KBR reported third‑quarter fiscal 2025 revenue of $1.93 billion, flat versus the prior year, and operating income of $191 million, up 10 % year‑over‑year. Net income attributable to KBR was $115 million, a 15 % increase, and diluted earnings per share were $0.90, up 20 %. Adjusted earnings per share were $1.02, up 21 %.
Mission Technology Solutions generated $1.406 billion in revenue, flat to the prior year, and operating income of $114 million. The flat revenue was driven by growth in Defense & Intel, offset by reductions in Readiness & Sustainment (EUCOM) and NASA funding restrictions in Science & Space. Sustainable Technology Solutions reported $525 million in revenue, down 1 %, and operating income of $118 million, a 13 % increase. Adjusted EBITDA for the quarter was $240 million, a 10 % rise, and the adjusted EBITDA margin was 12.4 %. Adjusted EBITDA margin for STS rose to 23.4 % from 20.5 % in the prior year, driven by strong execution on an LNG project and higher equity in unconsolidated affiliates. Sequentially, Q2 2025 revenue was $2.0 billion and adjusted EBITDA was $242 million.
KBR returned $122 million to shareholders through $100 million in share repurchases and $22 million in dividends. Operating cash flow was $198 million, up 29 % year‑over‑year, and operating cash conversion was 152 %. The company maintained a net leverage ratio of 2.2×.
The company revised its fiscal‑year 2025 revenue guidance, lowering the low‑end outlook to $7.75 billion and the high‑end to $7.85 billion, down from the previous $7.90 billion–$8.10 billion range. The revision reflects the termination of the HomeSafe contract and the impact of a U.S. government shutdown on award activity, which has slowed the pace of new contracts and delayed bids under protest.
On September 24 2025, KBR announced its intention to spin off the Mission Technology Solutions segment into a separate publicly‑traded company. The spin‑off is expected to be completed by mid‑to‑late 2026, creating two distinct entities: “New KBR” focused on Sustainable Technology Solutions and “SpinCo” focused on Mission Technology Solutions.
CEO Stuart Bradie highlighted that despite revenue headwinds, KBR achieved double‑digit adjusted EBITDA growth, strong cash conversion, and maintained operational momentum with a book‑to‑bill ratio above 1.0. He noted that 60 % of adjusted EBITDA comes from non‑U.S. government customers, providing stability during the government shutdown.
The construction and engineering industry remains sensitive to government contract cycles, but KBR’s focus on technology and engineering solutions positions it within the industrials sector, with diversified revenue streams and cost‑management initiatives supporting margin expansion.
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