Financial Data and Key Metrics Changes - Revenue increased by 6% year-on-year, while adjusted EBITDA rose by 13%, with margins at the group level up by 75 basis points [9][14]. - Year-to-date cash conversion was reported at 121%, indicating strong operational efficiency [9][14]. - Adjusted EBITDA margins reached approximately 11.5%, reflecting effective client delivery and cost discipline [14]. Business Line Data and Key Metrics Changes - Sustainable Technology Solutions (STS) revenue grew by 14% to $458 million, with margins at 21.4%, up from the previous year [15]. - Government segment revenue increased by 3%, with international defense and intelligence growing by 11% and science and space by 1% [16]. - The book-to-bill ratio for STS was 1.1 for the quarter and 1.2 on a trailing 12-month basis, indicating strong performance [10][11]. Market Data and Key Metrics Changes - The company booked approximately $2 billion at the group level, with 92% of work under contract for 2024 [10]. - The government business saw a significant increase in bid volume, with over $2 billion worth of bids submitted and awaiting award under the IAC MAC program [12][16]. Company Strategy and Development Direction - The company plans to realign its business structure from three segments to two, aiming to reduce complexity and realize synergies [30][26]. - The acquisition of LinQuest is seen as a strategic move to enhance capabilities in national security and space, with expected double-digit growth and margins [22][21]. - The focus remains on technology-enabled markets, leveraging high-end technical and digital expertise to differentiate in critical areas [25][26]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects in the Middle East and the U.S. government sectors, particularly following the LinQuest acquisition [33][40]. - The company anticipates continued strong performance in STS, driven by energy security projects and a robust pipeline of opportunities [70][72]. - Management remains cautious about potential volatility in the U.S. market due to upcoming elections but maintains a positive outlook on operational performance [61]. Other Important Information - The company has returned nearly $200 million to shareholders through buybacks and increased dividends in the first half of the year [17]. - The integration of LinQuest is expected to be smooth due to shared ERP platforms, enhancing operational efficiency [24][22]. Q&A Session Summary Question: Can you expand on the realignment and its expected outcomes? - The objective is to reduce complexity by moving from three business units to two, which will allow for better standardization and efficiency [30]. Question: Where do you see the most rapid growth geographically? - Significant growth is expected in the Middle East, with continued activity in the U.S. and the Pacific region [33]. Question: What is the outlook for STS bookings and growth targets for 2025? - Strong momentum in STS bookings is expected to continue, with a robust pipeline globally, particularly in the Middle East [36]. Question: How is the new UK government expected to impact operations? - The UK government remains committed to NATO and energy transition, presenting opportunities for growth [40]. Question: What are the expectations for the R&S segment in Europe? - R&S is diversifying and seeing increased activity, particularly in non-LOGCAP areas, with optimism for the second half of the year [52][54].

KBR, Inc. (KBR) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.The company performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.However, KBR's stock experienced a 0.9% decline in the pre-market trading session ...

For the quarter ended June 2024, KBR Inc. (KBR) reported revenue of $1.86 billion, up 5.8% over the same period last year. EPS came in at $0.83, compared to $0.74 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.88 billion, representing a surprise of -1.58%. The company delivered an EPS surprise of +5.06%, with the consensus EPS estimate being $0.79.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...

1 July 24, 2024 QUARTERLY @2024 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Jamie DuBray, VP of Investor Relations 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 business strategy, interest expense, our plans for raising and deploying capital ...

Part I [Executive Summary and Strategic Highlights](index=1&type=section&id=Executive%20Summary%20and%20Strategic%20Highlights) KBR reported strong Q2 2024 results, raising guidance and strategically acquiring LinQuest for enhanced capabilities - CEO Stuart Bradie highlighted **strong performance** across key metrics, leading to an **increase in full-year profit and cash flow guidance**[3](index=3&type=chunk) - The planned acquisition of LinQuest is a strategic move to enhance KBR's **high-end technology, expertise, and mission capabilities**, strengthening support for U.S. defense and intelligence agencies[3](index=3&type=chunk) [New Business Awards and Backlog](index=1&type=section&id=New%20Business%20Awards%20and%20Backlog) KBR's backlog and options reached **$20.1 billion** with a **1.0x TTM book-to-bill ratio** and **$2.1 billion in quarterly bookings** | Metric | Value | | :--- | :--- | | Total Backlog and Options (as of June 28, 2024) | $20.1 billion | | TTM Book-to-Bill (Total) | 1.0x | | TTM Book-to-Bill (Government Solutions) | 1.2x | | TTM Book-to-Bill (Sustainable Technology Solutions) | 0.8x | | Quarterly Bookings and Options | $2.1 billion | - Key awards for Sustainable Technology Solutions (STS) include **K-GreeN® green ammonia technology** selection in India, an **operator training simulator contract** for OCI Global, a **five-year advisory contract for Iraq**, and **phenol technology licensing** in China[4](index=4&type=chunk) - Key awards for Government Solutions (GS) include a position on the **$43 billion Medical Q Coded Support contract**, an **$82 million task order for B-52 support**, a position on the **$2 billion Global Contingency Services contract**, and a **$34 million recompete contract** for U.S. Naval Research Laboratory facility operations[8](index=8&type=chunk) [Second Quarter 2024 Financial Performance](index=2&type=section&id=Summarized%20Second%20Quarter%202024%20Financial%20Results) KBR's Q2 2024 revenue grew **6% to $1.9 billion**, with **net income of $106 million** reversing a prior-year loss, and **Adjusted EBITDA increasing 13%** | Financial Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,855M | $1,753M | +6% | | Net Income (loss) attributable to KBR | $106M | ($351M) | N/A | | Adjusted EBITDA | $216M | $191M | +13% | | Adjusted EBITDA Margin | 11.6% | 10.9% | +75 bps | | Diluted EPS | $0.79 | ($2.60) | N/A | | Adjusted EPS | $0.83 | $0.74 | +12% | | Operating Cash Flows | $170M | $253M | -33% | - Revenue growth was driven by **Sustainable Technology Solutions** and **Government Solutions** (International, Defense & Intel, Science & Space), partially offset by reduced Ukraine-related activity[9](index=9&type=chunk) - The substantial increase in net income compared to Q2 2023 is primarily due to the **non-recurrence of a $132 million after-tax legal settlement charge** and a **$314 million non-cash charge related to convertible notes** from the prior year[10](index=10&type=chunk) - KBR returned **$118 million to shareholders** during the quarter, including **$97 million in share repurchases** and **$21 million in dividends**[12](index=12&type=chunk) [Year-to-Date 2024 Financial Performance](index=3&type=section&id=Financial%20Highlights%20for%20the%20Six%20Months%20Ended%20June%2028%2C%202024) KBR's YTD 2024 revenue increased **6% to $3.7 billion**, with **net income of $199 million** reversing a prior-year loss, and **Adjusted EBITDA growing 13%** | Financial Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $3,673M | $3,456M | +6% | | Net Income (loss) attributable to KBR | $199M | ($265M) | N/A | | Adjusted EBITDA | $423M | $373M | +13% | | Adjusted EBITDA Margin | 11.5% | 10.8% | +72 bps | | Diluted EPS | $1.47 | ($1.95) | N/A | | Adjusted EPS | $1.59 | $1.41 | +13% | | Operating Cash Flows | $261M | $288M | -9% | - Year-to-date revenue growth mirrored Q2, driven by **Sustainable Technology Solutions** and **Government Solutions**, partially offset by reduced Ukraine activity[13](index=13&type=chunk) - The significant improvement in year-to-date net income was primarily due to the **non-recurrence of a $132 million after-tax legal charge** and a **$314 million non-cash charge for convertible notes** from the first half of 2023[15](index=15&type=chunk) - Year-to-date capital returned to shareholders totaled **$197 million**, including **$158 million in share repurchases** and **$39 million in regular dividends**[17](index=17&type=chunk) [Anticipated Acquisition of LinQuest](index=4&type=section&id=Anticipated%20Acquisition%20of%20LinQuest) KBR agreed to acquire LinQuest Corporation for **$737 million net of tax benefits**, expected to close in Q3/Q4 2024 and be **accretive to Adjusted EPS** - KBR agreed to acquire LinQuest Corporation for **$737 million**, net of modest expected tax benefits[18](index=18&type=chunk) - The acquisition is expected to be **accretive to Adjusted EPS** and is planned to close in **Q3 or Q4** of the current year[18](index=18&type=chunk) - Funding for the transaction will come from a combination of **cash on hand and existing debt capacity**[18](index=18&type=chunk) [Updated Fiscal 2024 Guidance](index=4&type=section&id=Updated%20Fiscal%202024%20Guidance) KBR raised its fiscal 2024 guidance for **Adjusted EBITDA, Adjusted EPS, and operating cash flow**, with revenue unchanged and excluding LinQuest impact | Metric | Updated Fiscal 2024 Guidance | Prior Fiscal 2024 Guidance | | :--- | :--- | :--- | | Revenue | $7.4B - $7.7B | $7.4B - $7.7B | | Adjusted EBITDA | $825M - $850M | $810M - $850M | | Adjusted EPS | $3.15 - $3.30 | $3.10 - $3.30 | | Operating cash flows | $460M - $480M | $450M - $480M | - The updated guidance reflects **increased confidence in profitability and cash generation** for the remainder of the year[19](index=19&type=chunk) - This guidance is based on a diluted and adjusted share count of approximately **135 million shares**[20](index=20&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents detailed consolidated financial statements, including statements of operations, balance sheets, cash flows, and backlog information [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For H1 2024, KBR reported **$3.67 billion in revenues** and **$199 million net income**, reversing a prior-year loss due to non-recurring charges | Revenue by Segment (Six Months Ended) | 2024 | 2023 | | :--- | :--- | :--- | | Government Solutions | $2,783M | $2,680M | | Sustainable Technology Solutions | $890M | $776M | | **Total revenues** | **$3,673M** | **$3,456M** | - The significant swing from a net loss in 2023 to net income in 2024 was primarily driven by the **non-recurrence of a $314 million charge for Convertible Notes** and a **$144 million legal settlement charge** from the prior year[29](index=29&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2024, KBR's **total assets were $5.76 billion**, with **cash increasing to $414 million**, and **total liabilities rising to $4.35 billion** | Balance Sheet Item (in millions) | June 28, 2024 | Dec 29, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $414 | $304 | | Total current assets | $1,825 | $1,651 | | Total assets | $5,764 | $5,565 | | Long-term debt | $1,900 | $1,801 | | Total liabilities | $4,353 | $4,171 | | Total KBR shareholders' equity | $1,402 | $1,383 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2024, KBR generated **$261 million in operating cash flow**, used **$158 million in financing activities**, and ended with **cash and cash equivalents of $414 million** | Cash Flow Item (Six Months Ended, in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $261 | $288 | | Net cash provided by (used in) investing activities | $8 | ($21) | | Net cash used in financing activities | ($158) | ($126) | | **Increase in cash and cash equivalents** | **$110** | **$150** | - Major uses of cash in financing activities for the first six months of 2024 included **$158 million for common stock repurchases** and **$39 million for dividend payments**[33](index=33&type=chunk) [Backlog Information](index=11&type=section&id=Backlog%20Information) As of June 28, 2024, KBR's **total backlog and options were $20.1 billion**, a **7% decrease from 2023**, with **GS at $16.2 billion** and **STS at $3.9 billion** | Backlog (in millions) | June 28, 2024 | Dec 29, 2023 | | :--- | :--- | :--- | | Government Solutions Backlog | $12,894 | $12,790 | | Sustainable Technology Solutions Backlog | $3,923 | $4,545 | | **Total backlog** | **$16,817** | **$17,335** | | Award options | $3,332 | $4,397 | | **Total backlog and options** | **$20,149** | **$21,732** | [Non-GAAP Financial Measures Reconciliation](index=12&type=section&id=Non-GAAP%20Financial%20Information) KBR uses non-GAAP measures like **Adjusted EBITDA and Adjusted EPS** to show core operational performance, excluding specific items, with detailed reconciliations provided - KBR presents non-GAAP measures like **Adjusted EBITDA and Adjusted EPS** to show core performance, excluding certain items[37](index=37&type=chunk)[38](index=38&type=chunk)[41](index=41&type=chunk) | Reconciliation of Net Income to Adjusted EBITDA (Q2, in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net income (loss) attributable to KBR | $106 | ($351) | | EBITDA | $215 | ($143) | | Adjustments (e.g., legal fees, acquisition costs) | $1 | $334 | | **Adjusted EBITDA** | **$216** | **$191** | | Reconciliation of Diluted EPS to Adjusted EPS (Q2) | 2024 | 2023 | | :--- | :--- | :--- | | Diluted EPS | $0.79 | ($2.60) | | Adjustments (e.g., amortization, legal fees, convert charges) | $0.04 | $3.34 | | **Adjusted EPS** | **$0.83** | **$0.74** |

KBR, Inc. (KBR) is slated to report its second-quarter 2024 results on Jul 24, 2024, before market open.In the last reported quarter, its adjusted earnings and revenues beat the Zacks Consensus Estimate by 10% and 1.1%, respectively. Also, on a year-over-year basis, the top and bottom lines grew 7% and 15%, respectively.The company’s earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 5%.Trend in Estimate RevisionThe Zacks Consensus Estimate for second ...

HOUSTON, July 22, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today its blue ammonia technology has been selected by Shell for its Blue Horizons low-carbon hydrogen and ammonia project in Duqm, Oman. The facility will utilize KBR's leading ammonia synthesis loop technology to deliver cost-competitive and low-carbon intensity ammonia.Under the terms of the contract, KBR will provide licensed proprietary engineering design for the 3,000 metric tons per day ammonia plant utilizing hydrogen produced by Shell ...

KBR, Inc. (KBR) secured a consulting contract from Kuwait Oil Company to develop a master plan for 17GW of renewable energy and 25GW of green hydrogen production by 2050.Per the contract, the company will provide advisory consulting services to develop a phased strategy for deploying wind and solar power with storage capability. This renewable power will support green hydrogen production for internal use and export. The work will span 18 months and include market analysis, feasibility studies and training f ...

In a bid to expand opportunities for revenue growth and meet customer and market demands, KBR, Inc. (KBR) recently inked a deal to acquire an engineering, data analytics and digital integration company — LinQuest Corporation.The acquisition is expected to be accretive to adjusted earnings per share (EPS) (excluding amortization from purchased intangible assets and non-recurring transaction costs) and is unanimously approved by the KBR board of directors. The deal is worth $737 million, inclusive of modest e ...

HOUSTON, July 18, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded an advisory consulting contract by Kuwait Oil Company for the development of a country wide masterplan for the production of 17GW of renewables and 25GW of green hydrogen by 2050. Under the terms of the contract, KBR will provide advisory consulting services to develop a phased strategy for the deployment of significant wind and solar power, combined with power storage capability. The renewable power capability will b ...