KBR Inc. (KBR) stock fell Wednesday after the engineering and technology company outlined medium-term financial targets ahead of its planned separation into two publicly traded businesses.

The company expects its Mission Technology Solutions business to become an independent company named Trinzic Inc. in January 2027.

KBR Outlines Growth Targets Through 2029

At its Investor Day in New York, KBR unveiled financial objectives for its standalone Sustainable Technology Solutions business.

The company expects organic revenue to grow at a compound annual rate of more than 10% from 2026 through 2029.

Additionally, KBR aims to achieve an adjusted EBITDA margin above 12% and free cash flow conversion exceeding 85% from 2027 through 2029.

However, these objectives exclude megaprojects involving more than $1 billion in KBR's scope and potential future capital investments.

The company emphasized that the targets represent financial objectives rather than formal guidance.

Strong Backlog Supports Growth Strategy

KBR reported approximately $5.8 billion in backlog as of the third quarter of 2026. It also identified a $54 billion pipeline of qualified business opportunities.

Moreover, existing customer relationships generate more than 75% of the company's revenue, supporting its focus on repeat business.

CEO Stuart Bradie said KBR's streamlined structure would allow management to focus resources on profitable growth, stronger cash generation and long-term shareholder returns.

The company sees opportunities across energy security, infrastructure resilience and food and fertilizer markets.

Spin-Off And Capital Allocation Plans

KBR expects to complete the proposed Trinzic spin-off on Jan. 4, 2027, subject to board approval and customary conditions.

Meanwhile, the company plans to prioritize investment in its core operations, strategic acquisitions and shareholder returns.

KBR also aims to maintain net leverage below 2.5 times trailing 12-month adjusted EBITDA, including acquisitions.

KBR Price Action: KBR shares were down 2.62% at $37.88 at the time of publication on Wednesday, according to market data.