Slide 1: Q1 2022 Earnings Presentation
April 28, 2022 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Alison Vasquez, 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 future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertai
Slide 3: Stuart Bradie, President and CEO
Stuart Bradie President and Chief Executive Officer
Slide 4: Delivering Solutions, Changing the World
RECYCLE/ REUSE HEALTH, SAFETY & SECURITY EFFICIENT r4 GOVERNANCE ENERGY ZER© INCLUSION & HARM y S . SUPPLY (== Watausace 10 cate COMMUNITY PARTNERS Sy » LT ENGAGEMENT CLIMATE RISK CHANGE MANAGEMENT SUSTAINABLE TRAVEL QUARTERLY £IEZy EARNINGS Delivering Solutions, Changing the World:
Slide 5: Delivering knowledge, science and discovery
Delivering knowledge, science and discovery AWARDED NASA’S A FEW EXAMPLES OF KBR’S CONTRIBUTIONS TO EXCEPTIONAL THE JAMES WEBB SPACE TELESCOPE PROGRAM BRAVERY MEDAL For implementing ▪ Mechanical engineers supported the design and testing a robust safety program ensuring of the integrated science ins
Slide 6: Excellent 1st Quarter Results; Strong Momentum Toward 2025 Targets
EXCELLENT 1ST QUARTER RESULTS; STRONG MOMENTUM TOWARD 2025 TARGETS • Delivered 17% revenue growth and 29% adj. EPS growth; another quarter of strong cash performance • Growing platform of long-term, resilient, mission critical programs enables excellent visibility in volatile times • $1.2B of bookin
Slide 7: Market Outlook: Government Solutions
MARKET OUTLOOK GOVERNMENT SOLUTIONS MARKET DRIVERS & OUTLOOK TRENDS, WINS & MOMENTUM • U.S. Consolidated Appropriations Act of 2022 90% FY22 Work $16.1B 1Q22 Backlog & ▪ Authorizes $782 billion for defense spending, Under Contract Options up 6% from 2021, including $742 million for the Department of
Slide 8: Market Outlook: Sustainable Technology Solutions
MARKET OUTLOOK SUSTAINABLE TECHNOLOGY SOLUTIONS MARKET DRIVERS & OUTLOOK TRENDS, WINS & MOMENTUM • Global supply reconfiguration stemming from Russian sanctions expected to drive near- and mid-term 1.3x $2.4B 1Q22 Backlog 1Q22 Book-to-Bill investments to enable energy, chemical, and food production
Slide 9: Mark Sopp, Executive Vice President and CFO
Mark Sopp Executive Vice President and Chief Financial Officer
Slide 10: 1st Quarter 2022 Results | KBR Delivers Outstanding Growth
1ST QUARTER 2022 RESULTS | KBR DELIVERS OUTSTANDING GROWTH REVENUES ADJ. EBITDA +17% REVENUES Margin % +14% ADJ. EBITDA 9% 9% +29% ADJ. EPS ADJ. EPS ADJ. OCF Capex Capex Capex +56% ADJ. OCF Capex Free cash flow Free cash Free cash flow Free cash Year over year % change Amounts in $millions except sh
Slide 11: Segment Results Demonstrate Mission Focus, Resilience and Agility
SEGMENT RESULTS DEMONSTRATE MISSION FOCUS, RESILIENCE AND AGILITY GOVERNMENT SOLUTIONS SUSTAINABLE TECHNOLOGY SOLUTIONS REVENUES ADJ. EBITDA REVENUES ADJ. EBITDA Margin % Margin % ~2721 9% 10% 16% 16%1 GS revenue growth of 25% over 1Q21, 21% organic • Adj. EBITDA margins reflect favorable mix of hig
Slide 12: Healthy Liquidity Profile and Attractive Capital Deployment Optionality
HEALTHY LIQUIDITY PROFILE AND ATTRACTIVE CAPITAL DEPLOYMENT OPTIONALITY CAPITAL DEPLOYMENT PRIORITIES Fund Organic Growth Maintain Attractive Dividend Maintain Responsible Leverage Strategic M&A Share Repurchases $48M Capital returned to 2.3x Net Leverage shareholders in the quarter1 as of March 31,
Slide 13: Updating FY 2022 Guidance to Reflect Market and Business Momentum
UPDATING FY 2022 GUIDANCE TO REFLECT MARKET AND BUSINESS MOMENTUM KBR, Inc. RAISING FY 2022 FY 2022 Guidance $6.4B - $6.8B REVENUE vs. $6.3B - $6.8B previously FINANCIAL GUIDANCE ADJ. EBITDA MARGIN ~10% ADJ. EPS $2.53 - $2.65 vs. $2.45 - $2.60 previously 85%+ FY 2022 EFFECTIVE TAX RATE 24% - 25% $36
Slide 14: In Summary
IN SUMMARY • Delivering double-digit growth across key financial metrics – revenue, earnings, and cash flow • Strong end-market tailwinds in areas of global importance that favor KBR capabilities and technologies • Winning highly strategic work to secure the future • Expanding deployment flexibility
Slide 15: Quarterly Earnings
QUARTERLY £1EZY EARNINGS
Slide 16: Appendices
APPENDICES QUARTERLY EY EARNINGS
Slide 17: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EPS Adjusted Operating and Free Cash Flow 1Q211 1Q22 FY2022 Guidance4 1Q21 1Q22 FY2022 Guidance EPS (Diluted)2 $0.33 $(0.51) $1.02 $1.14 Cash flows provided by operating activities $50 $89 $330 $370 Adjustments: Adjustments: Amortization related to acquisitions 0.07
Slide 18: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Adjusted EBITDA 1Q211 2Q211 3Q211 4Q211 1Q22 TTM1 Net income (loss) attributable to KBR $49 $(150) $57 $70 $(71) $(94) Adjustments: Interest expense 19 20 20 21 20 81 Provision for income taxes 17 41 20 34 19 114 Other non-operating (income) expense 3 (2) 1 3 0 2 Depreciatio
Slide 19: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Government Solutions Adjusted EBITDA 1Q21 2Q21 3Q21 4Q21 1Q22 TTM Pretax income (loss) attributable to GS $74 $90 $112 $133 $114 $449 Interest expense 1 1 1 (1) 1 2 Other non-operating (income) expense 0 (1) 1 3 0 3 Depreciation and amortization 25 32 29 22 24 107 EBITDA - G
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Operating Income to Adj. EBITDA Three months ended March 31, 2022 GS STS Corporate KBR Operating income $115 $(106) $(40) $(31) Noncontrolling interest 0 (1) 0 (1) Depreciation and amortization 24 3 6 33 EBITDA $139 $(104) $(34) $1 Adjustment: Acquisition,