KBR Reports 13% Revenue Growth to $2.055 Billion, Driven by LinQuest Acquisition

KBR, Inc. reported a significant increase in financial performance for the three months ended April 4, 2025, with total revenues reaching $2.055 billion, a 13% increase from $1.818 billion in the same period last year. The company's net income attributable to KBR rose to $116 million, or $0.88 per diluted share, compared to $93 million, or $0.69 per diluted share, in the prior year. This growth was primarily driven by the acquisition of LinQuest Corporation, which contributed to increased revenues in the Mission Technology Solutions (MTS) segment, alongside higher revenues from engineering and professional services in the Sustainable Technology Solutions (STS) segment.

The company experienced notable changes in its operational metrics, with MTS revenues increasing by 14% to $1.505 billion, while STS revenues rose by 12% to $550 million. The operating income for MTS also improved, reaching $114 million, up from $106 million, while STS operating income increased to $119 million from $94 million. The overall gross profit for KBR increased by 20% to $298 million, reflecting the positive impact of the LinQuest acquisition and enhanced service offerings.

KBR's strategic developments included the integration of LinQuest, which was acquired for $739 million in cash in August 2024. This acquisition is expected to enhance KBR's capabilities in advanced technology solutions, particularly in defense and intelligence sectors. The company also reported a backlog of $17.29 billion as of April 4, 2025, indicating a stable pipeline of future work, with approximately 38% expected to be executed within the next year.

In terms of operational indicators, KBR's cash and cash equivalents increased to $442 million from $350 million at the beginning of the year. The company also reported a rise in accounts receivable, which totaled $1.15 billion, up from $1.07 billion. KBR's employee headcount remained stable, supporting its operational needs as it continues to expand its service offerings and geographic reach, particularly in the U.S., U.K., and Australia.

Looking ahead, KBR anticipates continued growth driven by defense modernization and sustainable technology solutions, despite potential uncertainties in government funding and macroeconomic conditions. The company remains focused on leveraging its strategic acquisitions and enhancing its service capabilities to meet evolving market demands. KBR's management expressed confidence in its ability to navigate challenges and capitalize on opportunities in both domestic and international markets.