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Business Segment Information
6 Months Ended
Jul. 03, 2026
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
We provide a wide range of professional services, and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, government programs and joint ventures represent a substantial part of our operations. Effective for fiscal 2026, a portion of a business unit within our Mission Technology Solutions segment became part of our Sustainable Technology Solutions segment. All information in this Quarterly Report on Form 10-Q is presented in accordance with the realigned reportable segments and all prior period information was recast to reflect the realigned reportable segments. We are organized into two core business segments, Mission Technology Solutions and Sustainable Technology Solutions and one non-core business segment as described below:

Mission Technology Solutions. Our Mission Technology Solutions business segment provides full life-cycle support solutions to defense, intelligence, space, aviation and other programs and missions for military and other government agencies primarily in the U.S., U.K. and Australia. KBR's full-spectrum solutions span research and development, advanced prototyping, acquisition support, systems engineering, C5ISR, cyber analytics, space domain awareness, test and evaluation, data analytics and integration, systems integration and program management, global supply chain management, operations readiness and support and professional advisory services across the defense, energy security and transition and critical infrastructure sectors. The disposal of HomeSafe is reported as discontinued operations and the operations are excluded from Mission Technology Solutions results reflected within our tables below. See Note 17. “Discontinued Operations” for additional information regarding the HomeSafe disposal.

Sustainable Technology Solutions. Our Sustainable Technology Solutions business segment is anchored by our portfolio of over 85 innovative, proprietary, sustainability-focused process technologies that reduce emissions, increase efficiency and/or accelerate and enable energy transition across the industrial base in four primary verticals: ammonia/syngas, chemical/petrochemicals, clean refining and circular process/circular economy solutions. STS also provides highly synergistic services including advisory and consulting focused on energy security, broad-based emission solutions, high-end engineering, infrastructure, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization, as well as our digitally-enabled operating and monitoring solutions. Through early planning and scope definition, advanced technologies and facility life-cycle optimization, our STS business segment works closely with customers to provide what we believe is the optimal approach to maximize their return on investment. Included in Sustainable Technology Solutions is the business of Infrastar Limited acquired on May 17, 2025. See Note 16. "Acquisition" to our condensed consolidated financial statements for additional information on this acquisition.

Corporate. Our non-core segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above.
In its operation of our business, our management, including our chief operating decision maker ("CODM"), evaluates the performance of our business segments based on operating income. Our CODM, who is our chief executive officer, utilizes operating income to evaluate segment results and is a factor considered in determining capital allocation among the segments. Our CODM analyzes selected segment balance sheet information for our business segments and for the Company as a whole. Information on each of our business segments and reconciliation to net income (loss) attributable to KBR from continuing operations within our condensed consolidated statements of operations is presented in the tables below.
Operations by Reportable Segment
Three months ended July 3, 2026
Dollars in millionsMTSSTSCorporateTotal
Revenues$1,308 $676 $— $1,984 
Cost of revenues(1,120)(571)— (1,691)
Gross profit188 105  293 
Equity in earnings of unconsolidated affiliates11 41 — 52 
Selling, general and administrative expenses(69)(43)(31)(143)
Spin-off costs and other charges(15)(1)(15)(31)
Other operating income (expense)(1)
Operating income (loss)116 103 (47)172 
Interest expense— — (35)(35)
Other non-operating expense— — (2)(2)
Income (loss) from continuing operations before income taxes116 103 (84)135 
Provision for income taxes— — (38)(38)
Net income (loss) from continuing operations116 103 (122)97 
Less: Net income attributable to noncontrolling interests included in continuing operations— — 
Net income (loss) attributable to KBR from continuing operations$116 $101 $(122)$95 
Supplemental Disclosures:
Depreciation and amortization$24 $11 $$42 
Purchases of property, plant, and equipment$(5)$(2)$(9)$(16)
Three months ended July 4, 2025
Dollars in millionsMTSSTSCorporateTotal
Revenues$1,336 $616 $— $1,952 
Cost of revenues(1,168)(494)— (1,662)
Gross profit168 122  290 
Equity in earnings of unconsolidated affiliates43 — 51 
Selling, general and administrative expenses(68)(40)(38)(146)
Other operating expense— — (1)(1)
Operating income (loss)108 125 (39)194 
Interest expense— — (41)(41)
Other non-operating income (expense)(2)(7)(8)
Income (loss) from continuing operations before income taxes106 126 (87)145 
Provision for income taxes— — (39)(39)
Net income (loss) from continuing operations106 126 (126)106 
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations(1)— 
Net income (loss) attributable to KBR from continuing operations$107 $124 $(126)$105 
Supplemental Disclosures:
Depreciation and amortization$27 $11 $$45 
Purchases of property, plant, and equipment$(10)$(2)$(2)$(14)
Six months ended July 3, 2026
Dollars in millionsMTSSTSCorporateTotal
Revenues$2,604 $1,303 $— $3,907 
Cost of revenues(2,247)(1,102)— (3,349)
Gross profit357 201  558 
Equity in earnings of unconsolidated affiliates21 82 — 103 
Selling, general and administrative expenses(136)(65)(61)(262)
Spin-off costs and other charges(16)(2)(28)(46)
Other operating income (expense)— (2)(1)
Operating income (loss)227 216 (91)352 
Interest expense— — (72)(72)
Other non-operating expense— — (2)(2)
Income (loss) from continuing operations before income taxes227 216 (165)278 
Provision for income taxes— — (78)(78)
Net income (loss) from continuing operations227 216 (243)200 
Less: Net income attributable to noncontrolling interests included in continuing operations— — 
Net income (loss) attributable to KBR from continuing operations$227 $214 $(243)$198 
Supplemental Disclosures:
Depreciation and amortization$49 $21 $13 $83 
Purchases of property, plant, and equipment$(12)$(3)$(13)$(28)
Total assets as of July 3, 2026$3,748 $2,026 $893 $6,667 
Six months ended July 4, 2025
Dollars in millionsMTSSTSCorporateTotal
Revenues$2,717 $1,253 $— $3,970 
Cost of revenues(2,380)(1,000)— (3,380)
Gross profit337 253  590 
Equity in earnings of unconsolidated affiliates15 78 — 93 
Selling, general and administrative expenses(132)(79)(75)(286)
Other operating income (expense)— (2)(1)
Operating income (loss)221 252 (77)396 
Interest expense— — (82)(82)
Other non-operating income (expense)(3)(3)(5)
Income (loss) from continuing operations before income taxes218 253 (162)309 
Provision for income taxes— — (82)(82)
Net income (loss) from continuing operations218 253 (244)227 
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations(1)— 
Net income (loss) attributable to KBR from continuing operations$219 $250 $(244)$225 
Supplemental Disclosures:
Depreciation and amortization$53 $20 $13 $86 
Purchases of property, plant, and equipment$(10)$(2)$(4)$(16)
Total assets as of January 2, 2026$3,848 $1,769 $967 $6,584