KBR will spin off its Mission Technology Solutions, or MTS, segment and form two independent, public companies with distinct products and services.
KBR said Wednesday it expects the spinoff to be completed by mid-to-late 2026 through a tax-free transaction, subject to final approval by KBR’s board and other customary closing conditions.
“Today’s announcement of our plan to spin off MTS and form two pure-play companies marks a major milestone and pivotal step in KBR’s evolution to unlock the next phase of value creation,” said Stuart Bradie, chair, president and CEO of KBR.
“After the spin-off, we expect both companies to retain key elements of KBR’s unique values-driven culture and proven execution approach, providing a strong foundation for future profitable growth and returns. Both businesses comprise top talent, deep domain expertise, proprietary technologies, and an unwavering focus on delivering customer value,” Bradie added.
Mark Sopp, executive vice president and chief financial officer of KBR and a three-time Wash100 awardee, will take on a new role to oversee the team responsible for the MTS spinoff.
MTS Spinoff
As a spinoff company, MTS will continue to scale as a provider of mission-critical capabilities for government customers worldwide with a focus on meeting national security and space priorities.
According to KBR, the spinoff business will continue to benefit from its long-duration contracts, capital light model, robust backlog, marketplace positions and diversified, up-market capabilities.
Stuard Bradie to Lead New KBR
Bradie will serve as chair, president and chief executive of the new KBR, which will consist of its Sustainable Technology Solutions, or STS, business, which is focused on delivering proprietary process technologies and related capabilities to help meet clients’ critical infrastructure and diversified energy requirements.
KBR will continue to provide advisory and consulting services, design, digitally enabled engineering and program management support for customers worldwide.
KBR Appoints Shad Evans as CFO
Shad Evans, senior VP of financial operations at KBR, will succeed Sopp as the company’s CFO, effective Jan. 5. After the spinoff, he will assume the role of CFO of the new KBR.
Evans previously served as SVP and CFO of KBR’s STS segment. Since joining the company in 2018, he has held roles of increasing responsibility, including SVP of finance operations and chief accounting officer.
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