KBR (KBR) is seeing strengthening performance in its Sustainable Technology Solutions segment and easing headwinds in Mission Technology Solutions as the planned spinoff approaches, Oppenheimer said Monday in a report.

Revenue in the Sustainable Technology Solutions unit may increase by double-digit percentages in fiscal 2026, consistent with the company's long-term targets, the report said.

The Mission Solutions segment has moved past several headwinds, including DOGE-related freezes, NASA funding restrictions, and the US government shutdown, that had delayed awards, Oppenheimer said.

The spinoff of the Mission Solutions business is now likely in late Q3 as the Securities and Exchange Commission works through its shutdown-related backlog, and the separation should serve as a valuation catalyst as each business begins trading independently, the report said.

KBR is also positioned to report Q4 results in line with expectations and issue fiscal 2026 guidance that reflects easing comparisons in H2, the report said. Results are due Feb. 26.

Oppenheimer maintained its outperform rating on KBR stock with a $60 price target.

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