KBR, Inc. (NYSE: KBR) has announced its strategic intent to pursue a tax-free spin-off of its Mission Technology Solutions (MTS) segment, with the transaction expected to be completed mid-to-late 2026. This move comes as the culmination of a decade-long portfolio transformation for KBR, focusing on differentiated science, technology, and engineering solutions for mission-critical applications.
Upon completion of the spin-off, KBR and its shareholders will have ownership in two independent, pure-play public companies * New KBR and SpinCo. New KBR will continue to build on its sustainable technology solutions global leadership across a diverse base of process technologies and differentiated services, while SpinCo will continue to scale as a highly trusted government services provider globally for critical national security and space.
The formation of two independent companies is expected to bring about enhanced strategic and management focus, organizational agility, increased end market focus, and greater capital allocation flexibility to support strategic imperatives. This move is anticipated to unlock significant value creation for customers, associates, and shareholders.
New KBR, comprising the Sustainable Technology Solutions business, will deliver proprietary IP-protected process technologies that reduce emissions, increase efficiency, and advance energy transition. It is expected to benefit from low capital intensity, access to diversified revenue streams, and robust free cash flow with high conversion rates.
On the other hand, SpinCo, aligned to high demand national security and space priorities, is expected to benefit from its capital light model, diversified, long duration contracts with predictable cash flow, robust backlog, and strong marketplace positions driven by customer intimacy and deep domain expertise.
In connection with the plan to form two independent, publicly traded companies, KBR has announced executive leadership updates. Post-spin, Stuart Bradie will serve as New KBR's Chair, President, and Chief Executive Officer. Mark Sopp, the current KBR EVP and CFO, will transition into a newly created role overseeing the team responsible for successfully spinning off MTS. Shad Evans has been appointed as KBR’s Chief Financial Officer, effective January 5, 2026, and will assume the role of New KBR Chief Financial Officer post-spin.
KBR has reaffirmed its previously issued fiscal year 2025 outlook, and is planning to discuss this announcement on a conference call on September 24th, 2025 at 8:00 a.m. ET.
Goldman Sachs & Co. LLC is acting as financial advisor to KBR, and Wilmer Cutler Pickering Hale and Dorr LLP and Baker & McKenzie LLP are serving as legal counsel. Corbin Advisors, LLC is serving as strategic investor relations advisor.
KBR, Inc. is a global company delivering science, technology, and engineering solutions to governments and companies around the world, with approximately 37,000 employees worldwide and operations in over 29 countries. Today the company's shares have moved 3.75% to a price of $49.635. For the full picture, make sure to review KBR, INC.'s 8-K report.
