KBR and Petro Rabigh Announce Strategic 10-Year General Maintenance Services Contract for Polymer Plants in Saudi Arabia

Rhea-AI Summary

KBR (NYSE: KBR) and Petro Rabigh announced a strategic 10-year general maintenance services contract, with an optional two-year extension, covering Petro Rabigh Polymer I and Polymer II plants in Rabigh, Saudi Arabia. KBR Al Yusr will deliver a digitally-enabled maintenance program using AI/ML to target reliability, availability, safety, and OPEX optimization.

This marks Petro Rabigh’s first large-scale outsourcing of maintenance, intended to support change management and long-term operational excellence.

Positive

• Signed 10-year maintenance contract with optional 2-year extension
• Contract covers both Polymer I and Polymer II plants
• KBR Al Yusr local joint venture to execute maintenance program
• Program includes AI/ML-driven digital accelerators and reliability frameworks
• Represents Petro Rabigh’s first large-scale outsourcing of maintenance

Negative

• None.

News Market Reaction – KBR

+2.16%

1 alert

+2.16% News Effect

On the day this news was published, KBR gained 2.16%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Contract term: 10-year general maintenance services contract Extension option: Optional two-year extension Plants covered: Polymer I and Polymer II plants

3 metrics

Contract term 10-year general maintenance services contract Duration of Petro Rabigh polymer maintenance agreement

Extension option Optional two-year extension Potential additional term on Petro Rabigh contract

Plants covered Polymer I and Polymer II plants Facilities included under the maintenance scope

Market Reality Check

Price: $42.23 Vol: Volume 1,628,287 is 1.29x...

normal vol

$42.23 Last Close

Volume Volume 1,628,287 is 1.29x the 20-day average of 1,264,131 shares. normal

Technical Price 41.26 is trading below the 200-day moving average of 46.68 and 27.33% below the 52-week high of 56.78.

Peers on Argus

KBR slipped -0.1% while only one scanned peer (STRL) showed upside momentum of a...

1 Up

KBR slipped -0.1% while only one scanned peer (STRL) showed upside momentum of about 1.33%. Broader Engineering & Construction peers were mixed, with FLR up and others like PRIM and IESC down, pointing to stock-specific rather than sector-wide drivers.

Historical Context

5 past events · Latest: Feb 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 09	USSF contracts win	Positive	+1.4%	Two firm-fixed-price USSF task orders totaling <b>$103 million</b> over three years.
Feb 05	Space Force award	Positive	-1.3%	New <b>$77 million</b> task order to advance digital engineering and communications.
Feb 03	Air Force IDIQ	Positive	-2.1%	Cost-plus-fixed-fee IDIQ contract with a <b>$149 million</b> ceiling under ADEDDIS.
Feb 02	Earnings call notice	Neutral	-0.7%	Announcement of Q4 and FY 2025 earnings call on <b>Feb 26, 2026</b>.
Jan 26	Defense recognition	Positive	-0.6%	Named top contractor after securing over <b>1.2 billion AUD</b> in Australian awards.

Pattern Detected

Recent contract wins for U.S. defense and space have produced mixed next-day reactions, with both gains and selloffs following generally positive award news.

Recent Company History

Over the past month, KBR has reported several sizable U.S. government contract wins, including awards totaling $103 million, $77 million, and an IDIQ contract with a $149 million ceiling, alongside recognition in Australia tied to over 1.2 billion AUD in awards. Price reactions to these positive updates ranged from about -2% to +1.5%, indicating investors have not consistently rewarded new business wins. Today’s Saudi polymer maintenance agreement fits the pattern of strategic, multi‑year contract additions to KBR’s backlog.

Market Pulse Summary

This announcement highlights a 10-year, digitally enabled maintenance partnership for Petro Rabigh’s...

Analysis

This announcement highlights a 10-year, digitally enabled maintenance partnership for Petro Rabigh’s polymer plants, expanding KBR’s role in asset reliability and operations support. It complements recent U.S. defense and space contracts and Australian defense work, indicating a diversified backlog across regions and end markets. Investors may watch for disclosed financial terms, margin impact, and execution updates, along with upcoming Q4/FY25 results on February 26, 2026, to better gauge the contract’s contribution.

Key Terms

ai/ml-driven, preventive, predictive, opex

4 terms

ai/ml-driven technical

"supported by KBR’s AI/ML-driven digital accelerators and reliability frameworks"

ai/ml-driven describes products, services, or operations that rely primarily on artificial intelligence or machine learning models to make decisions, automate tasks, or extract insights from data. For investors, this signals potential for faster scaling, lower labor costs, and new revenue opportunities—like a factory adding robots—but also higher dependence on data quality, model reliability, and ongoing technical investment, which can affect costs, regulatory risk, and long‑term competitiveness.

preventive technical

"encompassing preventive, predictive, corrective, and cycled shutdowns maintenance services"

Preventive describes actions, products, or policies intended to stop a problem before it occurs—examples include vaccines, health screenings, safety protocols, or routine maintenance. Investors care because preventive measures can cut future costs, reduce liability and regulatory risk, and create steady demand, much like routine maintenance or insurance that keeps a business or machine running and avoids expensive breakdowns.

predictive technical

"encompassing preventive, predictive, corrective, and cycled shutdowns maintenance services"

Predictive describes information, models, or indicators designed to forecast a future outcome or behavior based on past and current data. For investors, predictive tools act like a weather forecast for markets or a company's prospects: they help anticipate risks and opportunities so decisions can be timed or sized more effectively, though they are not guarantees and depend on the quality of the underlying data and assumptions.

opex financial

"drive sustainable OPEX optimization"

Operating expenses (often abbreviated opex) are the day-to-day costs a company incurs to run its business, such as employee pay, rent, utilities, and routine marketing. For investors, opex matters because higher or rising operating costs reduce profits and cash available for growth or dividends, while lower or well-controlled opex can indicate better efficiency—think of it as a household’s monthly bills that determine how much is left to save or invest.

AI-generated analysis. Not financial advice.

HOUSTON, Feb. 18, 2026 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) and Rabigh Refining & Petrochemical Company (Petro Rabigh) today announced a strategic 10-year general maintenance services contract, with an optional two-year extension, covering Petro Rabigh Polymer I and Polymer II plants at Rabigh in the Kingdom of Saudi Arabia.

Under the agreement, KBR, through its local joint venture subsidiary KBR Al Yusr, will deliver a comprehensive, digitally-enabled maintenance program encompassing preventive, predictive, corrective, and cycled shutdowns maintenance services. The scope will be supported by KBR’s AI/ML-driven digital accelerators and reliability frameworks, designed to enhance asset reliability, improve availability, strengthen safety performance, and drive sustainable OPEX optimization.

This collaboration represents a significant milestone in Petro Rabigh’s ongoing business transformation, marking the company’s first large-scale outsourcing of maintenance services. The program is intended to support a structured change-management journey while maintaining a strong focus on safety, risk mitigation, and long-term operational excellence. Together, the companies aim to achieve top-quartile plant performance while embedding continuous improvement across maintenance and reliability practices.

“This transition is a critical enabler of Petro Rabigh’s transformation agenda,” said Othman Al Ghamdi, President and Chief Executive Officer of Petro Rabigh. “As we take this important step toward outsourcing maintenance for the first time, our priorities are clear—safety, reliability, risk management, and cost efficiency. KBR’s global expertise, local execution capability, and digitally-enabled approach give us confidence that this transition will strengthen plant performance while supporting our long-term business objectives.”

“This collaboration brings together KBR’s global maintenance and reliability expertise with Petro Rabigh’s operational leadership and transformation vision,” said Jay Ibrahim, KBR President, Sustainable Technology Solutions. “By combining industry talent, proven methodologies, and advanced digital technologies, we are committed to enhancing safety, improving reliability, and delivering measurable value across Petro Rabigh’s polymer assets.”

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 85 countries and operations in over 28 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com.

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding KBR’s digitally enabled maintenance services, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Rachael Goldwait
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Philip Ivy
Vice President, Global Communications and Marketing
713-753-3800
MediaRelations@kbr.com

FAQ

What is the length and extension option of the KBR and Petro Rabigh contract (KBR)?

The contract term is 10 years with an optional two-year extension. According to Petro Rabigh, this establishes a long-term maintenance arrangement covering polymer assets and provides an option to extend operations through year 12.

Which Petro Rabigh assets are included in the KBR maintenance contract (KBR)?

The agreement covers Polymer I and Polymer II plants at Rabigh. According to Petro Rabigh, both polymer plants are in scope for preventive, predictive, corrective, and cycled shutdown maintenance services.

Who will perform the maintenance under the KBR–Petro Rabigh agreement (KBR)?

KBR will deliver services through its local joint venture KBR Al Yusr. According to KBR, the JV will execute a digitally-enabled program combining global practices with local execution capabilities.

What digital technologies will KBR use in the Petro Rabigh maintenance program (KBR)?

The program uses AI/ML-driven digital accelerators and reliability frameworks to enhance asset reliability. According to KBR, these tools aim to improve availability, safety performance, and sustainable OPEX optimization.

Why is the KBR maintenance contract significant for Petro Rabigh shareholders (KBR)?

It is Petro Rabigh’s first large-scale outsourcing of maintenance, signaling a transformation in operations. According to Petro Rabigh, the move targets improved safety, reliability, risk management, and cost efficiency over the contract term.

When was the KBR and Petro Rabigh maintenance contract announced (KBR)?

The contract was announced on February 18, 2026. According to the companies, the agreement formalizes a long-term maintenance partnership intended to support Petro Rabigh’s operational transformation.