KBR (NYSE: KBR) has finalized its portfolio review and is consolidating its three business segments into two segments – technology solutions and government solutions – as part of a restructuring effort.
KBR said Thursday it will reinforce its technology solutions business through investments in the consulting practice in relation to energy efficiency, energy transition and sustainability and leverage digital remote monitoring platforms into technology-led industrial services to build more resilience into the two-segment business model.
“The transformation of our operating model greatly simplifies our business and allows us to further reduce risk and narrow our strategic focus. We continue to move upmarket into differentiated areas that provide attractive returns, consistent growth and strong cash conversion,” said Stuart Bradie, president and CEO of KBR. “This transformation is the culmination of a years-long shift away from high-risk and commoditized markets and toward more agile, technology-driven, knowledge-based delivery.”
KBR reported $1.4B in revenue and $106M in adjusted earnings before interest, taxes, depreciation and amortization during the second quarter of 2020 with a total backlog of $12.6B. Government solutions and technology solutions segments respectively posted book-to-bill ratios of 1.0x and 1.5x.