KBR Shares Climb 5% On Plans To Spin Off Mission Technology Segment Into Separate Public Company
KBR announced that, following the spin-off, Stuart Bradie will serve as the new Chair, President, and Chief Executive Officer of KBR.
KBR (KBR) shares jumped nearly 5% on Wednesday after the company announced its plan to pursue a tax-free spin-off of its Mission Technology Solutions (MTS) segment.
Upon completion, KBR and its shareholders will benefit from ownership in two pure-play public companies with enhanced strategic focus, operational independence, and financial flexibility.
The company stated that the New KBR, comprising the Sustainable Technology Solutions (STS) business, will deliver proprietary, IP-protected process technologies that reduce emissions, increase efficiency, and advance the energy transition. The spinoff company, on the other hand, is aligned to high-demand national security and space priorities, with growing budgets driven by secular trends.
Retail sentiment on KBR remained unchanged in the ‘bullish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits.
KBR announced that, following the spin-off, Stuart Bradie will serve as the new Chair, President, and Chief Executive Officer of KBR. At the same time, Mark Sopp, current KBR CFO, will transition into a newly created role overseeing the team responsible for successfully spinning off MTS.
The company said that Shad Evans, current senior vice president of financial operations, has been appointed as the company’s new CFO, succeeding Sopp, effective Jan. 5, 2026. KBR stated that it is targeting completion of the spin-off by mid-to-late 2026.
Truist Securities expressed bullishness on KBR’s announcement to separate the company’s MTS and STS segments into distinct entities. The firm “likes” that the new KBR could trade for seven to 11 times the premium from current company levels. Truist also noted that it expects minimal contract overlap and stranded costs.
Shares of KBR have declined nearly 14% this year and approximately 23% over the last 12 months.
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