Kbr, Inc. · NYSE:KBR
Kbr — Q1 2025 Earnings Presentation
24 slides from Kbr's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Earnings Conference Call
May 6, 2025 Stuart Bradie, President and CEO Mark Sopp, EVP and CFO Jamie DuBray, VP of Investor Relations
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements in this presentation that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, award activity and backlog, program activity, our busi
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and CEO © 2025 KBR, Inc.
Slide 4: Zero Harm Moment: Delivering Record Safety Performance in 2024
Zero Harm Moment: Delivering Record Safety Performance in 2024 © 2025 KBR, Inc. Delivering Solutions, Changing the World.Ⓡ 4
Slide 5: 1Q 2025 | Key Messages
1Q 2025 | Key Messages $2.1B Delivered strong financial performance in Revenues and Adj. EBITDA1 Revenues 1 with Adj. EBITDA margin1 expansion +13% Executing our growth strategy through consistent project execution and 2 new contract wins $243M 1 Adj. EBITDA Highlighting balance and resilience with
Slide 6: Advancing Strategy through Strong Execution and New Contract Wins
Advancing Strategy through Strong Execution and New Contract Wins Key Updates New Contract Wins • HomeSafe – Solid progress on this transformational • $970M ceiling, 10-year IDIQ contract for Digital program Engineering and Digital Development (ASCEND2) • Plaquemines LNG – Continued delivery of key
Slide 7: Executing our Growth Strategy: ASTRO Win Case Study
Executing our Growth Strategy: ASTRO Win Case Study Contract win: Advanced Space Technology Research and THRIVE and EXPAND in Core Markets and New Geographies Optimization (ASTRO) for the Air Force Research Laboratory Capture Breakout Growth in Maui, Hawaii DELIVER Technical, Digital, Process Innova
Slide 8: KBR's Business Model Provides Resilience in Today's Uncertain Environment
KBR’s Business Model Provides Resilience in Today’s Uncertain Environment Near-term Risks KBR’s Exposure and Mitigants Diversified, Global Business Mix Disaggregated Revenue • Minimal exposure to import and export of products by Customer Type1 Tariffs • KBR does not procure raw materials nor manufac
Slide 9: Mark Sopp, EVP and CFO
Mark Sopp EVP and CFO © 2025 KBR, Inc.
Slide 10: 1Q 2025 | KBR Delivers Continued Growth and Margin Expansion
1Q 2025 | KBR Delivers Continued Growth and Margin Expansion Revenues Adj. EBITDA1 Adj. EPS1 OCF +13% +17% +27% +8% 11.4% 11.8% • Growth in Defense & Intel fueled • Growth due to strong • Growth exceeded Adj. EBITDA • On track to meet full year by the LinQuest acquisition, unconsolidated joint ventu
Slide 11: Strong Segment Performance in an Increasingly Challenging Environment
Strong Segment Performance in an Increasingly Challenging Environment Underscores Business Model Durability Mission Tech Sustainable Sustainable Technology Tech Solutions Revenues Adj. EBITDA1 Revenues Adj. EBITDA1 +14% +11% +12% +20% 9.9% 9.6% 20.9% 22.5% • Revenues: Growth in Defense & Intel fuele
Slide 12: 1Q 2025 | Balance Sheet and Capital Allocation
1Q 2025 | Balance Sheet and Capital Allocation Liquidity and Leverage Net debt 2,326 Balanced Capital Allocation Priorities TTM Adj. EBITDA1 906 Organic Growth Strategic M&A Net debt / TTM Adj. EBITDA1 2.6x • Innovation, digital solutions • Disciplined approach to and engineering, secure accretive,
Slide 13: Reaffirming FY 2025 Guidance
Reaffirming FY 2025 Guidance FY 2025 Financial Modeling Assumptions Guidance • Capex: ~$50M - $60M • Effective tax rate: 25% - $27% Revenues $8.7B - $9.1B • Depreciation & amortization: ~$165M (includes ~$45M purchased intangibles amortization) Adj. EBITDA1 $950M - $990M Adj. EPS1 $3.71 - $3.95 Oper
Slide 14: Key Takeaways
Key Takeaways • Delivered strong financial performance in the first quarter with Revenues and Adj. EBITDA1 growth and Adj. EBITDA margin1 expansion • Executing our growth strategy through consistent project execution and new contract wins • Highlighting limited exposure to tariffs and government eff
Slide 15: Q&A
Q&A © 2025 KBR, Inc.
Slide 16: KBR Investment Thesis
KBR Investment Thesis Multi-year transformation into a leading provider of differentiated, innovative, up-market 1 science, technology, and engineering solutions with large scale, global reach Serving diverse, attractive end markets aligned with secular growth trends including global 2 security, sus
Slide 17: Appendix
er e Appendix © 2025 KBR, Inc.
Slide 18: Update: Supplemental Financial Disclosure Change
Update: Supplemental Financial Disclosure Change © 2025 KBR, Inc. Delivering Solutions, Changing the World.Ⓡ 18
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA - KBR Consolidated
NON-GAAP RECONCILIATION Adjusted EBITDA - KBR Consolidated 1Q'24 1Q'25 Net income attributable to KBR $93 $116 Interest expense 31 41 Other non-operating (income) expense 6 (3) Provision for income taxes 35 42 Depreciation and amortization 36 41 Acquisition, integration and other 1 6 Ichthys commerc
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATION Adjusted EBITDA - Segment 1Q'24 1Q'25 Operating income - MTS $106 $114 Net (income) loss attributable to noncontrolling interests — 2 Depreciation and amortization 24 29 Legacy legal fee and settlements 1 — Adjusted EBITDA - MTS $131 $145 Operating income - STS $94 $119 Net (
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA - Segment (continued)
NON-GAAP RECONCILIATION Adjusted EBITDA - Segment 1Q'24 1Q'25 Operating income - Corporate $(34) $(38) Depreciation and amortization 6 6 Acquisition, integration and other 1 6 Adjusted EBITDA - Corporate $(27) $(26) Operating income - KBR $166 $195 Net (income) loss attributable to noncontrolling in
Slide 22: Non-GAAP Reconciliation: Adjusted EPS
NON-GAAP RECONCILIATION Adjusted EPS 1Q'24 1Q'25 Diluted EPS $0.69 $0.88 Adjustments: Amortization related to acquisitions 0.04 0.07 Ichthys commercial dispute costs 0.03 — Acquisition, integration and other 0.01 0.03 Adjusted EPS $0.77 $0.98 Diluted weighted average common shares outstanding 135 13
Slide 23: Non-GAAP Reconciliation: Operating Cash Flow Conversion
NON-GAAP RECONCILIATION Operating Cash Flow Conversion 1Q'24 1Q'25 Cash flows provided by operating activities $91 $98 Operating cash flow per share 0.67 0.74 Adjusted EPS 0.77 0.98 Operating cash flow conversion 87% 76% Diluted weighted average common shares outstanding 135 132 Adjusted weighted av
Slide 24: Supplemental Reconciliation: Adjusted EBITDA to Adjusted EPS
SUPPLEMENTAL RECONCILIATION Reconciliation of Adjusted EBITDA to Adjusted EPS Three Months Ended April 4, 2025 KBR Adjusted EBITDA $243 Interest expense (41) Other non-operating income (expense) 3 Provision for income taxes (42) Depreciation and amortization (41) EPS adjustments: Amortization relate