Jacobs [J] said Tuesday it will spin off its Critical Mission Solutions business late next year.

The segment includes the brain trust that coordinates Jacobs’ efforts to win big management and operations contracts at Department of Energy (DoE) nuclear-weapon sites, but that is only a small part of Critical Mission Solutions (CMS), which in 2022 had about $4.4 billion in revenue.

Jacobs did not provide details about the future independent CMS’ structure. The company announced the spin off the same day it reported earnings for the fiscal second quarter of 2023, which for Jacobs ended March 31.

“The proposed capital structure, governance and other matters relating to CMS are still being determined and will be communicated at a later date,” the company wrote in a press release announcing the planned split.

“By separating CMS, we will streamline our business portfolio and transform Jacobs into a higher-growth, higher-margin company more closely aligned with key global mega trends and growth sectors,” Jacobs CEO Bob Pragada said in the press release. “As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business. We believe the separation will create value for all stakeholders.”

Jacobs, with its subsidiary CH2M, led environmental remediation teams at DoE’s Idaho National Laboratory, the Oak Ridge Site in Tennessee and the Paducah Site in Kentucky. The company is also a junior partner on the Honeywell [HON]-led team that manages the Nevada National Security Site for DoE’s semiautonomous National Nuclear Security Administration.

The DoE is accounted by Jacobs as an equity share of the joint venture companies created to manage nuclear-weapon sites. Most of the sites where Jacobs works are shuttered Cold War-era sites being cleaned up by DoE’s Office of Environmental Management.

A version of this story first appeared in Defense Daily affiliate publication Weapons Complex Morning Briefing.