Slide 1: KBR Q1 2023 Earnings Call
May 1, 2023 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Jamie DuBray, VP of Investor Relations 1
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT The statements in this press release 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, our business strategy, and our plans f
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and Chief Executive Officer 3
Slide 4: Delivering Solutions, Changing the World
RECYCLE/ REUSE EFFICIENT ENERGY HEALTH, SAFETY & SECURITY [oN aie GOVERNANCE f SUSTAINABLE INCLUSION & ia DIVERSITY Car ~ {ZERO TRAVEL ml : HARM Ly SUPPLY ~. COMMUNITY PARTNERS ENGAGEMENT - CLIMATE RISK CHANGE MANAGEMENT Delivering Solutions, Changing the World™ QUARTERLY £27 EARNINGS 4
Slide 5: KBR's Eighth Annual Zero Harm Day
KBR’s Eighth Annual Zero Harm Day 5
Slide 6: 1Q23 KBR Business Health
1Q23 | KBR BUSINESS HEALTH PEOPLE ZERO HARM • Headcount increased 7% since year-end to 32,000 • Recorded 89% Zero Harm Days & 0.093 TRIR1 • > 82% of cleared personnel in Defense & Intel • KBR is at the forefront of delivering cleaner • ONE KBR Technical Fellows program advances technical solutions a
Slide 7: Markets and Awards
MARKETS AND AWARDS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS ◦ Leveraging the energy trilemma: the challenge of meeting ◦ U.S. budget growth expected to fuel award activity including demands for security, sustainability and cost effectiveness increased spending towards emerging technolog
Slide 8: Mark Sopp, Executive Vice President and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 8
Slide 9: 1Q23 Results: KBR Delivers Continued Growth
1Q23 RESULTS | KBR DELIVERS CONTINUED GROWTH REVENUES ADJ. EBITDA1 +18% REVENUES ex OAW $1,714 $1,703 Margin % $182 $154 +18% $1,445 1 ADJ. EBITDA ex-OAW 11% 9% 9% 9% 1Q22 1Q23 1Q22 1Q23 +170 ADJ. EBITDA1 bps expansion ADJ. EPS1 ADJ. OCF1 +22% ADJ. EPS1 ex OAW $0.62 $0.55 $0.67 $89 $35 ex-OAW 1Q22 1
Slide 10: Segment Results Demonstrate Mission Focus, Resilience and Agility
SEGMENT RESULTS DEMONSTRATE MISSION FOCUS, RESILIENCE AND AGILITY SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS REVENUES ADJ. EBITDA1 REVENUES ADJ. EBITDA1 Margin % Margin % $375 $1,459 $1,328 $255 $82 $143 $132 $1,190 $43 22% ex OAW 17% 10% 10% 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 ◦ STS
Slide 11: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT PRIORITIES Settle Convertible Debt in 2023; Avoid Dilution $77M 1.9x Fund Organic Growth Maintain Attractive Dividend Maintain Responsible Leverage Strategic M&A Share Repurchases Our capital deployment strategy facilitates sust
Slide 12: Reaffirming 2023 Guidance
REAFFIRMING 2023 GUIDANCE KBR, Inc. FY 2023 Guidance REVENUE $6.9B - $7.1B 85% ADJ. EBITDA $715M - $745M FY 2023 ADJ. EPS $2.76 - $2.96 WORK UNDER CONTRACT EFFECTIVE TAX RATE 24% - 25% ADJ. OPERATING CASH FLOW $425M - $460M The company does not provide reconciliations of Adjusted EBITDA to the most
Slide 13: Key Takeaways
KEY TAKEAWAYS ◦ Outstanding start to 2023 - sequential growth in all business units, Adj. EBITDA margin expansion, and Adj. EPS ahead of pace ◦ Strong bookings momentum in highly strategic areas across both segments - driving TTM BTB of 1.4x ◦ 85% WUC as of quarter end - increasing visibility for re
Slide 14: Quarterly Earnings
QUARTERLY £27 Delivering Solutions, Changing the World 7 _- EA RNINGS a
Slide 15: Appendices
Appendices , > Y/N. y i ene a Y / WY) | ! | 1] | EARNINGS:
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EPS Revenue and Adjusted EPS ex-OAW 1Q22 1Q23 FY2023 Guidance 1Q22 1Q23 Growth 1 Diluted EPS $(0.51) $0.56 $2.31 $2.51 Revenue (as reported) $1,714 1,703 Revenue attributable to OAW 269 — Adjustments: Revenue ex-OAW $1,445 $1,703 18% Amortization related to acquisit
Slide 17: Non-GAAP Reconciliations: Adjusted Operating and Free Cash Flow
NON-GAAP RECONCILIATIONS Adjusted Operating and Free Cash Flow 1Q22 1Q23 FY2023 Guidance Cash flows provided by operating activities $89 $35 $425 $460 Adjustments: Adjust: CARES Act temporary tax repayment (relief) — — — Adjusted cash flows provided by operating activities $89 $35 $425 $460 Less: Ca
Slide 18: Non-GAAP Reconciliations: Adjusted EBITDA
NON-GAAP RECONCILIATIONS Adjusted EBITDA 1Q22 2Q22 3Q22 4Q22 1Q23 TTM Net income (loss) attributable to KBR $(71) $94 $74 $93 $86 $347 Adjustments: Interest expense 20 21 23 23 26 93 Other non-operating (income) expense — (5) 2 (9) 2 (10) Provision (benefit) for income taxes 19 33 27 13 30 103 Depre
Slide 19: Non-GAAP Reconciliations: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATIONS Adjusted EBITDA - Segment 1Q22 2Q22 3Q22 4Q22 1Q23 TTM Pretax income attributable to GS $114 $124 $96 $106 $101 $427 Interest expense 1 — 2 1 2 5 Other non-operating (income) expense — 8 9 (18) (1) (2) Depreciation and amortization 24 23 23 25 25 96 EBITDA - GS $139 $155 $13
Slide 20: Reconciliation of Operating Income to Adjusted EBITDA
NON-GAAP RECONCILIATIONS Reconciliation of Operating Income to Adjusted EBITDA Three months ended March 31, 2023 GS STS Corporate KBR Operating income $102 $82 $(40) $144 Noncontrolling interest — — — — Depreciation and amortization 25 4 7 36 EBITDA $127 $86 $(33) $180 Adjustment: Acquisition, integ