KBR 2026년 3분기 실적 발표 컨퍼런스 콜: 지속 가능한 기술 성장 및 가이던스 재확인

KBR(NYSE: KBR)은 지속가능 기술(Sustainable Tech) 부문의 확장에 힘입어 미 항공우주국(NASA) 프로그램 축소에 따른 미션 기술(Mission Tech) 매출 감소를 상쇄하며 2026년 3분기 수익성 있는 성장을 기록했다고 발표했다. 경영진은 2026년 연간 가이던스 지표를 모두 재확인했으며, KBR과 트린직(Trinzic)의 계획된 분할이 차질 없이 진행되고 있다고 밝혔다.

핵심 요약

• 매출은 전년 동기 대비 5% 증가한 약 20억 3,000만 달러를 기록했으며, 조정 EBITDA는 12% 증가한 2억 6,800만 달러, 조정 EPS는 10% 증가한 1.12달러를 기록했다.
• 지속가능 기술 매출은 26% 증가한 7억 6,200만 달러를 기록했다. 수주잔고는 전년 동기 대비 50% 이상 증가한 사상 최대치인 58억 달러에 달했으며, 분기 수주순매출비율(book-to-bill)은 1.3배를 기록했다.
• 미션 기술 매출은 예상된 NASA 관련 악재로 인해 5% 감소한 약 12억 7,000만 달러를 기록했으나, 조정 EBITDA는 5% 증가했고 마진은 110bp 확대된 11.5%를 기록했다.
• 연초 대비 누적 조정 영업활동 현금흐름은 총 3억 7,100만 달러로 현금 전환율 95%를 나타냈다. 순차입금 비율은 KBR의 목표치인 2.5배를 하회하는 2.1배로 분기를 마감했다.
• 경영진은 모든 지표에 대해 2026년 연간 가이던스를 재확인했다. 전망치에는 미션 기술 매출이 전분기 대비 보합 또는 소폭 감소하고, 지속가능 기술은 전분기 대비 10%대 초반의 성장을 지속할 것이라는 가정이 반영되어 있다.
• KBR은 1월에 KBR과 트린직의 분할이 완료될 것으로 예상한다. 경영진 구성이 완료되었고 Form 10 등록 서류가 공개되었으며, 트린직의 채권 발행 준비가 11월에 진행될 예정이었다.

핵심 재무 데이터

해당 분기에는 일회성 세제 혜택과 관련된 이자 수익 1,500만 달러가 포함되었다. KBR은 이 혜택을 조정 EPS에서 제외했으며, 근본적인 실효 세율은 기존 가이던스 범위인 26%~28% 이내를 유지했다고 밝혔다.

사업 및 영업 실적

지속가능 기술

지속가능 기술 부문이 주요 성장 동력이었다. 기존에 수주한 프로젝트가 포트폴리오 전반에서 본격화되면서 매출은 전분기 대비 13% 증가했다. 분기 수주순매출비율은 1.3배를 기록했고, 최근 12개월 누적 수주순매출비율은 1.6배에 달했다. 브라운앤루트(Brown & Root) 합작법인을 제외한 연초 대비 누적 수주순매출비율은 1.5배였다.

수주잔고는 전년 대비 50% 이상 증가하며 사상 최대인 58억 달러로 늘어났다. 경영진은 이를 통해 4분기 및 2027년에 대한 실적 가시성이 더욱 높아졌다고 밝혔다.

중동 지역은 여전히 주요 동력으로 작용했다. KBR은 아부다비 ADNOC으로부터 새로운 프로젝트 관리 컨설팅 사업을 수주했으며, 아람코의 마르잔 해상 유전에서의 역할을 확대했다. 또한 사우디아라비아 디리야 게이트의 핵심 프로그램 관리 역할과 텍사스에서의 주요 엔지니어링 및 통합 프로젝트를 수주했다.

기술 수주 실적으로는 사우디아라비아 SABIC의 일산 3,500톤 규모 신설 공장에 적용될 KBR 정제 기술, 유럽 내 암모니아 개보수 프로젝트, 카자흐스탄의 지속가능 항공유 기술 수주 등이 포함되었다.

지속가능 기술 부문의 조정 EBITDA 마진은 19.3%로 하락했는데, 이는 주로 전년 동기 실적에 LNG 합작법인의 기여도가 더 높았기 때문이다. 해당 합작법인을 제외하면 분기 조정 EBITDA 마진은 13.9%로 전분기 대비 80bp 상승했다. 동일 기준 연초 대비 누적 마진은 14.3%였다.

미션 기술

미션 기술 부문의 매출 감소는 IMO 계약의 자체 처리 전환 영향과 이후 자체 처리된 2025년 ISOC 수주 상실 등 NASA 관련 물량 감소가 반영된 결과다.

물량 감소에도 불구하고 조정 EBITDA는 1억 4,500만 달러로 증가했다. 마진 확대는 비연결 합작법인의 기여도 증가, 마진이 낮은 NASA 프로그램 종료에 따른 포트폴리오 믹스 개선, 예상보다 빠른 프로젝트 정산 이익 등이 반영된 결과다.

미션 기술의 분기 수주순매출비율은 NASA 수주 취소를 제외하면 0.8배, 보고 기준으로는 0.6배를 기록했다. KBR은 예상 작업량에 맞추기 위해 향후 3년간 예상되었던 NASA 매출 잔여분을 수주잔고에서 제거했다. 경영진은 이와 관련된 2026년 매출 영향이 이미 가이던스에 반영되어 있다고 밝혔다.

해당 부문은 패트리어트 대공 및 미사일 방어 체계와 핵심 무선주파수 엔지니어링 지원 사업을 수주했다. 또한 파이어플라이는 본토 방어에 초점을 맞춘 미 국방부의 드론 대응 파일럿 프로그램에 사용될 4개 지향성에너지 시스템 중 하나로 선정되었다.

KBR은 결정을 기다리는 제출 제안서 규모가 99억 달러인 상태로 분기를 마감했다. 이의 제기가 진행 중인 수주건을 포함하면 수주잔고 외 파악된 기회 규모는 205억 달러에 달하며, 이 중 약 80%가 신규 사업이다.

경영진 가이던스

KBR은 2026년 연간 가이던스 지표를 모두 재확인했다. 경영진의 가정이 포함하는 내용은 다음과 같다.

• 미션 기술 부문의 매출이 전분기 대비 보합 또는 소폭 감소할 것.
• 지속가능 기술 부문의 전분기 대비 10%대 초반 성장세 지속.
• 지속가능 기술 부문의 연간 매출 10%대 중반 성장.
• LNG 합작법인을 제외한 지속가능 기술 부문의 연간 조정 EBITDA 마진 10%대 중반 전망.
• 유리한 정산 시기 효과가 완화됨에 따라 4분기 미션 기술 부문의 마진이 보다 정상적인 수준으로 회복될 것.
• 연간 현금흐름은 기존 가이던스 범위 내에서 유지되며, 현금 창출은 4분기에 집중될 것.

경영진은 1월 분할 일정이 차질 없이 진행 중이라고 밝혔다. KBR과 트린직은 별도 재무 보고 프로세스 등을 포함해 거래에 앞서 독립된 조직으로서 운영 비중을 늘려가고 있었다.

리스크 및 관전 포인트

• NASA 인소싱: 경영진은 현재 진행 중인 인소싱 프로세스가 2026년 중에 완료될 것으로 예상한다. 그러나 NASA의 추가 조치가 이루어질 경우 2027년 미션 기술 부문에 더 큰 악재로 작용할 수 있으며, 상반기 두 분기 동안 기저효과 부담이 예상된다.
• 조달 기간 연장: 미국 정부의 조달 진행이 지연되면서 미션 기술 부문의 수주순매출비율에 부담을 주고 있으나, 경영진은 자금 조달과 고객의 우선순위는 전반적으로 유지되고 있다고 밝혔다.
• 중동 대금 회수: 고객의 대금 지급 지연이 지속될 경우 약 2,500만~5,000만 달러의 현금흐름이 연말 이후로 이월될 수 있지만, KBR은 여전히 연간 현금흐름 가이던스 범위 내를 유지할 것으로 예상한다.
• BRIS 유지보수 지연: 브라운앤루트(Brown & Root) 합작법인 고객사들이 유지보수 및 셧다운 작업을 연기했다. KBR은 이러한 둔화세가 4분기에도 지속되다가 필수 유지보수가 진행되는 2027년에 활동이 회복될 것으로 예상한다.
• 플라크민스 LNG 잔여 기여분 감소: 경영진은 3분기 LNG 기여액이 약 1억 1,500만 달러였다고 밝혔으며, 마일스톤에 따라 4분기에는 2,500만~3,500만 달러가 추가될 것으로 예상하고 있다. 해당 기여액은 2027년에 감소할 것으로 전망된다.
• 수주 시기 및 이의 제기: 미국 국립과학재단 및 전술 지원 계약은 미 회계감사원(GAO)의 이의 제기 절차를 거쳐 다시 확보되었으나, 해당 수주는 아직 수주잔고에 포함되지 않았다.

애널리스트 Q&A 하이라이트

경영진은 예상된 영향이 이미 가이던스에 반영되었기 때문에 NASA 관련 수주잔고 감소가 2026년 손익에 추가적인 실질적 영향을 미치지 않는다고 밝혔다. KBR은 국립과학재단 남극 계약 및 기밀 수주건을 포함한 신규 수주가 2027년으로 들어서면서 의미 있는 상쇄 효과를 제공할 것으로 예상하고 있다.

지속가능 기술에 대해 경영진은 신설 공장과 기존 공장 업그레이드 모두를 아우르는 암모니아 사업 기회 파이프라인이 상당하며 전 세계적 규모라고 설명했다. 또한 KBR은 일부 프로젝트에서 사업 범위를 확장하여 프로젝트 매출, EBITDA 및 현금 창출 비중을 높였다고 밝혔다.

플라크민스 LNG 이익의 예상 감소와 관련해 경영진은 지속가능 기술의 강력한 수주순매출비율, 수주잔고의 질, 10%대 중반의 근본적 마진을 2027년까지 모멘텀을 이어갈 수 있는 요인으로 꼽았다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.

질의응답

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.