KBR third quarter EPS beats estimates while Sustainable Technology backlog hits record $5.8 billion

KBR reported third quarter 2026 revenue of $2.03 billion, up 5% year-over-year, slightly missing the $2.04 billion analyst estimate. However, diluted EPS of $1.06 exceeded expectations of $1.01, driven by high-margin execution in the technology segment. The company remains on track to spin off its Mission Technology Solutions business as 'Trinzic' on January 4, 2027.

Key Highlights

• Sustainable Technology Solutions (STS) revenue surged 26% to $762 million, reflecting the aggressive conversion of recent bookings.
• Mission Technology Solutions (MTS) revenue fell 5% to $1.27 billion, impacted by anticipated NASA headwind and federal civilian volume reductions.
• STS backlog reached a record $5.8 billion, up from $5.5 billion in the prior quarter, providing significant multi-year visibility.
• KBR reaffirmed its full-year 2026 adjusted EPS guidance of $3.87 to $4.22 and revenue target of $7.90 billion to $8.36 billion.