KBR Inc. ( KBR ) announced on Monday that its joint venture, Brown & Root Industrial Services, has agreed to acquire Specialty Welding and Turnarounds (SWAT), a U.S.-based provider of turnaround, cooling tower, and industrial catalyst services.

The deal is expected to create one of the largest specialty welding and turnaround service providers in North America, KBR stated. The financial terms of the agreement were not disclosed.

SWAT provides essential industrial services to blue-chip customers in the refinery, petrochemical, and renewable energy sectors. Operating in 22 states, the company’s 32,000-strong workforce is known for its technical expertise and strong commitment to safety across all projects.

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Andy Dupuy, CEO of Brown & Root Industrial Services, stated, “We’re proud to join forces with SWAT, a highly respected leader in the space. This strategic acquisition strengthens our position as a critical partner to our customers, empowering us to meet growing demand driven by skilled labor shortages, advancing equipment complexity, and the increasing need for cost-efficiency and reliability across key industrial end markets.”

“The addition of SWAT expands Brown and Root Industrial Services’ capabilities and exposure to the OpEx market across energy security assets, delivering highly valued, specialty solutions to customers’ critical assets,” said Stuart Bradie, KBR President and Chief Executive Officer. 

KBR Narrows 2025 Sales Outlook

Last week, KBR reported its third-quarter earnings of $1.02 per share, topping analysts’ estimates of 95 cents and 84 cents a year earlier. Quarterly revenue came in at $1.93 billion, slightly below Wall Street expectations of $1.97 billion and from $1.95 billion in the same period last year.

KBR reaffirmed its full-year 2025 adjusted earnings guidance at $3.78 to $3.88 per share, in line with analysts’ estimate of $3.85. The company, however, lowered its full-year revenue outlook to a range of $7.75 billion to $7.85 billion, down from a prior range of $7.9 billion to $8.1 billion and below the consensus estimate of $8.02 billion.

Price Action: KBR shares were trading higher by 3.2% to $42.84 premarket at last check Monday.

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