KBR thrives despite downturn; revenues, EBITDA grow in 2020 as leverage falls

By Devika Patel

Knoxville, Tenn., Feb. 22 – KBR, Inc. has leverage below its targeted range and good liquidity after a very successful 2020, despite the global economic downturn due to the Covid-19 pandemic, with the company’s outlook good for 2021 as well.

“We’ve done well in cash and our net leverage is now sitting just below our targeted range, so we’re in really good shape from a liquidity perspective and we’ve got deployment options, which is always a good thing,” president and chief executive officer Stuart J.B. Bradie said on the company’s fourth quarter and year ended Dec. 31, 2020 earnings conference call on Monday.

Revenue and EBITDA grew in 2020 and cash flow was also robust.

“For the year, revenues, EBITDA and adjusted earnings per share were up modestly over last year, which is a clear demonstration of our business model resilience,” chief financial officer Mark Sopp said on the call.

“Cash flow was strong and up nicely from last year and well above our targeted operating cash flow to net income conversion factor of one.

“Another strong year is expected for 2021,” Sopp said.

KBR is a Houston-based provider of comprehensive solutions for aerospace and defense, energy and chemicals, intel and data science, and federal and civilian markets.

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