KBR said its board has approved a tax-free spinoff of its Mission Technology Solutions segment, creating two independent publicly traded companies with distinct offerings.
KBR said the separation will allow both companies to sharpen strategic focus, operate with greater agility and pursue long-term profitable growth.
Each company is expected to benefit from streamlined decision-making, increased end-market focus, more flexible capital allocation and clearer investment profiles. KBR added that the spinoff would also provide resources to support strategic priorities, including potential mergers and acquisitions.
New KBR, built around the Sustainable Technology Solutions business, will focus on proprietary process technologies that reduce emissions, increase efficiency and advance the energy transition. The company will also continue providing advisory and consulting services, digitally enabled engineering and program management across the asset lifecycle.
KBR said New KBR will leverage a portfolio of more than 85 process technologies, supported by strong demand trends and low capital intensity. The company expects diversified revenue streams, robust free cash flow and a track record of commercializing technologies aligned with future needs.
SpinCo will concentrate on national security and space priorities, benefiting from growing budgets and long-duration contracts with predictable cash flow. KBR said SpinCo’s capital-light model, strong backlog and history of acquisitions will position it for profitable growth and global expansion.
The company also announced leadership changes tied to the planned separation:
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Stuart Bradie will serve as chair, president and CEO of New KBR.
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Mark Sopp, KBR’s current EVP and CFO, will move into a new role overseeing the spinoff of Mission Technology Solutions.
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Shad Evans, current SVP of financial operations, has been appointed CFO effective Jan. 5, 2026, and will assume the role of New KBR CFO post-spin. Evans joined KBR in 2018 after more than a decade in the industry.
KBR said it intends for the spinoff to be tax-free to shareholders and expects completion by mid-to-late 2026, subject to board approval and customary conditions.