KBR successfully navigated Q3 fiscal year 2025, reporting $1.9 billion in total revenue and securing $4.2 billion in bookings and options. This performance established a robust 1.4x book-to-bill ratio on a trailing 12-month basis.
The company generated $115 million in net income and $240 million in adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA). Furthermore, KBR returned a total of $122 million in capital to shareholders through regular dividends and share repurchases.
The Mission Technologies Solutions (MTS) segment—which emerged from KBR’s government solutions realignment—drove significant activity, reporting $1.4 billion in Q3 revenues.
Though revenue remained flat compared to the prior year, the segment pushed adjusted EBITDA up 1 percent to $143 million. MTS ended the quarter with an impressive backlog and options totaling $19.7 billion.
MTS secured several major contracts during the period, highlighting KBR’s strong position in the space and defense sectors. Notably, the company won a $2.5 billion contract with the National Aeronautics and Space Administration (NASA) to support astronaut health, occupational health, and research.
MTS also secured task orders with the Air Force Research Laboratory and clinched a $99 million contract with the U.S. Space Force for the Design Implementation for Collaborative Environment.
KBR Executive Vice President and CFO Mark Sopp affirmed the resilience of the U.S. government contracting business, characterizing the majority of KBR’s federal work as essential.
Sopp noted that the segment maintains a stable foundation of ongoing work, citing a $2 billion U.S. funded backlog—equivalent to more than five months of the current revenue run rate. This stability, he confirmed, meant the company saw no material impact from the government shutdown in October.
Breaking down the segment’s performance, Sopp revealed that Defense and Intelligence grew by 14%, benefiting from international contributions and the integration of LinQuest. He emphasized LinQuest’s added volume in classified military space and digital modernization.
Conversely, the Readiness and Sustainment unit declined by 22%, primarily due to strategic shifts, including customer reductions in the operating tempo within the European Command Theater and prepositioned stock programs.
The Science & Space unit also declined slightly by 5%, citing decision delays and a lack of new awards from NASA, despite securing the HHPC recompete win.
President and CEO Stuart Bradie provided an update on the planned spinoff of the MTS segment. KBR announced its intention to separate MTS into two independent, public companies, anticipating completion by mid-to-late 2026 via a tax-free transaction.
Bradie confirmed preparations are advancing according to plan, with the company currently conducting audits of historical financial statements and preparing the necessary legal groundwork, including the Form 10.
The company deliberately established a separate project team to minimize disruption and allow teams to focus on core business operations.
