Slide 1: Q3 2024 Earnings Presentation
October 23, 2024 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Jamie DuBray, VP of Investor Relations 1
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 Chief Executive Officer 3 3
Slide 4: Environmental Impact and Social Impact
Environmental Impact Social Impact @) HEALTH SAFETY & SECURITY —, \ ex y by GOVERNANCE RECYCLE/ REUSE EFFICIENT ENERGY | SUSTAINABLE TRAVEL Wie=a a INCLUSION & DIVERSITY \ IN COURAGE TO CARE SUPPLY IS\ : PARTNERS \iSed) ~N. JF GA COMMUNITY ENGAGEMENT CLIMATE RISK CHANGE MANAGEMENT PH, QUARTERLY £EZY
Slide 5: FY23 Sustainability Highlights
FY23 | SUSTAINABILITY HIGHLIGHTS 5 5
Slide 6: 3Q'24 KBR Performance
3Q'24| KBR PERFORMANCE FINANCIAL PERFORMANCE BUSINESS GROWTH • $1.9B Revenue, up 10% yoy • 1.2x QTD and 1.1x TTM Book-To-Bill1 • $219M Adj. EBITDA2, up 18% yoy • $3.3B of bookings and options1 in highly strategic areas • 11.2% Adj. EBITDA margin2, up 74 bps • Ending backlog and options of $22.1B • $
Slide 7: 3Q'24 Key Awards
3Q'24| KEY AWARDS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS 1.0x QTD BTB 1 $3.8B Backlog 1.1x TTM BTB 1 1.3x QTD BTB 1 $18.4B Backlog & 1.1x TTM BTB 1 Options ◦ KBR will coordinate project management consulting (PMC) services for the largest ◦ Awarded an estimated $199 million cost-plus-
Slide 8: Mark Sopp, Executive VP and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 8 8
Slide 9: 3Q'24 KBR Continues to Deliver Profitable Growth
3Q'24 | KBR CONTINUES TO DELIVER PROFITABLE GROWTH REVENUES ADJ. EBITDA1 +10% REVENUES Margin1 +18% ADJ. EBITDA 1 10.5% 9% 11.2% 9% +12% ADJ. EPS1 ADJ. EPS1 ADJ. OCF1 129% ADJ. OCF1 YTD Conversion Year over year % change unless stated otherwise Amounts in $ millions except share data; amounts are fo
Slide 10: 3Q'24 Segment Results Demonstrate Delivery Focus
3Q'24 | SEGMENT RESULTS DEMONSTRATE DELIVERY FOCUS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS REVENUES ADJ. EBITDA1 REVENUES ADJ. EBITDA1 Margin1 Margin1 20.9% 21.4% 9.9% 10.2% ◦ STS revenue growth of 8% over 3Q'23 driven by growing ◦ GS revenue growth of 11% over 3Q'23 driven by new and
Slide 11: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT YTD 3Q'24 YTD 3Q'24 PRIORITIES 129% $226M Fund Organic Growth ADJ. OCF1 CAPITAL RETURNED Maintain Attractive Dividend CONVERSION TO SHAREHOLDERS2 Maintain Responsible Leverage Strategic M&A 3Q'24 3Q'24 Share Repurchases 2.6x $73
Slide 12: Raising FY 2024 Guidance
RAISING FY 2024 GUIDANCE KBR, Inc. FY 2024 Guidance REVENUE $7.5B - $7.7B v. $7.4B - $7.7B ADJ. EBITDA $840M - $870M v. $825M - $850M ADJ. EPS1 $3.20 - $3.30 v. $3.15 - $3.30 OPERATING CASH FLOW $460M - $480M The company does not provide a reconciliation of Adj. EBITDA to the most comparable GAAP fi
Slide 13: Key Takeaways
KEY TAKEAWAYS • Outstanding 3Q performance with double digit year-over-year growth across revenue, profit and operating cash flows • LinQuest delivering strong operational results and bookings since close and integration progressing well • Raising FY 2024 guidance on Revenue, Adj. EBITDA1 and Adj. E
Slide 14: Quarterly Earnings
QUARTERLYZEZY EARNINGS u © 2024 KBR, Inc. Delivering Solutions, Changing the World.*
Slide 15: Appendix
— = i j : < % D | \ } | 4 Appendix QUARTERLYZEZY EARNINGS 15
Slide 16: Non-GAAP Reconciliation: Adjusted EPS
NON-GAAP RECONCILIATION Adjusted EPS 3Q'23 3Q'24 2023 YTD 2024 YTD FY2024 Guidance Diluted EPS $(0.16) $0.75 $(2.10) $2.22 $2.91 $3.01 Adjustments: Amortization related to acquisitions 0.04 0.06 0.12 0.14 0.21 Ichthys commercial dispute costs 0.03 (0.01) 0.04 0.01 0.01 Acquisition, integration and r
Slide 17: Non-GAAP Reconciliation: Adjusted Operating and Free Cash Flow
NON-GAAP RECONCILIATION Adjusted Operating and Free Cash Flow 3Q'23 3Q'24 2023 YTD 2024 YTD Cash flows provided by operating activities $(40) $161 $248 $422 Adjustments: Adjust: CARES Act temporary tax repayment — — — — Add: Legacy legal settlement (after tax) 132 — 132 — Adjusted cash flows provide
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION Adjusted EBITDA 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 TTM Net income (loss) attributable to KBR $86 $(351) $(21) $21 $93 $106 $100 $320 Adjustments: Interest expense 26 29 30 30 31 32 37 130 Accretion of Convertible Notes debt discounts — 128 114 40 — — — 40 Other non-ope
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATION Adjusted EBITDA - Segment 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 TTM Pretax income attributable to GS $101 $(33) $106 $102 $114 $122 $119 $457 Interest expense 2 4 2 3 2 3 3 11 Other non-operating (income) expense (1) 1 — (2) (1) (1) 1 (3) Depreciation and amortization 25
Slide 20: Reconciliation of Operating Income to Adjusted EBITDA
NON-GAAP RECONCILIATION Reconciliation of Operating Income to Adjusted EBITDA Three Months Ended September 27, 2024 GS STS Corporate KBR Operating income $123 $95 $(45) $173 Noncontrolling interest — (2) — (2) Depreciation and amortization 26 7 8 41 EBITDA $149 $100 $(37) $212 Adjustment: Acquisitio
Slide 21: Supplemental Reconciliation
SUPPLEMENTAL RECONCILIATION Reconciliation of Adjusted EBITDA to Adjusted EPS Three Months Ended September 27, 2024 KBR Adjusted EBITDA $219 Interest expense (37) Other non-operating income (expense) (2) Provision for income taxes (32) Depreciation and amortization (41) EPS adjustments: Amortization