Short answer
Kbr Inc (KBR) filed its fiscal 2016 10-K annual report with the SEC on Feb 24, 2017. It reported revenue of $4.3B and net income of −$61M.
- Top risk flagged: U.S. government contract audits by DCAA and DCMA: FAR or CAS violations could trigger payment disallowances, treble damages under the False Claims Act, or termination
FY2016 key financial metrics · XBRL
- Revenue
- $4.3B
- Net income
- −$61M
- Operating margin
- 0.7%
- Gross margin
- 2.6%
- EPS (diluted)
- −$0.43
- ROE
- -8.1%
- Operating cash flow
- $61M
Source: XBRL data from the Kbr Inc (KBR) FY2016 10-K on SEC EDGAR. USD.
Kbr Inc FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global professional-services provider across government programs and hydrocarbons asset life cycles, emphasizing long-term reimbursable contracts
- 2016 acquisitions of Wyle and Honeywell Technology Solutions for $623 million and $280 million, combined under the KBRwyle government-services brand
- Portfolio materially rebalanced toward government services, increasing long-term, cost-reimbursable professional-services exposure
- Backlog $10.9 billion versus $12.3 billion in 2015, with 38% expected as revenue within one year
- Approximately 27,500 employees worldwide, plus 9,000 employees in the Brown & Root Industrial Services joint venture
Management Discussion & Analysis
- Revenue $4.268B, down $828M, or 16% YoY, driven by Australian LNG and U.S. ammonia project declines
- Operating loss $282M vs $310M operating loss, with gross loss $213M vs $65M gross profit
- Best segment GS: revenue $1.359B, up 105%, gross profit $137M vs $3M loss
- Worst segment E&C: revenue $2.352B, down 32%, gross profit $7M vs $224M
- Operating cash flow $61M, acquisitions $911M, dividends $46M, 2017 working-capital pressure from project losses
Risk Factors
- U.S. government contract audits by DCAA and DCMA: FAR or CAS violations could trigger payment disallowances, treble damages under the False Claims Act, or termination
- Brexit volatility: weaker pound reduces U.S.-dollar translation of U.K. GS revenues and costs
- Project execution reliance on local craft labor, subcontractors, and equipment manufacturers: replacement sourcing could raise costs or cause fixed-price losses
- Competitive bidding pressure from multinational engineering and construction firms: pricing and technical competition could compress project margins
- Acquisition-driven leverage: $1 billion Credit Agreement covenants could restrict funding and accelerate borrowings after default
Generated from the filing text; verify against the original. How to read a 10-K
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