KBR plans to spin off Mission Technology Solutions unit

KBR Inc. (NYSE: KBR) announced plans to spin off its Mission Technology Solutions segment into a separate public company, with completion targeted for mid-to-late 2026.

The Houston-based engineering and construction company's board unanimously approved the tax-free spin-off, which would create two independent publicly traded entities. The new KBR would retain the Sustainable Technology Solutions business, while the spun-off company would operate the government services segment focused on national security and space applications.

The transaction requires final board approval and customary conditions, including regulatory approvals and a favorable tax ruling from the Internal Revenue Service. KBR said it expects the spin-off to be tax-free for both the company and its shareholders.

"Over the last decade, we have successfully transformed KBR into a leading provider of differentiated, innovative, up-market science, technology, and engineering solutions," said Stuart Bradie, KBR's chair, president and chief executive officer.

Following the spin-off, Bradie will lead the new KBR as chair, president and chief executive officer. Current Chief Financial Officer Mark Sopp will oversee the spin-off process, while Shad Evans, currently senior vice president of financial operations, will become CFO effective January 5, 2026.

The new KBR would focus on sustainable technology solutions, including process technologies for emissions reduction and energy transition across ammonia, chemicals, refining and circular economy markets. The company said it holds over 85 process technologies.

The spun-off Mission Technology Solutions company would serve government customers globally with capabilities in national security and space applications. KBR said this business benefits from long-duration contracts and a robust backlog.

Goldman Sachs serves as financial advisor for the transaction, with Wilmer Cutler Pickering Hale and Dorr and Baker McKenzie as legal counsel. KBR reaffirmed its fiscal year 2025 outlook and scheduled a conference call to discuss the announcement.

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