KBR has announced fourth quarter, fiscal 2019 financial results, and guidance for fiscal 2020, showing strong growth, earning performance and operating cash flow across all operating segments, the company reported on Thursday.
"Our portfolio of long-term, multi-year contracts and bookings momentum provide earnings and cash visibility, and we begin 2020 with over 70% of the year's work secured…our board has recently approved a 25% increase to our quarterly dividend and has restored the full capacity of our share repurchase authorization to $350 million," said Stuart Bradie, KBR President and CEO.
KBR reported consolidated revenue of $5.6 billion or 15 percent annual growth with all operating segments contributing double digit growth; operating cash flow of $256 million, or 127 percent net income conversion with all operating segments contributing at or above targeted levels.
The company has stated that consolidated book-to-bill of 1.3x, excluding the impact of privately financed initiatives or projects and foreign exchange, with all operating segments achieving book-to-bill of greater than 1.0x.
KBR saw a 14 percent growth in Government Solutions, accrediting the growth to new programs, including holistic human and psychological performance services for the U.S. Special Operations Forces under the Preservation of the Force and Family program and the disaster recovery work at Tyndall Air Force Base, generating approximately $150 million of revenue in 2019.
The company reported 26 percent growth in Technology Solutions for KBR’s work across the chemical, petrochemical, refining and ammonia projects and 16 percent growth in Energy Solutions for ramp up of cost-reimbursable projects, including a brownfield revamp refinery project in the U.S. Gulf Coast.
KBR released the company’s highlighted that for FY2019, the annual operating cash flow of $256 million, or 127 percent net income conversion, gross and net debt leverage of 2.7x and 1.2x, respectively and continued gross debt de-leveraging attributable to Adjusted EBITDA growth and annual debt pay down of $70 million.
For business, the company reported that its expanded footprint through project program wins, including the NASA Launch Range Operations Contract for Wallops Flight Facility in June 2019. KBR has projected 2020 growth initiatives, including GAAP EPS guidance with a range of $1.46 to $1.58 and adjusted EPS guidance with a range of $1.80 to $1.92 per share.
"The commitment, dedication and enthusiasm of our people, working together across the globe, is the foundation of our company, and I wish to thank them for their many contributions to another year of great results," said Bradie.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 38,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses: Government Solutions, Technology Solutions, Energy Solutions