Transcripts
KBR, Inc.'s management answers for the business every quarter. These are the exchanges that explain it best — verbatim, from the call transcripts preserved in Sources. Each link opens the full transcript at that page in a new tab.
Q1 FY2026 Earnings Call — Q1 FY2026
The most recent call: how STS earns its margins, the base rate ex-LNG, the two-company spin, and sizing the NASA risk. · Open the full transcript →
How STS earns its margins: a tier from technology licensing down to JV-accessed domestic maintenance.
Chad Evans, EVP & CFO: As shown on the left, you can see the margin tiering across the STS portfolio. Higher margins are driven by technology licensing and differentiated engineering while international OpEx services, PMC and proprietary equipment fit in the middle. At the lower end is domestic maintenance, which we primarily access through our recurring JV structure, allowing us to participate with appropriately managed risks and returns. As shown on the right, that mix supports a 20%-plus weighted STS margin profile in 2026 driven by technology, engineering and JV participation.
p. 5 · Read in context →
Why KBR is splitting itself: two pure-play companies as the culmination of a decade-long transformation.
Stuart Bradie, President & CEO: The strategic rationale for the separation remains unchanged. This spin reflects the culmination of a decade-long portfolio transformation and will result in two independent pure-play companies with clear strategic focus, distinct investment profiles and dedicated leadership aligned to their end markets. As part of this process, we evaluated all strategic alternatives and concluded that a spin is the right path to unlock value and position both businesses for long-term success.
p. 4 · Read in context →
The base STS margin is ~15% ex the LNG JV, with technology and licensing mix the lever above 20%.
Stuart Bradie, President & CEO: In the quarter, excluding that project, we made 16.1% as Chad referenced. The circa 15% that we put in that slide generally is the mark for the base business as we look forward ex that LNG project. […] There are margin expansion opportunities on mix, particularly around technology, where margins in that part of the business can be well in excess of 20%. The more we do in licensing and earlier-stage engineering, the better for margins.
p. 7 · Read in context →
Sizing the NASA in-sourcing risk that management flagged: $50-60M at most this year, likely less.
Stuart Bradie, President & CEO: The main comment on NASA relates to the new administrator's push for greater in-sourcing — effectively moving contractor staff back onto government payroll. That is being discussed and is being evaluated today. We think that may or may not happen over the next little while, but if it does, it will be gradual. We called that out on the call. In terms of scale to KBR, it's on the order of $50 million to $60 million through the course of the year in the most conservative read, and likely a lesser impact than that in practice.
p. 7 · Read in context →
Q4 & Full-Year 2025 Earnings Call — Q4 FY2025
The annual call: 2025 proof points and record cash return, the quality-of-earnings case in both segments, and whether MTS could be sold rather than spun. · Open the full transcript →
2025 proof points: margins up 100+ bps, 110% cash conversion, a record $413M returned, LinQuest integrated and debt paid down.
Stuart Bradie, CEO: Operational execution was a clear strength in 2025. We expanded margins by more than 100 basis points and generated operating cash flow with a conversion rate of 110%, delivering over $30 million in cost savings and expect this margin and cash performance momentum to continue into 2026. And finally, deploy capital effectively. We delivered $413 million in capital to shareholders in the year, and that's the highest in the last decade, successfully integrated LinQuest and delevered the balance sheet within a year.
p. 2 · Read in context →
The STS quality-of-earnings case: EBITDA up 16% since 2023, outpacing revenue, on track for 20%-plus margins by 2027.
Chad Evans, CFO: That operating discipline is clearly showing up in the quality of earnings. Adjusted EBITDA has grown 16% since 2023, outpacing revenue growth and reflecting improved mix and cost execution. While margins were modestly elevated in 2025, we are on pace to meet our long-term margin target of 20% plus in 2027.
p. 4 · Read in context →
How MTS lifted margin quality: fixed-price, technically differentiated work chosen for returns, not volume.
Chad Evans, CFO: Since 2023, the integration of LinQuest, strong international execution, and a more selective business development approach have supported mid-single-digit revenue growth while improving margin quality. Importantly, that improvement has been driven by commercial acumen and contract discipline, including a greater focus on fixed price and technically differentiated work, not volume. Even with near-term headwinds from award timing and process activity, the team remained highly selective in bids and recompetes, prioritizing returns and contract terms over scale.
p. 4 · Read in context →
Pressed on whether MTS could be sold instead of spun, Bradie will not rule out any value-enhancing approach.
Sangita Jain (KeyBanc); Stuart Bradie, CEO: My first one is, are you still exploring a sale of that segment? Can you speak to the process if you are? And is that still an option as you move towards the split? […] I cannot answer that question. However, we are committed to shareholder value, and that is absolutely true. We are currently going through this spin process to demonstrate our commitment. We are open to any approaches that could enhance shareholder value.
p. 8 · Read in context →
Q3 FY2025 Earnings Call — Q3 FY2025
The call after the September spin announcement: the transaction laid out, the shutdown-resilience thesis, how STS technology revenue and backlog actually work, and whether buyers have circled. · Open the full transcript →
The spin, laid out: Mission Technologies becomes 'SpinCo,' New KBR keeps Sustainable Tech, two tax-free pure-play companies.
Stuart Bradie, CEO: Before the key takeaways, I will give you an update on the spin off, which was previously announced on September 24. We are spinning off our Mission Technologies segment, which I will refer to as SpinCo for now until a new name is announce later. New KBR will comprise the Sustainable Technology Solutions business. Our intent is to pursue this as a tax-free spin and upon completion of which KBR and its shareholders will benefit from ownership in two pure-play public companies with enhanced strategic focus, operational independence, and financial flexibility.
p. 4 · Read in context →
Why a U.S. government shutdown barely dents KBR: ~40% of revenue and 60%+ of EBITDA have zero federal-budget exposure.
Stuart Bradie, CEO: we'll remind you that circa 40% of KBR's group revenue and over 60% of adjusted EBITDA has zero exposure to the U.S. government spending budgets and of course, risk related to the shutdown. Within MTS U.S., the majority of our portfolio, as we've discussed many times, is comprised of mission essential operational work, many of which are well-funded multiyear programs. This provides short-term resilience to the government shutdown
p. 1 · Read in context →
How STS technology revenue breaks down: license fee, basic engineering, and lower-margin proprietary equipment, blended over time.
Stuart Bradie, CEO: Mark mentioned in his prepared remarks that this quarter we saw a significant amount of proprietary equipment reflected in the revenue. As we've discussed before, our technology sales consist of the license fee, basic engineering, and proprietary equipment. The overall combined margins align with our typical expectations; however, the proprietary equipment has a lower margin and there was an increase in that this quarter.
p. 9 · Read in context →
Why KBR reports STS backlog as a 6-8 month near-term figure rather than a headline total.
Stuart Bradie, CEO: If we looked at long-term backlog, the number would be so big that you wouldn't believe it, and rightly so because some of these projects go away. It's far better that we concentrate on what's real. For us, that sort of $5 billion or so in near-term backlog, which is 6 to 8 months.
p. 10 · Read in context →
Asked whether outside buyers have approached since the spin news, Bradie acknowledges inbounds but will not discuss them.
Tobey Sommer (Truist); Stuart Bradie, CEO: Could you tell us if you've received any interest from outside parties in acquiring either of the businesses since announcing the spin? […] Tobey, you know I can't answer that question. I'm sorry. I cannot answer that question. The thing that we have announced is going well in terms of under Mark's tutelage and is progressing as expected and on track. It is typical, I would say, that once you announce such things that you do get inbounds, but we are not at liberty to discuss them in any way, shape, or form, I'm sorry.
p. 8 · Read in context →
Q2 FY2024 Earnings Call — Q2 FY2024
Where the current shape was set: the LinQuest move into higher-end space and defense tech, the plan to collapse to two segments, and the ammonia technology moat. · Open the full transcript →
The LinQuest deal: 1,500 people in Space Force, JADC2 and national-security space, complementary with little overlap and double-digit margins.
Stuart Bradie, CEO: LinQuest has over 1,500 people. They do amazing work across National Security Space—think Space Force, Future Air Dominance, the Air Force, and JADC 2—and connected battlespace, meaning interoperability and digital. Their capability is highly complementary to KBR’s with little overlap, which I think gives exciting synergy opportunities. We've highlighted how those work on the slide. We're also excited about the fact that they have double-digit margins as well as a robust presynergy growth profile, which is terrific.
p. 3 · Read in context →
Foreshadowing the two-segment structure: collapse three units to two, managed globally to cut complexity and capture synergies.
Stuart Bradie, CEO: Following these points from Investor Day, with LinQuest as a catalyst, we believe there are opportunities to realign our business to operate even better based on our capabilities and markets. The objective of this realignment will be to reduce complexity, realize synergies like AUKUS and One Saudi as we presented at Investor Day. We will likely manage both segments globally to allow for greater standardization and business process optimization, which should drive efficiency. We will work on this through the remainder of 2024 and expect to report results along these lines in full year 2025. To be clear, the segments and enterprise targets for 2027 will remain intact through this realignment.
p. 4 · Read in context →
How the realignment reshuffles work: the Diriyah Gate mega-project moves from Government into Sustainable Tech.
Stuart Bradie, CEO: We'll move from three business units to two effectively with bits of what we've been describing as GSI. I'll give you a good example: The Diriyah Gate project, which is a full-on project management of a new sustainable city in Saudi Arabia, currently sits in the government segment but could—given its commercial contractual basis, its program management at scale, and its location—realize our One Saudi vision by leveraging our position across our broader customer base. That sort of project will move into STS going forward.
p. 4 · Read in context →
STS's technology moat: the only two blue-ammonia projects worldwide to reach FID both run on KBR's proprietary process technology.
Stuart Bradie, CEO: In fact, there are only two blue ammonia projects in the world that have reached final investment decision, and both are using KBR's technology. These are the OCI plant in Bowman, Texas, and Fertiglobes in the UAE, which will make KBR's proprietary process technology the first to produce blue ammonia. This, in addition to our industry position in green ammonia, puts us in a very strong position.
p. 2 · Read in context →
More calls
Q2 FY2025 Earnings Call — Q2 FY2025 · 10 pages · For the mid-2025 picture under the new MTS/STS segments: tariff and Middle East headwinds, EUCOM step-down, and $21.6B backlog. · Open →
Q1 FY2025 Earnings Call — Q1 FY2025 · 11 pages · The first quarter reported under the new Mission Tech / Sustainable Tech segments, with record backlog going into the year. · Open →
Q4 & Full-Year 2024 Earnings Call — Q4 FY2024 · 14 pages · The FY2024 annual: the segment realignment completed, first full-year view with LinQuest, and ~$21B backlog. · Open →
Q3 FY2024 Earnings Call — Q3 FY2024 · 8 pages · LinQuest's first quarter inside KBR: integration progress and its lift to the Defense & Intelligence business. · Open →
Q1 FY2024 Earnings Call — Q1 FY2024 · 8 pages · The pre-transformation baseline: KBR before LinQuest and before the two-segment realignment, under the old Government Solutions structure. · Open →