Industry
KBR's government business revenue falls 5% ahead of planned spin-off
Mission Technology Solutions posts higher operating income despite lower sales, while its Antarctic support contract is not yet in reported backlog ahead of the planned Trinzic separation.
KBR's Mission Technology Solutions business reported third-quarter fiscal 2026 revenue of $1,266 million. Revenue fell 5% from a year earlier. KBR attributed the decline primarily to lower federal civilian volumes associated with anticipated NASA headwinds, partly offset by growth with Defense & Intelligence and International Government customers.1
Operating income was $115 million, up 2%
Mission Technology Solutions
Mission Technology Solutions revenue, $ millions: Q3 FY2026 1,266; Q3 FY2025 1,326
Operating income was $115 million, up 2% or $2 million
Source: KBR third quarter fiscal 2026 results, Exhibit 99.1. Comparisons against third quarter fiscal 2025. As of October 29, 2026.
Sources
The business preserved operating profit as sales contracted: operating income rose 2% to $115 million. KBR credited higher earnings from unconsolidated joint ventures, favorable portfolio mix and project execution, partly offset by lower revenue and higher selling, general and administrative expenses.1
Mission Technology Solutions backlog and options fell to $17.3 billion at quarter end from $17.5 billion at the end of the preceding quarter.1–2
The Antarctic Science and Engineering Support Contract is not yet reflected in backlog or book-to-bill. KBR was re-awarded the National Science Foundation contract following resolution of a Government Accountability Office protest; the 20-year contract has an $8 billion ceiling.1
The segment also won a $208 million Army task order supporting precision strike and aviation modernization over five years. It also won a $60 million NATO PATRIOT technical and engineering support contract.1
Mission Technology Solutions will become Trinzic upon separation. KBR targets completion on January 4, 2027. The separation remains subject to final board approval and other customary conditions, including effectiveness of the Form 10 registration statement.1
KBR is preparing to separate businesses whose revenue moved in opposite directions this quarter, with Sustainable Technology Solutions revenue up 26% to $762 million. That segment reported record backlog of $5.8 billion. KBR and Trinzic plan to present their financial outlooks at separate Investor Days on November 11 and November 12, respectively.1
Sources (2)
- KBR third quarter fiscal 2026 results, Exhibit 99.1 to Form 8-K www.sec.gov
- KBR second quarter fiscal 2026 results, Exhibit 99.1 to Form 8-K www.sec.gov