activities
Dividends declared	$ 21	$ 21	$ 21	$ 21

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 03, 2026	Jan. 02, 2026
Current assets:
Cash and cash equivalents	$ 312	$ 500
Accounts receivable, net of allowance for credit losses of $5 and $6, respectively	1,109	1,086
Contract assets	360	280
Other current assets	182	166
Current assets of discontinued operations	15	19
Total current assets	1,978	2,051
Pension assets	113	89
Property, plant and equipment, net of accumulated depreciation of $510 and $506 (including net PPE of $5 and $5 owned by a variable interest entity), respectively	227	232
Operating lease right-of-use assets	224	217
Goodwill	2,668	2,677
Intangible assets, net of accumulated amortization of $526 and $501, respectively	694	727
Equity in and advances to unconsolidated affiliates	241	107
Deferred income taxes	124	162
Other assets (including $50 and $0 of available-for-sale debt securities at fair value, respectively)	398	322
Total assets	6,667	6,584
Current liabilities:
Accounts payable	749	712
Contract liabilities	360	331
Accrued salaries, wages and benefits	313	342
Current maturities of long-term debt	49	49
Other current liabilities	236	235
Current liabilities of discontinued operations	16	19
Total current liabilities	1,723	1,688
Employee compensation and benefits	149	144
Income tax payable	97	83
Deferred income taxes	87	95
Long-term debt	2,503	2,547
Operating lease liabilities	246	236
Other liabilities	220	279
Total liabilities	5,025	5,072
Commitments and Contingencies (Notes 5, 10 and 11)
KBR shareholders' equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued	0	0
Common stock, $0.001 par value 300,000,000 shares authorized, 183,154,727 and 182,891,428 shares issued, and 126,067,755 and 126,454,289 shares outstanding, respectively	0	0
PIC	2,566	2,552
Retained earnings	1,853	1,697
Treasury stock, 57,086,972 shares and 56,437,139 shares, at cost, respectively	(1,842)	(1,818)
AOCL	(941)	(928)
Total KBR shareholders' equity	1,636	1,503
Noncontrolling interests	6	9
Total shareholders' equity	1,642	1,512
Total liabilities and shareholders' equity	$ 6,667	$ 6,584