KBR Reports 6% Revenue Increase to $1.952 Billion in Q2 Fiscal 2025

KBR, Inc. reported a revenue increase of 6% for the second quarter of fiscal 2025, reaching $1.952 billion compared to $1.847 billion in the same period last year. The company's net income attributable to KBR was $73 million, down from $106 million in the prior year, primarily due to losses from discontinued operations related to the disposal of HomeSafe, a joint venture that was terminated by the U.S. Transportation Command. The company’s operating income rose to $194 million, up from $180 million, reflecting improved performance in its Mission Technology Solutions and Sustainable Technology Solutions segments.

For the first half of fiscal 2025, KBR's total revenue increased by 8% to $3.970 billion, compared to $3.665 billion in the same period of the previous year. The growth was driven by the acquisition of LinQuest Corporation and increased revenues from engineering and professional services. The company reported a net income of $173 million for the six months ended July 4, 2025, down from $201 million in the prior year, again impacted by losses from discontinued operations. The gross profit for the first half of the year was $590 million, a 14% increase from $518 million in the same period last year.

KBR has made strategic moves to enhance its market position, including the acquisition of Infrastar Limited for $35 million in May 2025, which is expected to bolster its Mission Technology Solutions segment. The company also reported a significant increase in equity earnings from unconsolidated affiliates, which rose to $93 million for the first half of 2025, compared to $70 million in the previous year, largely due to contributions from an LNG project. The company’s total backlog as of July 4, 2025, was $16.697 billion, reflecting a slight increase from $16.605 billion at the beginning of the year.

Operationally, KBR's Mission Technology Solutions segment generated $1.412 billion in revenue for the second quarter, a 7% increase from the previous year, while the Sustainable Technology Solutions segment saw a 2% increase to $540 million. The company’s employee headcount has remained stable, supporting its ongoing projects and strategic initiatives. KBR continues to focus on expanding its capabilities in defense modernization, energy security, and sustainable technology solutions, positioning itself to capitalize on growing market demands.

Looking ahead, KBR anticipates continued growth driven by defense spending and energy transition initiatives. The company is closely monitoring the evolving macroeconomic environment and government funding priorities, particularly in the U.S. and allied nations. KBR's management remains optimistic about future opportunities, particularly in areas such as decarbonization and advanced technology solutions, which are expected to be key growth drivers in the coming years.