KBR announced a $350 million Technical Support Services Contract (TSSC) with the U.S. Geological Survey (USGS) that will span five years under an Indefinite Delivery/Indefinite Quantity (IDIQ) framework. The award will support the Earth Resources Observation and Science (EROS) Center in Sioux Falls, South Dakota, and will provide advanced technical solutions—including cloud‑native architectures, artificial intelligence (AI), machine learning (ML), and enterprise‑scale IT infrastructure—to modernize USGS’s mission‑critical operations.
The contract is a key milestone for KBR’s Mission Technology Solutions (MTS) segment, which is slated to spin off into a separate publicly traded company by mid‑late 2026. The award is the fifth consecutive USGS contract over a 24‑year partnership, underscoring the long‑standing trust between the two organizations. The new deal strengthens MTS’s value proposition as a standalone entity, positioning it to capture additional high‑margin technology contracts in the federal science and technology services space.
The scope of the work includes the development of cloud‑native data pipelines, AI‑driven analytics, and long‑term preservation of global Earth‑observation records. The contract also supports USGS’s Landsat Next program, a three‑satellite constellation scheduled for launch in 2030 that will deliver higher spatial resolution and more spectral bands. By providing the technical backbone for Landsat Next, KBR will play a pivotal role in advancing Earth‑science capabilities that benefit agriculture, water‑resource management, and disaster response worldwide.
Mark Kavanaugh, KBR’s President of Defense, Intel and Space, said the partnership “enables USGS to deliver faster, smarter and more resilient solutions to address natural resource management and disaster response.” Kavanaugh highlighted that the integration of AI, cloud‑native systems and next‑generation engineering will accelerate data accessibility and improve decision‑making for federal agencies and the public.
Financially, KBR’s MTS segment reported 7 % revenue growth and a 6 % increase in adjusted EBITDA in Q2 2025, with an adjusted EBITDA margin of 10 %. In Q3 2025, MTS generated $1.406 billion in revenue, flat to the prior year, and operating income of $114 million. The new contract adds a predictable, high‑margin revenue stream that is expected to support margin expansion as the segment scales its technology services portfolio. The award also aligns with KBR’s broader strategy to shift toward high‑margin, technology‑driven contracts, complementing its defense and infrastructure businesses and reinforcing its position in the federal science and technology services market.
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