KBR Inc: $7.8bn Revenue, $23bn Backlog & MTS Spin-Off 2026

KBR, Inc. reported revenue of $7.8 billion in fiscal 2025, with a backlog and options total of $23.2 billion — up 13% year-on-year — and net income of $415 million, up 11%. The Houston-headquartered NYSE-listed company operates across two primary segments: Sustainable Technology Solutions (STS), covering energy technology licensing and engineering services; and Mission Technology Solutions (MTS), covering government defence, intelligence, and national security programmes. In February 2026, KBR announced a significant structural change: the planned spin-off of MTS into a standalone public company in H2 2026, separating its commercial engineering and technology business from its government work.

KBR Company Overview

KBR traces its origins to Kellogg, Brown & Root — a name built on decades of engineering and construction work across oil refining, petrochemicals, and large-scale infrastructure. The modern KBR was formed through a series of corporate separations and rebranding exercises, most recently operating as an independent NYSE company focused on technology-enabled engineering services and government solutions. The company employs approximately 30,000 people globally, with significant European operations anchored from its Leatherhead, UK office — serving as the centre of excellence for energy engineering and technology licensing across the UK and European markets.

KBR’s 2026 guidance targets revenue of $7.9-$8.36 billion with adjusted EBITDA of $980 million-$1.04 billion — representing 4% growth at the midpoint. Approximately 82% of 2026 revenue guidance is already covered by work under contract, providing strong visibility. The planned MTS spin-off is expected to generate one-time transition costs of $140-$180 million in 2026 but will ultimately create two more focused public companies with cleaner strategic profiles.

Sustainable Technology Solutions: The Energy Core

KBR’s Sustainable Technology Solutions segment is the business most relevant to the energy engineering market, delivering technology licensing, FEED, and EPC services for LNG, ammonia, hydrogen, and low-carbon fuels projects. The segment closed 2025 with a backlog of $4.2 billion — up 5% year-on-year — with Q4 book-to-bill of 1.6x, reflecting strong near-term commercial momentum.

KBR owns more than 100 proprietary process technologies that form the basis of its licensing business. Key technologies include the KBR Purifier™ Ammonia Process — one of the most widely deployed ammonia synthesis technologies globally — KBR Blue™ Hydrogen for low-carbon hydrogen production with integrated carbon capture, and the KBR SCORE™ Olefins Process for petrochemical feedstock production. This technology licensing model generates recurring, high-margin revenue streams that complement the more capital-intensive EPC delivery business.

Active STS project work in Europe and globally includes front-end engineering for the BP Teesside Hydrogen Project in the UK — one of the UK’s first large-scale blue hydrogen facilities — engineering and consultancy for the Equinor H2H Saltend decarbonisation project in the Humber region, and LNG technology licensing across multiple projects in Europe, the Middle East, and Africa. The LNG engineering demand driving KBR’s technology licensing pipeline is examined in our analysis of Bechtel’s LNG terminal engineering capabilities and our coverage of modular LNG pretreatment technology.

Mission Technology Solutions and the Planned Spin-Off

KBR’s Mission Technology Solutions segment is a large US and allied government contractor covering defence, intelligence, missile defence, space systems, and digital engineering programmes. MTS closed 2025 with a backlog and options total of $19.1 billion — up 15% year-on-year — with 40% funded, reflecting the long-term, recurring nature of government programme work.

In February 2026, KBR announced plans to separate MTS into an independent, publicly listed company in H2 2026. The rationale is strategic clarity: STS and MTS serve fundamentally different customer bases, procurement processes, and capital structures. The spin-off will allow each business to pursue its own growth strategy, capital allocation, and investor base without the valuation discount that often affects diversified conglomerates. KBR’s European defence and intelligence work — particularly in the UK and Australia — contributed to strong international MTS performance in 2025, with UK operations benefiting from increased defence spending across NATO member states.

KBR’s European Engineering Operations

KBR’s European presence is anchored from Leatherhead in Surrey, UK, with additional technical centres in the Netherlands and other European locations. The Leatherhead office is KBR’s primary hub for energy technology development, ammonia and hydrogen process engineering, and project management across European client accounts.

Key European client relationships span BP, Shell, TotalEnergies, Equinor, and multiple national energy companies pursuing decarbonisation investments. KBR’s role in European energy transition projects tends to be technology and FEED-oriented rather than full lump-sum EPC — a positioning that limits execution risk while preserving access to the most technically differentiated work in the market. The European energy transition engineering landscape that KBR operates within is covered in our roundup of the top engineering and construction companies driving Europe’s energy transition.

KBR Company Snapshot