KBR (NYSE:KBR) plans to spin off its Mission Technology Solutions segment as a standalone public company called Trinzic on Jan. 4, 2027, executives said at an investor day outlining the business’s growth and financial priorities.
Trinzic President and CEO Michael LaRouche said the separation is on track. The company enters the market with $5.1 billion in revenue and $483 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the 12 months through the third quarter of 2026.
Management expects a return to revenue growth after a slowdown in 2026, although NASA’s decision to bring some work in-house will weigh on the company next year. Trinzic also disclosed that it had been re-awarded the National Science Foundation’s Antarctica program.
Growth targets and NASA headwinds
Trinzic set a goal of 3% to 6% sustainable revenue growth, excluding the impact of NASA insourcing, along with an adjusted EBITDA margin above 9%. CFO Nick Veasey said the company is targeting more than $700 million in cumulative operating free cash flow after interest expense over the next three years.
Veasey described 2027 as a modest growth year and said the company would provide detailed guidance in February. NASA insourcing represents an approximately $200 million revenue headwind, or about 4%, as the affected contracts will not generate revenue in 2027, he said.
Comparisons will be difficult in the first half of 2027, Veasey said, with growth expected to accelerate in the second half as the Antarctica program ramps up and business development efforts advance. LaRouche said he believes the NASA-related headcount reductions will end in the fourth quarter of 2026, while NASA remains one of Trinzic’s largest customers.
Other factors that slowed 2026 growth included protest delays and U.S. European Command reprioritization, Veasey said. Approximately 80% of Trinzic’s 2027 work is under contract, with 6% exposed to recompete risk, he added.
Contract wins and market opportunities
Doug Hill, president of Trinzic’s U.S. operations, said the company has a team in Antarctica working on the transition and expects to be fully operational by March 2027.
Trinzic operates across four markets: global mission operations and support, health and human performance, space and intelligence, and defense systems modernization. LaRouche estimated the company’s total addressable market at more than $300 billion.
In space and intelligence, Jay Lennon, also identified as a president of Trinzic’s U.S. operations, said the company recently won a $1.1 billion, five-year National Oceanic and Atmospheric Administration contract called Mesonet. The business also supports NASA’s James Webb Space Telescope and science satellite operations at the Goddard Center, he said.
Chief Growth Officer Erik Biebighauser said Trinzic expects 14% growth in its defense systems modernization contract portfolio in 2027. He also highlighted FIREFLY, a laser-based drone defense system that he said had been selected by the Pentagon’s counter-drone task force for further testing in operational environments.
LaRouche said Trinzic does not primarily intend to become a product company, but will continue investing in opportunities such as FIREFLY and GEMSTONE, its modeling and simulation technology.
Debt reduction and capital allocation
Veasey said Trinzic expects to begin trading with net leverage of about 3.15 times adjusted EBITDA and will prioritize reducing that ratio to approximately 2.5 times over the medium term. Debt reduction is expected to be funded primarily through free cash flow, rather than asset sales, he said.
After deleveraging, management’s priorities include technology-focused acquisitions and opportunistic share repurchases. Veasey said the company plans to revisit a dividend within 12 to 24 months, subject to board oversight and approval.
International operations accounted for 14% of revenue but 22% of adjusted EBITDA, Veasey said. He identified the U.K.’s Aspire private-finance program as a significant contributor, with a contract running through 2041.
About KBR (NYSE:KBR)
KBR, Inc. is a global provider of engineering, technology and professional services. The company serves government and commercial customers through two main businesses: Government Solutions and Sustainable Technology Solutions. Government Solutions supports defense, intelligence, space and civilian agencies with services that include mission support, logistics, science and technology, and operations and maintenance. Sustainable Technology Solutions provides engineering, consulting and project services for energy, chemicals and other industrial markets, along with technologies related to lower-carbon energy and sustainable products.
