Mission Tech

Growth Strategy

Hello!

Welcome to the Mission Tech Strategy overview and snapshot of our vision to continue to transform our business, offer critical solutions for our customers and set goals for organic growth through 2030.

This is the next chapter of the transformation that began with Project Velocity, identifying where we're going and how we'll get there. You're encouraged to read thoroughly the content below that captures our vision, mission and passion to lead the industry with tech-forward solutions for a safer, more secure world.

The content below reflects our long-term objectives, identity, business model, and high-level growth priorities. A clear understanding of these elements and our strategy will aid you and your teams to develop and execute strategic growth plans within and across business units and support the integration of Mission Tech’s strategy with KBR’s broader strategy. You are a critical part of our success, so please take the time to review and understand the strategy.

You'll see that the heart of everything we do puts the customer first, ensuring strong relationships that inform our strategy and path forward.

CONTENTS

Vision and Strategic Objectives

Environment: Key Market Trends

Mission Tech Growth Strategy

Vision and Strategic Objectives

KBR Vision

We strive to create a safer, more secure and sustainable world by bringing together the best and brightest to deliver technologies and solutions that help our customers accomplish their most critical missions and objectives.

Mission Technology Solutions

KBR has been on a journey for the last eight years to build an at-scale global defense, national security, and space business that delivers for its customers through pioneering application of emerging technologies guided by our mission expertise. As we look toward 2030, Mission Tech strategic objectives are:

Be a market-recognized leader in national security, global defense, and space.

Deliver double-digit organic revenue growth and margins.

Sustain our values, mission focus, and delivery excellence

Environment: Key Market Trends

Between now and 2030, we have identified the four macro themes below that are shaping and will continue to shape our environment and customer demand signals. These themes pose challenges for our customers but also offer significant opportunity for Mission Tech.

Increasing Global Threat Environment

Increasing global investment in national security, defense, and space capabilities. National security is a critical concern, driven by the rise of China as a true peer threat to the U.S. that is aggressively seeking to disrupt the post-WWII geopolitical environment, fraying of U.S./Europe relationships, in addition to regional instability in the Middle East, Eastern Europe, and around the world.

Space

Space is now recognized more clearly than ever as a pivotal domain underpinning both our civil economy and national security. It acts as a catalyst for defense, enables global commerce, and facilitates advancements of science expanding our ability to sustain our planet and explore the universe. The commercial and civil space markets are transforming, with private space firms expected to gain increasing pre-eminence in launch, human spaceflight, and satellite communication domains over the next five years.

Digital Technology

An explosion of digital technologies that is transforming the nature of core missions across these markets.

The digital revolution is reshaping all industries, with AI, data analytics, software, cloud, and cyber capabilities at the forefront. These technologies are advancing rapidly, creating a constant cadence of disruption. Our customers face the challenge of harnessing these dynamic technologies to improve their missions and improve their efficiency at the enterprise scale.
An urgent government customer need for help to apply emerging technologies in a mission-relevant way. We must continue to advance in AI, data analytics, cyber, and quantum to be the go-to provider for delivering actionable insights, enhancing system performance, and safeguarding critical assets.

Transformation of U.S. and allied defense and space industries

U.S. and Allies Defense and Space Industry Transformation. We expect to see the most significant transformation of U.S., U.K., and Australian defense industries since the end of the Cold War, driven by a challenging threat environment, new political leadership, and increasing private sector investment in advanced defense and digital capabilities. Over the next five years, we expect demand for rapid development and large-scale fielding of unmanned systems, hypersonic weapons, advanced C5ISRT capabilities, missile defense, and space capabilities to significantly increase, alongside imperatives of efficiency, interoperability, and digital enablement. Through this dynamic environment we see a firm government customer need to own their technological capabilities, without vendor lock.

What Makes KBR Different

With the transformation of the Mission Tech portfolio over the last eight years we now bring a completely different value proposition to win work with our customers as described below. The combination of these strengths provides a competitive advantage for solving our customers’ most urgent and well-funded mission needs.

We integrate our strengths to deliver unmatched value

Mission Expertise As experts in our customers' missions, we know how to apply technology solutions in a way that is relevant to the mission

Global Delivery We leverage our international presence to operate locally and deliver solutions in the most challenging environments around the world

Emerging Technology Expertise We operationalize emerging digital technologies to design, develop and implement high-impact solutions across any mission domain

Customer-Centric Operating Model Our business is designed to deliver government-owned solutions in a model that enables us to serve as an agile, adaptable, trusted partner to our customers without vendor lock

Mission Tech Growth Strategy

For Mission Tech, we defined strategy across three fundamentals:

Customer Focused Growth

Strategic Growth Capabilities

Business Model Innovation

Customer Focused Growth

Mission Tech will accelerate our business growth over the next 5 years by:

Delivering mission expertise through Customer-Centric business portfolios

Solving mission challenges through innovation and application of emerging technologies.

Serving our customers as a trusted mission partner.

Expand to new customers by earning trust through solutions focused on customer needs and superior outcomes.

To enable Customer Focused Growth, Mission Tech is intentionally organized along customer portfolios shown below and is actively implementing a customer-centric operating model to unlock increased organic growth, drive customer brand perception of KBR, and shape customer buying behaviors and commercial models to allow improved margins. This model amplifies an extraordinary Mission Tech strength of customer intimacy at the working level.

Customer-Centric Business Portfolios

Army, Navy, Global Defense

Defense Modernization
Electronic Warfare
Australian Defense and Security
U.K. Defense and Security

Air Force, Space Force, Intelligence Community

National Security Space
Air Superiority
Connected Battlespace

NASA, Health and FedCiv

Human Spaceflight and Civil Space
FedCiv Digital Solutions
Health and Human Performance

Global Logistics and Sustainment

Defense Readiness
Humanitarian and Contingency
Facility Management

Within each of these portfolios’ teams have specific strategic objectives fully aligned to Mission Tech’s Growth Strategy and are developing and implementing customer-centric strategic execution plans. These plans are aimed at driving growth through building market leading positions, expanding to new customers, and solving new mission challenges through innovation and application of emerging technologies.

Strategic Growth Capabilities

As we focus on growth Mission Tech will leverage advanced technologies to deliver solutions that make mission impact and create competitive advantage.

This approach prioritizes investments in capabilities that are in high and increasing demand by our customers that are necessary for their missions. We anticipate using these capabilities to guide investments in new capabilities and enable customer access to accelerate growth in strategic market segments:

Digital Integration

Driving innovation to customer’s complex mission systems using digital environments, digital architectures, common data models, and digital engineering techniques and tools

Mission Engineering

The deliberate planning, analysis, organization, and application of current and emerging operational and system capabilities to achieve desired mission effects

Mission Software

Open mission system software architecting, development, and implementation

Data Analytics/AI

AI-powered analytic solutions to generate actionable insights for complex mission decisions

Rapid Capability Development

Rapid design, development, testing, fielding, and sustainment of advanced RDT&E mission capabilities delivered to operational users

Expeditionary Logistics

Expeditionary Logistics: rapid deployment, anytime, anywhere worldwide, scalable, and flexible with adaptable command and control for global response to critical missions

Delivering Mission Tech Capabilities to ALL Customers

Beyond these Strategic Growth Capabilities, Mission Tech offers a comprehensive portfolio of capabilities to address the needs across our global end markets. This portfolio of capabilities spans the entire mission lifecycle but importantly all Mission Tech teams are empowered to access this robust portfolio to tailor solutions for their customer's most critical needs. This is a key enabler of our Customer-Centric Operating Model, positioning Mission Tech teams to unlock organic growth opportunities for current and new customers.

Business Model Innovation

Advance Mission Tech Business Model to align with customer’s needs for modernizing acquisition

Hybrid Integrator

Deliver government-owned mission tech solutions through a model that enables us to serve as an agile, adaptable, trusted partner to our customers without vendor lock

In a market that has traditionally been segmented by either original equipment manufacturers (OEMs) or staff augmentation contractors, there is increasing recognition by government customers that they need industry partners who fit between these two categories. They need a “hybrid integrator” who is technology- and mission-savvy but vendor agnostic when evaluating and integrating system/solution components. This dramatic paradigm shift aligns to KBR’s Mission Technology Solutions, which is ideally suited to this “hybrid integrator” role. With deep domain expertise in critical missions, digitally enabled capabilities and innovative outcome-based solutions there is a significant opportunity to be a trusted technology partner to integrate and deliver complex mission outcomes for our customers.

Outcome Based Contracting

Shift the business towards more fixed-price and outcome based contracting and solutions while leveraging technology such as AI to drive higher levels of innovation and affordability

In this environment outcome-based solutions are integral to enhancing future efficiency and affordability for customers across our end markets. This approach focuses on achieving specific, measurable results that align with mission and affordability objectives, typically through fixed priced contracting, as opposed to traditional labor-hour contracting. By shifting our business mix towards more outcome-based contracting, we will not only enhance customer affordability and cost predictability, but position Mission Tech’s business to increase margins through effective program management and innovative applications of technology such as AI. This shift in Mission Tech’s portfolio is not only well aligned with our customers’ needs but is an important factor in meeting Strategy 2030 objectives.

Moving Out

We are confident today in this strategy defined by Customer Focused Growth, Strategic Growth Capabilities and Business Model Innovation because of key market trends:

Increasing global investment in national security, defense, and space capabilities.
An explosion of digital technologies that is transforming the nature of core missions across these markets.
An urgent government customer need for help to integrate and apply emerging technologies in a mission-relevant and affordable way.
A firm government customer need to own their technological capabilities, without vendor lock.

Mission Tech Imperatives

This is an exciting time, but also a challenging and dynamic environment — however there is significant opportunity to drive growth, act, and position KBR as a leader in our markets. As we move forward it’s essential we execute the Mission Tech strategy with both Passion and Discipline to enact a growth culture that will underpin the execution of this Mission Tech strategy.

Passion to deeply understand the evolving mission challenges for each of our customers.

Discipline to work as a team of teams to innovate and creatively apply KBR capabilities to solve those mission challenges.

Become Customer-Obsessed

"It's not about KBR"

What We Are Doing

Technology Plan

Industry-leading digitally integrated demonstrations of our Strategic Growth Capabilities, enabling customer engagement and increased credibility in focus mission areas and domains. These include Mission Engineering, Mission Software, Digital Engineering, Data Analytics and Artificial Intelligence (AI), Rapid Capability Development, Global Scaled Rapid Logistics, Space, Autonomy, Test & Evaluation (T&E), Directed Energy, and Prototyping.

Globally connected engineering environment to support synergy bids and collaborative project execution.

Internal business systems that incorporate extensive automation, including AI, enabled by low/no-code citizen development that reduce processing times and flatten the growth curve within functional staff (e.g., legal, HR) relative to the growth of the organization.

Active internal technical communities aligned to strategic capability areas and focus missions/domains with key technical personnel that support business development, technical execution, recruiting and retention, and capability articulation and demonstration.

Enhanced external technical communications that execute at a high cadence to amplify our reputation as a market-technology leader with a reputation for mission impact, execution excellence, and highly technical workforce.

Hybrid Integrator

Deliver government-owned mission tech solutions through a model that enables us to serve as an agile, adaptable, trusted partner to our customers without vendor lock

Outcome Based Contracting

Shift towards more fixed-price and outcome based contracting while leveraging technology such as AI to drive higher levels of innovation and productivity

What We Are Doing

Government-owned Solutions