KBR Reports Third Quarter Fiscal 2026 Results

Q: What were KBR’s third-quarter fiscal 2026 earnings and revenue?

KBR reported $2.0 billion in revenue and $1.06 in diluted earnings per share, up 5% and 18%, respectively, from the third quarter of fiscal 2025. Net income attributable to KBR rose 16% to $133 million. Adjusted earnings per share, a non-GAAP measure, increased 10% to $1.12.

Q: When does KBR expect to complete the Trinzic spin-off?

KBR targets January 4, 2027 for completion of the Mission Technology Solutions spin-off into Trinzic. Completion remains subject to final approval by KBR’s board and other customary conditions, including effectiveness of the Form 10 registration statement filed with the SEC on September 30, 2026.

Q: How much liquidity did KBR have at the end of the third quarter of fiscal 2026?

KBR had approximately $1.1 billion in liquidity as of October 2, 2026. This comprised $625 million in available borrowing capacity under its revolving credit facility and $439 million in cash and cash equivalents.

Technology-services growth offset lower mission-services revenue, while operating cash flow declined and separation costs weighed on operating income.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Very Positive)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Rhea-AI Summary

KBR (KBR) reported third-quarter fiscal 2026 revenue of $2.0 billion, with earnings growth and a reaffirmed full-year outlook. Revenue rose 5% from a year earlier. Net income attributable to KBR increased 16% to $133 million, and diluted earnings per share rose 18% to $1.06. Operating income fell 3% to $186 million, reflecting higher separation and administrative costs and lower joint-venture earnings. Adjusted EBITDA, a non-GAAP earnings measure, rose 12% to $268 million.

Sustainable Technology Solutions revenue increased 26%, while Mission Technology Solutions revenue declined 5%, partly reflecting NASA program reductions. Quarterly operating cash flow from continuing operations fell to $171 million from $198 million. KBR reaffirmed fiscal 2026 revenue guidance of $7.90 billion–$8.36 billion. The planned Mission Technology Solutions spin-off into Trinzic targets January 4, 2027, subject to board approval and registration-statement effectiveness.

33 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

Major pointAntarctic support contract re-awarded with an $8 billion ceiling over 20 years; not yet included in backlog or book-to-bill. 1.6× market cap
Moderate pointQuarterly revenue rose 5% year over year to $2.0 billion; year-to-date revenue rose 1% to $5.9 billion.
Moderate pointQuarterly net income attributable to KBR rose 16% to $133 million; year-to-date income increased 9% to $331 million.
Moderate pointDiluted EPS increased 18% to $1.06 quarterly and 12% to $2.60 year to date.
Moderate pointAdjusted EBITDA rose 12% to $268 million quarterly and 6% to $777 million year to date.
Moderate pointAdjusted EPS rose 10% to $1.12 quarterly and 4% to $3.06 year to date.
Moderate pointSustainable Technology Solutions revenue rose 26% to $762 million quarterly; year-to-date revenue reached $2,065 million versus $1,858 million.
Moderate pointSustainable Technology Solutions operating income rose 4% to $124 million, with a 16.3% quarterly margin.
Moderate pointSustainable Technology Solutions adjusted EBITDA rose 15% to $147 million quarterly; year-to-date earnings reached $407 million versus $397 million.
Moderate pointSustainable Technology Solutions backlog reached $5,828 million versus $4,312 million at January 2, 2026; quarterly book-to-bill was 1.3x.
Moderate pointMission Technology Solutions operating income rose 2% to $115 million, with a 9.1% quarterly margin.
Moderate pointMission Technology Solutions adjusted EBITDA rose 5% to $145 million quarterly; year-to-date earnings reached $441 million versus $413 million.
Moderate pointU.S. Army TAGM task order awarded for $208 million over a five-year performance period. 4.1% of market cap
Moderate point. Forward-looking: it has not happened yet and may not happen.Trinzic separation targets January 4, 2027; standalone systems and infrastructure were implemented during the quarter.

19 minor points

Minor pointQuarterly continuing-operations net income increased to $130 million from $116 million a year earlier.
Minor pointQuarterly continuing-operations diluted EPS increased to $1.03 from $0.91 a year earlier.
Minor pointAdjusted EBITDA margin increased to 13.2% from 12.4% quarterly and 13.1% from 12.4% year to date.
Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 revenue guidance reaffirmed at $7.90 billion–$8.36 billion.
Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted EBITDA guidance reaffirmed at $980 million–$1,040 million.
Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted EPS guidance reaffirmed at $3.87–$4.22.
Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted operating cash flow guidance reaffirmed at $560 million–$600 million.
Minor pointMission Technology Solutions adjusted EBITDA margin rose to 11.5% from 10.4% quarterly and 11.4% from 10.2% year to date.
Minor pointCorporate adjusted EBITDA expense narrowed to $24 million from $26 million quarterly and $71 million from $80 million year to date.
Minor pointNATO PATRIOT support contract awarded for $60 million in technical and engineering services.
Minor pointUK Ministry of Justice contract awarded for workplace services across the Ministry’s estate.
Minor pointU.S. government radio-frequency engineering contract awarded for three years.
Minor pointAramco offshore engineering contract awarded for infrastructure upgrades across the Marjan field.
Minor pointSABIC Agri-Nutrients selection includes ammonia technology, engineering design, proprietary equipment and catalyst supply.
Minor pointLive Oak consortium contract awarded for front-end engineering design of a proposed Nebraska electric-natural-gas facility.
Minor pointKazakhstan aviation-fuel contract awarded by KMG-Aero and KazFoodProducts for technology licensing and engineering design.
Minor pointORNX Green Hydrogen selection covers an early engineering study for a Morocco green-ammonia project.
Minor pointAGF Nitrogen contracts awarded to revamp two ammonia plants in Germany and Austria.
Minor pointNet leverage decreased to 2.1x at October 2, 2026, from 2.2x at January 2, 2026.

Negative

Moderate pointOperating income fell 3% to $186 million quarterly and 8% to $538 million year to date.
Moderate pointContinuing-operations operating cash flow fell to $171 million from $198 million quarterly and $331 million from $506 million year to date.
Moderate pointMission Technology Solutions revenue fell 5% to $1.3 billion quarterly; year-to-date revenue declined to $3,870 million from $4,043 million.
Moderate pointMission Technology Solutions backlog and options fell to $17,294 million from $18,899 million at January 2, 2026.
Moderate pointMission Technology Solutions quarterly book-to-bill was 0.6x, or 0.8x excluding the NASA insourcing debooking.
Moderate pointConsolidated quarterly book-to-bill was 0.9x, or 1.0x excluding the NASA insourcing debooking.
Moderate pointSustainable Technology Solutions adjusted EBITDA margin fell to 19.3% from 21.2% quarterly and 19.7% from 21.4% year to date.

7 minor points

Minor pointOperating margin declined to 9.2% from 9.9% quarterly and 9.1% from 9.9% year to date.
Minor pointAdjusted operating cash flow fell to $188 million from $198 million quarterly and $371 million from $506 million year to date.
Minor pointYear-to-date continuing-operations net income declined to $328 million from $341 million.
Minor pointYear-to-date continuing-operations diluted EPS declined to $2.57 from $2.62.
Minor pointConsolidated backlog and options declined to $23,122 million from $23,211 million at January 2, 2026.
Minor pointSeparation costs and administrative expenses increased, contributing to the quarterly operating-income decline.
Minor pointTrinzic spin-off remains subject to final KBR board approval and Form 10 registration-statement effectiveness.

News Explained

The National Science Foundation contract has an $8 billion ceiling, but is not yet reflected in KBR’s backlog or book-to-bill.

KBR reports it re-awarded the National Science Foundation’s Antarctic Science and Engineering Support Contract under a 20-year single-award IDIQ with an $8 billion ceiling. The award is not yet reflected in backlog or book-to-bill.

Separately, KBR expects its shareholders to own shares in two independent public companies after the planned Mission Technology Solutions separation is completed.

Key Figures

Revenue: $2,028 million, up 5% Operating income: $186 million, down 3% Net income attributable to KBR: $133 million, up 16% +5 more

Revenue: $2,028 million, up 5%; Q3 FY2026 vs. Q3 FY2025
Operating income: $186 million, down 3%; Q3 FY2026 vs. Q3 FY2025
Net income attributable to KBR: $133 million, up 16%; Q3 FY2026 vs. Q3 FY2025
Diluted EPS attributable to KBR: $1.06, up 18%; Q3 FY2026 vs. Q3 FY2025
Adjusted EBITDA: $268 million, up 12%; Q3 FY2026 vs. Q3 FY2025
FY2026 revenue guidance: $7.90B–$8.36B; Full-year outlook reaffirmed
FY2026 Adjusted EBITDA guidance: $980M–$1,040M; Full-year outlook reaffirmed
FY2026 Adjusted EPS guidance: $3.87–$4.22; Full-year outlook reaffirmed

Key Terms

book-to-bill, non-gaap financial measures, idiq contract, feed, +1 more

5 terms

book-to-bill financial

"Bookings and options of $2.4 billion with 0.9x book-to-bill"

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

non-gaap financial measures financial

"Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

idiq contract technical

"under a 20-year single-award IDIQ contract"

An IDIQ contract (Indefinite Delivery/Indefinite Quantity) is a purchasing agreement that a buyer—often a government agency—uses to order unspecified amounts of goods or services over a set time, with individual orders placed as needs arise. For investors, IDIQs matter because they can create a predictable sales pipeline and stable customer relationship while leaving actual revenue timing and total value flexible, similar to a standing order with intermittent shipments.

feed technical

"Awarded the Live Oak e-NG project FEED contract"

A feed is a continuous stream of digital information—such as price updates, trading data, or news—pushed to users or systems in real time. Think of it like a faucet that delivers fresh data every second: the faster and more reliable the flow, the quicker investors and automated systems can react to market moves and new information. Feed quality affects trading decisions, risk management, and the timeliness of financial analysis.

pre-feed technical

"Selected for the Morocco green ammonia project Pre-FEED study"

A pre-feed is the early planning stage for a large industrial project when engineers and managers test different concepts, outline scope, make rough cost and schedule estimates, and identify major technical and commercial risks before formal design and construction begin. For investors, it signals a project is still preliminary—promising if the idea looks viable, but with significant uncertainty about final costs, timing and whether the company will commit the capital to proceed, much like reviewing rough blueprints before deciding to build.

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

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10/29/2026 - 06:00 AM EDT

Third Quarter Fiscal 2026 Results

(All comparisons against the third quarter fiscal 2025 unless noted.)

Revenues of $2.0 billion, up 5%
Net income attributable to KBR of $133 million, up 16%; Operating income of $186 million, down 3% with an Operating income margin of 9.2%
Adjusted EBITDA² of $268 million, up 12% with an Adjusted EBITDA² margin of 13.2%
Diluted EPS attributable to KBR of $1.06, up 18%
Adjusted EPS² of $1.12, up 10%
Bookings and options¹of $2.4 billion with 0.9x book-to-bill¹

Third Quarter YTD Fiscal 2026 Results
(All comparisons against the third quarter YTD fiscal 2025 unless noted.)

Revenues of $5.9 billion, up 1%
Net income attributable to KBR of $331 million, up 9%; Operating income of $538 million, down 8% with an Operating income margin of 9.1%
Adjusted EBITDA² of $777 million, up 6% with an Adjusted EBITDA² margin of 13.1%
Diluted EPS attributable to KBR of $2.60, up 12%
Adjusted EPS² of $3.06, up 4%
Bookings and options¹ of $6.1 billion with 1.0x book-to-bill¹

HOUSTON, Oct. 29, 2026 (GLOBE NEWSWIRE) -- KBR, Inc. (NYSE: KBR) today announced its third quarter fiscal 2026 results.

“We delivered a strong third quarter, with profitable growth and solid execution across both businesses reinforcing our confidence in the full-year outlook,” said Stuart Bradie, President and Chief Executive Officer. “We also achieved important separation milestones during the quarter, including publication of the Form 10 and the successful implementation of key standalone systems and infrastructure. With leadership teams in place, strong customer demand across both businesses and Investor Days approaching, KBR and Trinzic are well positioned to launch as independent companies in January.”

¹ As used throughout this release, book-to-bill and bookings and options exclude long-term UK PFIs.
² As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Adjusted operating cash flow, and Adjusted operating cash conversion are non-GAAP financial measures. All non-GAAP financial measures reflect results from continuing operations. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.

Summarized Third Quarter Fiscal 2026 Consolidated Results

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
Dollars in millions, except share data		2026			2025			2026			2025
Revenues	$	2,028		$	1,931		$	5,935		$	5,901
Operating income		186			191			538			587
Net income attributable to KBR		133			115			331			304
Net income attributable to KBR from continuing operations		130			116			328			341
Adjusted EBITDA²		268			240			777			730
Operating income margin		9.2	%		9.9	%		9.1	%		9.9	%
Adjusted EBITDA² margin		13.2	%		12.4	%		13.1	%		12.4	%
Earnings per share:
Diluted earnings per share attributable to KBR		1.06			0.90			2.60			2.33
Diluted earnings per share from continuing operations		1.03			0.91			2.57			2.62
Adjusted earnings per share²		1.12			1.02			3.06			2.93
Cash flows:
Operating cash flows from continuing operations		171			198			331			506
Adjusted operating cash flows²		188			198			371			506
Return of capital to shareholders:
Payments to repurchase common stock		—			100			29			304
Payments of dividends to shareholders		21			22			63			63
							October 2,			January 2,
								2026			2026
Leverage:
Net debt³								2,118			2,117
TTM Adjusted EBITDA²								1,015			968
Net leverage								2.1x			2.2x

Third Quarter Fiscal 2026 Consolidated Results Review
(All comparisons against the third quarter fiscal 2025 unless noted.)

Revenues were $2.0 billion, up 5% or $97 million, primarily due to strong execution of engineering and professional services projects within Sustainable Technology Solutions, partially offset by anticipated reductions in NASA programs within Mission Technology Solutions.

Operating income was $186 million, down 3% or $5 million, as higher gross profit driven by increased revenues was more than offset by increased spin-off costs associated with the planned separation, higher selling, general and administrative expenses and lower equity in earnings from unconsolidated joint ventures.

Net income attributable to KBR was $133 million, up 16% or $18 million, reflecting strong operating performance, lower interest expense and a lower effective tax rate driven by interest income associated with a discrete tax benefit, partially offset by higher spin-off costs associated with the planned separation.

Diluted earnings per share attributable to KBR were $1.06, up 18% or $0.16, in line with increased net income attributable to KBR noted above and lower diluted weighted average common shares outstanding due to open market share repurchases.

Adjusted EBITDA² was $268 million, up 12% or $28 million, driven by strong execution across both business segments, including contributions from unconsolidated joint ventures, favorable portfolio mix and lower corporate costs. Adjusted EBITDA² margin was 13.2%.

Adjusted earnings per share²were $1.12, up 10% or $0.10, due to the increase in adjusted EBITDA² noted above, lower below-the-line expenses and lower adjusted weighted average common shares outstanding due to open market share repurchases, partially offset by higher interest expense associated with unconsolidated joint ventures.

Backlog and options as of the quarter end totaled $23.1 billion. Book-to-bill¹ was 0.9x for the quarter. Excluding the NASA insourcing debooking, book-to-bill¹ was 1.0x for the quarter.

Summarized Third Quarter Fiscal 2026 Segment Results

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
Dollars in millions		2026			2025			2026			2025
Revenues	$	2,028		$	1,931		$	5,935		$	5,901
Mission Technology Solutions		1,266			1,326			3,870			4,043
Sustainable Technology Solutions		762			605			2,065			1,858
Adjusted EBITDA²		268			240			777			730
Mission Technology Solutions		145			138			441			413
Sustainable Technology Solutions		147			128			407			397
Corporate		(24	)		(26	)		(71	)		(80	)
Adjusted EBITDA² margin		13.2	%		12.4	%		13.1	%		12.4	%
Mission Technology Solutions		11.5	%		10.4	%		11.4	%		10.2	%
Sustainable Technology Solutions		19.3	%		21.2	%		19.7	%		21.4	%
							October 2,			January 2,
								2026			2026
Backlog								17,718			16,864
Mission Technology Solutions								11,890			12,552
Sustainable Technology Solutions								5,828			4,312
Backlog and options								23,122			23,211
Mission Technology Solutions								17,294			18,899
Sustainable Technology Solutions								5,828			4,312

Third Quarter Fiscal 2026 Segment Results Review
(All comparisons against the third quarter fiscal 2025 unless noted.)

Mission Technology Solutions (MTS)
Revenues were $1.3 billion, down 5% or $60 million, primarily due to lower U.S. Government Federal Civilian customer volumes associated with anticipated NASA headwinds, partially offset by growth across Defense & Intelligence and International Government customers.

Operating income was $115 million, up 2% or $2 million, reflecting higher equity in earnings from unconsolidated joint ventures, favorable portfolio mix and strong project execution, partially offset by lower revenues and higher selling, general and administrative expenses. Operating income margin was 9.1%.

Adjusted EBITDA² was $145 million, up 5% or $7 million, reflecting higher unconsolidated joint venture adjusted EBITDA contributions and favorable portfolio mix. Adjusted EBITDA² margin was 11.5%.

Backlog and options as of the quarter end totaled $17.3 billion. Book-to-bill¹ was 0.6x for the quarter. Excluding the NASA insourcing debooking, book-to-bill¹ was 0.8x for the quarter.

The following new business awards were announced:

Re-awarded the $8 billion ceiling Antarctic Science and Engineering Support Contract (ASESC) for the U.S. National Science Foundation, supporting U.S. Antarctic Program stations and research camps under a 20-year single-award IDIQ contract following resolution of the GAO protest. This award is not yet reflected in backlog or book-to-bill.
Awarded the $208 million U.S. Army Tactical Aviation and Ground Munitions (TAGM) task order to provide engineering, technical and programmatic support for precision strike and aviation modernization programs over a five-year period of performance.
Awarded the $60 million NATO PATRIOT air and missile defense support contract to provide technical and engineering services supporting the PATRIOT system and its integration with the Integrated Battle Command System (IBCS).
Awarded the UK Ministry of Justice Workplace Services Management contract to provide integrated workplace services across the Ministry's estate, extending a longstanding relationship spanning more than eight years.
Awarded a three-year contract to provide radio frequency engineering and modernization services for a U.S. government customer supporting mission-critical national security systems.

During the quarter, we reached a settlement agreement with U.S. TRANSCOM related to the Global Household Goods Contract, resolving outstanding matters and converting the government's prior termination for default to termination for convenience.

Sustainable Technology Solutions (STS)
Revenues were $762 million, up 26% or $157 million, driven by the conversion of strong bookings secured over the past several quarters into revenue growth.

Operating income was $124 million, up 4% or $5 million, reflecting favorable project mix and execution during the quarter, partially offset by lower equity in earnings from unconsolidated joint ventures. Operating income margin was 16.3%.

Adjusted EBITDA² was $147 million, up 15% or $19 million, reflecting strong project execution and favorable portfolio mix. Adjusted EBITDA² margin was 19.3%.

Backlog as of the quarter end reached a record $5.8 billion. Book-to-bill¹ was 1.3x for the quarter.

The following new business awards were announced:

Awarded an offshore engineering contract by Aramco to provide engineering and project execution services supporting upgrades to processing, gas compression and power infrastructure across the Marjan field in the Arabian Gulf.
KBR’s Purifier^® ammonia technology selected for SABIC Agri-Nutrients’ new 3,500 MTPD ammonia plant in Jubail, Saudi Arabia, including basic engineering design, proprietary equipment and catalyst supply.
Awarded the Live Oak e-NG project FEED contract by the Live Oak consortium to provide front-end engineering design services for a proposed large-scale electric natural gas (e-methane) production facility in Nebraska.
Awarded the Kazakhstan Sustainable Aviation Fuel (SAF) project contract by KMG-Aero and KazFoodProducts to license KBR's PureSAF^® technology and provide engineering design for Kazakhstan's first SAF production plant.
Selected for the Morocco green ammonia project Pre-FEED study by ORNX Green Hydrogen to support development of a world-scale low-cost ammonia facility in the Laâyoune region.
Awarded contracts to revamp two ammonia plants in Germany and Austria for AGF Nitrogen, leveraging KBR's proprietary ammonia and KRES technologies to improve energy efficiency, reduce emissions and support long-term fertilizer production in Europe.

Balance Sheet, Cash Flow, and Capital Deployment
Liquidity as of October 2, 2026, totaled approximately $1.1 billion, comprising $625 million in borrowing capacity under the revolving credit facility and $439 million in cash and cash equivalents. Net leverage ratio as of October 2, 2026, was 2.1x.

Operating cash flows from continuing operations for the quarter were $171 million, down 14% or $27 million. Adjusted operating cash flows² for the quarter were $188 million, down 5% or $10 million.

During the third quarter, KBR returned $21 million in capital to shareholders in regular dividends.

Reaffirming Fiscal 2026 Guidance
KBR reaffirms the following full‑year fiscal 2026 outlook for the consolidated company.

	Fiscal Year 2026 Guidance
Revenues	$7.90B - $8.36B
Adjusted EBITDA	$980M - $1,040M
Adjusted EPS	$3.87 - $4.22
Adjusted operating cash flows	$560M - $600M

The company does not provide reconciliations of Adjusted EBITDA, Adjusted EPS, and Adjusted operating cash flows to the most comparable GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, and acquisition-related expenses without unreasonable effort, which could be material to the company’s results computed in accordance with GAAP.

Planned Spin-Off of Mission Technology Solutions and Investor Days
KBR continues to advance the planned separation of its Mission Technology Solutions business, which will become Trinzic upon completion of the spin-off. The transaction is targeted to be completed on January 4, 2027, subject to final approval by KBR's Board of Directors and other customary conditions, including the effectiveness of the registration statement on Form 10 filed with the SEC on September 30, 2026. Upon completion, KBR and its shareholders are expected to benefit from ownership in two independent public companies, each with enhanced strategic focus, operational flexibility and distinct capital allocation priorities.

To provide investors with a deeper look at the strategies, growth opportunities and financial outlooks of both businesses, KBR and Trinzic will host separate Investor Day events in New York City on November 11, 2026 and November 12, 2026, respectively. The events will feature presentations from each company's leadership team and will be webcast live.

Additional information regarding the planned spin-off, including registration details for KBR's and Trinzic's Investor Day events, is available on the Investor Relations section of KBR's website at investors.kbr.com/news-and-events/spin-off-information.

Conference Call Details
The company will host a conference call to discuss its third quarter fiscal 2026 results on Thursday, October 29, 2026, at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR’s website via the webcast link here: https://events.q4inc.com/attendee/485891893.

About KBR
KBR is a global, capital-light lifecycle solutions company serving customers in high-complexity industrial, energy and infrastructure markets. Through its advisory, technical, engineering and operating expertise, KBR helps customers shape investments, reduce risk, deploy complex technologies, improve performance and deliver reliable outcomes across the asset lifecycle.

Following the planned separation of the Mission Technology Solutions business, KBR will operate as a focused standalone company with differentiated customer relationships, global execution capabilities and a capital-efficient business model. The company is positioned to benefit from long-term secular growth trends across energy security, energy transition, industrial modernization, and infrastructure investment. KBR's 16,000 employees operate across more than 30 countries.

Visit www.kbr.com

About Trinzic 
KBR’s Mission Technology Solutions business is expected to be spun off as an independent public company in January 2027 and will then operate under the new name Trinzic. The name is inspired by the word intrinsic, reflecting the essential capabilities, deep expertise, speed and trusted performance that have defined the business for decades. Trinzic will enter the market as a global company and partner to customers supporting some of the highest priority missions across national security, human performance, global operations and space. Trinzic will launch with more than $5 billion in annual revenue, established partnerships and contracts, 20,000 employees and a global footprint. 

Visit www.trinzic.com

¹ As used throughout this release, book-to-bill and bookings and options exclude long-term UK PFIs.
² As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Adjusted operating cash flows, and Adjusted operating cash conversion are non-GAAP financial measures. All non-GAAP financial measures reflect results from continuing operations. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures. Trailing-twelve months (TTM) Adjusted EBITDA.
³ Net debt refers to total gross debt before unamortized debt issuance costs and discounts, less cash and cash equivalents.

Forward-Looking Statements

The statements in this press release that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, award activity and backlog, program activity, our business strategy, business opportunities, interest expense, our plans for raising and deploying capital and paying dividends, and our planned spin-off of the Mission Technology Solutions business, including the anticipated timing, benefits and tax treatment of the spin-off transaction, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, 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 and uncertainties include, but are not limited to: uncertainty, delays or reductions in government funding, appropriations and payments, including as a result of continuing resolution funding mechanisms, government shutdowns or changing budget priorities; developments and changes in government laws, regulations and regulatory requirements and policies that may require us to pause, delay or abandon new and existing projects; changes in the priorities, focus, authority and budgets of government agencies under the current administration that may impact our existing projects and/or our ability to win new contracts; the ongoing conflict between Russia and Ukraine and global volatility and continued unrest, including in the Middle East, and the related impacts on our business; potential adverse economic and market conditions, such as interest rate and currency exchange rate fluctuations, or ongoing uncertainty related to impacts of newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or other changes in trade policy, including impact tariffs could have on customer spend; the company’s ability to manage its liquidity; delays, cancellations or reversals of contract awards due to bid protests or legal challenges; the potential adverse outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; changes in capital spending by the company’s customers; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; the possibility of cyber and malware attacks; increased competition for employees; the ability to successfully complete and integrate acquisitions; the company's proposed spin-off; investment decisions by project owners; and operations of joint ventures, including joint ventures that are not controlled by the company.

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 (SEC) filings discuss some of the important risk factors that the company has identified that may affect its business, results of operations and financial condition. 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:

Investor Relations:
Rachael Goldwait
Vice President, Investor Relations
713-753-4634
Investors@kbr.com

Media Relations:
Caitlin Gardner
Director, Global Communications
713-753-3800
Mediarelations@kbr.com

KBR, Inc. Condensed Consolidated Statements of Operations (In millions, except for per share data) (Unaudited)

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
		2026			2025			2026			2025
Revenues:
Mission Technology Solutions	$	1,266		$	1,326		$	3,870		$	4,043
Sustainable Technology Solutions		762			605			2,065			1,858
Total revenues		2,028			1,931			5,935			5,901
Gross profit		301			270			859			860
Equity in earnings of unconsolidated affiliates		64			70			167			163
Selling, general and administrative expenses		(154	)		(145	)		(416	)		(431	)
Spin-off costs and other charges		(24	)		(4	)		(70	)		(4	)
Other operating expense		(1	)		—			(2	)		(1	)
Operating income (loss):
Mission Technology Solutions		115			113			342			334
Sustainable Technology Solutions		124			119			340			371
Corporate		(53	)		(41	)		(144	)		(118	)
Total operating income		186			191			538			587
Interest expense		(36	)		(39	)		(108	)		(121	)
Other non-operating expense		—			—			(2	)		(5	)
Income from continuing operations before income taxes		150			152			428			461
Provision for income taxes		(18	)		(34	)		(96	)		(116	)
Net income from continuing operations		132			118			332			345
Net income (loss) from discontinued operations, net of tax		4			(1	)		4			(55	)
Net income		136			117			336			290
Less: Net income attributable to noncontrolling interests included in continuing operations		2			2			4			4
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations		1			—			1			(18	)
Net income attributable to KBR		133			115			331			304
Adjusted EBITDA¹	$	268		$	240		$	777		$	730

Diluted earnings per share from continuing operations	$	1.03		$	0.91		$	2.57		$	2.62
Diluted earnings (loss) per share from discontinued operations	$	0.03		$	(0.01	)	$	0.03		$	(0.29	)
Diluted earnings per share attributable to KBR	$	1.06		$	0.90		$	2.60		$	2.33
Adjusted EPS¹	$	1.12		$	1.02		$	3.06		$	2.93
Diluted weighted average common shares outstanding		126			128			127			130
Adjusted weighted average common shares outstanding		126			128			127			130

¹ See additional information at the end of this release regarding non-GAAP financial information, including a reconciliation to the nearest GAAP measure

KBR, Inc. Condensed Consolidated Balance Sheets (In millions, except share data)

	October 2, 2026			January 2, 2026
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	439		$	500
Accounts receivable, net of allowance for credit losses of $6 and $6, respectively		1,300			1,086
Contract assets		320			280
Other current assets		225			166
Current assets of discontinued operations		14			19
Total current assets		2,298			2,051
Pension assets		127			89
Property, plant and equipment, net of accumulated depreciation of $520 and $506 (including net PPE of $7 and $5 owned by a variable interest entity), respectively		244			232
Operating lease right-of-use assets		224			217
Goodwill		2,670			2,677
Intangible assets, net of accumulated amortization of $535 and $501, respectively		681			727
Equity in and advances to unconsolidated affiliates		242			107
Deferred income taxes		120			162
Other assets (including $51 and $0 of available-for-sale debt securities at fair value, respectively)		412			322
Total assets	$	7,018		$	6,584
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	847		$	712
Contract liabilities		429			331
Accrued salaries, wages and benefits		353			342
Current maturities of long-term debt		554			49
Other current liabilities		253			235
Current liabilities of discontinued operations		10			19
Total current liabilities		2,446			1,688
Employee compensation and benefits		153			144
Income tax payable		102			83
Deferred income taxes		97			95
Long-term debt		1,987			2,547
Operating lease liabilities		236			236
Other liabilities		223			279
Total liabilities		5,244			5,072
Commitments and Contingencies
KBR shareholders' equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued		—			—
Common stock, $0.001 par value 300,000,000 shares authorized, 183,200,830 and 182,891,428 shares issued, and 126,108,987 and 126,454,289 shares outstanding, respectively		—			—
Paid-in capital in excess of par		2,572			2,552
Retained earnings		1,965			1,697
Treasury stock, 57,091,843 shares and 56,437,139 shares, at cost, respectively		(1,842	)		(1,818	)
Accumulated other comprehensive loss		(931	)		(928	)
Total KBR shareholders' equity		1,764			1,503
Noncontrolling interests		10			9
Total shareholders' equity		1,774			1,512
Total liabilities and shareholders' equity	$	7,018		$	6,584

KBR, Inc. Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited)

	Nine months ended
	October 2, 2026			October 3, 2025
Cash flows from operating activities:
Net income	$	336		$	290
Net (income) loss from discontinued operations, net of tax		(4	)		55
Net income from continuing operations		332			345
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		126			129
Equity in earnings of unconsolidated affiliates		(167	)		(163	)
Deferred income tax		42			50
Other charges associated with lease right-of-use asset impairment		19			—
Other		(4	)		(2	)
Changes in operating assets and liabilities, net of acquired business:
Accounts receivable, net of allowance for credit losses		(218	)		(40	)
Contract assets		(38	)		29
Accounts payable		134			(52	)
Contract liabilities		99			(1	)
Accrued salaries, wages and benefits		19			41
Payments on operating lease liabilities		(61	)		(62	)
Payments from unconsolidated affiliates, net		10			10
Distributions of earnings from unconsolidated affiliates		145			163
Other assets and liabilities		(107	)		59
Total cash flows provided by operating activities - continuing operations	$	331		$	506
Cash flows from investing activities:
Purchases of property, plant and equipment	$	(36	)	$	(24	)
Return of (investment in) equity method investments, net		(127	)		82
Acquisition of business, net of cash acquired		—			(13	)
Purchases of available-for-sale debt securities		(49	)		—
Purchases of other investments		(13	)		—
Other		2			2
Total cash flows provided by (used in) investing activities - continuing operations		(223	)		47
Cash flows from financing activities:
Borrowings on Revolver		281			555
Payments on short-term and long-term debt		(37	)		(27	)
Payments on Revolver		(301	)		(505	)
Payments to repurchase common stock		(29	)		(304	)
Payments of dividends to shareholders		(63	)		(63	)
Other		(15	)		(6	)
Total cash flows used in financing activities - continuing operations	$	(164	)	$	(350	)
Total operating cash flows from discontinued operations		(3	)		(31	)
Total investing cash flows from discontinued operations		—			(12	)
Total financing cash flows from discontinued operations		—			10
Total cash flows from discontinued operations	$	(3	)	$	(33	)
Effect of exchange rate changes on cash		(4	)		19
Increase (decrease) in cash and cash equivalents		(63	)		189
Cash and cash equivalents at beginning of period		505			350
Cash and cash equivalents at end of period	$	442		$	539
Less: cash and cash equivalents at end of period for discontinued operations		3			—
Cash and cash equivalents at end of period for continuing operations	$	439		$	539
Supplemental disclosure of cash flows information:
Noncash financing activities
Dividends declared	$	21		$	21

Unaudited Non-GAAP Financial Information
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.

Adjusted EBITDA
We evaluate performance based on Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is defined as Net income (loss) attributable to KBR, plus Net (income) loss from discontinued operations, net of tax; less Net income (loss) attributable to noncontrolling interest included in discontinued operations; less Interest expense; Other non-operating expense (income); Provision for income taxes; Depreciation and amortization (D&A); and certain discrete items as identified by Management to be non-recurring in nature as set forth below. Adjusted EBITDA can also be defined as Operating income less Net income attributable to noncontrolling interests from continuing operations; plus D&A; and certain discrete items as identified by Management to be non-recurring in nature as set forth below. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenues. Adjusted EBITDA and Adjusted EBITDA margin for each of the three- and nine-month periods ended October 2, 2026 and October 3, 2025 are considered non-GAAP financial measures under SEC rules because Adjusted EBITDA excludes certain amounts included in the calculation of Net income (loss) attributable to KBR in accordance with GAAP for such periods. Management believes Adjusted EBITDA and Adjusted EBITDA margin afford investors a view of what management considers KBR's core performance for each of the three- and nine-month periods ended October 2, 2026 and October 3, 2025 and also affords investors the ability to make a more informed assessment of such core performance for the comparable periods.

	Three months ended					Nine months ended
	October 2,			October 3,		October 2,			October 3,
Dollars in millions		2026			2025		2026			2025


Net income attributable to KBR	$	133		$	115	$	331		$	304
Net (income) loss from discontinued operations, net of tax		(4	)		1		(4	)		55
Net income (loss) attributable to noncontrolling interest included in discontinued operations		1			—		1			(18	)
Net income attributable to KBR from continuing operations	$	130		$	116	$	328		$	341
Adjustments
• Interest expense		36			39		108			121
• Other non-operating expense		—			—		2			5
• Provision for income taxes		18			34		96			116
• Depreciation and amortization		43			43		126			129
• Spin-off, acquisition and restructuring		23			8		72			18
• Share of JV interest, tax, D&A and acquisition costs⁽¹⁾		17			—		44			—
• Ichthys commercial dispute cost		1			—		1			—
Adjusted EBITDA	$	268		$	240	$	777		$	730

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
Dollars in millions		2026			2025			2026			2025

Operating income - MTS	$	115		$	113		$	342		$	334
• Net loss attributable to noncontrolling interests included in continuing operations		—			—			—			1
• Depreciation and amortization		26			25			75			78
• Spin-off, acquisition and restructuring		—			—			16			—
• Share of JV interest, tax, D&A and acquisition costs ⁽¹⁾		4			—			8			—
Adjusted EBITDA - MTS	$	145		$	138		$	441		$	413

Operating income - STS	$	124		$	119		$	340		$	371
• Net income attributable to noncontrolling interests included in continuing operations		(2	)		(2	)		(4	)		(5	)
• Depreciation and amortization		11			11			32			31
• Spin-off, acquisition and restructuring		—			—			2			—
• Share of JV interest, tax, D&A and acquisition costs ⁽¹⁾		13			—			36			—
• Ichthys commercial dispute cost		1			—			1			—
Adjusted EBITDA - STS	$	147		$	128		$	407		$	397

Operating loss - Corporate	$	(53	)	$	(41	)	$	(144	)	$	(118	)
• Depreciation and amortization		6			7			19			20
• Spin-off, acquisition and restructuring		23			8			54			18
Adjusted EBITDA - Corporate	$	(24	)	$	(26	)	$	(71	)	$	(80	)

Operating income - KBR	$	186		$	191		$	538		$	587
• Net income attributable to noncontrolling interests included in continuing operations		(2	)		(2	)		(4	)		(4	)
• Depreciation and amortization		43			43			126			129
• Spin-off, acquisition and restructuring		23			8			72			18
• Share of JV interest, tax, D&A and acquisition costs ⁽¹⁾		17			—			44			—
• Ichthys commercial dispute cost		1			—			1			—
Adjusted EBITDA - KBR	$	268		$	240		$	777		$	730

⁽¹⁾Beginning with the three months ended April 3, 2026, Adjusted EBITDA was revised to include add-backs associated with KBR's share of unconsolidated JV interest, taxes, depreciation, amortization and acquisition costs on a prospective basis. Management concluded that retrospective application would not provide additional meaningful information to investors and therefore did not recast historical non‑GAAP results. The estimated impact to fiscal 2025 margins was approximately 20 basis points.

Adjusted EPS
Adjusted earnings per share (Adjusted EPS) for each of the three- and nine-month periods ended October 2, 2026 and October 3, 2025 is considered a non-GAAP financial measure under SEC rules because Adjusted EPS excludes certain amounts included in the Diluted EPS calculated in accordance with GAAP for such periods. The most directly comparable financial measure calculated in accordance with GAAP is Diluted EPS for the same periods. Management believes that Adjusted EPS affords investors a view of what management considers KBR's core earnings performance for each of the three- and nine-month periods ended October 2, 2026 and October 3, 2025 and also affords investors the ability to make a more informed assessment of such core earnings performance for the comparable periods.

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
		2026			2025			2026			2025

Diluted EPS attributable to KBR	$	1.06		$	0.90		$	2.60		$	2.33
Less: Diluted earnings (loss) per share from discontinued operations		0.03			(0.01	)		0.03			(0.29	)
Diluted EPS from continuing operations	$	1.03		$	0.91		$	2.57		$	2.62
• Amortization related to acquisitions		0.06			0.07			0.18			0.22
• Ichthys commercial dispute cost		0.01			—			0.01			—
• Spin-off, acquisition and restructuring		0.14			0.04			0.42			0.09
• Interest income associated with discrete tax benefit		(0.12	)		—			(0.12	)		—
Adjusted EPS	$	1.12		$	1.02		$	3.06		$	2.93
Diluted weighted average common shares outstanding		126			128			127			130
Adjusted weighted average common shares outstanding		126			128			127			130

Adjusted Operating Cash Flows and Adjusted Operating Cash Conversion

Adjusted operating cash flows and Adjusted operating cash conversion are considered non-GAAP financial measures under SEC rules. Adjusted operating cash flows exclude certain amounts included in the cash flows provided by operating activities calculated in accordance with GAAP. Adjusted operating cash conversion is calculated as Adjusted operating cash flows divided by Adjusted weighted average common shares outstanding, which is then divided by Adjusted earnings per share. Management believes that Adjusted operating cash flows and adjusted operating cash conversion afford investors a view of what management considers KBR's core operating cash flow performance for each of the three- and nine-month periods ended October 2, 2026 and October 3, 2025 and also afford investors the ability to make a more informed assessment of such core operating cash generation performance.

	Three months ended						Nine months ended
	October 2,			October 3,			October 2,			October 3,
Dollars in millions, except per share amounts		2026			2025			2026			2025

Operating cash flows from continuing operations	$	171		$	198		$	331		$	506
Adjust: Spin-off transaction costs		17			—			40			—
Adjusted operating cash flows	$	188		$	198		$	371		$	506

Adjusted operating cash flow per adjusted share		1.49			1.55			2.92			3.89
Adjusted earnings per share		1.12			1.02			3.06			2.93
Adjusted operating cash conversion		133	%		152	%		95	%		133	%

FAQ

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

What were KBR’s third-quarter fiscal 2026 earnings and revenue?

KBR reported $2.0 billion in revenue and $1.06 in diluted earnings per share, up 5% and 18%, respectively, from the third quarter of fiscal 2025. Net income attributable to KBR rose 16% to $133 million. Adjusted earnings per share, a non-GAAP measure, increased 10% to $1.12.

When does KBR expect to complete the Trinzic spin-off?

KBR targets January 4, 2027 for completion of the Mission Technology Solutions spin-off into Trinzic. Completion remains subject to final approval by KBR’s board and other customary conditions, including effectiveness of the Form 10 registration statement filed with the SEC on September 30, 2026.

Is KBR’s Antarctic support contract included in reported backlog?

The re-awarded Antarctic Science and Engineering Support Contract is not yet included in backlog or book-to-bill. The U.S. National Science Foundation contract has an $8 billion ceiling over 20 years and uses a single-award indefinite-delivery, indefinite-quantity structure, under which work is ordered as needed.

How much liquidity did KBR have at the end of the third quarter of fiscal 2026?

KBR had approximately $1.1 billion in liquidity as of October 2, 2026. This comprised $625 million in available borrowing capacity under its revolving credit facility and $439 million in cash and cash equivalents.

KBR Reports Third Quarter Fiscal 2026 Results