Slide 1: February 16, 2023 Earnings Presentation
February 16, 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 presentation that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, our business strategy, and our plans for raising and de
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and Chief Executive Officer 3
Slide 4: Delivering Solutions, Changing the World
RECYCLE/ REUSE EFFICIENT ENERGY HEALTH, SAFETY & SECURITY [oN aie GOVERNANCE f SUSTAINABLE INCLUSION & ia DIVERSITY Car ~ {ZERO TRAVEL ml : HARM Ly SUPPLY ~. COMMUNITY PARTNERS ENGAGEMENT - CLIMATE RISK CHANGE MANAGEMENT Delivering Solutions, Changing the World™ QUARTERLY £27 EARNINGS 4
Slide 5: 2022 HSSE Highlights
2022 | HSSE HIGHLIGHTS 0.079 TOTAL RECORDABLE INCIDENT RATE 2022 (per 200,000 work hours) oVEMBER 29, LoGocap Vv EUCOM POLAND ACHIEVES 5 YEARS & 5.3 MILLION WORK HOURS WITHOUT A RECORDABLE INJURY/ILLNESS. ZERO HARM 91% ZERO HARM ACHIEVED IN 2022 (365 days) Industry Leading nUGUST 202, GS EMEA ASPIRE
Slide 6: 2022 KBR Business Health
2022 | KBR BUSINESS HEALTH PEOPLE ZERO HARM • Headcount increased 8% year-over-year • Recorded 91% Zero Harm Days & 0.079 TRIR1 • 82% of employees say KBR is a Great Place to Work • 96% of employees say KBR is a Safe Place to Work • I&D progress in both gender and ethnicity • ~40% earnings in sustai
Slide 7: STS | High Margin/High Growth Leader
STS | HIGH MARGIN/HIGH GROWTH LEADER 7
Slide 8: STS | Earnings Growth and Margin Accelerator
STS | EARNINGS GROWTH AND MARGIN ACCELERATOR 8 1 Normalized Adj. EBITDA and Adj. EBITDA margin % exclude the impact of close-out items in FY21. As reported, STS Adj. EBITDA was $191 million in FY21.
Slide 9: 2025 | Multiple Routes to Success
2025 | MULTIPLE ROUTES TO SUCCESS 9 2025 Adjusted EPS reflects deployment of 50% of aggregate available capital based on 3.0x net leverage
Slide 10: Mark Sopp, EVP and CFO
Mark Sopp Executive Vice President and Chief Financial Officer 10
Slide 11: 2022 | KBR Delivers Continued Growth
2022 | KBR DELIVERS CONTINUED GROWTH REVENUES ADJ. EBITDA1 +9% REVENUES ex OAW 1 $7,339 $6,564 Margin % $625 $668 $5,756 $6,251 +166 ADJ. EBITDA bps expansion 1 ex OAW1 ex OAW1 9% 10% FY21 FY22 FY21 FY22 +28% ADJ. EPS1 ex OAW ADJ. EPS1 ADJ. OCF1 $2.71 $424 +33% Capex 1 $2.43 $319 ADJ. OCF Capex $2.0
Slide 12: 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 % 6,149 5,320 1,190 1,244 538 553 224 191 4,566 5,007 ex OAW1 ex OAW1 18% 10% 16% 9% FY21 FY22 FY21 FY22 FY21 FY22 FY21
Slide 13: Strategic, Accretive and Balanced Capital Deployment
STRATEGIC, ACCRETIVE AND BALANCED CAPITAL DEPLOYMENT CAPITAL DEPLOYMENT PRIORITIES 2.1x Settle Convertible Debt in 2023; Avoid Dilution Fund Organic Growth Maintain Attractive Dividend Maintain Responsible Leverage Strategic M&A Share Repurchases $269M 13 1 Includes quarterly dividends, discretionar
Slide 14: Four Consecutive Years of Dividend Increases
FOUR CONSECUTIVE YEARS OF DIVIDEND INCREASES 14 On February 10, 2023, Board of Directors declared a regular quarterly dividend of $0.135 per share on the company's common stock to be paid on April 14, 2023, to stockholders of record on March 15, 2023.
Slide 15: Initiating 2023 Guidance
INITIATING 2023 GUIDANCE KBR, Inc. FY 2023 Guidance REVENUE $6.9B - $7.1B 70%+ ADJ. EBITDA $715M - $745M FY 2023 ADJ. EPS $2.76 - $2.96 WORK UNDER CONTRACT EFFECTIVE TAX RATE 24% - 25% OPERATING CASH FLOW $425M - $460M The company does not provide reconciliations of Adjusted EBITDA to the most compa
Slide 16: Key Takeaways
KEY TAKEAWAYS ◦ Our commitment to make KBR a great place to work for all is unwavering; we made good progress advancing our people agenda in 2022 ◦ We delivered in 2022 – doing what we said we would do; we outperformed in STS, earnings and cash ◦ Multiple strategic pathways to achieve growth targets
Slide 17: Quarterly Earnings
QUARTERLY £27 Delivering Solutions, Changing the World / ‘ oe EARNINGS 7
Slide 18: Appendices
Appendices , > Y/N. y i ene a Y / WY) | ! | 1] | EARNINGS
Slide 19: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EPS Revenue and Adjusted EPS ex OAW FY20211 FY2022 FY2023 Guidance FY20211 FY2022 Growth Diluted EPS $0.19 $1.26 $2.32 $2.52 Revenue (as reported) $7,339 6,564 Revenue attributable to OAW 1,583 313 Adjustments: Revenue ex OAW $5,756 $6,251 9% Amortization related to
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted Operating and Free Cash Flow FY20211 FY2022 Cash flows provided by operating activities $278 $396 Adjustments: Add back: Major project advance work-off 11 — Adjust: CARES Act temporary tax repayment (relief) 30 28 Adjusted cash flows provided by operating activities
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EBITDA 1Q211 2Q211 3Q211 4Q211 1Q22 2Q22 3Q22 4Q22 Net income (loss) attributable to KBR $49 $(149) $57 $70 $(71) $94 $74 $93 Adjustments: Interest expense 19 20 20 21 20 21 23 23 Provision (benefit) for income taxes 17 40 20 34 19 33 27 13 Other non-operating (inco
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EBITDA - Segment 1 1Q21 2Q211 3Q211 4Q211 1Q22 2Q22 3Q22 4Q22 Pretax income attributable to GS $74 $90 $112 $133 $114 $124 $96 $106 Interest expense 1 1 1 (1) 1 — 2 1 Other non-operating (income) expense — (1) 1 3 — 8 9 (18) Depreciation and amortization 25 32 29 22
Slide 23: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Operating Income to Adj. EBITDA Twelve months ended December 31, 2022 GS STS Corporate KBR Operating income $441 $47 $(145) $343 Noncontrolling interest 2 (4) — (2) Unrealized gain on cost method investment — 16 — 16 Depreciation and amortization 95 14 28 1