KBR, INC.KBR

KBR, INC. Earnings Per Share Disclosure

10-KFiled Feb 26, 20263 min read
Income (loss) per Share and Certain Related Information
Income (loss) per share

Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Diluted income (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for Convertible Debt and the treasury stock method for all other instruments.

A summary of the basic and diluted net income (loss) per share calculations is as follows:
Year ended
January 2,January 3,December 29,
Shares in millions202620252023
Net income (loss) attributable to KBR from continuing operations:
Net income (loss) from continuing operations$458 $379 $(260)
Less: Net income attributable to noncontrolling interests included in continuing operations7 5 4 
Net income (loss) attributable to KBR from continuing operations451 374 (264)
Less: Earnings allocable to participating securities1 1 — 
Basic net income (loss) attributable to KBR from continuing operations450 373 (264)
Diluted net income (loss) attributable to KBR from continuing operations$450 $373 $(264)
Net income (loss) attributable to KBR from discontinued operations:
Net income (loss) from discontinued operations, net of tax$(55)$2 $(1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Basic net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Diluted net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
  
Weighted average common shares outstanding:
Basic weighted average common shares outstanding129134135
Diluted weighted average common shares outstanding129134135
  
Net income (loss) attributable to KBR per share:
Basic earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total basic earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
Diluted earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total diluted earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
For the years ended January 2, 2026 and January 3, 2025, the diluted net income attributable to KBR per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 0.3 million and 0.2 million, respectively, related to our stock options and restricted stock awards.

Due to our net loss position for the year ended December 29, 2023, our basic net loss attributable to KBR per share and diluted net loss attributable to KBR per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded. For the year ended December 29, 2023, the diluted net loss attributable to KBR per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 4.0 million related to the convertible notes that we repurchased and settled in fiscal 2023, 10.2 million related to the outstanding warrants that were terminated in fiscal 2023 and 1.4 million related to our stock options and restricted stock awards.
Shares of common stock
Shares in millionsShares
Balance at December 29, 2023181.7 
Common stock issued0.8 
Balance at January 3, 2025182.5 
Common stock issued0.4 
Balance at January 2, 2026182.9 

Shares of treasury stock
Shares and dollars in millionsSharesAmount
Balance at December 29, 202346.6 $1,279 
Treasury stock acquired, net of ESPP shares issued3.4 215 
Balance at January 3, 202550.0 1,494 
Treasury stock acquired, net of ESPP shares issued6.4 324 
Balance at January 2, 202656.4 $1,818 

Dividends

We declared dividends totaling $85 million and $80 million in fiscal 2025 and fiscal 2024, respectively. On February 19, 2026, the Board of Directors declared a dividend of $0.165 per share, which will be paid on April 15, 2026.
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About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance