KBR Inc. Common Stock (KBR)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering KBR at $35.41 as of 2026-10-13, a $4.5B company in engineering and scientific services. The turnaround is real: in fiscal 2023, the company reported revenue of $7.0B and a net loss of $265.0M, or diluted EPS of -$1.96. By fiscal 2025, revenue was $7.8B and net income $415.0M, or $3.21 per diluted share. In the fiscal Q2 2026 quarter ended 2026-07-03, revenue was $2.0B, net income $96.0M, and diluted EPS $0.75, up from $73.0M and $0.56 in the fiscal Q2 2025 quarter. That is about a 31.5% profit improvement on flat revenue, suggesting margin repair. FairStock calculates a P/E of 10.67 and an FCF yield of 8.0%, with $355.0M trailing free cash flow. Those are attractive if sustainable. Yet I must weigh the negatives. FairStock's Graham Number is $31.14, leaving a -13.71% margin of safety at the current price. ROCE is only 5.20%, Altman Z-Score is 1.34, and debt-to-equity is 1.70. The high 27.53% ROE is flattered by leverage. Piotroski is 6/9, respectable but not fortress-like. Revenue growth is just 1.64%, and the Lynch category is TURNAROUND because it returned to profit after a loss within three years. This is not a wide-moat compounder; it is a leveraged service business with a government tilt and a low beta of 0.45. At about 10.7 times earnings and 7.8 times EV/EBITDA, the price discounts progress. I would want the balance sheet stronger and capital returns higher before calling it a classic Graham bargain. Discipline says watch, not chase.

In plain English: KBR is an engineering and science company that mostly works for governments and businesses. After losing money in fiscal 2023, it has returned to profit and produces strong cash flow, but it carries a lot of debt and earns only modest returns on the capital it uses. At $35.41, the shares look fair to slightly expensive based on the numbers here, not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-10-03) · fiscal Q2 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2026-01-02) · FY2024 10-K (period ended 2025-01-03) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer