Engineering, construction and services company KBR Inc. (KBR) reported Thursday a decline in third quarter profit reflecting lower revenue from Government and Infrastructure business, partially offset by higher revenue at the Upstream business.
The Houston, Texas-based company's net income for the quarter declined to $97 million from $107 million in the same period last year.
Net income attributable to the company declined to $73 million, or $0.45 per share from $85 million, or $0.51 per share in the corresponding period last year. On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the most recent quarter included a $10 million tax benefit related to a return to accrual adjustment for the 2008 tax year, partially offset by a $6 million impairment of goodwill at a staffing company acquired as part of the BE&K acquisition.
Results for the prior year period included income from discontinued operations of $11 million or $0.07 per share resulting from foreign tax credits related to the sale of the company's 51% stake in Devonport Management Limited.
Consolidated revenue declined to $2.8 billion from $3 billion in the same period last year. Nine Street analysts expected the company to report revenue of $2.9 billion for the quarter.
Government and Infrastructure revenue was $1.38 billion, down from $1.76 billion in the year-ago period. Upstream revenue rose to $735 million from $550 million a year earlier. Services revenue increased to $566 million from $539 million in the corresponding period last year. Down stream revenue was $123 million, down from $138 million a year earlier.
Consolidated operating income was $131 million, down from $144 million a year earlier.
Upstream business unit income was $48 million, down from $53 million in the third quarter of 2008. Government and Infrastructure business unit income declined to $89 million from $104 million in the year-ago quarter. Services business unit income was $36 million, an increase from $27 million in the same period last year.
In addition, the company said Downstream business unit income declined to $10 million from $15 million in the third quarter of 2008. Technology business unit income rose to $7 million from $4 million in the year-ago period. Ventures business unit income was $4 million compared to $0 million in the year-ago quarter.
The company said during the quarter it was awarded the A$2.7 billion contract by Chevron Australia Pty. Ltd. to Engineer, Procure and Construction Manage the LNG downstream and logistics portion of the Chevron-operated Gorgon LNG Project.
Backlog at the end of the quarter rose to $13.48 billion, up from $12.35 billion at the end of the previous quarter.
Commenting on the results, Bill Utt, chairman, president, and chief executive officer of KBR said, "Operationally, our business delivered solid performance, despite experiencing several isolated items related to the completion or near completion of several LNG projects."
For the nine-month period, net income attributable to the company declined to $217 million or $1.35 per share from $231 million or $1.37 per share in the same period last year. Total revenue increased to $9.1 billion from $8.2 billion in the corresponding period last year.
KBR is currently up $0.56 or 2.64% and trades at $21.77.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.