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KBR's Q4 Earnings and Revenues Surpass Estimates, Up Y/Y
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KBR, Inc. (KBR - Free Report) reported impressive fourth-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate. The company benefited from solid Government Solutions organic growth and strong execution across the business.
Elaborating on the quarterly performance, Stuart Bradie, KBR’s president and CEO, said, "KBR had a stellar 2021 delivering significant progress toward its 2025 growth strategy.” He also added, “We extended our high-end capabilities in attractive, growing end markets across international defense and renewable energy with the acquisition of Frazer-Nash Consultancy, and we formed important alliances to advance ground-breaking technology to close the circular plastics loop and make carbon-free energy a reality.”
Inside the Headline Numbers
Adjusted earnings of 69 cents per share surpassed the consensus estimate of 65 cents by 6.2% and increased 35.3% from 51 cents reported a year ago.
Total revenues also increased 70.5% year over year to $2,499 million. Organically, sales grew 18% from the prior-year quarter. The top line also surpassed the consensus mark of $2,485 million by 0.6%.
Adjusted EBITDA increased 27.4% year over year to $172 million for the quarter driven by a strong performance of the Government Solution business, acquisitions and solid project execution.
Revenues in the Government Solutions segment increased 98.4% year over year to $2,199 million. Yet, Sustainable Technology Solutions' revenues decreased 16.4% year over year to $300 million.
Backlog
As of Dec 31, 2021, total backlog (including award options) was $19.71 billion compared with $19.01 billion at 2020-end. Of the total backlog, Government Solutions booked $12.63 billion. The Sustainable Technology Solutions segment accounted for $2.35 billion of the total backlog.
Liquidity & Cash Flow
As of Dec 31, 2021, KBR’s cash and cash equivalents were $370 million, down from $436 million at 2020-end. Long-term debt was $1,852 million at 2021-end, slightly down from $1,584 million at 2020-end.
For 2021, cash provided by operating activities totaled $278 million, down from $367 million in the year-ago period.
2021 Highlights
Adjusted earnings came in at $2.42 per share, reflecting an increase of 39.9% from the 2020 level. Revenues of $7,339 million increased 27.3% year over year. Adjusted EBITDA was $625 million, up 30.8% from 2020. Adjusted free cash flow was $289 million, up from $270 million a year ago.
2022 Guidance
For 2022, the company expects total revenues in the range of $6.3-$6.8 billion and adjusted EBITDA margin of 10%. Also, it expects an effective tax rate between 24% and 25% and adjusted earnings per share in the band of $2.45-$2.60. The Zacks Consensus Estimate for 2022 earnings per share is currently pegged at $2.46.
Meanwhile, adjusted operating cash flow is now projected in the range of $350-$400 million.
Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year despite persistent supply-chain challenges and the ongoing pandemic.
Weyerhaeuser remains encouraged by strong demand fundamentals that will drive the growth of businesses. WY also remains focused on creating superior value for shareholders through its unmatched portfolio of assets, industry-leading operating performance, strong ESG foundation and disciplined capital allocation.
Martin Marietta Materials, Inc. (MLM - Free Report) reported better-than-expected fourth-quarter 2021 results, wherein earnings and revenues (products and services) beat the respective Zacks Consensus Estimate.
Earnings and revenues of MLM also increased on a year-over-year basis backed by improved pricing across businesses as well as disciplined cost management.
D.R. Horton’s quarterly earnings and revenues beat the respective Zacks Consensus Estimate as well as improved on a year-over-year basis. The upside reflects a robust housing market, significant market share gains, a vast geographic footprint and varied product offerings across multiple brands.
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KBR's Q4 Earnings and Revenues Surpass Estimates, Up Y/Y
KBR, Inc. (KBR - Free Report) reported impressive fourth-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate. The company benefited from solid Government Solutions organic growth and strong execution across the business.
Elaborating on the quarterly performance, Stuart Bradie, KBR’s president and CEO, said, "KBR had a stellar 2021 delivering significant progress toward its 2025 growth strategy.” He also added, “We extended our high-end capabilities in attractive, growing end markets across international defense and renewable energy with the acquisition of Frazer-Nash Consultancy, and we formed important alliances to advance ground-breaking technology to close the circular plastics loop and make carbon-free energy a reality.”
Inside the Headline Numbers
Adjusted earnings of 69 cents per share surpassed the consensus estimate of 65 cents by 6.2% and increased 35.3% from 51 cents reported a year ago.
Total revenues also increased 70.5% year over year to $2,499 million. Organically, sales grew 18% from the prior-year quarter. The top line also surpassed the consensus mark of $2,485 million by 0.6%.
Adjusted EBITDA increased 27.4% year over year to $172 million for the quarter driven by a strong performance of the Government Solution business, acquisitions and solid project execution.
KBR, Inc. Price, Consensus and EPS Surprise
KBR, Inc. price-consensus-eps-surprise-chart | KBR, Inc. Quote
Segmental Details
Revenues in the Government Solutions segment increased 98.4% year over year to $2,199 million. Yet, Sustainable Technology Solutions' revenues decreased 16.4% year over year to $300 million.
Backlog
As of Dec 31, 2021, total backlog (including award options) was $19.71 billion compared with $19.01 billion at 2020-end. Of the total backlog, Government Solutions booked $12.63 billion. The Sustainable Technology Solutions segment accounted for $2.35 billion of the total backlog.
Liquidity & Cash Flow
As of Dec 31, 2021, KBR’s cash and cash equivalents were $370 million, down from $436 million at 2020-end. Long-term debt was $1,852 million at 2021-end, slightly down from $1,584 million at 2020-end.
For 2021, cash provided by operating activities totaled $278 million, down from $367 million in the year-ago period.
2021 Highlights
Adjusted earnings came in at $2.42 per share, reflecting an increase of 39.9% from the 2020 level. Revenues of $7,339 million increased 27.3% year over year. Adjusted EBITDA was $625 million, up 30.8% from 2020. Adjusted free cash flow was $289 million, up from $270 million a year ago.
2022 Guidance
For 2022, the company expects total revenues in the range of $6.3-$6.8 billion and adjusted EBITDA margin of 10%. Also, it expects an effective tax rate between 24% and 25% and adjusted earnings per share in the band of $2.45-$2.60. The Zacks Consensus Estimate for 2022 earnings per share is currently pegged at $2.46.
Meanwhile, adjusted operating cash flow is now projected in the range of $350-$400 million.
Zacks Rank
KBR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Construction Releases
Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year despite persistent supply-chain challenges and the ongoing pandemic.
Weyerhaeuser remains encouraged by strong demand fundamentals that will drive the growth of businesses. WY also remains focused on creating superior value for shareholders through its unmatched portfolio of assets, industry-leading operating performance, strong ESG foundation and disciplined capital allocation.
Martin Marietta Materials, Inc. (MLM - Free Report) reported better-than-expected fourth-quarter 2021 results, wherein earnings and revenues (products and services) beat the respective Zacks Consensus Estimate.
Earnings and revenues of MLM also increased on a year-over-year basis backed by improved pricing across businesses as well as disciplined cost management.
D.R. Horton, Inc. (DHI - Free Report) reported impressive results for first-quarter fiscal 2022.
D.R. Horton’s quarterly earnings and revenues beat the respective Zacks Consensus Estimate as well as improved on a year-over-year basis. The upside reflects a robust housing market, significant market share gains, a vast geographic footprint and varied product offerings across multiple brands.