KBR’s Mission Technology Solutions Announces Strategy for Expanding Digital Engineering Capabilities for the US Military

Rhea-AI Summary

KBR (NYSE: KBR) announced a strategic expansion of digital engineering within its Mission Technology Solutions business to accelerate U.S. military modernization. The initiative funds digital labs across the U.S. to build digital twins, model-based systems engineering, rapid prototyping and additive manufacturing for ground vehicles, aviation platforms and sensors.

KBR’s labs provide digital maturity assessments, virtual mission simulation and lifecycle data to speed acquisition, development, sustainment and decision-making for Department of War programs.

News Market Reaction – KBR

+0.17%

1 alert

+0.17% News Effect

On the day this news was published, KBR gained 0.17%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Reality Check

Price: $40.40 Vol: Volume 855,280 is about 3...

low vol

$40.40 Last Close

Volume Volume 855,280 is about 33% below the 1,281,814 share 20-day average. low

Technical Price $40.33 is about 13% below the $46.47 200-day MA and near the 52-week low.

Peers on Argus

KBR fell 5.57% with light volume, while key peers like FLR, PRIM, IESC, ROAD and...

1 Down

KBR fell 5.57% with light volume, while key peers like FLR, PRIM, IESC, ROAD and DY also showed declines (e.g., PRIM about -4.18% in momentum data), but scanner data only flagged one peer, suggesting a stock-specific move rather than a broad sector rotation.

Historical Context

5 past events · Latest: Feb 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Dividend declaration	Positive	+2.1%	Regular quarterly dividend of <b>$0.165</b> per share announced for April payment.
Feb 18	Long-term contract win	Positive	+2.2%	Strategic <b>10-year</b> maintenance contract for Petro Rabigh polymer plants.
Feb 09	USSF contracts award	Positive	+1.4%	Two task orders totaling <b>$103 million</b> for Space Force decision support work.
Feb 05	Space Force task order	Positive	-1.3%	<b>$77 million</b> task order to advance digital engineering and assured communications.
Feb 03	Air Force contract	Positive	-2.1%	New IDIQ contract with <b>$149 million</b> ceiling for armament development support.

Pattern Detected

Recent contract and dividend announcements were generally followed by positive moves, though some sizable defense awards saw short-term selloffs, indicating mixed alignment between positive news and price reaction.

Recent Company History

Over the past month, KBR reported several defense and aerospace contract wins and a regular dividend. On Feb 3, a new Air Force contract with a $149 million ceiling was followed by a -2.09% move. A $77 million Space Force task order on Feb 5 preceded a -1.27% reaction. Later awards totaling $103 million on Feb 9 and a strategic maintenance deal on Feb 18 saw gains, as did the dividend declaration on Feb 19. Today’s digital engineering strategy update fits this ongoing defense-tech narrative.

Market Pulse Summary

This announcement highlights KBR’s push to expand digital engineering, virtual prototyping and digit...

Analysis

This announcement highlights KBR’s push to expand digital engineering, virtual prototyping and digital twin capabilities for U.S. military programs, extending prior work in integrated air and missile defense and mission simulation. Recent contract wins and a declared dividend suggest an active period of defense-related work. Investors may watch how these lab investments translate into awarded contracts, the mix of firm-fixed-price versus other structures, and whether digital offerings deepen KBR’s role across the system lifecycle.

Key Terms

digital engineering, digital twin, model-based system engineering, rapid prototyping, +3 more

7 terms

digital engineering technical

"strategic initiative within its Mission Technology Solutions business to expand digital engineering capabilities"

Digital engineering is the use of computers, simulations and data models to design, test and manage products, systems or processes in a virtual space instead of only on physical prototypes. For investors it matters because it speeds development, cuts upfront costs and reduces the risk of costly surprises—similar to an architect using detailed digital blueprints and a scale model to find problems before construction—helping companies bring better products to market faster and with clearer cost forecasts.

digital twin technical

"KBR’s digital twin and model-based system engineering environment uses rapid prototyping"

A digital twin is a live virtual replica of a physical asset, process, or system that mirrors real-world behavior using data and models so users can test changes, predict problems, and measure performance without touching the real thing. For investors, digital twins matter because they can lower maintenance costs, speed product development, improve uptime and reliability, and make future cash flows and risks easier to forecast — like using a flight simulator to safely train and tune a real airplane.

model-based system engineering technical

"KBR’s digital twin and model-based system engineering environment uses rapid prototyping"

A structured way of designing and managing complex products or systems using shared digital models instead of scattered paper documents or isolated files; think of a detailed virtual prototype or flight simulator that shows how every part should behave together. For investors it matters because these living models reduce development time and unexpected redesigns, lower costs and technical risk, and make it easier to scale, certify or update products—improving predictability of delivery and future revenue.

rapid prototyping technical

"environment uses rapid prototyping to create large-scale system modeling, simulation"

Rapid prototyping is a fast, iterative way to make early versions of a product or component—often using tools like 3D printing, simple physical models, or quick computer designs—to test how it looks, works and is received. For investors it matters because faster, lower-cost prototyping can shorten development cycles, reveal design or market problems early, and reduce the risk and capital needed to bring a product to market, much like building quick clay models of a car before full production.

additive manufacturing technical

"system architecture development and additive manufacturing of virtual missions in a digital setting"

Additive manufacturing, often called 3D printing, builds physical parts by laying down material layer by layer from a digital design, rather than cutting or molding from a solid block. It matters to investors because it can cut production time and waste, enable cheaper prototypes and customized products, and reshape supply chains—changes that can lower costs, speed new products to market, and create competitive advantages that affect a company's revenue and margins.

integrated air and missile defense systems technical

"advanced the virtual prototyping of major integrated air and missile defense systems"

A networked defense setup that combines radars, sensors, command centers and interceptors to detect, track and defeat aircraft, missiles and drones before they reach their targets; think of it as a coordinated neighborhood watch and emergency response team for the skies. It matters to investors because building, upgrading and maintaining these layered systems involves large, long-term government contracts, steady revenue streams, complex supply chains and sensitivity to geopolitical shifts and regulation, all of which affect company valuations and stock performance.

modeling and simulation technical

"developed, validated and deployed integrated air and missile defense systems and modeling and simulation tools"

Modeling and simulation use computer-created versions of real-world systems—such as a drug’s effect in the body, a factory’s production line, or a market’s trading behavior—to test how changes might play out without doing costly or risky real experiments. For investors this matters because simulations can reveal likely outcomes, risks, and timeframes for projects or products, helping to judge potential returns and whether assumptions behind forecasts are realistic—like trying a rehearsal before a live performance.

AI-generated analysis. Not financial advice.

HOUSTON, Feb. 24, 2026 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today a strategic initiative within its Mission Technology Solutions business to expand digital engineering capabilities for the U.S. military, rapidly modernizing processes and capabilities in response to emerging threats and technological advancements. 

KBR’s growth in its digital engineering capabilities includes investing in cutting-edge digital labs across the U.S., enhancing the development and sustainment of defense systems. The labs assess digital maturity for military programs and provide solutions to modernize ground vehicles, aviation platforms and sensors for the Department of War (DoW). The work includes pivoting from traditional, manual methods by creating digital environments that deliver faster data-driven insights to the customer. KBR’s digital twin and model-based system engineering environment uses rapid prototyping to create large-scale system modeling, simulation, software development, system architecture development and additive manufacturing of virtual missions in a digital setting. The digital environment also supplies data for operations and maintenance throughout the entire project lifecycle. 

“The DoW is emphasizing speed in modernization of warfighting capabilities,” said Mark Kavanaugh, KBR’s president of Defense, Intel and Space. “KBR’s deep expertise simulating missions in a virtual environment allows the department to save money and time by first digitizing scenarios in a lab, gaining key insights for decision advantage.”

The KBR team in Huntsville, Alabama, has advanced the virtual prototyping of major integrated air and missile defense systems including the Integrated Battle Command System (IBCS), Paladin artillery system and aircraft platforms like the F/A-18, Blackhawk and Chinook, enabling accelerated evaluation and refinement of design and performance. This digital technology enables acquisition organizations to conduct comprehensive trade studies with greater speed and precision and access essential data for informed decision-making at every stage of the system lifecycle. KBR is leveraging cutting-edge digital prototyping capabilities that allow the DoW to accelerate production timelines and rapidly deliver more units in significantly less time.

For the last decade, KBR has played a key role in transforming critical capabilities and providing Speed to Mission Impact℠. The company has developed, validated and deployed integrated air and missile defense systems and modeling and simulation tools to develop and test new technologies, such as sensors, data-processing algorithms and software and real-time battle management command and control. KBR has also established digital prototyping labs for a variety of government customers to modernize new and legacy systems. 

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 digital engineering capabilities, 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 did KBR (NYSE: KBR) announce on February 24, 2026 about digital engineering?

KBR announced a strategic initiative to expand digital engineering labs and capabilities for U.S. military programs. According to KBR, the program funds digital twins, model-based system engineering, rapid prototyping and additive manufacturing to modernize ground vehicles, aircraft platforms and sensors.

How will KBR’s new digital labs affect military acquisition timelines for KBR (KBR)?

KBR says the labs aim to accelerate acquisition and production timelines through virtual prototyping and trade studies. According to KBR, the digital environment enables faster evaluation of designs and provides lifecycle data to inform decisions and reduce time-to-field.

Which platforms has KBR tested with virtual prototyping in its Huntsville team mentioned by KBR (KBR)?

KBR’s Huntsville team has advanced virtual prototyping for integrated air and missile defense and several platforms. According to KBR, examples include IBCS, Paladin artillery and aircraft like F/A-18, Blackhawk and Chinook for accelerated evaluation and refinement.

What technologies are included in KBR’s digital engineering environment announced February 24, 2026?

KBR’s environment integrates digital twins, model-based systems engineering, large-scale simulation, software development and additive manufacturing. According to KBR, these capabilities deliver data-driven insights for operations, maintenance and decision advantage throughout system lifecycles.

How does KBR (KBR) claim its digital engineering work benefits the Department of War programs?

KBR states the work helps the Department of War save time and money by digitizing scenarios before physical production. According to KBR, virtual simulation yields faster data-driven insights, enabling quicker trade studies, informed decisions and accelerated delivery of units.