Kevin Healey

Kevin Healey from Wells Fargo, on behalf of Jerry Revich, asked for a rank-ordered growth outlook by end market for Sustainable Technology Solutions (STS) in 2026. He also inquired whether the fourth quarter's EUCOM activity represented a run rate or if a step down should be expected in Q1 for Mission Solutions.

Answer

President and CEO Stuart Bradie stated that a rank-ordered growth outlook for STS end markets would be detailed at the Investor Day, but reiterated the expectation for double-digit growth at the consolidated level, driven by expansion in Iraq and Saudi Arabia, LNG projects, and technology. CFO Shad Evans confirmed that Q4 EUCOM activity represents the run rate, but cautioned that Q1 and Q2 2026 would have tough comparisons due to elevated contingency levels of roughly $60-$70 million per quarter in the prior year.

Kevin Healey inquired whether the fourth quarter of 2025 represented the run rate for EUCOM activity within Mission Technology Solutions (MTS), or if a step down should be anticipated in Q1 2026.

Answer

Shad Evans (Executive Vice President and Chief Financial Officer, KBR) confirmed that Q4 2025 indeed represents the run rate for EUCOM activity. However, he cautioned that Q1 and Q2 2026 would face tough comparisons due to elevated contingency levels of approximately $60 million to $70 million per quarter in the corresponding periods of 2025, which have since normalized.