Oct 29, 2026 earnings call — Separation and Sustainable Tech growth
Sustainable Tech backlog reached $5.8 billion, supporting accelerating revenue growth and a mid-teens full-year revenue outlook.
Revenue $2.0B (est $2.0B) · EPS $1.12 (est $1.00)
Key quotes
"The strong bookings secured over the last 12 months are now translating into accelerating growth and revenue increasing 13% sequentially as projects continue to ramp across the portfolio."
"Finally, the separation continues to advance with key leadership, governance, and regulatory milestones in place ahead of the expected January 4th separation date."
"Mission Tech performed well through the expected NASA headwinds with strong margins and excellent cash conversion."
Analyst Q&A 4
NASA contract headwind size and timing
Q (Anuj Khandelwal · Goldman Sachs): Analyst asked how large the NASA headwind is on an annualized basis, when it lapses, and whether there is further de-booking risk.
A: Management said there is no material change to the 2026 expectations. MSOC was already contemplated in guidance and IMOC remains within the roughly $60 million impact outlined in Q1. They said the remaining contract value will come out of backlog with no additional P&L impact, but potential insourcing on additional NASA programs will create a larger headwind as they move into 2027 and they will provide more detail at Investor Day, offset by wins like the NSF Antarctica and a classified award.
"As we've said before, there's no material change to the 2026 expectations." — Shad Evans (CFO)
Q4 guidance drivers and Plaquemines runoff
Q (Andrew Azzi · Wells Fargo): Analyst asked what drives the implied step down in Q4 and how to think about the Plaquemines runoff through completion and into 1H next year, including any completion items.
A: Management said the full-year guidance remains the right framework and they expect MTS to be flat to slightly down in Q4 while STS should deliver the double-digit growth implied by the guide, with both businesses at normalized margins and no meaningful change to the tax rate or share count. They also said LNG contributions have been about $115 million through Q3 and they expect another $25 million-$35 million in Q4 depending on milestones, and that contribution steps down in 2027 with more specifics to be shared at Investor Day.
"We expect MTS to be flat to slightly down in Q4, and STS to deliver that double-digit growth that is implied in the guide." — Shad Evans (CFO)
NASA insourcing timing and ammonia pipeline
Q (Tobey Sommer · Truist): Analyst asked when the incremental NASA insourcing process might be completed and how to think about the ammonia pipeline, including project size and duration.
A: Management said they expect the NASA insourcing to be all done this year and that the first two quarter comps in 2027 will be challenging because they had full run rate of NASA in the first two quarters. On ammonia, they said the pipeline is significant and global, including new projects and revamps, that KBR is positioned to extend scope and capture larger shares of projects, and they will provide more detail at Investor Day.
"We expect that to be all done this year." — Stuart Bradie (CEO)
STS backlog delivery timing and margins
Q (Ian Zaffino · Oppenheimer): Analyst asked over what timeframe the strong STS backlog will be delivered and what the business margin looks like given Plaquemines' impact.
A: Management said that ex Plaquemines the business is sitting in the mid-teens on margin and that this has been consistent through the year. They reiterated they have been transparent about Plaquemines' contribution and impact on margins and expressed confidence that the bookings and quality of those bookings will translate into revenue and earnings to offset the Plaquemines equity and earnings piece, with more detail to come at Investor Day.
"Ex Plaquemines, we are sitting in sort of mid-teens, as you are aware, and that has been consistent through the course of the year." — Stuart Bradie (CEO)