KBR Awarded New $149 Million Contract for Air Force Life Cycle Management Center Project

KBR (NYSE: KBR) was awarded a new cost-plus-fixed-fee IDIQ contract with a ceiling of $149 million under the ADEDDIS program to support the Air Force Life Cycle Management Center EB Armament Directorate at Eglin Air Force Base.

Rhea-AI Summary

KBR (NYSE: KBR) was awarded a new cost-plus-fixed-fee IDIQ contract with a ceiling of $149 million under the ADEDDIS program to support the Air Force Life Cycle Management Center EB Armament Directorate at Eglin Air Force Base.

The seven-year effort focuses on advanced analytics, modeling and simulation, systems and enterprise architecture engineering, and software development to accelerate armament development and operator readiness.

Positive

• $149 million cost-plus-fixed-fee contract ceiling
• Seven-year period of performance
• Scope includes advanced analytics and modeling & simulation
• Supports Eglin Air Force Base armament acceleration

Negative

• None.

Argus Feb 3 session

-2.09% close to close Open Argus

Details

News Market Reaction – KBR

In the Feb 3 session, KBR declined 2.09%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds another sizable government award, with a $149 million ceiling over seven year...

Analysis

This announcement adds another sizable government award, with a $149 million ceiling over seven years supporting digital and engineering work at Eglin Air Force Base. It follows other recent U.S. government and defense contracts and Q3 2025 revenue of $1.931 billion and EPS of $0.90. Investors may track how this IDIQ’s task orders convert into revenue against KBR’s $13.5 billion remaining performance obligations.

Key Figures

Contract ceiling: $149 million Period of performance: 7 years Q3 2025 revenue: $1.931 billion +5 more

Contract ceiling

$149 million

Ceiling value of new ADEDDIS cost-plus-fixed-fee contract

Period of performance

7 years

Duration of work under ADEDDIS-related IDIQ and task orders

Q3 2025 revenue

$1.931 billion

Quarterly revenue, essentially flat year over year

Q3 2025 operating income

$191 million

Operating income, increased versus prior-year quarter

Q3 2025 net income

$115 million

Net income attributable to KBR for Q3 2025

Q3 2025 diluted EPS

$0.90 vs. $0.75

Earnings per share grew year over year in Q3 2025

Remaining performance obligations

$13.5 billion

Backlog with specified realization over future years

Share repurchases

$304 million

Year-to-date repurchases funded by operating cash flow

Historical Context

5 past events · Latest: Jan 26

5 events

1. Jan 26

   Defense recognition

   24h Move

   -0.6%

   Named a Top 40 defense contractor in Australia with strong 2025 awards.

2. Jan 12

   LNG FEED award

   24h Move

   -0.2%

   Awarded FEED contract for Coastal Bend LNG liquefaction and export facility.

3. Jan 12

   LNG partnership

   24h Move

   -0.2%

   Selected with partner for FEED and potential EPC on LNG project.

4. Jan 07

   MDA IDIQ seat

   24h Move

   -1.7%

   Won seat on MDA’s SHIELD IDIQ with $151B contract ceiling.

5. Jan 05

   USGS contract

   24h Move

   +6.7%

   Secured $350 million USGS IDIQ for Earth observation support.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cost-plus-fixed-fee, indefinite delivery, indefinite quantity (idiq), test & training enabling architecture (tena)

3 terms

cost-plus-fixed-fee financial

"awarded a new cost-plus-fixed-fee contract with a ceiling value of $149 million"

Cost-plus-fixed-fee is a payment method used in contracting where the buyer agrees to cover all the costs of a project plus an additional fixed amount as profit. This means the total payment depends on the actual expenses incurred, plus a set fee that doesn’t change regardless of the project's final costs. For investors, understanding this arrangement helps assess how project costs and profit margins are managed and how they might impact financial risk and potential returns.

indefinite delivery, indefinite quantity (idiq) regulatory

"Under this Indefinite Delivery, Indefinite Quantity (IDIQ) contract and initial task orders"

Indefinite delivery, indefinite quantity (IDIQ) is a flexible contract method that allows a buyer to order an unspecified amount of goods or services over a period of time. It functions like a restaurant that agrees to provide meals whenever needed, up to a maximum amount, rather than committing to a fixed quantity upfront. For investors, IDIQ contracts offer ongoing opportunities and potential stability in revenue streams, though they also involve uncertainty about exact future orders.

test & training enabling architecture (tena) technical

"execution of Test Resource Management Center’s (TRMC) Test & Training Enabling Architecture (TENA)"

A test & training enabling architecture (TENA) is a standardized software framework that lets different simulation, test and training systems talk to each other and share data reliably, like a universal plug-and-play adapter for complex equipment. For investors, TENA matters because it reduces integration costs and time, increases reuse of software and hardware across programs, and can make suppliers more competitive when winning contracts for large training or testing projects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Feb. 03, 2026 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced that it has been awarded a new cost-plus-fixed-fee contract with a ceiling value of $149 million under the Acquisition, Data, Engineering, Digital, Decision Integration and Software (ADEDDIS) program. The Air Force Life Cycle Management Center (AFLCMC) EB Armament Directorate awarded the contract to transform systems and accelerate operator readiness at Eglin Air Force Base in Fort Walton Beach, Florida.

KBR will deliver advanced analytics and decision support, digital transformation solutions, systems and enterprise architecture engineering and software development. These capabilities will streamline design, development and production so the warfighter gains critical capabilities with greater speed and effectiveness.

Under this Indefinite Delivery, Indefinite Quantity (IDIQ) contract and initial task orders, KBR will focus on modeling and simulation and advanced digital and engineering solutions to assist the Air Force in accelerating armament development and production. The work will be carried out over a seven-year period of performance.

“This award represents a pivotal step in advancing KBR’s digital transformation expertise across defense systems,” said Stuart Bradie, KBR President and CEO. “We remain committed to driving next-generation capabilities that will shape the future of armament development and ensure service members receive solutions rapidly and reliably.”

Building on more than a decade in the Eglin Air Force Base community, this contract reinforces KBR’s commitment to delivering innovative digital solutions and engineering expertise that strengthen mission readiness. KBR’s long-standing presence in the Eglin area includes test data analysis and the execution of Test Resource Management Center’s (TRMC) Test & Training Enabling Architecture (TENA). These efforts complement KBR’s digital transformation initiatives by creating integrated, interoperable environments that propel advanced systems development and enhance operational capability.

About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 37,000 people worldwide with customers in more than 80 countries and operations in over 29 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 delivery of digital solutions and engineering expertise to the U.S. Air Force, 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the value and type of the contract KBR (KBR) won on February 3, 2026?

It is a cost-plus-fixed-fee IDIQ contract with a ceiling value of $149 million. According to the company, the contract is under the ADEDDIS program and includes initial task orders focused on digital and engineering solutions over seven years.

How long is the period of performance for KBR's new AFLCMC contract (KBR)?

The contract work will be carried out over a seven-year period of performance. According to the company, this timeframe covers initial task orders supporting modeling, simulation, software development and enterprise engineering at Eglin Air Force Base.

What capabilities will KBR deliver under the AFLCMC ADEDDIS award (KBR)?

KBR will deliver advanced analytics, decision support, digital transformation, systems architecture, and software development. According to the company, these capabilities aim to streamline design, development and production to accelerate armament readiness and effectiveness.

Which Air Force organization awarded KBR the contract and where will the work be performed (KBR)?

The award came from the Air Force Life Cycle Management Center EB Armament Directorate and work will be performed at Eglin Air Force Base in Florida. According to the company, efforts build on its decade-plus presence in the Eglin community.

How will KBR's new contract affect armament development timelines (KBR)?

The contract is intended to accelerate armament development and operator readiness through modeling and digital engineering. According to the company, integrated analytics and interoperable environments should help deliver capabilities to the warfighter more rapidly and reliably.