KBR, a global technology solutions company, has announced significant changes in its segment reporting and executive appointments to support its strategic direction. The company has realigned its segments, with the government solutions segment being renamed as mission technology solutions (MTS) and the sustainable technology solutions retaining its name. These changes are aimed at streamlining operations, reducing complexity and optimizing processes to drive growth and profitability.
In terms of financial targets, KBR has reiterated its 2027 financial targets, which include revenues of $11.5 billion, adjusted EBITDA of $1.15+ billion, adjusted EBITDA margin of 10% * 11%, and operating cash flow of $700+ million for the consolidated entity. Additionally, MTS is expected to achieve revenue CAGR of 11% * 15% and adjusted EBITDA margin of 9% * 10%, while STS is targeted to achieve revenue CAGR of 11% * 15% and adjusted EBITDA margin of ~20%.
Regarding executive appointments, Byron Bright, the current President of Government Solutions U.S., has been appointed to the newly created Chief Operating Officer (COO) role, effective May 2025. General Lester L. Lyles, the current chair, will retire from service post KBR’s 2025 annual meeting of stockholders, and Stuart Bradie, the President and CEO, will succeed him as chair.
Stuart Bradie, President and CEO of KBR, commented that the changes would ensure that KBR’s capabilities and talent are best aligned with its customers, help the company remain cost competitive, and accelerate its progress toward achieving its strategic objectives, including maximizing shareholder value.
The company will host a webcast on January 8, 2025, to discuss these updates and provide further insights into the strategic changes and executive appointments. Today the company's shares have moved -1.6% to a price of $56.89. If you want to know more, read the company's complete 8-K report here.
