KBR Announces Strategic Intent to Spin Off Mission Technology Solutions

Core Viewpoint - KBR, Inc. plans to pursue a tax-free spin-off of its Mission Technology Solutions (MTS) segment, aiming to create two independent public companies with enhanced strategic focus and operational independence [1][2][11]. Strategic Rationale and Benefits - The spin-off is expected to position both New KBR and SpinCo for long-term profitable growth and value creation, leveraging their distinct product and service offerings [2][5]. - KBR's transformation over the past decade has established it as a leading provider of innovative science, technology, and engineering solutions [2][6]. - Post-spin, both companies will retain KBR's values-driven culture and focus on delivering customer value [2][4]. New KBR (Sustainable Technology Solutions - "STS") - New KBR will focus on sustainable technology solutions, delivering proprietary technologies that reduce emissions and enhance energy efficiency [3][4]. - The company will leverage over 85 process technologies across various markets, including ammonia/syngas and clean refining [4][6]. SpinCo (Mission Technology Solutions - "MTS") - SpinCo will serve as a leader in government services, focusing on national security and space priorities, benefiting from increasing budgets [7][8]. - The company is expected to maintain a capital-light model with diversified, long-duration contracts, ensuring predictable cash flow and a robust backlog [8]. Executive Leadership Updates - KBR has engaged a search firm to identify executive candidates for SpinCo, with Mark Sopp transitioning to oversee the spin-off process [9][10]. - Shad Evans has been appointed as KBR's Chief Financial Officer, effective January 5, 2026, and will assume the CFO role for New KBR post-spin [14]. Transaction Details - The spin-off is targeted for completion by mid-to-late 2026 and is intended to be tax-free for KBR and its shareholders [11][12]. - The transaction will require final approval from KBR's Board of Directors and other customary conditions [11]. Fiscal Year 2025 Outlook - KBR reaffirms its previously issued fiscal year 2025 outlook, indicating stability in its financial projections [12].