Kbr, Inc. · NYSE:KBR
Kbr — Investor Day (May 2024)
61 slides from Kbr's investor day presentation, May 8, 2024
Slide 1: Note: Long Term Targets were updated on July 31, 2025
Note: Long Term Targets were updated on July 31, 2025 - Please refer to KBR's Q2 2025 Earnings Presentation for more information 1
Slide 2: Investor Day Event | May 8, 2024
Investor Day Event | May 8, 2024 2
Slide 3: Jamie DuBray
Jamie DuBray Vice President, Investor Relations and FP&A 3
Slide 4: Disclosures
Disclosures Forward-Looking Statements This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, investments, capital deployment, risk profile, program activity, backlog information, returns, capital requirements, future events, future financial perfor
Slide 5: Adam Kramer
Adam Kramer Corporate Sustainability Officer 5
Slide 6: Zero Harm
Zero Harm SAFE. SECURE. SUSTAINABLE, RECYCLE/ HEALTH, SAFETY REUSE & SECURITY EFFICIENT ENERGY SUSTAINABLE Z E RO INCLUSION & CoN aye GOVERNANCE TRAVEL DIVERSITY GA WSGOURAGE TO My & SUPPLY 29 a COMMUNITY PARTNERS S75) ENGAGEMENT \ CLIMATE RISK CHANGE MANAGEMENT lutions, C
Slide 7: World-class Sustainability
World-class Sustainability Uniquely positioned to help our customers meet their sustainability goals Commitments by Fortune Global 500 companies1 100% 37% KBR’s 2023 sustainability-focused revenue 90% 80% 70% 60% 50% 40% 30% 66% 20% Companies with climate 10% commitments 0% 2015 2016 2017 2018 2019
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Slide 9: Stuart Bradie
Stuart Bradie President and Chief Executive Officer 9
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Slide 11: Agenda
Agenda Digital Overview Government Solutions ONE KBR Panel Greg Conlon Byron Bright Byron Bright, Paul Kahn and Jay Ibrahim Chief Digital and Development Officer President, Government Solutions U.S. Paul Kahn CEO Key Takeaways Financial Performance and Targets President, Government Solutions Interna
Slide 12: ONE KBR Capabilities
ONE KBR Capabilities Enabling both businesses to reach their full potential Deep Domain Expertise Proprietary Digital Technologies Innovation Global and Commercial Acumen 12
Slide 13: Mega Trends
Mega Trends Well-positioned to benefit from global shifts Digitalization and Modernization Energy Trilemma Security – Global Geopolitics 13
Slide 14: Investment Thesis
Investment Thesis Attractive growth and value opportunity Well-positioned in markets of the future Domain expertise and commercial acumen Global delivery footprint Strong IP portfolio Strong customer relationships Digital innovation Robust cash generation Portfolio across multiple ve
Slide 15: Balanced and Resilient
Balanced and Resilient Mature risk management Cyclicality Concentration Global Diversified Delivery delivery portfolio Footprint footprint and market rotation Economic cycles Mitigate highs Broad mix Broad Mix Mitigate Highs and lows withand of strong of Strong Lowsscalable with scalable Customers c
Slide 16: Greg Conlon
Greg Conlon Chief Digital and Development Officer 16
Slide 17: Growth Strategy
SAFE. SECURE. | Growth Strategy SUSTAINABLE” Deliver Innovation Expand Core Markets and New Geographies Thrive in Core Markets © 2024 KBR Ine Delivering Solutions, Changing the World.”
Slide 18: Digital Imperatives
Digital Imperatives KBR’s digital accelerators – enabling us to deliver tangible value to our customers 18
Slide 19: Digital Engineering
Digital Engineering Digital Twin powered by ENCOMPASSSM DREAMMLab Tech Stack Agile Integrated Chennai, India Dayton, Ohio 19
Slide 20: Artificial Intelligence
Artificial Intelligence Iron StallionSM KBRaiNTM AI Mesh Automate Secure U.S., U.K. and Australia Multiple customers 20
Slide 21: Data Analytics
Data Analytics H2EvolutionSM powered by ENCOMPASSSM CleanSpendSM powered by ENCOMPASSSM Visualize Minimize Benchmark and Optimize U.K. IEC North Sea, U.K. 21
Slide 22: Digital Takeaways
Digital Takeaways Real world innovation drives tangible outcomes Enabling growth strategy Pipeline of digital innovation initiatives Digital accelerators positioning KBR for future KBR Digital Accelerators 22
Slide 23: Mark Sopp
Mark Sopp Executive Vice President and Chief Financial Officer 23
Slide 24: Transformation to Global, Diversified Tech Leader in Strong Markets
Transformation to Global, Diversified Tech Leader in Strong Markets Targeting stable, predictable growth in profit and cash flow Transformed GS 2020 2016 Transformed STS 24
Slide 25: Results: Double-digit Revenues and Adj. EBITDA Growth
Results: Double-digit Revenues and Adj. EBITDA4 Growth Strong stock appreciation since 2017 GS STS Stock Price 17% CAGR 33% CAGR 16% CAGR 16% CAGR GS Revenues (ex-OAW)3 GS Adj. EBITDA4 STS Revenues STS Adj. EBITDA4 GS CAGR reflects 2017A-2023A; STS CAGR reflects 2021A-2023A 25
Slide 26: Portfolio Enables Predictable Performance
Portfolio Enables Predictable Performance Strong profit and cash flow visibility due to lower risk, positioning and book of business Adj. EBITDA4 Adj. OCF5 $747M $463M $668M $424M $625M $471M $478M $319M $290M $256M 2019A 2020A 2021A 2022A 2023A 2019A 2020A 2021A 2022A 2023A 2019-2022 LT Target 2021
Slide 27: Growth Strategy Leverages Critical Differentiators
Growth Strategy Leverages Critical Differentiators Delivering tangible value builds trusted partners and economics Widens addressable Lower cost of Co-venturing new Co-investment market ownership technologies Long-term contracts Skin in the game Intellectual Property Energy transitio
Slide 28: 2027 Long Term Targets
Long Term Targets were updated on July 31, 2025 - Please 2027 Long Term Targets refer to KBR's Q2 2025 Earnings Presentation for more Double digit profit and cash flow growth information 4 4 4 4 Targets exclude capital deployment; OCF target reflects 27% effective tax rate and interest rates consist
Slide 29: Strong Free Cash Flow Conversion and Growth
Strong Free Cash Flow Conversion and Growth Maximize shareholder returns while ensuring ample liquidity 5 Cumulative deployable free cash reflects 2024E-2027E cumulative OCF less capital expenditures of 0.5% to 0.75% of annual revenues. 29
Slide 30: High Performing Business With Sense of Purpose
High Performing Business With Sense of Purpose Markets, positioning and effectiveness enable double digit returns Our culture and the impactful work we do attracts great people Our differentiators in strong markets position us for continued growth Our commercial discipline drives strong econom
Slide 31: Byron Bright, Paul Kahn
Byron Bright Paul Kahn President, Government Solutions U.S. President, Government Solutions International 31
Slide 32: Government Solutions at a Glance
Government Solutions at a Glance At-scale, diversified and up-market with unmatched global footprint KEY HIGHLIGHTS $5.4B ~16% ~10% 1.2x 9% 23K+ 80+ 200+ 2023 Revenue 2017 – 2023 2023 Adj. EBITDA4 2023 TTM Book- 2022 – 2023 Employees Locations Military Systems Revenue CAGR Margin to-bill6 Backlog &
Slide 33: What We Do
What We Do Four distinct go-to-market business approaches driving agility and resilience for sustained growth Space Data Analytics Rapid Operations Prototyping Health & Human Performance Mission Platforms Mission IT Research & Development Critical Mission Consulting & Support Advisory AI/ML Enabled
Slide 34: Global Factors Driving Sustained Growth
Global Factors Driving Sustained Growth Global Security Priorities Near-peer threats and regional conflicts Allied cooperation NATO allies defense budgets 2% of combined GDP Emerging Technology Digitalization Artificial intelligence Autonomous systems Unprecedented geopolitical Defense M
Slide 35: High-growth Technology Markets
High-growth Technology Markets Strongly positioned in high-growth areas within global end markets Cyber and Mission Information and Critical Large-scale Space Intelligence Platforms Data Analytics Infrastructure Operations Human Exploration Defense Logistics Hypersonics Digital Engineering Defensive
Slide 36: Portfolio Alignment
Portfolio Alignment Dynamic portfolio aligned with fastest-growing defense spending end markets Cyber and Mission Information and Critical Large-scale Space Intelligence Platforms Data Analytics Infrastructure Operations Readiness and Sustainment Science and Space Defense and Intel International Glo
Slide 37: GS Growth Strategy
GS Growth Strategy Clear strategy delivers long-term growth targets Deliver Innovation Multiple Pathways Expand Core Markets and New Geographies Rapid prototyping with Positioning for Indo-Pacific Thrive in Core Markets digital systems engineering priorities Capturing synergies between Secur
Slide 38: High Growth Across All Sectors
High Growth Across All Sectors GS growth underpinned by robust pursuit pipeline 2027E Expected CAGR: What is Growing: KBR’s Position: Defense modernization $22B pipeline AUKUS 12-15% Critical national infrastructure 63% book of business9 2024-2027 41 new opportunities > $50M each Susta
Slide 39: Four-year Growth Targets
Four-year Growth Targets Leading in the industry with confidence Government Solutions Adj. EBITDA4 Revenue CAGR 2023-2027 11%–15% Margin 9%–10% 39
Slide 40: Jay Ibrahim
Jay Ibrahim President, Sustainable Technology Solutions 40
Slide 41: Sustainable Technology Solutions at a Glance
Sustainable Technology Solutions at a Glance A differentiated and up-market enabler of the energy trilemma KEY HIGHLIGHTS $1.6B ~33% 21% 1.1x ~65% 10K+ 80+ 80+ 2023 Revenue 2021 – 2023 Adj. 2023 Adj. EBITDA4 2023 TTM Book- Profit from Repeat Employees Locations Proprietary EBITDA4 CAGR Margin to-bil
Slide 42: What We Do
What We Do Delivering technology and services to bring sustainable solutions to our customers Project Management Complex Program Consultancy (PMC) Development Machine Learning (ML) Design & Engineering Enhanced Schedule Solutions Optimizations Strategic Planning Proprietary Procurement and Construct
Slide 43: Energy Trilemma Expanding Our Addressable Market
Energy Trilemma Expanding Our Addressable Market Why is KBR Successful? Globally present and trusted Technology unlocks affordable decarbonization Commercial acumen Digital smarts drive efficiency and speed to market $32B pursuit pipeline to drive enduring growth STS pipeline is up 40%+ sinc
Slide 44: High Growth Across All Vectors
High Growth Across All Vectors STS growth underpinned by growing market needs Expected CAGR: Market Fundamentals: KBR’s Differentiation: Plastics recycling Hydro-PRT® has lowest CO2 footprint in market 2027E 100-125% Sustainable aviation fuel (SAF) Drop-in, real SAF with PureSAFSM Electrif
Slide 45: Ammonia as Hydrogen Vector
Ammonia as Hydrogen Vector KBR is a global leader in ammonia Incremental Global Ammonia Demand10 ~46+ ~50% world-scale plants Incremental plants Incremental ammonia 1m MT = 1 plant KBR’s market share in flight by demand 2031 2027 ~46m MT ~23+ world-scale plants KBR’s opportunity KBR’s Profit Opportu
Slide 46: Driving Returns in Innovation and Commercialization
Driving Returns in Innovation and Commercialization Committed to the commercialization of high-margin, IP-based solutions with disciplined capital deployment Energy Example: K-COT® Trade name Year added to Internal IP External IP transition portfolio focused KBR’s Catalytic Olefins Technology: impro
Slide 47: Energy Vector Mix
Energy Vector Mix Portfolio diversification mitigates end market cyclicality Relative Profit Contribution Profit Progression Energy Security Clean Refining/Petrochem Hydrogen & Ammonia New Energies Upstream, Midstream, LNG Downstream, Commodity and Fine Grey, Blue and Green Renewables, Bio, Plastics
Slide 48: Four-year Growth Targets
Four-year Growth Targets Leading in the energy trilemma with confidence Sustainable Technology Solutions Adj. EBITDA4 Revenue 2023-2026CAGR 2023-2027 11%–15% Margin ~20% 48
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Slide 50: We are ONE KBR: Next-gen Consulting, One Saudi
We are ONE KBR Next-gen Consulting One Saudi 50
Slide 51: Key Takeaways
Key Takeaways Enduring growth and value creation TAKEAWAYS Achieve full potential as ONE KBR $11.5B+ $1.15B+ Revenues Adj. EBITDA4 Resilient global portfolio Proven team is “all in” $700M+ 10%-11% OCF Margin4 Multiple pathways to accelerate growth 51
Slide 52: SAFE.
SAFE. SUST, —— es Delivering Solutions, Changing the World.* Gear | 52
Slide 53: Appendix
SAFE. SUST, ee es Delivering Solutions, Changing the World.* Gear | 53
Slide 54: Glossary
Glossary CAGR Compound annual growth rate Margin Adj. EBITDA4 / Revenues Earnings before interest, taxes, depreciation EBITDA MT/year Metric ton per year and amortization GS Government Solutions OCF Operating cash flows IP Intellectual Property PSL Product/Solution Line LNG Liquefied Natural Gas STS
Slide 55: Footnotes
Footnotes 1 Climate Impact Partners, “Commitment Issues” dated September 2023. 2 BCG, “A Blueprint for the Energy Transition” dated September 2023. 3 GS Revenues (ex-OAW) is considered a non-GAAP financial measure under SEC rules. GS Revenues (ex-OAW) exclude amounts related to contingency work asso
Slide 56: Sources
Sources GS Market Data Ammonia Vector Data Bloomberg Government (BGOV) research IRENA Innovation Outlook Renewable Ammonia ('22) Mordor Intelligence (’23) Yara Capital Markets Day ('22) S&P Fertecon ('23) 56
Slide 57: Non-GAAP Reconciliation
Non-GAAP Reconciliation GS Revenues (ex-OAW) 2017A 2018A 2019A 2020A 2021A 2022A 2023A GS Revenues (as reported) $2,193 $3,457 $4,042 $4,055 $6,149 $5,320 $5,353 Revenue attributable to OAW — — — — 1,583 313 — GS Revenues (ex-OAW) $2,193 $3,457 $4,042 $4,055 $4,566 $5,007 $5,353 GS Adj. EBITDA 2017A
Slide 58: Non-GAAP Reconciliation
Non-GAAP Reconciliation STS Revenues 2021A 2022A 2023A STS Revenues 1,190 1,244 1,603 STS Adj. EBITDA 2021A 2022A 2023A Pretax income (loss) attributable to STS $(37) $62 $322 Adjustments: Interest expense — 1 1 Other non-operating (income) expense 1 (4) (3) Depreciation and amortization 16 14 19 EB
Slide 59: Non-GAAP Reconciliation
Non-GAAP Reconciliation KBR Adj. EBITDA 2019A 2020A 2021A 2022A 2023A Net income (loss) attributable to KBR $202 $(72) $27 $190 $(265) Adjustments: Interest expense 99 83 80 87 115 Accretion of Convertible Notes debt discounts — — — — 282 Other non-operating (income) expense (5) (1) 9 (12) 5 Provisi
Slide 60: Non-GAAP Reconciliation
Non-GAAP Reconciliation KBR Adj. OCF 2019A 2020A 2021A 2022A 2023A Operating cash flows $256 $367 $278 $396 $331 Adjustments: Remove: Receivable monetization related to acquisition — (100) — — — Add: Major project advance work off — 81 11 — — Adjust: CARES Act temporary tax repayment (relief) — (58)
Slide 61: Thank you for joining!
Thank you for joining! 61