| Income per Share Basic income per share is based upon the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method.
A summary of the basic and diluted net income per share calculations is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | July 3, | | July 4, | | July 3, | | July 4, | | | | | Dollars and shares in millions, except per share data | 2026 | | 2025 | | 2026 | | 2025 | | | | | Net income attributable to KBR from continuing operations: | | | | | | | | | | | | Net income from continuing operations | $ | 97 | | | $ | 106 | | | $ | 200 | | | $ | 227 | | | | | | Less: Net income attributable to noncontrolling interests included in continuing operations | 2 | | | 1 | | | 2 | | | 2 | | | | | | Net income attributable to KBR from continuing operations | 95 | | | 105 | | | 198 | | | 225 | | | | | | Less: Earnings allocable to participating securities | 1 | | | 1 | | | 1 | | | 1 | | | | | | Basic net income attributable to KBR from continuing operations | 94 | | | 104 | | | 197 | | | 224 | | | | | | | | | | | | | | | | | Diluted net income attributable to KBR from continuing operations | $ | 94 | | | $ | 104 | | | $ | 197 | | | $ | 224 | | | | | | Net income (loss) attributable to KBR from discontinued operations: | | | | | | | | | | | | Net income (loss) from discontinued operations, net of tax | $ | 2 | | | $ | (48) | | | $ | — | | | $ | (54) | | | | | | Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations | 1 | | | (16) | | | — | | | (18) | | | | | | Net income (loss) attributable to KBR from discontinued operations | 1 | | | (32) | | | — | | | (36) | | | | | | | | | | | | | | | | | Basic net income (loss) attributable to KBR from discontinued operations | 1 | | | (32) | | | — | | | (36) | | | | | | | | | | | | | | | | | Diluted net income (loss) attributable to KBR from discontinued operations | $ | 1 | | | $ | (32) | | | $ | — | | | $ | (36) | | | | | | | | | | | | | | | | | | Weighted average common shares outstanding: | | | | | | | | | | | | Basic weighted average common shares outstanding | 126 | | | 129 | | | 127 | | | 130 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Stock options and restricted shares | 1 | | | — | | | — | | | 1 | | | | | | Diluted weighted average common shares outstanding | 127 | | | 129 | | | 127 | | | 131 | | | | | | | | | | | | | | | | | | Net income (loss) attributable to KBR per share: | | | | | | | | | | | | Basic earnings per share | | | | | | | | | | | | Continuing operations | $ | 0.74 | | | $ | 0.81 | | | $ | 1.55 | | | $ | 1.72 | | | | | | Discontinued operations | $ | 0.01 | | | $ | (0.25) | | | $ | — | | | $ | (0.27) | | | | | | Total basic earnings per share attributable to KBR | $ | 0.75 | | | $ | 0.56 | | | $ | 1.55 | | | $ | 1.45 | | | | | | Diluted earnings per share | | | | | | | | | | | | Continuing operations | $ | 0.74 | | | $ | 0.81 | | | $ | 1.55 | | | $ | 1.71 | | | | | | Discontinued operations | $ | 0.01 | | | $ | (0.25) | | | $ | — | | | $ | (0.27) | | | | | | Total diluted earnings per share attributable to KBR | $ | 0.75 | | | $ | 0.56 | | | $ | 1.55 | | | $ | 1.44 | | | | |
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: 0.4 million for the three and six months ended July 3, 2026 related to our restricted stock awards and 0.3 million for three and six months ended July 4, 2025 related to our stock options and restricted stock awards.
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