KBR, Inc. Files Q2 2024 10-Q Report

Ticker: KBR · Form: 10-Q · Filed: Jul 24, 2024

Sentiment: neutral

Topics: 10-Q, financials, reporting

TL;DR

KBR filed its Q2 10-Q. Financials for period ending June 28, 2024, are in.

AI Summary

KBR, Inc. filed its 10-Q for the period ending June 28, 2024, reporting on its financial performance. The company's fiscal year ends on January 3rd. Key financial data and segment information are presented, with specific dates for reporting periods including June 28, 2024, and December 30, 2023.

Why It Matters

This filing provides investors and analysts with an update on KBR, Inc.'s financial health and operational performance for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

Key Players & Entities

FAQ

What is the primary business segment of KBR, Inc. as indicated by the SIC code?

The Standard Industrial Classification (SIC) code provided is [1600], which corresponds to HEAVY CONSTRUCTION OTHER THAN BUILDING CONST - CONTRACTORS.

What is the fiscal year end date for KBR, Inc.?

KBR, Inc.'s fiscal year ends on January 3rd (0103).

What is the SEC file number for KBR, Inc.?

The SEC file number for KBR, Inc. is 001-33146.

What is the accession number for this specific 10-Q filing?

The accession number for this filing is 0001357615-24-000044.

What is the filing date of this 10-Q report?

This 10-Q report was filed on July 24, 2024 (20240724).

Filing Stats: 4,945 words · 20 min read · ~16 pages · Grade level 16.2 · Accepted 2024-07-24 10:29:42

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

F inancial Statements (Unaudited)

Item 1. F inancial Statements (Unaudited) 5 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income (Loss) 6 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Shareholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 2 Forward-Looking and Cautionary Statements This Quarterly Report on Form 10-Q contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Some of the statements contained in this Quarterly Report on Form 10-Q are forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "plan," "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future financial performance and results of operations. We have based these statements on our assumptions and analyses in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. While it is not possible to identify all factors, factors that could cause actual future results to differ materially include the risks and uncertainties disclosed in our latest Form 10-K and any subsequent Forms 10-Q and 8-K. Many of these factors are beyond our ability to control or predict. Any of these factors, or a combination of these factors, could materially and adversely affect our future financial condition or results of operations and the ultimate accuracy of the forward-looking statements. These forward-looking statements are not guarantees of our

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Information

Item 1. Financial Information KBR, Inc. Condensed Consolidated Statements of Operations (In millions, except for per share data) (Unaudited) Three Months Ended Six Months Ended June 28, June 30, June 28, June 30, 2024 2023 2024 2023 Revenues $ 1,855 $ 1,753 $ 3,673 $ 3,456 Cost of revenues ( 1,584 ) ( 1,502 ) ( 3,154 ) ( 2,960 ) Gross profit 271 251 519 496 Equity in earnings of unconsolidated affiliates 40 23 70 46 Selling, general and administrative expenses ( 129 ) ( 119 ) ( 250 ) ( 243 ) Legal settlement of legacy matter — ( 144 ) — ( 144 ) Gain on disposition of assets and investments — — 6 — Other ( 1 ) ( 1 ) 2 ( 1 ) Operating income 181 10 347 154 Interest expense ( 32 ) ( 29 ) ( 63 ) ( 55 ) Charges associated with Convertible Notes — ( 314 ) — ( 314 ) Other non-operating expense ( 2 ) ( 1 ) ( 8 ) ( 3 ) Income (loss) before income taxes 147 ( 334 ) 276 ( 218 ) Provision for income taxes ( 40 ) ( 16 ) ( 75 ) ( 46 ) Net income (loss) 107 ( 350 ) 201 ( 264 ) Less: Net income attributable to noncontrolling interests 1 1 2 1 Net income (loss) attributable to KBR $ 106 $ ( 351 ) $ 199 $ ( 265 ) Net income (loss) attributable to KBR per share Basic $ 0.79 $ ( 2.60 ) $ 1.48 $ ( 1.95 ) Diluted $ 0.79 $ ( 2.60 ) $ 1.47 $ ( 1.95 ) Basic weighted average common shares outstanding 134 135 134 136 Diluted weighted average common shares outstanding 134 135 135 136 Cash dividends declared per share $ 0.150 $ 0.135 $ 0.300 $ 0.270 See accompanying notes to condensed consolidated financial statements. 5 KBR, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (In millions) (Unaudited) Three Months Ended Six Months Ended June 28, June 30, June 28, June 30, 2024 2023 2024 2023 Net income (loss) $ 107 $ ( 350 ) $ 201 $ ( 264 ) Other comprehensive income (loss): Foreign currency translation adjustments — 24 ( 8 ) 39 Pension and post-retirement benefits 1 ( 2 ) 3 ( 2 ) Changes in fair value of derivatives

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