KBR's total revenue for the second quarter of 2020 declined by 2.6% to USD1.4 billion. The decline in KBR's total revenue was contributed by weaker Government Solutions (GS) and Technology Solutions (TS) revenue, partially offset by higher Energy Solutions (ES) revenue. Energy Solutions revenue in the second quarter of 2020 amounted to USD387 million, a 30.7% year on year increase, driven mainly by higher volume of construction services. However, profitability for the business was much lower due to the phasing out of low margin work in the current year. Adjusted EBITDA margin in the second quarter of 2020 was 1%, compared with 7% in the previous year.
The North American engineering contractor posted a net loss of USD33 million for the quarter, compared to a net profit USD48 million in the previous year. This was mainly due to non-cash restructuring impairment. Going forward, KBR will be focusing on GS and TS segment. KBR is exiting blue-collar construction and lumpsum EPC areas within its ES segment, and the remaining services offerings within this segment will be reorganized under the TS segment.