- Marks the culmination of a decade-long portfolio transformation, positioning KBR to focus on differentiated science, technology, and engineering solutions for mission-critical applications.
- Formation of two independent, pure-play public companies expected to unlock significant value creation for shareholders.
- New KBR will continue to strengthen its global leadership in sustainable technology solutions, leveraging a diverse portfolio of process technologies and specialized services.
- SpinCo will scale as a trusted government services provider, delivering critical support for national security and space initiatives worldwide.
- Spin-off designed to be tax-free for KBR and its shareholders, with completion anticipated in mid-to-late 2026; investor days will be held prior to completion.
- KBR will host a conference call today at 8:00 a.m. ET.
KBR, Inc. (NYSE: KBR) today announced that its Board of Directors has unanimously approved a plan to pursue a tax-free spin-off of its Mission Technology Solutions (MTS) segment. Upon completion, KBR shareholders will benefit from ownership in two independent, pure-play public companies—each with enhanced strategic focus, operational independence, and financial flexibility.
Strategic Rationale and Benefits
The creation of two independent companies, each with distinct offerings, is designed to drive long-term profitable growth and maximize value for customers, employees, and shareholders. The spin-off is expected to deliver:
- Sharper strategic and management focus
- Increased agility and streamlined decision-making
- Enhanced end-market focus with prioritized commercial resources
- Greater capital allocation flexibility, supporting strategic initiatives and potential M&A opportunities
- Distinct and compelling investment profiles
Stuart Bradie, KBR Chair, President, and CEO, stated:
“Over the past decade, we have transformed KBR into a leading provider of differentiated, innovative, and high-value science, technology, and engineering solutions with global reach and impact. Announcing the spin-off of MTS is a pivotal milestone, positioning both New KBR and SpinCo to unlock the next phase of shareholder value.”
“Both companies will retain KBR’s core values-driven culture and proven execution approach, forming a strong foundation for profitable growth. Each business brings top talent, deep domain expertise, proprietary technologies, and a steadfast focus on delivering customer value.”
New KBR (Sustainable Technology Solutions – STS)
New KBR will focus on proprietary, IP-protected process technologies and advisory services for diversified energy and critical infrastructure markets worldwide. Its offerings reduce emissions, enhance efficiency, and advance energy transition.
Post-spin, New KBR will leverage over 85 global process technologies, including ammonia/syngas, chemicals/petrochemicals, clean refining, and circular economy solutions. With low capital intensity, diverse revenue streams, and strong free cash flow, New KBR is well positioned to commercialize technologies aligned with future market demand.
SpinCo (Mission Technology Solutions – MTS)
SpinCo will be a scaled leader in mission-critical solutions for government customers, aligned with national security and space priorities. Its capital-light model, long-duration contracts, robust backlog, and customer intimacy provide a strong foundation for profitable growth. SpinCo has a history of accretive acquisitions that expand capabilities and broaden its customer base, positioning it for continued leadership post-spin.
Executive Leadership Updates
- Stuart Bradie will serve as Chair, President, and CEO of New KBR post-spin.
- Mark Sopp, current KBR EVP and CFO, will lead the team overseeing the MTS spin-off.
- Shad Evans, current SVP of Financial Operations, has been appointed KBR CFO, effective January 5, 2026, and will assume the role of New KBR CFO post-spin.
The Board has engaged a leading search firm to identify executive leadership for SpinCo.
“I thank Mark for his dedication and contributions and congratulate Shad on his well-deserved appointment,” Bradie said. “Our team’s transformation of KBR positions both New KBR and SpinCo for clear and compelling opportunities ahead.”
Transaction Details
The spin-off is intended to be tax-free for KBR and its shareholders under U.S. federal income tax rules, targeting completion by mid-to-late 2026. The transaction will be subject to customary conditions, including Board approval, regulatory approvals, SEC filing effectiveness, and favorable IRS guidance.
Fiscal Year 2025 Outlook
KBR reaffirms its previously issued fiscal year 2025 outlook.
Conference Call Details
KBR will host a conference call on September 24th at 8:00 a.m. ET. Webcast details and an accompanying presentation will be available on the KBR Investors website: investors.kbr.com. A replay will be available on the website or by telephone at +1.866.813.9403, passcode: 751093.
Advisors
Goldman Sachs & Co. LLC serves as financial advisor. Wilmer Cutler Pickering Hale and Dorr LLP and Baker & McKenzie LLP act as legal counsel. Corbin Advisors, LLC provides strategic investor relations advisory.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 37,000 people worldwide with customers in more than 80 countries and operations in over 29 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
