Slide 1: Q3 2023 Earnings Call
November 2, 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, interest expens
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and Chief Executive Officer 3
Slide 4: Delivering Solutions, Changing the World
RECYCLE/ REUSE HEALTH, SAFETY & SECURITY [oN EFFICIENT aie GOVERNANCE ENERGY SUSTAINABLE . ZERO nawssse TRAVEL ml a u AR M ia DIVERSITY SUPPLY ~. a ¥ COMMUNITY PARTNERS LT ENGAGEMENT - CLIMATE RISK CHANGE MANAGEMENT QUARTERLY £5Ez7 EARNINGS : Delivering Solutions, Changing the World
Slide 5: PACE: From Space Through Space to Space
PACE FROM SPACE THROUGH SPACE TO SPACE Data from space that informs sustainability Identifying space debris and potential threats Developing next-gen sustainable space efforts on Earth on orbit through space assets going to space )|OMES/MIsT Clea etre souion, cons | - QUARTERLY EZ — no Solutions, Ch
Slide 6: 3Q'23 KBR Business Health
3Q'23 | KBR BUSINESS HEALTH PEOPLE ZERO HARM • Headcount increased double digits since 3Q’22 • Recorded 93% Zero Harm Days & 0.065 TRIR1 • KBR’s global hackathon incites innovation, creativity, and • Advancing clean water and sanitation - #6 UN SDG* collaboration - propelling new ideas and technolog
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 VP and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 8
Slide 9: 3Q'23 Results | KBR Delivers Continued Growth
3Q'23 RESULTS | KBR DELIVERS CONTINUED GROWTH REVENUES ADJ. EBITDA1 +9% Margin % REVENUES Organic $1,626 $1,770 $186 $171 +9% ADJ. EBITDA1 9% 11% 11% 9% +15% ADJ. EPS1 ADJ. EPS1 ADJ. OCF1 YTD $0.75 $380 +13% $0.65 $336 ADJ. OCF1 Capex Capex YTD Free cash Free cash Year over year % change Amounts in
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 % $133 $133 20% 21% 10% 10% ◦ STS organic revenue growth of 28% over 3Q'22 driven by ◦ GS organic revenue growth of 4% o
Slide 11: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT PRIORITIES 2Q’23 YTD 3Q’23 Settle Convertible Notes in 2023; Avoid Dilution $200M $190M Fund Organic Growth Maintain Attractive Dividend CONVERT & CAPITAL RETURNED Maintain Responsible Leverage WARRANTS EARLY TO SHAREHOLDERS2 SE
Slide 12: Reaffirming FY 2023 Guidance
REAFFIRMING FY 2023 GUIDANCE KBR, Inc. FY 2023 Guidance REVENUE $6.9B - $7.1B 11% ADJ. EBITDA ADJ. EBITDA $730M - $750M ADJ. EPS $2.76 - $2.96 GROWTH FY22 v. FY23 Guide MP EFFECTIVE TAX RATE 24% - 25% ADJ. OPERATING CASH FLOW $425M - $460M The company does not provide reconciliations of Adjusted EBI
Slide 13: Key Takeaways
KEY TAKEAWAYS ◦ Consistent organic growth across KBR ◦ Responsible leverage and strong cash management provide optionality in future capital deployment ◦ Strong bookings across KBR signal built-in organic growth extending into 2024 and beyond ◦ Multiple pathways to EBITDA success from our differenti
Slide 14: Quarterly Earnings
QUARTERLY £5Ez7 EARNINGS «
Slide 15: Appendices
Appendices r UY VY ). EARNINGS ::
Slide 16: Non-GAAP Reconciliations: Adjusted EPS
NON-GAAP RECONCILIATIONS Adjusted EPS 3Q22 3Q23 FY2023 Guidance Diluted EPS $0.49 $(0.16) $(1.88) $(1.68) Adjustments: Amortization related to acquisitions 0.05 0.04 0.17 Ichthys interest and commercial dispute costs 0.05 0.03 0.04 Acquisition, integration and restructuring 0.01 0.01 0.04 Impact of
Slide 17: Non-GAAP Reconciliations: Adjusted Operating and Free Cash Flows
NON-GAAP RECONCILIATIONS Adjusted Operating and Free Cash Flows 3Q22 3Q23 2022 YTD 2023 YTD Cash flows provided by operating activities $122 $(40) $336 $248 Adjustments: Legacy legal settlement (after tax) — 132 — 132 Adjusted cash flows provided by operating activities $122 $92 $336 $380 Less: Capi
Slide 18: Non-GAAP Reconciliations: Adjusted EBITDA
NON-GAAP RECONCILIATIONS Adjusted EBITDA 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 TTM Net income (loss) attributable to KBR $(71) $94 $74 $93 $86 $(351) $(21) $(193) Adjustments: Interest expense 20 21 23 23 26 29 30 108 Charges associated with Convertible Notes — — — — — 314 114 428 Other non-operating (
Slide 19: Non-GAAP Reconciliations: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATIONS Adjusted EBITDA - Segment 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 TTM Pretax income attributable to GS $114 $124 $96 $106 $101 $(33) $106 $280 Interest expense 1 — 2 1 2 4 2 9 Other non-operating (income) expense — 8 9 (18) (1) 1 — (18) Depreciation and amortization 24 23 23 25 2
Slide 20: Non-GAAP Reconciliations: Operating Income to Adjusted EBITDA
NON-GAAP RECONCILIATIONS Reconciliation of Operating Income to Adjusted EBITDA Three Months Ended September 29, 2023 GS STS Corporate KBR Operating income $108 $84 $(45) $147 Noncontrolling interest — (3) — (3) Depreciation and amortization 24 4 6 34 EBITDA $132 $85 $(39) $178 Adjustments: Acquisiti
Slide 21: Supplemental Reconciliation
SUPPLEMENTAL RECONCILIATION Reconciliation of Adjusted EBITDA to Adjusted EPS Three Months Ended September 29, 2023 KBR Adjusted EBITDA $186 Interest expense (30) Other non-operating expense 2 Provision for income taxes (23) Depreciation and amortization (34) Amortization related to acquisitions (af