KBR, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsKBR is a Houston-based provider of science, technology, engineering and logistics services to the U.S. federal government, allied nations and commercial energy clients, now moving to separate its national security business into a standalone public company.
What they do
KBR delivers full-life-cycle engineering, program management and logistics support to defense, intelligence and space customers primarily in the U.S., U.K. and Australia. It also licenses proprietary process technology and provides engineering and advisory services for energy, decarbonization and industrial clients. The company has two segments, Mission Technology Solutions (MTS) and Sustainable Technology Solutions (STS).
Revenue drivers
- Mission Technology Solutions (MTS) — Government services across defense, intelligence and space, including engineering, C5ISR, cyber and logistics; U.S. government contracts were 57% of fiscal 2025 consolidated revenue.
- Sustainable Technology Solutions (STS) — Patented process technology licensing, proprietary equipment, catalysts and energy advisory work; management cited record backlog in the second quarter of fiscal 2026.
- Long-term UK PFI programs — Private financed initiative contracts including Aspire Defence and the UK Military Flying Training System, which the company excludes from book-to-bill and bookings metrics.
Recent performance
Second quarter fiscal 2026 revenue was $1.98 billion, up 2% from $1.95 billion a year earlier. Net income attributable to KBR rose 32% to $96 million and diluted EPS rose 34% to $0.75, while operating income fell 11% to $172 million and operating margin declined to 8.7% from 9.9%. Adjusted EBITDA was $258 million at a 13.0% margin, up 7%. First-half revenue fell 2% to $3.9 billion on expected EUCOM contingency runoff, with operating cash flow of $160 million versus $308 million a year earlier. Bookings and options were $1.8 billion in the quarter at 1.1x book-to-bill.
Strategy
Management is advancing the separation of the Mission Technology Solutions business into a stand-alone public company. It is taking actions to simplify cost structure and improve efficiency ahead of separation so both companies can compete as focused standalone businesses. KBR continues to pursue seven stated growth vectors including defense modernization, national security space, health and human performance, and sustainable energy. In STS it points to record backlog and durable demand, while in MTS it includes awarded work under protest as visibility beyond reported backlog.
Risks
- U.S. government customer concentration — Contracts with the U.S. government were 57% of fiscal 2025 revenue, exposing the company to budget uncertainty, shutdowns, continuing resolutions and federal debt ceiling limits.
- Procurement and acquisition reform — Executive Order 14275 on federal procurement and the DoW's 'Transforming the Warfighting Acquisition System' strategy could change contract terms, funding or the pace of awards.
- Fixed-price and estimate risk — As a contractor using estimates at completion (EAC) for contract accounting, cost overruns on large engineering and construction programs can reduce margins.
- Separation execution — The proposed spin-off of Mission Technology Solutions into a stand-alone public company carries execution and cost risk alongside the company's simplification actions.
Outlook
Management said demand remains healthy across core markets and cited growing visibility into future performance, with STS record backlog and MTS awarded work under protest extending visibility beyond reported backlog. It expects the first-half revenue decline tied to EUCOM contingency runoff and remains confident in long-term value creation. No specific financial guidance figures were provided in the excerpts.