KBR — exiting in two steps because the thesis was wrong

In progressKBRDecided Sep 30, 2026Review Dec 31, 2026

Decision

Sell everything by year-end, in two steps (November and December).

Why

I bought it expecting engineering and construction firms to benefit as data centers and similar facilities get built. When I re-reviewed my holdings in September through a 'production gets easy with AI' lens, I concluded that design-and-build is a project business whose revenue ends once a facility is built. More data centers don't turn into recurring revenue for this company, so my original thesis — that it benefits as facilities grow — was wrong. That falls under 'the thesis is broken' among my sell reasons.

Expected outcome

The position is gone by year-end, and where the proceeds go is decided within my current principles.

Options not taken

Hold — data-center design and construction demand may still reach this company's revenue, just later.

Since the decision

KBR +10.1% · S&P 500 -0.9% (Oct 30)
the stock sold has beaten the index — an interim picture; whether it was right is judged on the review date