Short answer
Kbr Inc (KBR) filed its fiscal 2018 10-K annual report with the SEC on Feb 26, 2019. It reported revenue of $4.9B (+17.8% year over year) and net income of $281M.
- Top risk flagged: U.S. government contract audits by DCAA and DCMA risk payment disallowances, False Claims Act treble damages and debarment
FY2018 key financial metrics · XBRL
- Revenue
- $4.9B
- +17.8% YoY
- Net income
- $281M
- −35.3% YoY
- Operating margin
- 9.6%
- +3.2 pp YoY
- Gross margin
- 9.3%
- +1.1 pp YoY
- EPS (diluted)
- $1.99
- −35.0% YoY
- ROE
- 16.4%
- −19.0 pp YoY
- Operating cash flow
- $165M
- −14.5% YoY
Source: XBRL data from the Kbr Inc (KBR) FY2018 10-K on SEC EDGAR. USD.
Kbr Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global professional-services and technology provider across government programs and hydrocarbons asset life cycles
- SGT acquisition for $355 million plus $10 million adjustments, expanding government engineering, mission operations, scientific and IT capabilities
- Portfolio rebalanced toward long-term, cost-reimbursable government services, following acquisitions and strategic restructuring
- Backlog $13.5 billion, up from $10.6 billion, with 33% expected as fiscal 2019 revenue
- Approximately 25,000 employees worldwide, with joint ventures employing an additional 11,000 people
Management Discussion & Analysis
- Revenue $4.913B, up $742M from $4.171B, driven by Government Services growth and acquisitions
- Government Services best performer: revenue $3.457B, up 58%; gross profit $280M, up 81%
- Hydrocarbons Services weakest segment: revenue $1.157B, down 31%; gross profit $99M, down 11%
- Operating cash flow $165M; investing cash use $491M, including SGT acquisition and JKC contributions
- Dividends $44M; JKC contributions $344M, with approximately $156M projected for 2019 and Ichthys execution risk
Risk Factors
- U.S. government contract audits by DCAA and DCMA risk payment disallowances, False Claims Act treble damages and debarment
- Brexit uncertainty through March 2019 threatens U.K. GS revenues via sterling weakness and potential tariff or regulatory changes
- Ichthys LNG joint venture cost increases, unapproved claims and supplier recoveries could require client refunds and additional funding
- Intense competition from multinational engineering contractors pressures pricing, margins and recompete outcomes
- $1.0 billion Senior Credit Facility, including $500 million revolver and $500 million letter-of-credit facility, heightens covenant and liquidity risk
Generated from the filing text; verify against the original. How to read a 10-K
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