Slide 1: KBR Q1 2024 Earnings Presentation
April 30, 2024 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 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 busin
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and Chief Executive Officer 3 3
Slide 4: Sustainability and ESG themes
RECYCLE/ HEALTH, SAFETY REUSE & SECURITY EFFICIENT ox c ENERGY aye GOVERNANCE SUSTAINABLE INCLUSION & pa DIVERSITY TRAVEL SUPPLY COMMUNITY PARTNERS ENGAGEMENT CLIMATE RISK CHANGE MANAGEMENT QUARTERLY £EZY EARNINGS
Slide 5: Developing Our People Globally
DEVELOPING OUR PEOPLE GLOBALLY 5 5
Slide 6: 1Q'24 KBR Performance
1Q'24| KBR PERFORMANCE FINANCIAL PERFORMANCE BUSINESS GROWTH • $1.8B Revenue, up 7% yoy - all time high since our transformation in • 1.1x TTM Book-To-Bill1 reflects continued award momentum 2020, excluding peaks from OAW • $1.9B of bookings and options in 2024 in highly strategic areas • $207M Adj.
Slide 7: 1Q'24 Key Awards
1Q'24| KEY AWARDS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS 0.9x $4.4B 1.2x $16.5B TTM BTB 1 1Q'24 TTM BTB 1 1Q'24 Backlog Backlog & Options ◦ KBR's Purifier ammonia technology selected by Wuhuan Engineering Co. Ltd. for ◦ Awarded a new subcontract in support of the U.S. Air Force Air Co
Slide 8: Mark Sopp, Executive VP and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 8 8
Slide 9: 1Q'24 KBR Delivers Continued Growth
1Q'24 | KBR DELIVERS CONTINUED GROWTH REVENUES ADJ. EBITDA1 +7% Margin1 REVENUES +14% ADJ. EBITDA 1 10.7% 9% 11.4% 9% +15% ADJ. EPS1 ADJ. EPS1 ADJ. OCF1 +160% ADJ. OCF1 Year over year % change Amounts in $millions except share data; amounts are for the Three Months Ended March 29, 2024 and Three Mon
Slide 10: 1Q'24 Segment Results Demonstrate Mission Focus
1Q'24 | SEGMENT RESULTS DEMONSTRATE MISSION FOCUS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS REVENUES ADJ. EBITDA1 REVENUES ADJ. EBITDA1 Margin1 Margin1 21.9% 21.8% 9.9% 10.1% o STS revenue growth of 15% over 1Q'23 driven by growing o GS revenue growth of 4% over 1Q'23 driven by new and 1
Slide 11: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT Q1’24 Q1’24 PRIORITIES $79M 2.0x Fund Organic Growth CAPITAL RETURNED NET LEVERAGE Maintain Attractive Dividend TO SHAREHOLDERS1 RATIO Maintain Responsible Leverage Strategic M&A 2024 Share Repurchases Refinanced 11% Capital Str
Slide 12: Reaffirming FY 2024 Guidance
REAFFIRMING FY 2024 GUIDANCE KBR, Inc. FY 2024 Guidance REVENUE $7.4B - $7.7B ADJ. EBITDA $810M - $850M ADJ. EPS1 $3.10 - $3.30 OPERATING CASH FLOW $450M - $480M The company does not provide a reconciliation of Adj. EBITDA to the most comparable GAAP financial measure on a forward-looking basis beca
Slide 13: Key Takeaways
KEY TAKEAWAYS ◦ Strong start to the year across all financial metrics and continued momentum in key markets ◦ Solid bookings and backlog in what is typically a slow quarter ◦ ~84% WUC plus strong first quarter – derisks and well positioned to deliver FY24 guidance ◦ First HomeSafe moves successfully
Slide 14: (© 2024 KBR, Ir Delivering Solutions, Changing the World.” QUARTERLY£EZY
(© 2024 KBR, Ir Delivering Solutions, Changing the World.” QUARTERLY£EZY ~ 9 we EARNINGS “
Slide 15: Appendix
— = i j : < % D | \ } | 4 Appendix QUARTERLY4ELY EARNINGS
Slide 16: Non-GAAP Reconciliation: Adjusted EPS
NON-GAAP RECONCILIATION Adjusted EPS 1Q'23 1Q'24 FY2024 Guidance Diluted EPS $0.56 $0.69 $2.88 $3.08 Adjustments: Amortization related to acquisitions 0.05 0.04 0.15 Ichthys commercial dispute costs 0.01 0.03 0.03 Acquisition, integration and restructuring 0.01 0.01 0.03 Impact of convert accounting
Slide 17: Non-GAAP Reconciliation: Adjusted Operating and Free Cash Flow
NON-GAAP RECONCILIATION Adjusted Operating and Free Cash Flow 1Q'23 1Q'24 Cash flows provided by operating activities $35 $91 Adjustments: Adjust: CARES Act temporary tax repayment — — Add: Legacy legal settlement (after tax) — — Adjusted cash flows provided by operating activities $35 $91 Less: Cap
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION Adjusted EBITDA 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 TTM Net income (loss) attributable to KBR $86 $(351) $(21) $21 $93 $(258) Adjustments: Interest expense 26 29 30 30 31 120 Accretion of Convertible Notes debt discounts — 128 114 40 — 282 Other non-operating (income) expense 2 1 (
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATION Adjusted EBITDA - Segment 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 TTM Pretax income attributable to GS $101 $(33) $106 $102 $114 $289 Interest expense 2 4 2 3 2 11 Other non-operating (income) expense (1) 1 — (2) (1) (2) Depreciation and amortization 25 23 24 24 24 95 EBITDA - GS $127
Slide 20: Reconciliation of Operating Income to Adj. EBITDA
NON-GAAP RECONCILIATION Reconciliation of Operating Income to Adj. EBITDA Three months ended March 29, 2024 GS STS Corporate KBR Operating income $115 $86 $(35) $166 Noncontrolling interest — (1) — (1) Depreciation and amortization 24 5 7 36 EBITDA $139 $90 $(28) $201 Adjustment: Acquisition, integr
Slide 21: Supplemental Reconciliation
SUPPLEMENTAL RECONCILIATION Reconciliation of Adjusted EBITDA to Adjusted EPS Three months ended March 29, 2024 KBR Adjusted EBITDA $207 Interest expense (31) Other non-operating income (expense) (6) Provision for income taxes (35) Depreciation and amortization (36) EPS adjustments: Amortization rel