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Press Release


KBR Announces First Quarter 2023 Financial Results

Publish date

Delivered Outstanding Q1 Results
Sequential Revenue Growth in all Business Units
Award Momentum Reflected in Strong TTM BTB

HOUSTON, TX - May 1, 2023 - KBR, Inc. (NYSE: KBR) today announced its first quarter 2023 financial results.

“KBR's incredible people have once again delivered outstanding results in Q1,” said Stuart Bradie, KBR president and CEO. “Strong underlying growth and margin expansion drove earnings performance and momentum continued with an excellent bookings quarter. Our operational, safety and ESG performance were exemplary across all business areas."

“Of particular note in the quarter is that our bookings were in strategic areas across our portfolio - energy security, national security, defense modernization, space and sustainability.   We are thus well-positioned to continue to deliver growth and value for our stakeholders."

New Business Awards

Backlog and options for the quarter totaled $20.9 billion. Delivered 1.4x trailing-twelve-months (TTM) book-to-bill1 as of March 31, 2023. Awarded $3.1 billion of bookings and options in the quarter.

Sustainable Technology Solutions (STS) delivered 1.9x TTM book-to-bill1 as of March 31, 2023, including awards and achievements in the quarter as follows:

  • Booked a $0.8 billion award that represents KBR's proportionate share of its non-majority joint venture KZJV's notice to proceed with Phase 2 of Plaquemines LNG for Venture Global LNG, inclusive of  KBR services to be provided to KZJV.
  • Selected as the primary integrated project management contractor across BP's global hydrogen project portfolio.
  • Launched Sustainable Aviation Fuel (SAF) technology in alliance with Swedish Biofuels AB, extending KBR's decarbonization and energy transition portfolio into the aviation sector with a differentiated SAF offering. 
  • Signed a green ammonia technology, K-GreeN®, contract with Enaex, S.A. for its innovative HyEx green ammonia project in Chile.
  • Selected as the ammonia technology provider for a large-scale one million tons per annum low-carbon ammonia facility in the Middle East GCC region, reinforcing the region's focus on emerging as a leader in low-carbon fuels by capitalizing on ammonia as a vector for clean hydrogen.
  • Signed a contract with Hyundai Engineering Company Ltd to supply proprietary equipment for the first modular plant for KBR's leading advanced plastics recycling technology Hydro-PRT®. 
  • Received a Letter of Intent from Equinor Canada for the front-end engineering design of the topside facilities of the new Bay Du Nord floating production, storage, and offloading facility to be located offshore Newfoundland, Canada. 
  • Launched SCOREKlean℠, a proprietary ethylene and propylene process technology utilizing 100% hydrogen-fueled burners for zero emissions from the ethylene cracking furnaces. 
  • Announced the acquisition of Acetica℠, an acetic acid production technology, which expands KBR's petrochemicals value chain through a profitable pathway for CO2 utilization.

Government Solutions (GS) delivered 1.0x TTM book-to-bill1 as of March 31, 2023, including awards and achievements in the quarter as follows:

  • Announced the release of Asset Ikigai®, an ISO 55001-certified, next generation asset management framework to help customers maximize the value they can realize from their physical asset portfolios.
  • Awarded increases to existing task orders for LOGCAP V to support new activity in NORTHCOM and EUCOM.
  • Growth on TENCAP (Tactical Exploitation of National Capabilities Program), which provides high-end technical services for rapid prototyping and fielding of systems for the U.S. Air Force.
  • UK Space Command accepted Frazer-Nash proposal for Iron Stallion licenses. Iron Stallion supports national interests in the space domain for both the UK and U.S.
  • A number of new awards and significant on-contract growth in classified programs supporting technology advancement opposite near peer threats.


1 Consistent with our practice, book-to-bill excludes long-term UK PFIs


Summarized First Quarter Fiscal 2023 Financial Results


Three Months Ended March 31,

Dollars in millions, except share data





$          1,703    


$          1,714    

Operating income

$              144    


$              (31)   

Net income attributable to KBR

$                86    


$              (71)   

Adjusted EBITDA1

$              182    


$              154    

Operating income margin %

8 %


(2) %

Adjusted EBITDA1 margin %

11  %


9 %

Earnings per share:




  Diluted earnings per share

$             0.56    


$           (0.51)   

  Adjusted earnings per share1

$             0.67    


$             0.62    

Cash flows:




  Operating cash flows

$                35    


$                89    

  Adjusted operating cash flows1

$                35    


$                89    

  Adjusted free cash flows1

$                16    


$                83    


Financial Highlights for the Quarter Ended March 31, 2023

  • Revenue of $1.7 billion, up 18% on an ex-OAW1 year-over-year-basis 
  • Net income attributable to KBR of $86 million; Adjusted EBITDA1 of $182 million (11% Adjusted EBITDA1 margin)
  • Diluted EPS of $0.56; Adjusted EPS1 of $0.67, up 22% on an ex-OAW1 year-over-year basis
  • Operating cash flows of $35 million
  • Bookings and options of $3.1 billion during the quarter with 1.4x TTM book-to-bill2

Commentary on Quarter Ended March 31, 2023

Revenues for the quarter were $1.7 billion, flat compared to 1Q'22. Revenue ex-OAW1 increased $258 million, or 18%, primarily attributable to increased activity to support exercises, training and other activities in the European Command, on-contract growth in Science & Space, and growing demand in Sustainable Technology Solutions primarily from engineering and professional services and technology licensing.

Net income attributable to KBR was $86 million, up $157 million compared to 1Q'22, primarily due to higher gross profit and a non-cash charge to equity in earnings of unconsolidated affiliates of $137 million in connection with the Subcontractor Settlement Agreement in 1Q'22 that did not recur in 1Q'23.

Adjusted EBITDA1 was $182 million, up 18% compared to 1Q'22, and Adjusted EBITDA1 margin expanded to 11%, up 170 bps over the same period.

Diluted earnings per share and Adjusted earnings per share1 increased in line with the increase in net income attributable to KBR.

Operating cash flows were $35 million, down 61% compared to 1Q'22, due to strong sequential revenue growth and associated working capital requirements, plus timing items expected to recover in later quarters.

Liquidity, Capital Structure, and Dividends

Capital returned to shareholders totaled $77 million during the quarter, consisting of $61 million in share repurchases, inclusive of $50 million of open market repurchases and $11 million of repurchases to satisfy requirements of equity compensation plans, and $16 million in regular dividends.

During the quarter, KBR received approximately $61 million (AUD $90 million) due to a return of investment from JKC resulting from the receipt of the second payment from the Ichthys Subcontractor Settlement Agreement. These proceeds are reflected in cash flows from investing activities.

We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting our variable rate debt into fixed-rate debt. As a result of the additional interest rate swaps we entered into during the quarter, our fixed to float debt mix was 91% to 9% as of March 31, 2023.

Reaffirms Fiscal 2023 Guidance

The table below summarizes unchanged fiscal 2023 guidance and represents our views as of May 1, 2023.


Fiscal 2023 Guidance


$6.9B - $7.1B

Adjusted EBITDA1

$715M - $745M

Adjusted EPS1

$2.76 - $2.96

Effective tax rate

24% - 25%

Adjusted operating cash flows

$425M - $460M


The company does not provide reconciliations of Adjusted EBITDA to the most comparable GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, and acquisition-related expenses without unreasonable effort, which could be material to the company’s results computed in accordance with GAAP.


1 As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Adjusted operating cash flows, Adjusted free cash flows, Revenue excluding OAW and Adjusted EPS excluding OAW are non-GAAP financial measures.  See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.

2 Consistent with our practice, book-to-bill excludes long-term UK PFIs


Conference Call Details

The company will host a conference call to discuss its first quarter financial results on Monday, May 1, 2023, at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at A replay of the webcast will be available shortly after the call on KBR’s website or by telephone at +1.866.813.9403, passcode: 187403.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 32,000 people worldwide with customers in more than 80 countries and operations in 33 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.



KBR, Inc.
Backlog Information

(In millions)


March 31,


December 31,





Government Solutions

$                 11,651


$                 11,543

Sustainable Technology Solutions




Total backlog

$                 16,518


$                 15,555

Award options




Total backlog and options

$                 20,886


$                 19,758


Government Solutions backlog and options for the quarter ended March 31, 2023 totaled $16.0 billion, up $0.3 billion compared to December 31, 2022. Sustainable Technology Solutions backlog for the quarter ended March 31, 2023 totaled $4.9 billion, up $0.9 billion compared to December 31, 2022 primarily due to increased demand for technologies and solutions across its offerings portfolio.

Forward-Looking Statements

The statements in this press release that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, award activity, our business strategy, and our plans for raising and deploying capital, paying dividends and settling our convertible notes at maturity, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company’s control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the ongoing conflict between Russia and Ukraine and the related impacts on our business as we continue to carry out efforts to wind down operations in Russia; potential adverse economic and market conditions, such as interest rate and currency exchange rate fluctuations, including as a result of pandemics such as COVID-19; the recent dislocation of the global energy market; the company’s ability to manage its liquidity; the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; changes in capital spending by the company’s customers; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; the possibility of cyber and malware attacks; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

The company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that the company has identified that may affect its business, results of operations and financial condition. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Jamie DuBray
Vice President, Investor Relations
[email protected]

Philip Ivy
Vice President, Global Communications
[email protected]

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