Slide 1: Q2 2024 Earnings Presentation
July 24, 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: ESG and sustainability 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 LEZ EARNINGS
Slide 5: 2024 KBR People Perspectives Survey
2024 KBR People Perspectives Survey 5 5
Slide 6: 2Q'24 KBR Performance
2Q'24| KBR PERFORMANCE FINANCIAL PERFORMANCE BUSINESS GROWTH • $1.9B Revenue, up 6% yoy • 1.0x TTM Book-To-Bill1 reflects continued award momentum • $216M Adj. EBITDA2, up 13% yoy • $2.1B of bookings and options in 2024 in highly strategic areas • 11.6% Adj. EBITDA margin2, up 75 bps • Ending backlo
Slide 7: 2Q'24 Key Awards
2Q'24| KEY AWARDS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS 0.8x TTM BTB 1 $3.9B 2Q'24 1.2x TTM BTB 1 $16.2B 2Q'24 Backlog Backlog & Options ◦ KBR's green ammonia technology, K-GreeN®, selected by OCIOR Energy for its plant ◦ Selected as one of 11 awardees under the Medical Q Coded Suppo
Slide 8: Mark Sopp, Executive Vice President and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 8 8
Slide 9: 2Q'24 KBR Continues to Deliver Profitable Growth
2Q'24 | KBR CONTINUES TO DELIVER PROFITABLE GROWTH REVENUES ADJ. EBITDA1 +6% Margin1 REVENUES +13% ADJ. EBITDA 1 10.9% 9% 11.6% 9% +12% ADJ. EPS1 ADJ. EPS1 ADJ. OCF1 121% ADJ. OCF1 YTD Conversion Year over year % change unless stated otherwise Amounts in $ millions except share data; amounts are for
Slide 10: 2Q'24 Segment Results Demonstrate Delivery Focus
2Q'24 | SEGMENT RESULTS DEMONSTRATE DELIVERY FOCUS SUSTAINABLE TECHNOLOGY SOLUTIONS GOVERNMENT SOLUTIONS REVENUES ADJ. EBITDA1 REVENUES ADJ. EBITDA1 Margin1 Margin1 19.9% 21.4% 10.6% 10.4% 23% 1% ◦ STS revenue growth of 14% over 2Q'23 driven by growing ◦ GS revenue growth of 3% over 2Q'23 driven by
Slide 11: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT YTD 2Q’24 YTD 2Q’24 PRIORITIES 121% $197M Fund Organic Growth ADJ. OCF1 CAPITAL RETURNED Maintain Attractive Dividend CONVERSION TO SHAREHOLDERS2 Maintain Responsible Leverage 2Q’24 Strategic M&A 1.9x Share Repurchases NET LEVER
Slide 12: Raising FY 2024 Profit & Cash Guidance
RAISING FY 2024 PROFIT & CASH GUIDANCE KBR, Inc. FY 2024 Guidance REVENUE $7.4B - $7.7B ADJ. EBITDA $825M - $850M v. $810M - $850M ADJ. EPS1 $3.15 - $3.30 v. $3.10 - $3.30 OPERATING CASH FLOW $460M - $480M v. $450M - $480M The company does not provide a reconciliation of Adj. EBITDA to the most comp
Slide 13: Anticipated Acquisition of LinQuest
ANTICIPATED ACQUISITION OF LINQUEST ACQUISITION THESIS REVENUE SYNERGIES TRANSACTION SUMMARY • Aligns with KBR’s strategy to position • Apply LinQuest’s leading Digital • Purchase price $737M, inclusive of tax into high-end, technically differentiated Transformation capabilities across KBR benefits
Slide 14: Key Takeaways
KEY TAKEAWAYS ◦ Strong 2Q and 1H 2024 performance across key metrics and thus raising guidance on Adj. EBITDA1, Adj. EPS1 and OCF ◦ 92% work under contract — continued booking momentum and proposal pipeline and submissions at historically high levels ◦ Anticipated LinQuest acquisition enhances franc
Slide 15: Quarterly Earnings
QUARTERLYZEZY EARNINGS 15 © 2024 KBR, Inc. Delivering Solutions, Changing the World.*
Slide 16: Appendix
— = i j : < % D | \ } | 4 Appendix QUARTERLY LEZ EARNINGS 16
Slide 17: Non-GAAP Reconciliation: Adjusted EPS
NON-GAAP RECONCILIATION Adjusted EPS 2Q'23 2Q'24 2023 YTD 2024 YTD FY2024 Guidance Diluted EPS $(2.60) $0.79 $(1.95) $1.47 $2.94 $3.09 Adjustments: Amortization related to acquisitions 0.03 0.04 0.08 0.08 0.15 Ichthys commercial dispute costs — (0.01) 0.01 0.02 0.02 Acquisition, integration and rest
Slide 18: Non-GAAP Reconciliation: Adjusted Operating and Free Cash Flow
NON-GAAP RECONCILIATION Adjusted Operating and Free Cash Flow 2Q'23 2Q'24 2023 YTD 2024 YTD Cash flows provided by operating activities $253 $170 $288 $261 Adjustments: Adjust: CARES Act temporary tax repayment — — — — Add: Legacy legal settlement (after tax) — — — — Adjusted cash flows provided by
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION Adjusted EBITDA 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 TTM Net income (loss) attributable to KBR $86 $(351) $(21) $21 $93 $106 $199 Adjustments: Interest expense 26 29 30 30 31 32 123 Accretion of Convertible Notes debt discounts — 128 114 40 — — 154 Other non-operating (income)
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA - Segment
NON-GAAP RECONCILIATION Adjusted EBITDA - Segment 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 TTM Pretax income attributable to GS $101 $(33) $106 $102 $114 $122 $444 Interest expense 2 4 2 3 2 3 10 Other non-operating (income) expense (1) 1 — (2) (1) (1) (4) Depreciation and amortization 25 23 24 24 24 24
Slide 21: Reconciliation of Operating Income to Adjusted EBITDA
NON-GAAP RECONCILIATION Reconciliation of Operating Income to Adjusted EBITDA Three Months Ended June 28, 2024 GS STS Corporate KBR Operating income $124 $96 $(39) $181 Noncontrolling interest — (1) — (1) Depreciation and amortization 24 4 7 35 EBITDA $148 $99 $(32) $215 Adjustment: Acquisition, int
Slide 22: Supplemental Reconciliation: Adjusted EBITDA to Adjusted EPS
SUPPLEMENTAL RECONCILIATION Reconciliation of Adjusted EBITDA to Adjusted EPS Three Months Ended June 28, 2024 KBR Adjusted EBITDA $216 Interest expense (32) Other non-operating income (expense) (2) Provision for income taxes (40) Depreciation and amortization (35) EPS adjustments: Amortization rela