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Kbr, Inc. — Segment Realignment & Executive Appointments (company IR deck)
Kbr, Inc. (KBR) · 0 slides · Filed Oct 29, 2026
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Slide 1 — SEGMENT REALIGNMENT AND
1 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Jamie DuBray, VP of Investor Relations January 8, 2025 SPECIAL WEBCAST: SEGMENT REALIGNMENT AND EXECUTIVE APPOINTMENTS
Slide 2 — Forward-Looking Statements
© 2025 KBR Inc. 2 Forward-Looking Statements The statements in this presentation that are not historical statements, including statements regarding our plans, objectives, goals, strategies, investments, synergies, capital deployment, future financial performance, 2024-2027 financial targets, expected returns, award activity and backlog, program activity, business opportunities, cost reductions and future events, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: uncertainty, delays or reductions in government funding, appropriations and payments, including as a result of continuing resolution funding mechanisms, government shutdowns or changing budget priorities; developments and changes in government laws, regulations and policies that may require us to pause, delay or abandon new and existing projects; the ongoing conflict between Russia and Ukraine and in the Middle East and the related impacts on our business; potential adverse economic and market conditions, such as interest rate and currency exchange rate fluctuations, the company’s ability to manage its liquidity; the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; changes in capital spending by the company’s customers; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; the possibility of cyber and malware attacks; increased competition for employees; the ability to successfully complete and integrate acquisitions; investment decisions by project owners; and operations of joint ventures, including joint ventures that are not controlled by the company. The company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that the company has identified that may affect its business, results of operations and financial condition. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Slide 3 — Stuart Bradie
© 2025 KBR Inc. 3 Stuart Bradie President and Chief Executive Officer Stuart Bradie President and Chief Executive Officer
Slide 4 — Key Messages
© 2025 KBR Inc. 4 Key Messages • Hosted STS Primer webcast in March • Hosted Investor Day in May and announced 2027 targets PROACTIVELY ENGAGED WITH INVESTORS • Enhanced our go-to-market approach and strengthened our commercial footprint • Advanced key projects: Plaquemines began producing LNG, representing an industry benchmark for speed to market; selected for Lake Charles LNG transformation project with partner Technip Energies; delivered seven ammonia licenses; HomeSafe moves have commenced • Acquired LinQuest, expanding national security and military space capabilities • Undertook segment realignment, cost reductions and leadership appointments. RECOGNIZED FOR SUSTAINABILITY LEADERSHIP AND STRONG CORPORATE CULTURE • America's Best Large Employers by Forbes • Military Friendly Employer – Gold level • America's Greenest Companies by Newsweek • 2nd Year achieving a AAA MSCI Rating POSITIONED BUSINESS FOR CONTINUED GROWTH
Slide 5 — KBR’s Evolution to a Global Diversified Industry Leader
© 2025 KBR Inc. 5 KBR’s Evolution to a Global Diversified Industry Leader • High-end, technically-enabled services and technologies company with deep engineering, science and digital capabilities • Serving both government and commercial customers across attractive, growing end markets Strong growth and profitability with robust cash flow generation Attractive global end markets with scale and diversification Lower risk: concentration, commercial and capital Up-market, differentiated: IP, domain expertise, digital innovation • National security & space • Specialty chemicals • Energy • Critical infrastructure
Slide 6 — Realigning KBR to Meet the Demands of Today and Tomorrow
© 2025 KBR Inc. 6 Realigning KBR to Meet the Demands of Today and Tomorrow • Announced intent to realign segments in Q2’24; moves completed in Q4’24 • Renamed Government Solutions to Mission Technology Solutions • Eliminated standalone Government Services International organization and integrated elements into Mission Technology Solutions and Sustainable Technology Solutions segments – creates meaningful synergies • Introduced strategic adjustments to enhance team alignment and effectiveness WHAT’S NEW Applies leading-edge technologies to innovate and modernize systems for national security, defense, science, health, and commercial entities. Applies process technologies and large-scale project/program delivery expertise in energy, industrials, specialty chemicals, infrastructure, and supporting commercial businesses and national governments.
Slide 7 — KBR’S Realigned Structure
© 2025 KBR Inc. 7 Frazer-Nash Consulting Australia Defense UK Defense Critical Infrastructure Sustainable Solutions Sustainable Technologies KBR’S Realigned Structure MISSION TECHNOLOGY SOLUTIONS (MTS) GOVERNMENT SOLUTIONS (GS) Science & Space Readiness & Sustainment SUSTAINABLE TECHNOLOGY SOLUTIONS (STS) P R I O R S E G M E N T S N E W S E G M E N T S Defense & Intel Frazer-Nash Consulting Australia Defense UK Defense SUSTAINABLE TECHNOLOGY SOLUTIONS (STS) BUSINESS UNITS International (GSI) BUSINESS UNITS Science & Space Readiness & Sustainment Defense & Intel BUSINESS UNITS Sustainable Technologies BUSINESS UNITS Critical Infrastructure Sustainable Solutions
Slide 8 — Realignment Provides Meaningful Benefits
© 2025 KBR Inc. 8 Realignment Provides Meaningful Benefits Increases cross- business connectivity, opening pipeline to additional opportunities Achieves cost savings and more efficient cost base to support continued profitable growth and scale Aligns capabilities and talent to customers and end markets
Slide 9 — Aligning Talent & Capabilities to Customers and End Markets
© 2025 KBR Inc. 9 Aligning Talent & Capabilities to Customers and End Markets § Aligned Air, Space, and Intelligence customers under a single SVP § Aligned UK and Australian Defense teams with US Army, Navy, and Maritime teams § Aligned systems engineering and training capabilities for Army and Navy § Aligned Army Electronic Warfare (EW), RF Systems, and Army Directed Energy programs under a single business § Moved from program-focused to customer- focused approach in Readiness and Sustainment § Expanded India Execution Center SELECTED ACTIONS WE’VE TAKEN > Supports customers’ focus on driving Joint All Domain Command and Control systems > Supports growing needs of AUKUS and Pacific Defense initiatives > Adds more value to customer by providing greater insight for systems, tactics, and mission needs > Leverages LinQuest product development, prototyping, and sales strengths > Drives new business with adjacent customers, as evidenced by recent wins with Department of State > Increases cost competitiveness, workforce scalability, and digital capability BENEFITS
Slide 10 — Increasing Cross-Business Connectivity and Opening Pipeline
© 2025 KBR Inc. 10 Increasing Cross-Business Connectivity and Opening Pipeline § Enhanced cross-selling logistics capabilities globally § Aligned local business operations under a single division leader § Aligned health-related portfolios to drive greater focusing on scaling Human Performance pipeline § In the UK, aligned Frazer-Nash and UK Defense business § In the Middle East, aligned infrastructure businesses under localized management SELECTED ACTIONS WE’VE TAKEN > Identified $10B in new science and intel customer opportunities > Air Force Materiel Command: Access to combined LinQuest and KBR Digital teams > Recent win on MQS2 IDIQ > Better positioned for growth across defense and nuclear > Seamless program execution and more cost- effective delivery opens up larger pipeline BENEFITS
Slide 11 — Stuart Bradie
© 2025 KBR Inc. 11 Stuart Bradie President and Chief Executive Officer Mark Sopp Executive Vice President and Chief Financial Officer
Slide 12 — $30 MILLION
© 2025 KBR Inc. 12 Achieving Cost Savings § Eliminated the GS International organization § Initiated organization-wide zero-based budgeting approach § Reviewed spans and layers of management; combined multiple groups into single enterprise teams § Leveraging ERP, AI and automation for greater cost effectiveness SELECTED ACTIONS WE’VE TAKEN BENEFITS > Enhances competitiveness > Fuels growth investment > Supports delivering on long-term targets $30 MILLION Expected Annual Cost Savings
Slide 13 — Supplemental Investor Schedule
© 2025 KBR Inc. 13 Supplemental Investor Schedule KBR CONFIDENTIAL A supplemental investor schedule is available with relevant recast pro forma financial information on investors.kbr.com website
Slide 14 — Revenues $11.5B+
© 2025 KBR Inc. 14 Reiterating 2027 Long-Term Targets KBR CONSOLIDATED Revenues $11.5B+ Adj. EBITDA1 $1.15B+ Adj. EBITDA Margin1 10%–11% OCF $700M+ Targets exclude capital deployment; OCF target reflects 27% effective tax rate and interest rates consistent with 2023A. *As announced in our 2024 Investor Day, targets are based on 2023 baseline year. MISSION TECHNOLOGY SOLUTIONS Revenue CAGR 11%–15% Adj. EBITDA Margin1 9%–10% Revenue CAGR 11%–15% Adj. EBITDA Margin1 ~20% SUSTAINABLE TECHNOLOGY SOLUTIONS
Slide 15 — Supporting KBR’s Growth in Size and Scale with Executive Appointments
© 2025 KBR Inc. 15 Supporting KBR’s Growth in Size and Scale with Executive Appointments • Leadership changes support KBR’s strategy execution and continued strong performance – effective May 2025 • Chair General Lester Lyles announced plans to retire in May • President and CEO Stuart Bradie appointed Chair-Elect • Byron Bright, President of legacy Government Solutions US named COO • Lead Independent Director to be appointed ahead of Annual Meeting of Stockholders (May) • In newly created COO role, will § Be responsible for driving business and operational performance across the organization § Lead both the MTS and STS businesses Byron Bright Chief Operating Officer • 15 years with KBR in roles of increasing responsibility
Slide 16 — Key Takeaways
© 2025 KBR Inc. 16 Key Takeaways ONE KBR Capabilities Deep Domain Expertise Commercial and Global Acumen Proprietary Technologies Digital Innovation Mission Technology Solutions Sustainable Technology Solutions • Streamlined, resilient business model well-positioned for 2025 and beyond • Energized leadership team • Segment realignment and executive appointments further enable sharper execution and expand profitable growth opportunities • Reaffirming 2027 long-term targets • Benefits already being seen from the portfolio realignment initiatives
Slide 17 — Q & A
© 2025 KBR Inc. 17 Q & A
Slide 18 — KBR Investment Thesis: Attractive Growth Opportunity
© 2025 KBR Inc. 18 • Domain expertise and commercial acumen • Strong IP portfolio • Digital innovation • Portfolio across multiple verticals and cycles • Scalable, dynamic workforce • Lower-risk business model • Well-positioned in end markets of the future • Global delivery footprint • Strong customer relationships • Robust cash generation • Low capital intensity • Strong balance sheet KBR Investment Thesis: Attractive Growth Opportunity Enduring Growth Differentiated Resilient Capital Upside
Slide 19 — Appendix
© 2025 KBR Inc. 19 Appendix
Slide 20 — Footnotes
© 2025 KBR Inc. 20 Footnotes 1 Adj. EBITDA and Adj. EBITDA margin are considered non-GAAP financial measures under SEC rules. EBITDA is defined as Net income attributable to KBR, plus Interest expense; Accretion of Convertible Notes debt discounts; Other non-operating expense; Provision for income taxes; and Depreciation and amortization. Adj. EBITDA excludes certain amounts included in EBITDA. Adj. EBITDA margin is calculated as Adj. EBITDA divided by Revenues. Management believes EBITDA, Adj. EBITDA and Adj. EBITDA margin afford investors a view of what management considers KBR's core performance. Refer to non-GAAP reconciliation for details. The company does not provide a reconciliation of Adj. EBITDA to the most comparable GAAP financial measure on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, and acquisition-related expenses without unreasonable effort, which could be material to the company’s results computed in accordance with GAAP.