Filing Flows › KBR (KBR) › Takeover & LBO
Is KBR (KBR) a takeover target?
A leveraged buyout at today's price plus 30% ($48.26 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $30.16 a share (−19% against today's $37.12). Historically 7.0% of companies with its figures were bought within a year (1.39× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $48.26 | today's $37.12 plus 30% |
| × shares | 126.0 million | |
| = Equity value | $6.1B | |
| + Debt refinanced | $2.5B | |
| − Cash | $439M | |
| + Other claims | $10.0M | preferred stock, minority interests |
| = Enterprise value | $8.2B | 9.2× EBITDA of $895M |
| Fees | $164M | 2% of the price |
| New debt | $4.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.4B | 41% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.6B | $874M | $377M | $366M | $4.6B |
| Year 2 | $7.6B | $865M | $349M | $381M | $4.2B |
| Year 3 | $7.6B | $868M | $319M | $403M | $3.8B |
| Year 4 | $7.7B | $882M | $289M | $427M | $3.3B |
| Year 5 | $7.9B | $909M | $256M | $461M | $2.9B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.9B | |
| − Debt left | $2.9B | |
| = Buyer's equity | $4.0B | |
| Money multiple | 1.17× | on $3.4B put in |
| Buyer's yearly return (IRR) | 3.1% |
Price against return
What the buyer makes at other premiums over today's $37.12; the IRR reaches 20% at $30.16 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $40.83 | 9.8% |
| 20% | $44.54 | 6.3% |
| 30% | $48.26 | 3.1% |
| 40% | $51.97 | 0.5% |
| 50% | $55.68 | −1.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.8B | |
| EBITDA, last 12 months | $895M | 11.4% of revenue |
| Depreciation and amortization | $166M | |
| Capital spending | $54.0M | |
| Debt | $2.5B | |
| Cash | $439M | |
| Share price | $37.12 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -2.4% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 23% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, KBR would cost about $51.97 a share, $6.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $42.58 | $5.4B |
| Median | 40% | $51.97 | $6.5B |
| High end (a quarter paid more) | 60.2% | $59.47 | $7.5B |
The odds, from history
Historically 7.0% of companies with its figures were bought within a year (1.39× the average). Its figures put it in decile 9 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
KBR's latest quarter
KBR, Q3 2026: revenue $2.0B (+5% year over year), operating margin 9.2%, net earnings $133M, operating cash flow $171M. The chart follows the revenue to costs, profit and cash.
Questions
Is KBR being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy KBR?
A leveraged buyout at today's price plus 30% ($48.26 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $30.16 a share (−19% against today's $37.12).
What would a takeover of KBR cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, KBR would cost about $51.97 a share, $6.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.