KBR posts Q3 FY2026 results and advances spin-off of Mission Technology Solutions
- Revenues $2.0 billion, up 5% year-over-year.
- Net income attributable to KBR $133 million, up 16%; diluted EPS $1.06, up 18%.
- Adjusted EBITDA $268 million, up 12%, with a 13.2% adjusted EBITDA margin.
- Backlog and options $23.1 billion; book-to-bill 0.9x for the quarter.
Quarter highlights
KBR reported Q3 FY2026 revenues of $2.0 billion (up 5%), operating income of $186 million (down 3%) and net income attributable to KBR of $133 million (up 16%). Adjusted EBITDA was $268 million (up 12%) with a 13.2% adjusted EBITDA margin. Diluted EPS attributable to KBR was $1.06 and adjusted EPS was $1.12.
Segment performance
Mission Technology Solutions (MTS) revenues fell 5% to $1.3 billion, pressured by anticipated NASA headwinds; operating income was $115 million and adjusted EBITDA $145 million. Backlog and options for MTS totaled $17.3 billion and book-to-bill was 0.6x (0.8x excluding the NASA insourcing debooking). Sustainable Technology Solutions (STS) revenues rose 26% to $762 million, operating income was $124 million and adjusted EBITDA $147 million; STS backlog reached a record $5.8 billion with a 1.3x book-to-bill.
Orders and awards
Notable MTS awards included the re-award of the $8 billion ASESC IDIQ (not yet in backlog) and a $208 million U.S. Army TAGM task order. STS wins included an Aramco offshore engineering contract, SABIC Agri-Nutrients’ 3,500 MTPD ammonia plant using KBR Purifier technology, and multiple e‑fuel and green ammonia assignments.
Balance sheet, guidance and corporate actions
Liquidity totaled about $1.1 billion and net leverage was 2.1x. Operating cash flow from continuing operations was $171 million for the quarter (adjusted operating cash flows $188 million). KBR returned $21 million in regular dividends and reaffirmed FY2026 guidance: revenues $7.90B–$8.36B, adjusted EBITDA $980M–$1,040M, adjusted EPS $3.87–$4.22, and adjusted operating cash flows $560M–$600M.
Spin-off and investor events
KBR is advancing the planned separation of Mission Technology Solutions into an independent company (Trinzic) targeted for January 4, 2027, subject to board approval and Form 10 effectiveness. Separate Investor Days for KBR and Trinzic are scheduled for November 11–12, 2026 in New York City.
Source: KBR