Revenue Analysis:
Over the past three years, KBR has exhibited variable revenue figures. The Total Revenue and Operating Revenue from the most recent quarter from 2024-03-31 were $1,818,000,000. This showcases an upward trend from $1,730,000,000 in 2023-12-31 and $1,770,000,000 in 2023-09-30. The Gross Profit over these periods shows the same pattern, increasing from $237,000,000 in 2023-12-31 to $248,000,000 in 2024-03-31, indicating improved efficiency in generating profit from revenues.
Cost Management:
Cost of Revenue and Operating Expenses are significant factors for KBR. Cost of Revenue was effectively managed, showing a decline from $1,526,000,000 in 2023-09-30 to $1,570,000,000 in 2024-03-31. Operating Expenses have been tightly controlled at $118,000,000 in the latest quarter 2024-03-31, compared to $129,000,000 in 2023-09-30, which helps in maintaining a better bottom line.
Profitability Analysis:
KBR’s EBITDA increased from $69,000,000 in 2023-09-30 to $196,000,000 in 2024-03-31. However, a significant drop in EBITDA was seen during 2023-06-30 at -$271,000,000, indicating past volatility in earnings before interest, taxes, depreciation, and amortization. Operating Income also improved significantly from $115,000,000 in 2023-09-30 to $130,000,000 in 2024-03-31, alongside a robust growth in Pretax Income from $5,000,000 to $129,000,000 in the same periods. Net Income followed this upward trend, from -$21,000,000 in 2023-09-30 to $93,000,000 in 2024-03-31.
Cash Flow Indicators:
Reconciled Depreciation has been stable, showing a slight increment from $34,000,000 in 2023-09-30 to $36,000,000 in 2024-03-31. Interest Expense has been consistently managed around $30,000,000 to $31,000,000 providing a stable view of KBR’s financing cost.
Taxation:
The Tax Rate for Calcs shows a variable trend with a decrease from 0.26 in 2023-03-31 to 0.21 in subsequent quarters and slightly rising to 0.271318 in 2024-03-31. Tax Provision has increased significantly in the latest quarter at $35,000,000 compared to previous years, aligning with the increase in pretax income. The Tax Effect Of Unusual Items had a substantial negative impact of -$30,240,000 in 2023-06-30, which should be considered in KBR’s tax strategy.
Shareholder Metrics:
Diluted EPS shows improvement from -0.16 in 2023-09-30 to unknown in the latest quarter due to data unavailability. Similarly, Basic EPS improved from -0.155552 to unknown. This points to a recovery in profitability per share, but exact values need to be disclosed for precise evaluation. The company’s management of shares is indicated by Diluted and Basic Average Shares figures; however, a slight inconsistency is observed due to varying data across quarters.
Conclusion:
KBR has shown considerable improvement in revenue, profitability, cost management, and taxation strategies. While historical data indicated some periods of distress, recent trends show a steady path of recovery and growth. It is recommended that KBR continues to focus on efficient cost management and utilizes its financial resources to bolster areas such as gross profitability and shareholder returns. Continued attention to taxation and unusual items will also be crucial to maintaining financial health.