KBR vs Leidos
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KIRA’s take AI analyst
I put KBR and Leidos side by side, using each one’s latest annual report. Here is what stands out:
- Leidos is the larger business, with $17.2B of revenue in fiscal 2025 against $7.8B for KBR, about 2.2 times as much.
- Leidos grew revenue faster (3.1%, against 1.0%).
- Leidos kept more of each dollar of sales as operating profit (12.3% operating margin, against 10.0%).
- Leidos turned more of its sales into free cash flow (9.5% FCF margin, against 6.6%).
- Leidos earned a higher return on the capital invested in it (19.3%, against 15.8%).
- Investors pay more for each dollar of Leidos’s earnings: a P/E of 13.1x against 12.0x for KBR.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
KBR
KBR
0/11
Leidos
LDOS
11/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | KBR FY25 | LDOS FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.1B | $17.6B |
| Revenue | $7.8B | $17.2B |
| Free cash flow | $515M | $1.6B |
| Net income | $415M | $1.4B |
| Growth | ||
| Revenue growth | 1.0% | 3.1% |
| 5-year growth | 6.2% | 6.9% |
| Share count change | −3.7% | −4.4% |
| Profitability | ||
| Gross margin | 14.8% | 18.0% |
| Operating margin | 10.0% | 12.3% |
| Net margin | 5.3% | 8.4% |
| FCF margin | 6.6% | 9.5% |
| Return on capital | 15.8% | 19.3% |
| Return on equity | 28.1% | 31.1% |
| Balance sheet | ||
| Net debt | $2.1B | $3.5B |
| Net debt / EBITDA | 2.2x | 1.5x |
| Dividends and buybacks | $413M | $611M |
| Valuation & quality | ||
| P/E | 12.0x | 13.1x |
| Piotroski F-score | 7 | 9 |
Ten years
Revenue
FY16
KBR $4.3B
LDOS $7.0B
FY17
KBR $4.2B
LDOS $10.2B
FY18
KBR $4.9B
LDOS $10.2B
FY19
KBR $5.6B
LDOS $11.1B
FY20
KBR $5.8B
LDOS $12.3B
FY21
KBR $7.3B
LDOS $13.7B
FY22
KBR $6.6B
LDOS $14.4B
FY23
KBR $7.0B
LDOS $15.4B
FY24
KBR $7.7B
LDOS $16.7B
FY25
KBR $7.8B
LDOS $17.2B
KBR
LDOS
Operating margin
FY16
KBR 0.7%
LDOS 5.9%
FY17
KBR 6.3%
LDOS 5.5%
FY18
KBR 9.5%
LDOS 7.4%
FY19
KBR 6.4%
LDOS 8.2%
FY20
KBR 1.0%
LDOS 8.1%
FY21
KBR 3.2%
LDOS 8.4%
FY22
KBR 5.2%
LDOS 7.6%
FY23
KBR 6.5%
LDOS 4.0%
FY24
KBR 8.6%
LDOS 11.0%
FY25
KBR 10.0%
LDOS 12.3%
KBR
LDOS
Free cash flow
FY16
KBR $50.0M
LDOS $420M
FY17
KBR $185M
LDOS $445M
FY18
KBR $148M
LDOS $695M
FY19
KBR $236M
LDOS $871M
FY20
KBR $347M
LDOS $1.2B
FY21
KBR $248M
LDOS $929M
FY22
KBR $325M
LDOS $863M
FY23
KBR $269M
LDOS $980M
FY24
KBR $410M
LDOS $1.3B
FY25
KBR $515M
LDOS $1.6B
KBR
LDOS
Return on capital
FY16
KBR 2.8%
LDOS 8.5%
FY17
KBR 25.5%
LDOS 8.5%
FY18
KBR 21.2%
LDOS 11.7%
FY19
KBR 12.3%
LDOS 11.9%
FY20
KBR 1.8%
LDOS 11.6%
FY21
KBR 3.9%
LDOS 10.7%
FY22
KBR 7.5%
LDOS 9.3%
FY23
KBR 11.9%
LDOS 3.6%
FY24
KBR 14.8%
LDOS 16.8%
FY25
KBR 15.8%
LDOS 19.3%
KBR
LDOS
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.