KBR ($KBR) Misrepresented HomeSafe Readiness and Contract Execution Case

Court: S.D. Texas

Case: 4:25-cv-04464

• KBR investors filed a claim against KBR Inc. for misrepresenting the strength of its HomeSafe joint venture, concealing material disputes with the U.S. Department of Defense, and misleading investors about contract performance and future revenues.
• After TRANSCOM unexpectedly terminated the $6.2B Global Household Goods Contract, KBR dropped 9.6% on June 19, 2025.
• KBR investors can join this case to be notified about potential recovery.

Case Details:

Between May 6, 2025, and June 19, 2025, KBR publicly praised the performance of HomeSafe Alliance, a joint venture in which it held a 72% economic interest. The venture had secured the Global Household Goods Contract (GHC)—a multibillion-dollar award from the U.S. Department of Defense’s TRANSCOM to modernize military relocations. On its Q1 2025 earnings call, executives described the program as a success, citing “significant operational improvement,” strong vendor relationships, and rising customer satisfaction nearing 90%.

KBR told investors that HomeSafe was ramping as expected, with modest revenue in Q2 and higher volumes forecasted in Q3 and Q4. The company reaffirmed its $300M–$500M revenue guidance from HomeSafe, emphasized tight alignment with TRANSCOM, and claimed 100% claim resolution on customer complaints.

In truth, TRANSCOM had ongoing concerns for months about HomeSafe’s ability to fulfill the contract. Behind the scenes, the relationship had deteriorated, and KBR allegedly knew or recklessly disregarded serious operational breakdowns. Despite this, KBR made no disclosures suggesting risk of termination or revenue disruption.

Then on June 19, 2025, after markets closed, TRANSCOM terminated the contract, citing performance issues. KBR acknowledged the termination the next morning, stating it would support HomeSafe in wrapping up obligations. The stock dropped 7.3% on June 20 and another 2.7% on June 23, falling from $52.78 to $47.63, a total decline of 9.6%.

Based on these events, KBR investors filed a claim against KBR, alleging the company:

• It misrepresented HomeSafe’s operational progress and customer satisfaction.
• It concealed material concerns and disputes with the U.S. Department of Defense.
• It provided false revenue guidance while facing imminent contract termination.

Investors argue KBR misled the market about the health of a critical government contract, exposing shareholders to sudden losses once the termination was announced.