KBR EPS Rises 18% on Sustainable Technology Growth, Reaffirms Outlook Ahead of Trinzic Spin-Off

KBR grew third-quarter revenue 5% to $2.0 billion and lifted diluted earnings per share 18% to $1.06, and it reaffirmed its full-year outlook as it heads toward a January spin-off of its Mission Technology Solutions business, which will become Trinzic.

Net income attributable to KBR rose 16% to $133 million, according to the earnings release it filed with an 8-K on Wednesday evening. Adjusted EPS climbed 10% to $1.12, and adjusted EBITDA rose 12% to $268 million, lifting the adjusted EBITDA margin to 13.2% from 12.4%.

Operating income slipped 3% to $186 million, as higher gross profit was more than offset by spin-off costs, higher selling, general and administrative expenses and lower equity earnings from joint ventures, the company said.

Two businesses moving in opposite directions

Sustainable Technology Solutions, the segment that will remain with KBR after the separation, drove the growth. Its revenue jumped 26% to $762 million on the conversion of bookings from past quarters, and adjusted EBITDA rose 15% to $147 million. Backlog in the segment reached a record $5.8 billion, with a 1.3x book-to-bill.

Mission Technology Solutions, the business that will become Trinzic, saw revenue fall 5% to $1.3 billion, mainly on lower federal civilian volumes tied to anticipated NASA headwinds. Adjusted EBITDA still rose 5% to $145 million, with margin improving to 11.5%. The segment's book-to-bill was 0.6x, or 0.8x excluding a NASA insourcing debooking.

The company said it was re-awarded the $8 billion ceiling Antarctic Science and Engineering Support Contract for the U.S. National Science Foundation, which is not yet reflected in backlog. It also settled with U.S. TRANSCOM over the Global Household Goods Contract, converting the government's prior termination for default to a termination for convenience.

Guidance holds

"We delivered a strong third quarter, with profitable growth and solid execution across both businesses reinforcing our confidence in the full-year outlook," CEO Stuart Bradie said in the release.

KBR reaffirmed fiscal 2026 guidance for revenue of $7.90 billion to $8.36 billion, adjusted EBITDA of $980 million to $1,040 million, adjusted EPS of $3.87 to $4.22 and adjusted operating cash flows of $560 million to $600 million.

Spin-off on the calendar

The separation is targeted for Jan. 4, 2027, subject to final board approval and other customary conditions, including the effectiveness of the Form 10 registration statement filed Sept. 30. KBR and Trinzic will hold separate investor days in New York on Nov. 11 and Nov. 12, respectively.

Cash and capital

Operating cash flows from continuing operations fell 14% to $171 million. KBR returned $21 million to shareholders through dividends in the quarter and made no share repurchases, compared with $100 million a year earlier. Net leverage stood at 2.1x, and liquidity totaled about $1.1 billion.

Total backlog and options were $23.1 billion at quarter-end, with an overall book-to-bill of 0.9x, or 1.0x excluding the NASA debooking.

Sources

1. KBR Form 8-K with third-quarter fiscal 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001357615-26-000194)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.