KBR (NYSE: KBR) reported $1.9 billion in revenue during the second quarter of fiscal year 2024, up 6 percent from the prior-year period, and recorded $2.1 billion in Q2 bookings and options with a book-to-bill of 1.0x on a trailing 12-month basis.
The Houston-based engineering contractor said Wednesday its Q2 net income was $106 million and its adjusted earnings before interest, taxes, depreciation and amortization was $216 million during the quarter, reflecting a 13 percent from the same period the previous year.
For the quarter, KBR reported diluted earnings per share of $0.79, adjusted EPS of $0.83 and operating cash flows of $170 million.
The company returned to shareholders a total of $118 million in capital during the quarter in the form of share repurchases and regular dividends.
Financial Results of KBR’s Government Solutions Unit
The company’s government solutions unit logged $1.4 billion in Q2 revenues and delivered 1.2x trailing 12 months book-to-bill as of June 28.
The business unit’s backlog and options at June 28 reached $16.2 billion, down $1 billion from the figures recorded on Dec. 29, 2023.
New awards booked by the government solutions unit during the quarter include a spot on the potential $43 billion Medical Q Coded Support and Services Next Generation contract, an $82 million recompete task order to support the U.S. Air Force’s B-52 program office and a position on the potential $2 billion Global Contingency Services Multiple Award Contract III.
CFO Mark Sopp on KBR’s Government Solutions Unit, LinQuest Acquisition
Mark Sopp, executive vice president and chief financial officer of KBR, discussed the financial performance of the company’s government solutions unit during the earnings call Wednesday.
“For government, revenue grew 3% overall, where again we saw growth in international defense and intelligence and science and space, those up 11%, 5%, and 1% respectively. This is offset in part by contraction in readiness and sustainment, particularly for UCOM activity down as funding delays earlier in the year are still trickling through related to the Ukraine conflict,” Sopp, a three-time Wash100 awardee, told analysts.
During the call, the KBR CFO briefly talked about how the company will finance its purchase of LinQuest. He noted that the company expects the deal to “raise our pro forma net leverage to approximately 2.7x give or take post-closing.”
In mid-July, KBR struck a $737 million deal for LinQuest to broaden its digital integration and related technical capabilities for the Department of Defense and Intelligence Community agencies.
