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KBR re-awarded Antarctic contract with $8B ceiling

KBR maintained its fiscal 2026 outlook while its planned Mission Technology Solutions spin-off remains targeted for January 4, 2027, subject to approvals and conditions.

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8-K

Rhea-AI Filing Summary

KBR reported third-quarter fiscal 2026 revenue of $2.028 billion, up 5%, and net income attributable to KBR of $133 million, up 16%, year over year. Adjusted EBITDA, a non-GAAP measure, was $268 million, up 12%, and diluted EPS attributable to KBR was $1.06, up 18%. Operating income was $186 million, down 3%, while operating cash flows from continuing operations were $171 million, down 14%. Sustainable Technology Solutions revenue rose 26% to $762 million; Mission Technology Solutions revenue fell 5% to $1.266 billion.

KBR reaffirmed fiscal 2026 guidance of $7.90 billion–$8.36 billion in revenue, $980 million–$1,040 million in Adjusted EBITDA, $3.87–$4.22 in Adjusted EPS, and $560 million–$600 million in adjusted operating cash flows. KBR said it was re-awarded the Antarctic Science and Engineering Support Contract, with an $8 billion ceiling and a 20-year term; the award is not yet reflected in backlog or book-to-bill. The planned separation of Mission Technology Solutions as Trinzic is targeted for January 4, 2027, subject to final board approval and customary conditions, including effectiveness of the Form 10 registration statement.

4 points · 0 major

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0 major · 2 points

How the balance works

Positive

  • Moderate pointQuarterly revenue rose 5% to $2.028 billion.
  • Moderate pointNet income attributable to KBR rose 16% to $133 million.
  • Moderate pointAdjusted EBITDA increased 12% to $268 million.
  • Moderate pointSustainable Technology Solutions revenue increased 26% to $762 million.

Negative

  • Moderate pointOperating cash flows from continuing operations fell 14% to $171 million.
  • Moderate pointMission Technology Solutions revenue fell 5% to $1.266 billion.

Filing Explained

As of October 2, 2026, KBR reported approximately $1.1 billion of liquidity, including $625 million of revolving-credit borrowing capacity and $439 million of cash, with net leverage of 2.1x.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue $2.028 billion Three months ended October 2, 2026; up 5% versus the prior-year quarter.
Net income attributable to KBR $133 million Three months ended October 2, 2026; up 16% versus the prior-year quarter.
Adjusted EBITDA $268 million Three months ended October 2, 2026; up 12% versus the prior-year quarter.
Diluted EPS attributable to KBR $1.06 per diluted share Third quarter fiscal 2026; up 18% versus the prior-year quarter.
Operating cash flows from continuing operations $171 million Three months ended October 2, 2026; down 14% versus the prior-year quarter.
Mission Technology Solutions revenue $1.266 billion Three months ended October 2, 2026; down 5% versus the prior-year quarter.
Sustainable Technology Solutions revenue $762 million Three months ended October 2, 2026; up 26% versus the prior-year quarter.
Fiscal 2026 revenue guidance $7.90 billion–$8.36 billion Fiscal 2026 guidance reaffirmed.
Adjusted EBITDA financial
"Adjusted EBITDA is defined as Net income"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
book-to-bill financial
"Book-to-bill was 0.9x for the quarter."
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.
backlog and options financial
"Backlog and options as of the quarter end totaled $23.1 billion."
IDIQ contract technical
"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.
front-end engineering design technical
"provide front-end engineering design services"
Front-end engineering design is the early, detailed planning phase of a capital project when engineers create the core blueprints, scope, and cost and schedule estimates that guide construction and procurement. For investors, it matters because a thorough front-end design reduces uncertainty about total costs, timing, and technical risks—similar to having a detailed house plan and budget before breaking ground—so it helps assess whether a project is likely to stay on time and on budget.
Revenue $2.028 billion Up 5% versus the prior-year quarter
Net income attributable to KBR $133 million Up 16% versus the prior-year quarter
Operating income $186 million Down 3% versus the prior-year quarter
Adjusted EBITDA $268 million Up 12% versus the prior-year quarter
Diluted EPS attributable to KBR $1.06 per diluted share Up 18% versus the prior-year quarter
Guidance

Fiscal 2026 guidance reaffirmed: revenue $7.90 billion–$8.36 billion; Adjusted EBITDA $980 million–$1,040 million; Adjusted EPS $3.87–$4.22; adjusted operating cash flows $560 million–$600 million.

FAQ

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

How did KBR (KBR) perform in the third quarter of fiscal 2026?
KBR reported revenue of $2.028 billion, up 5%, and net income attributable to KBR of $133 million, up 16%, compared with the prior-year quarter. Adjusted EBITDA was $268 million, up 12%, and diluted EPS attributable to KBR was $1.06, up 18%.

What is KBR's fiscal 2026 guidance?
KBR reaffirmed fiscal 2026 guidance of $7.90 billion–$8.36 billion in revenue, $980 million–$1,040 million in Adjusted EBITDA, $3.87–$4.22 in Adjusted EPS, and $560 million–$600 million in adjusted operating cash flows.

When is KBR's planned Trinzic spin-off targeted to occur?
The separation of Mission Technology Solutions as Trinzic is targeted for January 4, 2027, subject to final approval by KBR's Board of Directors and other customary conditions, including effectiveness of the Form 10 registration statement.

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

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Available on EDGAR Accepted by SEC EDGAR
0001357615false00013576152026-10-292026-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 29, 2026
 
 
kbrlogofinal2019a06.jpg
KBR, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3314620-4536774
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
601 Jefferson Street
Suite 3400
Houston,Texas77002
(Address of principal executive offices)
Registrant's telephone number including area code: (713) 753-2000

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which listed
Common Stock, $0.001 par valueKBRNew York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, KBR, Inc. issued a press release titled, “KBR Reports Third Quarter Fiscal 2026 Results.” The full text of the press release is attached hereto as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure.
Trinzic, Inc., which KBR, Inc. expects to spin off as an independent public company in January 2027, plans to make a presentation in connection with upcoming fixed-income investor education meetings. An excerpt of the presentation materials is furnished hereunder as Exhibit 99.2 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d)
Exhibits
99.1
KBR, Inc. press release dated October 29, 2026, titled, “KBR Reports Third Quarter Fiscal 2026 Results.”
99.2
Trinzic, Inc. fixed-income investor education materials excerpt
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KBR, INC.
October 29, 2026/s/ Sonia Galindo
Sonia Galindo
Executive Vice President, General Counsel & Corporate Secretary



kbrlogofinal2019a06.jpg
    Exhibit 99.1

KBR Reports Third Quarter Fiscal 2026 Results


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 options1 of $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, TX - October 29, 2026 - 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                                                                 
                        1

Summarized Third Quarter Fiscal 2026 Consolidated Results
Three months endedNine months ended
October 2,October 3,October 2,October 3,
Dollars in millions, except share data2026202520262025
Revenues$2,028 $1,931 $5,935 $5,901 
Operating income186 191 538 587 
Net income attributable to KBR133 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 operations1.03 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 shareholders21 22 63 63 
October 2,January 2,
20262026
Leverage:
Net debt3
2,1182,117
TTM Adjusted EBITDA2
1,015968
Net leverage
2.1x2.2x

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.


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.                                                                 
2    


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 share2 were $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 endedNine months ended
October 2,October 3,October 2,October 3,
Dollars in millions2026202520262025
Revenues$2,028 $1,931 $5,935 $5,901 
   Mission Technology Solutions1,266 1,326 3,870 4,043 
Sustainable Technology Solutions762 605 2,065 1,858 
Adjusted EBITDA2
268 240 777 730 
  Mission Technology Solutions145 138 441 413 
Sustainable Technology Solutions147 128 407 397 
Corporate(24)(26)(71)(80)
Adjusted EBITDA2 margin
13.2 %12.4 %13.1 %12.4 %
  Mission Technology Solutions11.5 %10.4 %11.4 %10.2 %
Sustainable Technology Solutions19.3 %21.2 %19.7 %21.4 %
October 2,January 2,
20262026
Backlog17,718 16,864 
Mission Technology Solutions11,890 12,552 
Sustainable Technology Solutions5,828 4,312 
Backlog and options23,122 23,211 
Mission Technology Solutions17,294 18,899 
Sustainable Technology Solutions5,828 4,312 









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.                                                                 
3    


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.






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.                                                                 
4    


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.



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.                                                                 
5    


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.





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.                                                                 
6    


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.                                                                                                                                                                           
7    
        

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




8

KBR, Inc.
Condensed Consolidated Statements of Operations
(In millions, except for per share data)
(Unaudited)    
Three months endedNine months ended
October 2,October 3,October 2,October 3,
2026202520262025
Revenues:
Mission Technology Solutions$1,266 $1,326 $3,870 $4,043 
Sustainable Technology Solutions762 605 2,065 1,858 
Total revenues2,028 1,931 5,935 5,901 
Gross profit301 270 859 860 
Equity in earnings of unconsolidated affiliates64 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 Solutions115 113 342 334 
Sustainable Technology Solutions124 119 340 371 
Corporate(53)(41)(144)(118)
Total operating income186 191 538 587 
Interest expense(36)(39)(108)(121)
Other non-operating expense— — (2)(5)
Income from continuing operations before income taxes150 152 428 461 
Provision for income taxes(18)(34)(96)(116)
Net income from continuing operations132 118 332 345 
Net income (loss) from discontinued operations, net of tax4 (1)4 (55)
Net income136 117 336 290 
Less: Net income attributable to noncontrolling interests included in continuing operations2 2 4 4 
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations1 — 1 (18)
Net income attributable to KBR133 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 outstanding126 128 127 130 
Adjusted weighted average common shares outstanding126 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    



9

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

October 2, 2026January 2, 2026
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$439 $500 
Accounts receivable, net of allowance for credit losses of $6 and $6, respectively1,300 1,086 
Contract assets320 280 
Other current assets225 166 
Current assets of discontinued operations14 19 
Total current assets2,298 2,051 
Pension assets127 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), respectively244 232 
Operating lease right-of-use assets224 217 
Goodwill2,670 2,677 
Intangible assets, net of accumulated amortization of $535 and $501, respectively681 727 
Equity in and advances to unconsolidated affiliates242 107 
Deferred income taxes120 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 liabilities429 331 
Accrued salaries, wages and benefits353 342 
Current maturities of long-term debt554 49 
Other current liabilities253 235 
Current liabilities of discontinued operations10 19 
Total current liabilities2,446 1,688 
Employee compensation and benefits153 144 
Income tax payable10283
Deferred income taxes9795
Long-term debt1,987 2,547 
Operating lease liabilities236 236 
Other liabilities223 279 
Total liabilities5,244 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 par2,572 2,552 
Retained earnings1,965 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' equity1,764 1,503 
Noncontrolling interests10 9 
Total shareholders' equity1,774 1,512 
Total liabilities and shareholders' equity$7,018 $6,584 


10

KBR, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions) (Unaudited)
Nine months ended
October 2, 2026October 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 operations332 345 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization126 129 
Equity in earnings of unconsolidated affiliates(167)(163)
Deferred income tax42 50 
Other charges associated with lease right-of-use asset impairment19 — 
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 payable134 (52)
Contract liabilities99 (1)
Accrued salaries, wages and benefits19 41 
Payments on operating lease liabilities(61)(62)
Payments from unconsolidated affiliates, net10 10 
Distributions of earnings from unconsolidated affiliates145 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)$(24)
Return of (investment in) equity method investments, net(127)82 
Acquisition of business, net of cash acquired— (13)
Purchases of available-for-sale debt securities(49)— 
Purchases of other investments(13)— 
Other2 2 
Total cash flows provided by (used in) investing activities - continuing operations(223)47 
Cash flows from financing activities:
Borrowings on Revolver281 555 
Payments on short-term and long-term debt(37)(27)
Payments on Revolver(301)(505)
Payments to repurchase common stock(29)(304)
Payments of dividends to shareholders(63)(63)
Other(15)(6)
Total cash flows used in financing activities - continuing operations$(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 period505 350 
Cash and cash equivalents at end of period$442 $539 
Less: cash and cash equivalents at end of period for discontinued operations3 — 
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 
    


11

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.



















12

Three months endedNine months ended
October 2,October 3,October 2,October 3,
Dollars in millions2026202520262025
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 operations1 — 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 endedNine months ended
October 2,October 3,October 2,October 3,
Dollars in millions2026202520262025
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 


13

(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 endedNine months ended
October 2,October 3,October 2,October 3,
2026202520262025
Diluted EPS attributable to KBR$1.06 $0.90 $2.60 $2.33 
Less: Diluted earnings (loss) per share from discontinued operations0.03 (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 outstanding126 128 127 130 
Adjusted weighted average common shares outstanding126 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 endedNine months ended
October 2,October 3,October 2,October 3,
Dollars in millions, except per share amounts2026202520262025
Operating cash flows from continuing operations$171 $198 $331 $506 
Adjust: Spin-off transaction costs17 — 40 — 
Adjusted operating cash flows$188 $198 $371 $506 
Adjusted operating cash flow per adjusted share1.491.552.923.89
Adjusted earnings per share1.121.023.062.93
Adjusted operating cash conversion133%152%95%133%


14
Contract End Date Recompete Period of Performance Customer Mix Confirms Breadth – LTM Q2 2026Representative Contracts 1 Revenue by Agency U.S. DoW Agency Mix U.S. DoW, 63% Comm. & Infra., 2% Civilian USG, 20% Other Int'l Gov'ts, 15% Diversified Contract And Customer Mix ASPIRE 2041 2026 2028 2030 HHPC2 2035 DEPLOYED ICT KBS MARITIME MSEIT MSP LAND EUCOM NSF ANTARCTICA2 2046 2029 2040 2034 2034 2033 HET ICS 2031 HONEYWELL MSA 2030 NORTHCOM 2040 PATRIOT AR 2032 THAAD MDA 2032 IDEAAS 2032 3 (1) As of 9/30/2026 (2) Contract under protest (3) EBITDA excludes Army Operations Allies Welcome contingency effort concluded prior to 2026. Diversified contracts by mission focus and geographic funding source Top 10 contracts accounted for 33% of LTM Q2 2026 EBITDA 3 U.S. DoW is highly diversified across armed services, intelligence and civilian funding U.S. position complemented by U.K., Europe, Middle East and allied markets across defense, defence nuclear, logistics and infrastructure Attractive balance across DoW, Fed Civ. (NASA) and international funding sources

 

Source: View Original Filing on SEC EDGAR

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