KBR, Inc. reported a modest increase in revenue for the fiscal year ending January 2, 2026, with total revenues reaching $7.786 billion, up from $7.710 billion in the previous year. This 1% growth was primarily driven by increased defense and intelligence program revenues, particularly following the acquisition of LinQuest Corporation in August 2024. The company's gross profit also saw a rise, increasing by 5% to $1.150 billion, while operating income rose 18% to $778 million. Net income attributable to KBR was $415 million, compared to $375 million in the prior year, reflecting a 11% increase.
In terms of operational changes, KBR's Mission Technology Solutions (MTS) segment generated $5.581 billion in revenue, a slight increase from $5.555 billion in fiscal 2025. The Sustainable Technology Solutions (STS) segment experienced a more significant growth of 2%, with revenues rising to $2.205 billion from $2.155 billion. The company also reported a substantial increase in equity earnings from unconsolidated affiliates, which rose 96% to $210 million, largely due to contributions from an LNG project within the STS segment.
KBR's workforce expanded to approximately 36,000 employees by the end of fiscal 2025, with an additional 9,000 employees in unconsolidated joint ventures. The company continues to focus on strategic growth areas, including defense modernization and sustainable energy solutions. Notably, KBR announced plans to spin off its MTS segment into a separate publicly traded company, targeting completion in the second half of fiscal 2026. This move is expected to create a more focused operational structure and enhance shareholder value.
The company reported a backlog of unfulfilled orders totaling $16.864 billion as of January 2, 2026, an increase from $16.605 billion the previous year. Approximately 36% of this backlog is expected to be recognized as revenue within the next year. KBR's financial position remains strong, with cash and cash equivalents totaling $500 million, up from $342 million in the prior year. The company is also in compliance with all financial covenants related to its debt agreements, which include a $1 billion revolving credit facility and various term loans.
Looking ahead, KBR anticipates continued growth driven by defense spending and energy transition initiatives. The company is closely monitoring macroeconomic conditions, including inflation and geopolitical factors, which could impact its operations and financial performance. KBR's management remains optimistic about its strategic direction and the potential benefits of the planned spin-off, which is expected to enhance operational efficiency and shareholder value.
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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