KBR, Inc. (KBR): History, Ownership, Mission, How It Works & Makes Money

KBR, Inc. is a global force in science, technology, and engineering, but with a revised 2025 revenue guidance of between $7.75 billion and $7.85 billion and a massive $23.4 billion backlog, how does a company that supports everything from defense to space missions actually make its money? You're looking at a firm that just secured an estimated $2.459 billion NASA contract for astronaut health while simultaneously driving its Sustainable Technology Solutions segment to deliver a 14% increase in year-to-date Adjusted EBITDA, showing a defintely profitable pivot. This dual focus-on mission-critical government services and high-margin, lower-carbon technologies-is the core of KBR's story, and understanding its history and planned spin-off of Mission Technology Solutions is crucial for mapping its future value.

KBR, Inc. (KBR) History

KBR, Inc. is a company with a complex history built on the foundation of two separate engineering and construction pioneers. You need to understand this dual lineage-Brown & Root and M.W. Kellogg-to grasp its current focus as a science, technology, and engineering solutions provider.

The company's modern trajectory is defined by a decade-long transformation, culminating in the September 2025 board approval to spin off its Mission Technology Solutions (MTS) segment. This move, expected in mid-to-late 2026, will create two independent, pure-play public companies, fundamentally reshaping KBR's future around its high-growth Sustainable Technology Solutions business. This is a big deal.

Given Company's Founding Timeline

Year established

The earliest foundational company, Brown & Root, began operations in 1919.

Original location

Brown & Root started in Texas, originally focused on road construction.

Founding team members

The Brown & Root company was founded by brothers George Brown and Herman Brown, along with Herman's brother-in-law, Dan Root. The other key predecessor, M.W. Kellogg, was founded in New York in 1901 by Morris Woodruff Kellogg.

Initial capital/funding

The initial capital for Brown & Root is not public, but the founders pooled their resources to start the business, which began with teams of wagons and mules to pave rural roads. It was a humble start.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The journey from a Texas road-builder to a global science and technology firm is a story of deliberate, transformative pivots. You can see the shift in the numbers: Trailing Twelve Month (TTM) revenue as of September 30, 2025, reached approximately $8.641 billion, with TTM operating income at about $901 million, reflecting the success of its current strategy.

The most significant transformation was the strategic pivot away from its traditional, capital-intensive Engineering and Construction (E&C) business toward a low-capital-intensity, high-technology model focused on Government Solutions and Sustainable Technology Solutions (STS). This was a defintely smart move.

• The Halliburton Era and Separation: The decades under Halliburton Company (starting in 1962) provided massive scale, but the 2007 spin-off was crucial, giving KBR the autonomy to shape its own destiny outside of the oilfield services giant.
• The Tech-Focused Acquisition Spree: KBR used strategic acquisitions to rapidly build its Government Solutions segment, which is now a major revenue driver. For example, the acquisition of Centauri for about $800 million significantly enhanced its capabilities in the space and defense sectors.
• The Sustainability Commitment: KBR has increasingly focused on sustainability, achieving carbon neutrality starting in 2019 and setting an objective to achieve net-zero carbon emissions by 2030. This focus is a core part of its Sustainable Technology Solutions business, which licenses proprietary process technology for things like sustainable aviation fuel.
• The 2025 Spin-Off: The planned tax-free spin-off of the Mission Technology Solutions segment is the final act of this transformation. It will allow the remaining company, 'New KBR,' to focus solely on its STS business, which includes over 85 process technologies and is positioned to benefit from the global energy transition. This move is designed to unlock meaningful value creation for shareholders by creating two independent, focused entities.

For a detailed breakdown of the company's financial standing, you should check out Breaking Down KBR, Inc. (KBR) Financial Health: Key Insights for Investors.

KBR, Inc. (KBR) Ownership Structure

KBR, Inc.'s ownership structure is dominated by institutional investors, a typical profile for a major publicly traded defense and technology solutions provider, giving them significant influence over strategic decisions and corporate governance.

The company is currently executing a strategic realignment, including a planned spin-off of its Mission Technology Solutions (MTS) segment, a near-term event that directly impacts the focus of its executive leadership as of late 2025. [cite: 8 (from first search), 12 (from first search)]

KBR, Inc.'s Current Status

KBR, Inc. is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol KBR. [cite: 5 (from first search), 10 (from first search)] This public status means its shares are freely bought and sold, and the company is subject to all U.S. Securities and Exchange Commission (SEC) reporting requirements.

As of November 2025, the company's market capitalization is approximately $5.59 billion, with roughly 127 million shares outstanding. [cite: 5 (from first search)] The company's stock price was around $40.50 per share on November 19, 2025, reflecting a decline of over 30% from the prior year, partly due to the termination of the major TRANSCOM contract in June 2025. [cite: 7 (from first search), 13 (from first search)] You defintely need to track how the upcoming spin-off impacts the valuation of the remaining Sustainable Technology Solutions business.

KBR, Inc.'s Ownership Breakdown

Institutional investors hold the vast majority of KBR, Inc.'s stock, which is common for an S&P 400 component. This concentration means that large asset managers like BlackRock, Inc. and The Vanguard Group, Inc. exert the most significant voting power. [cite: 7 (from first search)]

Here's the quick math: with nearly 97% of the stock held by institutions, the focus for management is heavily weighted toward the concerns of professional money managers, particularly around capital allocation and segment performance. For a deeper dive into who is buying and why, you should check out Exploring KBR, Inc. (KBR) Investor Profile: Who's Buying and Why?

KBR, Inc.'s Leadership

The company's strategy is steered by a seasoned executive team, with a recent focus on streamlining operations following the segment realignment in early 2025 and the subsequent departure of the Chief Operating Officer.

• Stuart J. B. Bradie: President, Chief Executive Officer (CEO), and Chair of the Board. He has led the company since 2014 and assumed the Chair role in May 2025. [cite: 6 (from first search)]
• Mark W. Sopp: Executive Vice President and Chief Financial Officer (CFO). He is the current CFO, but the company has announced that he will transition to a new role overseeing the spin-off, with Shad E. Evans becoming the new CFO effective January 5, 2026.
• Jay Ibrahim: President of Sustainable Technology Solutions (STS). He leads the segment that will form the core of the company after the planned spin-off.
• Tom Kavanaugh: President of Defense, Intel and Space. He assumed this role in May 2025, overseeing a key part of the Mission Technology Solutions (MTS) segment. [cite: 6 (from first search)]
• Ken Hill: President of Readiness and Sustainment. Appointed in May 2025, he oversees a global portfolio of national defense projects, also within the MTS segment. [cite: 6 (from first search)]

Following the resignation of the Chief Operating Officer in July 2025, the presidents of the two main business segments-Mission Technology Solutions and Sustainable Technology Solutions-now report directly to CEO Stuart Bradie. This simplifies the operating structure and puts more direct operational accountability on the segment leaders.

KBR, Inc. (KBR) Mission and Values

KBR, Inc.'s purpose extends far beyond its $7.7 billion in revenue from the 2024 fiscal year; it's about solving the world's most complex challenges through technology and sustainability. The company's cultural DNA is built on a commitment to integrity and a vision for a safer, more secure, and sustainable world.

You're looking for the bedrock of a company, the non-financial drivers that map to long-term resilience, and for KBR, that means a clear focus on technology-led, differentiated solutions. This is the stuff that matters when you're evaluating a company's staying power in a volatile market.

Given Company's Core Purpose

KBR's core purpose is to be the indispensable partner for governments and commercial clients, using its deep expertise in science, technology, and engineering to tackle problems others can't. This focus is what allowed them to secure over $1.5 billion in awards via the Information Analysis Center Multiple Award Contract (IAC MAC) vehicle in 2024, showing their mission is defintely tied to concrete, high-value work.

Official mission statement

The company's mission is to deliver innovative, high-quality, technology-led solutions for its customers, and exceptional, sustainable value for all stakeholders. It's a commitment to providing differentiated and sustainable solutions that help clients overcome their most challenging problems.

• Deliver differentiated, technology-led solutions.
• Create exceptional, sustainable value for all stakeholders.
• Help customers solve their most critical and challenging problems.

Vision statement

KBR's vision is ambitious but clear: to create a safer, more secure, and sustainable world. They aim to achieve this by bringing together the best minds to deliver critical technologies and solutions.

• Strive to create a safer, more secure, and sustainable world.
• Be the preferred solutions provider globally.
• Deliver technologies that help customers accomplish their most critical missions.

This vision is backed by action; for instance, in 2024, KBR secured seven ammonia projects globally, focusing on grey, blue, and green ammonia, which directly supports the energy transition and their sustainability goals. You can see how this plays out in the market by Exploring KBR, Inc. (KBR) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

KBR's official motto is a simple, powerful guarantee to its customers and a reflection of its culture: We Deliver®.

Here's the quick math: a motto like this isn't just a slogan; it's a promise that underpins their business model, especially in the government services sector where reliable execution is everything. It's why they are trusted with complex, multi-year contracts.

The company's core values, known as the ONE KBR Values, are the operational framework for this promise. They are the cultural DNA that ensures execution across a global workforce of approximately 29,000 people.

• We Value Our People: Foster diverse, inclusive, and safe environments.
• We Deliver: Uncompromising commitment to innovative, high-quality, technology-led solutions.
• We Are People of Integrity: Value honesty, trust, courage, and ethical behavior.
• We Empower: Give people the tools and culture to be proactive decision-makers.
• We Are a Team of Teams: Prioritize collective achievement over individual success.

KBR, Inc. (KBR) How It Works

KBR, Inc. operates as a global provider of science, technology, and engineering solutions, primarily serving government and commercial clients by delivering high-end, mission-critical services and proprietary sustainable technologies.

The company generates value by leveraging its deep technical expertise across two core, high-growth segments: Mission Technology Solutions (MTS) and Sustainable Technology Solutions (STS), which together drove year-to-date revenue of $5.9 billion through the third quarter of fiscal year 2025.

KBR, Inc.'s Product/Service Portfolio

KBR, Inc.'s Operational Framework

KBR's operational framework is built on a 'low-capital-intensity' model, which means they focus on high-margin, fee-for-service work-like engineering, technology licensing, and long-term government contracts-rather than massive, capital-heavy construction projects. This is a defintely smart move for better cash flow and lower risk.

• Technology-First Delivery: The STS segment drives value by licensing its proprietary process technologies for complex projects, such as securing seven ammonia projects globally in 2025, which provides high-margin revenue with minimal capital outlay.
• Contractual Stability: The MTS segment secures large, long-term, cost-plus or time-and-materials government contracts, which offer predictable revenue streams. The total backlog and options reached a robust $23.4 billion as of Q3 2025.
• Digital Integration: Operational efficiency is enhanced by embedding digital technology and data analytics into program management, especially in complex areas like military logistics and space mission operations.
• Cash Conversion Focus: Management is keenly focused on converting earnings into cash, achieving an operating cash conversion of 152% in Q3 2025, which is a strong sign of disciplined working capital management.

KBR, Inc.'s Strategic Advantages

KBR's market success stems from a few clear competitive differentiators that allow them to win large, complex contracts and maintain a strong margin profile.

• Dual-Market Resilience: The company's two distinct segments-government/defense and commercial technology-provide a balanced and resilient business portfolio. This diversity helps stabilize earnings, especially when one sector faces headwinds, like the U.S. Government shutdown delays seen in late 2025.
• Proprietary Technology Moat: The STS segment holds a significant advantage through its intellectual property (IP), specifically in sustainable solutions like ammonia and LNG technologies. This IP allows KBR to capture value through licensing fees, which typically command Adjusted EBITDA margins of 20%+, much higher than traditional engineering services.
• Deep Government Access: The MTS segment benefits from long-standing, embedded relationships with key U.S. agencies like the Department of Defense (DoD) and NASA. This access is a major barrier to entry for competitors, securing contracts like the estimated $2.459 billion award to support astronaut health and performance.
• Strategic Simplification: The planned spin-off of the Mission Technology Solutions segment, targeting completion by mid-to-late 2026, is a key strategic move. This is intended to create two more focused, pure-play companies, which could help Breaking Down KBR, Inc. (KBR) Financial Health: Key Insights for Investors by unlocking greater shareholder value and enhancing strategic focus for each entity.

KBR, Inc. (KBR) How It Makes Money

KBR, Inc. generates revenue by providing high-end, mission-critical science, technology, and engineering solutions primarily to government and commercial clients globally. The company essentially operates as a diversified professional services and technology firm, monetizing its deep technical expertise through long-term government contracts and proprietary technology licensing.

KBR, Inc.'s Revenue Breakdown

As of the third quarter of fiscal year 2025, KBR's revenue is heavily concentrated in its government services segment, which provides a stable, high-visibility revenue stream. The company's total year-to-date revenue through Q3 2025 was approximately $5.9 billion. The following breakdown uses the Q3 2025 segment results to show the current revenue mix.

The Mission Technology Solutions segment, which reported $1.4 billion in revenue for Q3 2025, focuses on defense, intelligence, and space programs, providing everything from systems engineering to operational support. Its revenue was flat year-over-year in Q3 2025, as growth in Defense & Intelligence was offset by reductions in Readiness & Sustainment.

Sustainable Technology Solutions (STS) revenue was $525 million in Q3 2025, down 1% year-over-year, due to delays in new awards and headwinds in certain markets like petrochemicals. Still, this segment is a key driver of margin expansion due to its high-value technology licensing business.

Business Economics

The economics of KBR's business are defined by two distinct, yet complementary, models: the low-risk, volume-driven government model and the high-margin, intellectual property (IP)-driven technology model.

• MTS Contract Structure: The government work is largely based on Cost-Plus and Fixed-Price Incentive contracts, meaning KBR is shielded from most cost overruns, providing a predictable, low-volatility income stream. This stability is the defintely foundation of their business.
• STS Margin Driver: The STS segment's high profitability comes from proprietary technology licensing, particularly in liquefied natural gas (LNG), ammonia, and hydrogen. This IP-based revenue has low capital expenditure (CapEx) needs, leading to a much higher Adjusted EBITDA margin, which was about 23.5% in Q3 2025.
• Strategic Pivot: KBR is actively pursuing a strategic spin-off of its Mission Technology Solutions segment, targeting completion by mid- to late 2026. This is a classic move to unlock shareholder value by separating the stable, lower-margin government business from the higher-growth, higher-margin technology licensing business.
• Backlog Visibility: The company's massive backlog and options, totaling $23.4 billion as of Q3 2025, provides exceptional revenue visibility for years to come. That's a huge buffer against short-term market volatility.

KBR, Inc.'s Financial Performance

KBR's financial health as of November 2025 shows a strong bottom-line performance despite some top-line challenges, particularly contract delays and the removal of the HomeSafe joint venture revenue. The focus on margin expansion is clearly paying off.

• Fiscal Year 2025 Guidance: KBR narrowed its full-year 2025 revenue guidance to a range of $7.75 billion to $7.85 billion. However, the profit outlook remains robust, with Adjusted EBITDA reaffirmed at $960 million to $980 million.
• Profitability Metrics: The Q3 2025 Adjusted EBITDA margin expanded to 12.4%, up over 100 basis points year-over-year, demonstrating successful cost management and a shift toward higher-value work.
• Earnings Per Share (EPS): Adjusted EPS for the full fiscal year 2025 is projected to be between $3.78 and $3.88, a strong indicator of shareholder value creation.
• Cash Flow Strength: Operating cash flow from continuing operations for the first nine months of 2025 reached $506 million, with a high cash conversion rate, which is a sign of efficient working capital management.

Here's the quick math: The reaffirmed profit guidance despite a lowered revenue forecast means they are delivering more profit per dollar of revenue. This focus on margin over pure volume is a sign of a mature, well-managed business. If you want to dive deeper into who is betting on this strategy, check out Exploring KBR, Inc. (KBR) Investor Profile: Who's Buying and Why?

KBR, Inc. (KBR) Market Position & Future Outlook

KBR, Inc. is strategically pivoting toward a higher-margin, technology-driven model, focusing on its Mission Technology Solutions (MTS) and Sustainable Technology Solutions (STS) segments, which is driving strong profitability despite revenue headwinds. The company is navigating near-term contract delays and a revenue guidance revision for 2025, but its substantial backlog of $23.4 billion as of Q3 2025 suggests a resilient long-term trajectory.

Competitive Landscape

While KBR competes in the broad, multi-trillion-dollar engineering services market, its true competitive arena is in specialized, high-tech government and sustainability solutions. The estimated market share below reflects the broader global engineering market, which helps contextualize the scale difference, but KBR's strength lies in its high-margin niches, like its STS segment, which boasts an adjusted EBITDA margin of approximately 22.3%.

Opportunities & Challenges

The company's strategy is to capitalize on secular mega-trends-global defense modernization and the energy transition-which is why it is focusing on its two core segments. Here's the quick map of what's ahead, because you need to know where the money is coming from, and what could stop it.

Industry Position

KBR occupies a unique position as a technology-focused professional services firm, not a traditional low-margin construction contractor. The planned spin-off is defintely the biggest strategic move on the horizon.

• The Mission Technology Solutions (MTS) segment is a critical player in the US government's defense, space, and intelligence sectors, with a backlog of $19.7 billion as of Q3 2025.
• The Sustainable Technology Solutions (STS) segment is a high-margin leader in proprietary process technologies for ammonia, hydrogen, and circular plastics, with an adjusted EBITDA margin of 23.4% in Q3 2025.
• Overall, the company maintained its 2025 Adjusted EBITDA guidance at $960-$980 million and Adjusted EPS at $3.78-$3.88, demonstrating operational resilience in a volatile award environment.

For a detailed breakdown of the company's financial health and profitability metrics, see Breaking Down KBR, Inc. (KBR) Financial Health: Key Insights for Investors.