Conferencia de resultados del T3 de 2026 de KBR: Crecimiento en tecnología sostenible y proyecciones reafirmadas

KBR (NYSE: KBR) registró un crecimiento rentable en el tercer trimestre de 2026, ya que la expansión de Sustainable Tech compensó con creces los menores ingresos de Mission Tech vinculados a las reducciones de programas de la NASA. La dirección reafirmó todas las proyecciones para el ejercicio completo 2026 y señaló que la separación planificada de KBR y Trinzic avanza según lo previsto.

Puntos clave

• Los ingresos aumentaron un 5% interanual hasta aproximadamente 2.030 millones de dólares, mientras que el EBITDA ajustado subió un 12% hasta los 268 millones de dólares y el EPS ajustado creció un 10% hasta 1,12 dólares.
• Los ingresos de Sustainable Tech crecieron un 26% hasta los 762 millones de dólares. La cartera de pedidos alcanzó un récord de 5.800 millones de dólares, un aumento superior al 50% interanual, con una ratio book-to-bill trimestral de 1,3x.
• Los ingresos de Mission Tech disminuyeron un 5% hasta aproximadamente 1.270 millones de dólares debido a los vientos en contra previstos de la NASA, pero el EBITDA ajustado aumentó un 5% y el margen se expandió 110 puntos básicos hasta el 11,5%.
• El flujo de caja operativo ajustado en lo que va de año sumó 371 millones de dólares, con una conversión de caja del 95%. El apalancamiento neto cerró el trimestre en 2,1x, por debajo del objetivo de 2,5x de KBR.
• La dirección reafirmó sus proyecciones para todo el año 2026 en todas las métricas. Las perspectivas asumen ingresos de Mission Tech estables o ligeramente inferiores en comparación trimestral, y un crecimiento secuencial continuado en el rango bajo de dos dígitos en Sustainable Tech.
• KBR prevé la separación de KBR y Trinzic en enero. Los equipos directivos ya están conformados, el Formulario 10 es público y se esperaba que los preparativos para una emisión de deuda por parte de Trinzic avanzaran en noviembre.

Datos financieros principales

El trimestre incluyó 15 millones de dólares en ingresos por intereses asociados a un beneficio fiscal discreto. KBR excluyó este beneficio del EPS ajustado y declaró que su tasa impositiva subyacente se mantuvo dentro del rango previsto del 26% al 28%.

Rendimiento comercial y operativo

Sustainable Tech

Sustainable Tech fue el principal motor de crecimiento. Los ingresos aumentaron un 13% secuencialmente a medida que se aceleraron los proyectos contratados anteriormente en toda la cartera. La ratio book-to-bill trimestral fue de 1,3x, mientras que el book-to-bill de los últimos 12 meses alcanzó 1,6x. Excluyendo la empresa conjunta Brown & Root, la ratio book-to-bill acumulada del año fue de 1,5x.

La cartera de pedidos ascendió a un récord de 5.800 millones de dólares, más de un 50% por encima del nivel del año anterior. La dirección señaló que esto proporciona una mayor visibilidad para el cuarto trimestre y para 2027.

Oriente Medio siguió siendo un impulsor clave. KBR obtuvo nuevos contratos de consultoría de gestión de proyectos con ADNOC en Abu Dabi y amplió su papel en el campo marino Marjan de Aramco. La empresa también se adjudicó un rol central de gestión de programas en Diriyah Gate en Arabia Saudí y una importante adjudicación de ingeniería e integración en Texas.

Las adjudicaciones tecnológicas incluyeron la tecnología de purificación de KBR para la planta proyectada de SABIC de 3.500 toneladas métricas por día en Arabia Saudí, proyectos de modernización de amoníaco en Europa y una adjudicación de tecnología de combustible de aviación sostenible en Kazajistán.

El margen EBITDA ajustado de Sustainable Tech disminuyó al 19,3%, debido principalmente a que el periodo del año anterior incluyó una mayor contribución de una empresa conjunta de GNL. Excluyendo esa empresa conjunta, el margen EBITDA ajustado trimestral fue del 13,9%, 80 puntos básicos más que el trimestre anterior. El margen acumulado del año sobre la misma base fue del 14,3%.

Mission Tech

El descenso de los ingresos de Mission Tech reflejó una menor carga de trabajo relacionada con la NASA, incluido el impacto de la internalización en el contrato IMO y la pérdida en 2025 de ISOC, que posteriormente se internalizó.

A pesar del menor volumen, el EBITDA ajustado aumentó a 145 millones de dólares. La expansión del margen obedeció a mayores contribuciones de empresas conjuntas no consolidadas, una combinación de cartera más favorable tras la conclusión de programas de la NASA de menor margen y beneficios por cierres de contratos antes de lo previsto.

La ratio book-to-bill trimestral de Mission Tech fue de 0,8x excluyendo la cancelación de la cartera de la NASA y de 0,6x sobre una base declarada. KBR retiró de la cartera de pedidos los tres años restantes de ingresos previstos de la NASA para alinearse con la carga de trabajo anticipada. La dirección afirmó que el impacto correspondiente en los ingresos de 2026 ya estaba incluido en las proyecciones.

La unidad de negocio obtuvo contratos para dar soporte a los sistemas de defensa aérea y de misiles Patriot, así como de ingeniería de radiofrecuencia de misión crítica. Además, FireFly fue seleccionado como uno de los cuatro sistemas de energía dirigida para un programa piloto antidrones del Pentágono centrado en la defensa nacional.

KBR cerró el trimestre con 9.900 millones de dólares en propuestas presentadas pendientes de resolución. Junto con las adjudicaciones en proceso de impugnación, la empresa identificó 20.500 millones de dólares en oportunidades fuera de la cartera de pedidos, de las cuales aproximadamente el 80% representaba nuevo negocio.

Proyecciones de la dirección

KBR reafirmó todas las métricas de sus proyecciones para el ejercicio completo 2026. Los supuestos de la dirección incluyen:

• Ingresos secuenciales estables o ligeramente inferiores en Mission Tech.
• Crecimiento secuencial continuado en el rango bajo de dos dígitos en Sustainable Tech.
• Crecimiento de ingresos de Sustainable Tech para todo el año en torno al 15%.
• Previsión de un margen EBITDA ajustado de Sustainable Tech para todo el año en torno al 15%, excluyendo la empresa conjunta de GNL.
• Retorno de los márgenes de Mission Tech a niveles más normales en el cuarto trimestre a medida que se modere el calendario favorable de cierre de contratos.
• Flujo de caja para todo el año que se mantiene dentro del rango de previsiones existente, con una generación de caja ponderada hacia el cuarto trimestre.

La dirección señaló que el cronograma de separación previsto para enero sigue según lo planeado. KBR y Trinzic han estado operando cada vez más como organizaciones independientes antes de la transacción, incluso mediante procesos de información financiera separados.

Riesgos y puntos a vigilar

• Internalización de la NASA: La dirección prevé que el proceso actual de internalización se complete durante 2026. Sin embargo, acciones adicionales por parte de la NASA podrían generar un mayor viento en contra para Mission Tech en 2027, esperándose comparativas difíciles en los dos primeros trimestres.
• Plazos de contratación más largos: La contratación del gobierno de EE. UU. avanza a un ritmo más lento, lo que pesa sobre el book-to-bill de Mission Tech, aunque la dirección indicó que la financiación y las prioridades de los clientes se mantienen intactas en general.
• Cobros en Oriente Medio: Los continuos retrasos en los pagos de los clientes podrían desplazar aproximadamente entre 25 y 50 millones de dólares de flujo de caja más allá del cierre del año, aunque KBR sigue esperando mantenerse dentro de su rango de flujo de caja anual.
• Aplazamientos de mantenimiento en BRIS: Los clientes de la empresa conjunta Brown & Root han pospuesto los trabajos de mantenimiento y paradas técnicas. KBR prevé que la debilidad continúe en el cuarto trimestre, con una recuperación de la actividad en 2027 a medida que se atienda el mantenimiento crítico.
• Vencimiento de GNL en Plaquemines: La dirección declaró que las contribuciones de GNL fueron de aproximadamente 115 millones de dólares en el tercer trimestre y prevé entre 25 y 35 millones de dólares adicionales en el cuarto trimestre, en función del cumplimiento de hitos. Se espera que la contribución disminuya en 2027.
• Calendario de adjudicaciones e impugnaciones: Los contratos de la Fundación Nacional de Ciencias y de Soporte Táctico se habían vuelto a asegurar tras el proceso de impugnación ante la GAO, pero la adjudicación aún no se había incluido en la cartera de pedidos.

Puntos destacados de las preguntas y respuestas con analistas

La dirección afirmó que la reducción de la cartera de pedidos de la NASA no genera un impacto adicional material en la cuenta de pérdidas y ganancias de 2026, ya que el efecto previsto ya estaba incorporado en las proyecciones. KBR espera que las nuevas adjudicaciones, incluido el contrato con la Fundación Nacional de Ciencias en la Antártida y una adjudicación clasificada, proporcionen compensaciones significativas de cara a 2027.

En cuanto a Sustainable Tech, la dirección describió la cartera de oportunidades en amoníaco como significativa y global, abarcando tanto instalaciones nuevas como actualizaciones de plantas existentes. KBR también señaló que ha ampliado su alcance en algunos proyectos, lo que incrementa su participación en los ingresos, el EBITDA y la generación de caja de dichos proyectos.

Respecto al descenso previsto en las ganancias de GNL en Plaquemines, la dirección señaló la solidez del book-to-bill de Sustainable Tech, la calidad de la cartera de pedidos y los márgenes subyacentes en torno al 15% como factores que sostienen el impulso continuado hacia 2027.

Transcripción completa de la llamada de resultados

Transcripción completa de la conferencia de resultados

Comentarios de la dirección

Operator

Hello, everyone. Thank you for joining us, and welcome to KBR's Third Quarter 2026 Earnings Call. [Operator Instructions].

I will now hand the conference over to Rachael Goldwait, Head of Investor Relations. Please go ahead.

Rachael Goldwait

Thank you, and good morning. Welcome to KBRs Third Quarter 2026 Earnings Call. Joining me today are Stuart Bradie, President and CEO; and Shad Evans, Executive Vice President and CFO. Stuart and Shad will cover highlights from the quarter, and then we'll open the line for your questions. Today's earnings presentation is available on the Investor Relations section of our website at kbr.com. As outlined on Slide 2, today's discussion includes forward-looking statements and certain non-GAAP financial measures. Additional information, including reconciliations to nearest GAAP measure can be found in the presentation appendix.

With that, I'll turn the call over to Stuart.

Stuart Bradie

Thank you, Rachael, and good morning, everyone. I will pick up on Slide 4. As you know, we start every earnings call with a Zero Harm Moment because looking after our people is fundamental to who we are. Over this past year, in particular, that commitment has been tested as our teams have taken on the enormous task of creating two independent companies, while, of course, continuing to deliver for our customers around the world, and for our shareholders. We saw this firsthand this quarter with the successful cutover of key systems, including the transition of Trinzic's payroll systems, a major milestone. And it's a great example of what can be accomplished when talented people come together with a common purpose.

What gives me great confidence is that the same culture that defines KBR today will endure in both KBR and Trinzic going forward. And that is a commitment to our people, our customers, our shareholders and doing the right thing. And I want to thank everyone across both organizations for their hard work, their teamwork and unwavering focus as we move closer to separation. With that, let's move to Slide 5. Today, there are four key messages from the quarter: First, strong execution drove profitable growth and reinforced our confidence in the full year outlook; second, Sustainable tech continues to deliver stellar growth both year-over-year and sequentially, supported by strong bookings momentum and broad-based demand; third, Mission Tech performed well through the expected NASA headwinds with strong margins and excellent cash conversion; and finally, the separation continues to advance with key leadership governance and regulatory milestones in place ahead of the expected January separation date.

Moving to Slide 6, on sustainable tech. Sustainable Tech delivered another strong quarter, driven by structural demand shifts across energy security, food security and critical infrastructure. Book-to-bill was 1.3x for the quarter, making another period of strong bookings and bringing trailing 12 months book-to-bill to 1.6x as well. Backlog increased to another record at $5.8 billion and that is up more than 50%, 5-0, from a year ago. Excluding the Brown & Root joint venture, BRIS, year-to-date book-to-bill was 1.5x supporting our continued revenue growth outlook. BRIS bookings were softer as operators deferred maintenance and shutdowns in response to market conditions. We expect those deferrals to continue into Q4, with activity expected to recover in 2027 as critical maintenance needs are addressed.

The strong bookings secured over the last 12 months are now translating into accelerating growth and revenue increasing 13% sequentially as projects continue to ramp across the portfolio. And this keeps us on track for our mid-teens full year revenue growth outlook. The Middle East remains a key growth driver with project activity demonstrating resilience amidst regional conflict. New PMC awards with ADNOC in Abu Dhabi and an expanded role on Aramco's Marjan offshore field reinforced our position with strategic customers and our participation in critical energy investment.

In technology, SABIC in Saudi Arabia, selected our purifier technology for a new 3,500 metric tonne per day facility, a second large-scale Ammonia award this year following the Pampa award in Argentina. Together with ammonia revamp wins in Europe, these awards demonstrate continued investment in food security and supply resilience. We also secured another pure SAF award this quarter for Kazakhstan's for sustainable aviation fuel project, reflecting continued demand for technologies that advance decarbonization. In Critical Infrastructure, we secured a central program management role at Diriyah Gate, one of Saudi Arabia's largest giga projects, and a major program engineering and integration award in Texas, both extend our role in delivering complex critical infrastructure. Altogether, our record backlog and strong pipeline gives us increasing visibility into growth in Q4 and onwards into 2027.

Moving to Slide 7. Turning to Mission Tech. The business continues to perform as expected. Michael has stepped seamlessly into the role and the team delivered another solid quarter, including strong margins that Shad will discuss shortly. During the quarter, we secured important work supporting Patriot Air and Missile defense and mission-critical radio frequency engineering, extending long-standing customer relationships across high priority national security missions. And recently, FireFly was selected as 1 of 4 directed energy systems for a Pentagon-counter drone pilot focused on homeland defense. This follows its selection to protect launches of Cape Canaveral and further demonstrates the relevance of our technology in addressing critical and emerging customer needs, both international businesses in the U.K. and Australia also performed well with strong execution and healthy pipelines entering Q4 and 2027.

In the U.S., procurement time lines continue to extend, weighing on book-to-bill, which was 0.8x, excluding the NASA in-sourcing debooking. Importantly, customers aren't walking away. Funding generally remains in place and priorities are intact, but projects are moving a little bit more slowly. Our NASA in-sourcing continued during the quarter, consistent with what we discussed earlier this year. As the program ramps down, we removed the remaining 3-year revenue from the backlog to align the expected workload, bringing reported book-to-bill to 0.6x in the quarter. The anticipated 2026 revenue impact was already reflected in our guidance, so our full year outlook remains unchanged.

Awards under protest remained largely unchanged during the quarter. And that includes the National Science Foundation and Tactical Support Contract which we secured through re-award following the GAO protest process. We are working with the customer on transition, although the award is not yet reflected in backlog. Finally, we ended the quarter with $9.9 billion of submitted proposals awaiting customer decisions. And together with the wins under protest, that represents $20.5 billion of opportunity outside backlog, approximately 80% of which is new business, underscoring the depth of growth opportunities across the portfolio. Overall, the business is performing well. The pipeline remains robust and recent wins reinforce Mission Tech's strong competitive position as we prepare to launch Trinzic.

On to Slide 8, and an update on the spin. My last slide today, I'll finish with a brief update on the separation progress. We continue to make excellent progress and have now completed many of the key milestones required to launch KBR and Trinzic as independent companies. The leadership teams are fully in place and the Boards have largely been established on both sites. We expect to announce the KBR and Trinzic Boards in the coming weeks and we're very pleased with the caliber of directors who will help guide the respective companies from day 1.

We also made important progress on the regulatory front. The Form 10 is now public, as you're aware, giving investors the first detailed look at Trinzic as a stand-alone company, and we have resolved the SEC's comments to date. The PLR continues to progress and we expect formal notification regarding the spins tax-free treatment soon. As I mentioned earlier, the successful cutover of key systems is another important step towards operational readiness. The organizations are increasingly operating as stand-alone businesses ahead of separation, including financial reporting, providing additional time to validate processes and ensure a smooth transition. And while I wasn't directly a part of the rating agency meetings, the feedback has been very positive. Preparations for the Trinzic debt offering continues to move forward, and we currently expect to launch in November.

We've seen strong interest from the market, particularly given the quality of the business and the current environment. In 2 weeks, we will be hosting Investor Days for KBR and Trinzic. Michael, our teams and I look forward to sharing more about each company's strategy, their opportunities and financial outlook. And for those interested in joining us, registration remains available through our Investor Relations website.

While there is still work to be completed, the key building blocks are now in place, and we remain firmly on track for separation. With that, I'll hand over to Shad.

Shad Evans

Thanks, Stuart. I'll pick up on Slide 10 with our consolidated third quarter results. The headline is another quarter of profitable growth with strong execution, driving higher revenue, adjusted EBITDA and adjusted EPS. Revenue was approximately $2.03 billion, up $97 million or 5% from the prior year. Growth in sustainable tech more than offset the expected NASA headwinds in Mission Tech, which I'll cover more in detail on the next slide.

Adjusted EBITDA increased $28 million to $268 million, and adjusted EBITDA margins expanded 80 basis points to 13.2%. The improvement reflects strong execution across both businesses, including EBITDA contributions from unconsolidated joint ventures, favorable portfolio mix and lower corporate costs. Adjusted EPS was $1.12, up $0.10 or 10% from the prior year, driven by stronger operating performance, lower below-the-line expenses and a lower share count from repurchase activity over the last 12 months.

The quarter also included $15 million in interest income associated with a discrete tax benefit that reduced our year-to-date tax rate below the guided range. We excluded that benefit from adjusted EPS, and our underlying tax rate remains in line with the guided range of 26% to 28%. Year-to-date adjusted operating cash flow was $371 million and conversion remained strong at 95%, reflecting improved collections during the quarter. We remain on pace to deliver our full year cash flow outlook with cash flow expected to be weighted towards the fourth quarter. I'll discuss the remaining collection timing considerations when I cover guidance. Overall, the quarter reflects strong execution and keeps us on track to deliver full year expectations.

Turning to Slide 11. Starting with sustainable Tech. Revenue increased $157 million or 26% to $762 million. The strong booking activity we've seen over the past year is now converting into accelerated revenue growth. Adjusted EBITDA increased $19 million or 15% to $147 million. Quarterly adjusted EBITDA margin was 19.3% compared with 21.2% in the prior year. Growth trailed revenue primarily due to higher contribution from an LNG joint venture in the prior period.

Importantly, excluding the LNG joint venture, the quarter-to-date adjusted EBITDA margin was 13.9%, up 80 basis points from the prior quarter. On a year-to-date basis, adjusted EBITDA margin, excluding the LNG joint venture, was 14.3%, and that's consistent with our mid-teens full year adjusted EBITDA margin outlook. And MTS revenue was approximately $1.27 billion, and that was down $60 million or 5% as anticipated reductions in NASA-related programs were partially offset by growth across defense and intel and international government customers. These NASA headwinds reflect the in-sourcing impact on the IMO contract and the 2025 loss of ISOC which has since been in-sourced.

Importantly, adjusted EBITDA was $145 million, up $7 million or 5% from prior year with adjusted EBITDA margins expanding 110 basis points to 11.5%. The improvement reflects higher unconsolidated joint venture contributions, favorable portfolio mix from the roll-off of lower-margin NASA programs and the earlier-than-expected timing of favorable closeouts. Year-to-date adjusted EBITDA margin was 11.4%, which remains above the full year margin outlook due to the timing of favorable closeouts. Margins in Q4 are expected to return to normative levels. Overall, Sustainable Tech delivered strong revenue and adjusted EBITDA growth. while Mission Tech increased profitability despite lower volume.

Turning to capital allocation on Slide 12. Our balance sheet remains strong, and our approach to capital allocation remains disciplined. Net leverage ended the quarter at 2.1x, below our 2.5x target, providing financial flexibility as we prepare for separation. Our immediate cash focus is collecting outstanding receivables and carrying the third quarter collections momentum into year-end. During the quarter, we returned $21 million to shareholders through our regular dividend. As we approach separation, we're taking a prudent approach to capital allocation, funding the remaining net spin-related costs while preserving flexibility and strong balance sheets for both companies.

Turning to Slide 13. Based on our year-to-date performance and current visibility, we are reaffirming our full year 2026 guidance on all metrics. Our outlook assumes flat to modestly lower sequential revenue in Mission Tech and continued low double-digit sequential growth in Sustainable Tech, supported by strong bookings and demand trends we continue to see across the portfolio. Cash collection and timing remains an area of focus, particularly in the Middle East. While the conflict has not changed our outlook, continued delays in customer collections could shift approximately $25 million to $50 million of cash flow beyond year-end. Despite that potential timing, we currently expect to remain within our full year cash flow guidance range.

With that, I'll hand it back to Stuart.

Stuart Bradie

Thank you, Shad, and on to Slide 14, and I'll close with the 4 takeaways. We are growing profitably. We're executing well, and this gives us confidence in our full year commitments. Sustainable tech continues to deliver exceptional results with record backlog and strong revenue growth as bookings secured over the past year continue to convert into execution. Mission Tech continues to perform well, delivering strong margins despite the expected NASA headwinds while continuing to win important work across the portfolio and globally. And we continue to achieve major separation milestones with the leadership, governance and operational foundations all in place, ready to launch two strong independent companies. We remain excited about the opportunities ahead for both KBR and Trinzic and look forward to sharing more at our Investor Day in 2 weeks. With that, we'll open the line for questions. Thank you.

Operator

[Operator Instructions]. Your first question comes from the line of Adam Bubes with Goldman Sachs.

Preguntas y respuestas

Anuj Khandelwal

This is Anuj on behalf of Adam. Can you help us frame the NASA headwind like how large it is on an annualized basis, when it laps and whether there is further debooking risk in it?

Shad Evans

Yes. Thanks for the question. As we've said before, there's no material change to the '26 expectations, MSOC was already contemplated in our guidance and [ IMO ] remains within the roughly 16 pack that we outlined in Q1. So really what you're seeing now is the remaining contract value coming out of backlog, really with no additional P&L impact. We are seeing some potential in-sourcing on additional NASA programs, which will create a larger headwind as we move into '27, but we'll provide more detail on that during Investor Day.

But importantly, we've got strong business momentum, including the NSF win on Antarctica and the classified award, which provides meaningful offsets heading into '27.

Operator

Your next question comes from the line of Jerry Revich with Wells Fargo.

Andrew Azzi

This is Andrew Azzi on for Jerry Revich. I just wanted to take a deeper look into the guidance. It implies a bit of a step down in 4Q with 1 quarter less, what gets you to the low end of -- I think it looks like a $60 million range from the top end to the low end? What's driving that in 4Q? Thank you.

Shad Evans

Yes. Thanks for the question, Andrew. We're -- we're really pleased, I think, with the year-to-date performance. We looked at the puts and takes for Q4. We continue to believe that our full year guidance is really the right framework. We expect MTS to be flat to slightly down in asked us to deliver that double-digit growth that's implied in the guide. And so with both businesses operating at normalized margins and no change meaningfully to the tax rate or share count. When you put all that together, we feel really comfortable about the full year outlook, and we're really focused now and what's ahead of us with both companies at our respective Investor Days.

Andrew Azzi

I appreciate that. I cut out a little bit, but I think I got most of what you were saying. For my next question, how can we think about the Plaquemines runoff quarterly through its completion and, let's say, 1H next year? And are there any completion items we have to be aware of, like, contingency releases or final close [indiscernible]? Appreciate any color there.

Shad Evans

Yes, sorry, the line is cutting out a little bit, Andrew. LNG contributions have been about $115 million for Q3. And so we expect another $25 million to $35 million in Q4, depending on milestone. That contribution does step down in '27, and we'll share that specific information with you during Investor Day and ahead of our guide. But really, the strength around the book-to-bill gives us confidence that we can absorb that headwind and still grow the business going into '27.

Operator

Your next question comes from the line of Tobey Sommer with Truist.

Tobey Sommer

Based on what you know and what you're hearing of incremental NASA outsourcing, when -- or in-sourcing, sorry. When might the process be completed just so we could get a sense for when that headwind for Trinzic would sort of cease based on our best information today?

Stuart Bradie

No, good question, Tobey. Thanks for that. We expect that to be all done this year. And so as we look into '27, the first 2 quarter comps are going to be challenging because we obviously have full run rate of NASA in the first 2 quarters. But as I said, I think it's all done this year. So we will start from a slate, if you like, and I'm sure the team will describe that in detail in Investor Day.

Tobey Sommer

And then could you describe on the new KBR side STS, what the pipeline looks like in Ammonia? And could you kind of refresh us just so we can interpret your prospective wins, what a project size from a dollar and duration looks like? I know they're not all equal, but a framework would be helpful.

Stuart Bradie

Thanks, Tobey, again, another good question. We're seeing, as I said in my prepared remarks, quite a structural change in that market around food security as countries start to look at sort of more security of supplies and supply chain resilience, having sort of growth in GDP and population as well as people moving into middle classes wanting better quality food, et cetera, around the world. So that's a really strong pool from the market. The pipeline of opportunities is significant. We're going to talk a little bit about that Investor Day, as you would expect.

But ultimately, that market is buoyant today, it's global. And it's not just new decks. It's actually revamps as well. As companies around the world start to look at how we can be more efficient and really sort of modernize the facilities given that market. And you've seen that coming through in Europe this quarter with the wins announced two wins in Europe. In terms of thinking about that in terms of our project size, again, we'll cover that a little bit more detail on Investor Day. But one out of, two, three projects is we've managed to position KBR to extend scope significantly. And so the share of the project wallet for want of a better description is substantially larger.

And so the revenue opportunity and associated EBITDA margins and cash around food security are very, very attractive. And that -- we feel that, that market is enduring and it's not just a flash in a pan, so to speak, given the structural change. So more to come at Investor Day, but certainly, we feel really good about that part of the business.

Operator

Your next question comes from the line of Ian Zaffino with Oppenheimer.

Ian Zaffino

Very strong backlog in SPS. What is the time frame that, that backlog will be delivered in? And maybe you could also talk about the margin of the business because I know there's tremendous growth on the top line, but we are kind of giving out some of the EBITDA line with Plaquemines next year. So just trying to -- and I know a lot of this will be discussed at the Investor Day, but maybe we could get a preview, as far as how are we thinking about that backlog being delivered? And then maybe what's the margin there and kind of do our own numbers.

Stuart Bradie

Again, very good question. And quite frankly, we have to get into that in Investor Day in more detail, but I think the headline would be very, I think, purposeful and transparent about the contribution from Plaquemines throughout the year and its impact on margins, ex-Plaquemines we're sitting in solid mid-teens, as you're aware, and that's been consistent for the course of the year. So that's just the way the business.

And as Shad said, we're confident we can -- with the bookings and the strength of those bookings and the quality of earnings associated with those bookings, we can continue our momentum into '27 and offset the Plaquemines sort of equity and earnings piece as we head forward. So you should take confidence in that book-to-bill translating into revenue and earnings to do just that. And that's probably all I'll say now because we've got to really get more detail on Investor Day, and we'll break it down in a very clear and transparent way where we're starting from, et cetera, as we head forward.

Operator

We have reached the end of the Q&A session. I will now turn the call back to Stuart Bradie for closing remarks.

Stuart Bradie

Thank you for joining us this morning, a fairly clean quarter, but very exciting as well. The businesses continue to perform the growth around SPS, particularly as standard, but the performance on margins in both businesses was terrific as well as the cash generation. The progress on separation remains firmly on track. All things are converging and we're having more and more confidence around achieving not only the regulatory pieces of this, but actually the hard work around systems and the bifurcation of those, and we're testing them and they're working the way they should. So we're feeling really good about that. So all up, looking forward to Investor Day and describing in detail more about both businesses.

As I said, Michael and I and the whole team are looking forward to that to show our way, so to speak and we'll see you there. Thank you very much.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.