KBR, Inc. (NYSE: KBR) saw a noteworthy 3.91% gain in the value of its shares when its financial results were released, concluding at $57.45. KBR released its financial results for the fiscal year and fourth quarter of 2023.
For the fourth quarter, KBR $1.7 billion in revenues with an increase of 8% rise over the same period a year ago. The increases in the Government Solutions divisions of Defense & Intel, Science & Space, and International as well as the growing demand for Sustainable Technology Solutions were cited as the reasons for this rise. Revenues increased by 6% to $7.0 billion on an annual basis.
However, net income attributable to KBR stood at $21 million for the quarter, down by $72 million from the fourth quarter of the preceding year, chiefly due to a non-cash charge of $40 million linked to the settlement method election for convertible notes in the second quarter of 2023, and a $26 million charge related to warrant settlements. Annual net income was reported as $(265) million, down by $455 million from the previous fiscal year.
The backlog and options as of December 29, 2023, amounted to $21.7 billion, with a trailing-twelve-months (TTM) book-to-bill ratio of 1.1x. Notably, $1.7 billion worth of bookings and options were secured in the quarter, contributing to a total of $10.5 billion for fiscal 2023.
KBR’s accomplishments in fiscal year 2023 underscored its team’s dedication and expertise, evident in its industry-leading safety record, meeting or surpassing key financial benchmarks, and achieving a 10% growth in backlog and options.
Additionally, the company successfully settled outstanding convertible notes and warrants in cash, thereby preventing dilution, and extended the maturity of its term loans and revolving credit facility, enhancing its financial position for future endeavors.
KBR remains focused on its HomeSafe initiative, aiming to enhance moving experiences for military personnel and their families through innovation and collaboration with customers.
Notably, the company secured a Front-End Engineering Design contract for Project Fyrkat, an onshore liquid carbon dioxide sequestration facility, and its Purifier ammonia technology was selected for an ammonia plant project in Indonesia, further expanding its global footprint in sustainable solutions.
