KBR reported higher third-quarter revenue, net income and adjusted earnings, while operating income slipped slightly from a year earlier. The engineering and government-services company also said it reached separation milestones as it prepares to spin off Trinzic as an independent public company in January 2027.
Trinzic plans to hold fixed-income investor education meetings ahead of the separation. KBR said both businesses have leadership teams in place and that it has implemented key systems and infrastructure needed to operate separately.
Third-quarter results
- Revenue for the quarter ended Oct. 2, 2026, rose 5% to $2.03 billion.
- Net income attributable to KBR increased 16% to $133 million. Net income from continuing operations was $130 million, compared with $116 million a year earlier.
- Operating income fell 3% to $186 million, and the operating margin was 9.2%.
- Adjusted EBITDA grew 12% to $268 million, with a 13.2% margin. Adjusted earnings per share rose 10% to $1.12.
- Diluted earnings per share attributable to KBR were $1.06, up 18%.
- Bookings and options totaled $2.4 billion, equal to 0.9 times revenue. The company’s bookings and book-to-bill figures exclude long-term U.K. private finance initiative contracts.
First nine months of fiscal 2026
- Revenue increased 1% to $5.94 billion.
- Net income attributable to KBR rose 9% to $331 million, while net income from continuing operations declined to $328 million from $341 million.
- Operating income fell 8% to $538 million, with a 9.1% margin.
- Adjusted EBITDA increased 6% to $777 million, with a 13.1% margin. Adjusted earnings per share were $3.06, up 4%.
- Diluted earnings per share attributable to KBR rose 12% to $2.60.
- Bookings and options were $6.1 billion, or 1.0 times revenue, excluding the long-term U.K. contracts.
What changes with the separation
KBR said it has published Trinzic’s Form 10, a key separation document, and put standalone systems and infrastructure in place. The planned spin-off would make Trinzic an independent public company; the company did not provide further transaction terms in the announcement.
KBR’s quarterly figures show growth in revenue, net income and adjusted EBITDA, alongside lower operating income. For the first nine months, adjusted EBITDA and per-share earnings were higher, while operating income and net income from continuing operations were below the prior-year period.