KBR, Inc. reported a revenue of $1.923 billion for the three months ending April 3, 2026, reflecting a decrease of 5% from $2.018 billion in the same period last year. The decline in revenue was primarily attributed to reduced contingent activity within the European command in the Mission Technology Solutions (MTS) segment. Gross profit also fell by 12% to $265 million, down from $300 million, driven by the same factors affecting revenue and changes in licensing mix within the Sustainable Technology Solutions (STS) segment. Net income attributable to KBR decreased to $102 million, or $0.80 per share, compared to $116 million, or $0.88 per share, in the prior year.
In terms of operational performance, KBR's MTS segment generated revenues of $1.296 billion, a decrease of 6% from $1.381 billion, while the STS segment saw a slight decline of 2%, from $637 million to $627 million. The overall operating income for KBR was $180 million, down from $202 million, with MTS contributing $111 million and STS $113 million. The corporate segment reported an operating loss of $44 million, which was attributed to increased selling, general, and administrative expenses related to the planned spin-off of the MTS business.
KBR's strategic developments included the acquisition of Infrastar Limited for $35 million, which is expected to enhance its capabilities in sustainable technology solutions. The company also announced plans to spin off its MTS segment into a separate publicly traded entity, targeting completion by January 4, 2027. This move is intended to create a more focused business structure and is subject to customary conditions, including regulatory approvals.
The company reported a total backlog of $17.322 billion as of April 3, 2026, an increase from $16.864 billion at the beginning of the year. This backlog includes $12.622 billion from MTS and $4.700 billion from STS, indicating a strong pipeline of future work. KBR's cash and cash equivalents stood at $380 million, down from $500 million at the start of the year, with cash flows from operating activities increasing to $110 million from $91 million year-over-year.
Looking ahead, KBR anticipates continued opportunities in defense and sustainable technology sectors, driven by increased government spending and a focus on energy transition. The company is monitoring macroeconomic conditions, including inflation and geopolitical factors, which may impact its operations and investment strategies. KBR remains committed to maintaining a strong financial position while pursuing strategic growth initiatives and managing its capital effectively.
About KBR, INC.
KBR, Inc. provides engineering, technology, logistics, and scientific solutions primarily to government agencies and commercial clients worldwide. Its core segments include Government Solutions, offering full lifecycle support for defense, space, and intelligence programs, and Sustainable Technology Solutions, focusing on energy transition, decarbonization, and circular economy technologies. The company emphasizes innovation, digital capabilities, and sustainability to deliver mission-critical, differentiated services across defense, energy, and industrial markets.
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