KBR announced a plan to pursue a tax-free spin-off of its Mission Technology Solutions (MTS) segment. Upon completion, KBR and its shareholders will benefit from ownership in two pure-play public companies with enhanced strategic focus, operational independence, and financial flexibility. KBR is targeting completion by mid-to-late 2026.
The formation of two independent companies with distinct product and service offerings better positions New KBR and SpinCo to deliver long-term profitable growth and value for customers, associates, and shareholders. Each company is expected to benefit from:
- Enhanced strategic and management focus
- Organizational agility and streamlined decision making
- Increased end market focus, prioritized commercial resources, and sharpened go-to-market approaches
- Greater capital allocation flexibility to support strategic imperatives, including potential future M&A transactions
- Distinct and compelling investment profiles
The transaction will be subject to final approval by KBR’s Board of Directors and other customary conditions.
New KBR (Sustainable Technology Solutions – “STS”)
New KBR, comprising the Sustainable Technology Solutions business, will deliver proprietary IP-protected, process technologies that reduce emissions, increase efficiency, and advance energy transition. With trusted global capabilities and a strong track record for delivery, New KBR will continue to provide synergistic advisory and consulting services, high-end digitally enabled engineering, design, and program management across the asset lifecycle to its customers globally.
After the spin-off of MTS, New KBR will leverage its global leadership across a diverse base of over 85 process technologies, where it is uniquely positioned to benefit across the ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy markets. New KBR will build on its proven track record of commercializing new technologies opposite future demand needs to capture meaningful market potential, supported by strong secular trends.
New KBR is expected to benefit from its low capital intensity, access to diversified revenue streams, and robust free cash flow with high conversion rates.
SpinCo (Mission Technology Solutions – “MTS”)
SpinCo is aligned to high demand national security and space priorities, with growing budgets driven by secular trends.
SpinCo is expected to continue 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. SpinCo has a history of successful, accretive acquisitions that have expanded capabilities and broadened its customer base. SpinCo will be well positioned post-spin to deliver profitable growth by leveraging its scaled, diversified, up-market capabilities and expansive global footprint.
Related Executive Leadership Updates
In connection with its plan to form two independent, publicly traded companies, KBR is announcing the following executive leadership updates:
- Post-spin, Stuart Bradie will serve as New KBR Chair, President, and Chief Executive Officer.
- Mark Sopp, current KBR EVP and Chief Financial Officer, will transition into a newly created role overseeing the team responsible for successfully spinning off MTS.
- Shad Evans, current SVP of Financial Operations, has been appointed KBR’s Chief Financial Officer, succeeding Mr. Sopp, effective January 5, 2026, and will assume the role of New KBR Chief Financial Officer post-spin. Prior to his current role, Mr. Evans served as SVP and Chief Financial Officer of STS, and before that as SVP of Finance Operations and Chief Accounting Officer. He joined KBR in 2018 after more than a decade of experience in the industry.
The Board of Directors has engaged a leading search firm to help identify executive candidates to lead SpinCo.