Core Viewpoint - The Gross Law Firm is notifying shareholders of KBR, Inc. about a class action lawsuit due to alleged misleading statements regarding the company's operations and contracts with the U.S. Department of Defense [1][3]. Group 1: Allegations - The complaint alleges that KBR's management made materially false and misleading statements about the partnership with HomeSafe, despite knowing about the U.S. Department of Defense's concerns regarding HomeSafe's ability to fulfill a global household goods contract [3]. - It is claimed that KBR's statements about its business operations and future prospects lacked a reasonable basis during the class period from May 6, 2025, to June 19, 2025 [3]. Group 2: Class Action Details - Shareholders who purchased KBR shares during the specified class period are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for November 18, 2025 [4]. - Participants will be enrolled in a portfolio monitoring system to receive updates on the case's progress [4]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect investors' rights and seeks recovery for those who suffered losses due to deceitful practices and misleading statements by companies [5].

Core Insights - KBR has opened a new office in Rosslyn, Virginia, to enhance its engagement with government customers and stakeholders [1][2] - The new office is strategically located near key government buildings, facilitating closer collaboration with agencies such as the Department of War and the intelligence community [1][2] - KBR is committed to expanding its presence in the D.C. area, with plans to recruit new hires and create roles to support government projects [3] Company Expansion - The new office represents a significant step in KBR's commitment to the Washington, D.C. area, where it currently employs approximately 900 people across four offices [2] - KBR's President for Defense, Intel and Space emphasized the importance of private sector support for national security projects like the Golden Dome missile defense system [3] - The company is also planning to spin off its Mission Technology Solutions business into a new publicly traded entity, aligning with national security and space priorities [4] Workforce Development - KBR is actively recruiting to bolster its workforce in the D.C. area, aiming to enhance its capabilities in supporting government missions [3] - The new resources in the D.C. area are expected to play a critical role in operationalizing key defense projects [3]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against KBR, Inc. related to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by November 18, 2025 [4][6]. Group 1: Allegations Against KBR - The complaint alleges that KBR and its executives made false and misleading statements regarding the HomeSafe's ability to fulfill the Global Household Goods Contract, despite knowing about the U.S. Department of Defense's concerns [6]. - The lawsuit claims that KBR's statements about its business operations and prospects were materially false and misleading, leading to investor damages when the truth was revealed [6]. Group 2: Stock Price Impact - Following the announcement of the termination of the Global Household Goods Contract, KBR's stock price fell by $3.85 per share, or 7.29%, closing at $48.93 on June 20, 2025 [7]. - On the next trading day, KBR's stock experienced an additional decline of $1.30, or 2.65%, closing at $47.63 on June 23, 2025 [7]. Group 3: Legal Process and Participation - The lead plaintiff in the class action will be the investor with the largest financial interest who is adequate and typical of class members, overseeing the litigation on behalf of the class [8]. - Any member of the class can move to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [8].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was flat year-on-year at $1.9 billion, but up 5% year-to-date compared to the previous year [6][18] - Adjusted EBITDA increased by 10% to $240 million, with margins rising over 100 basis points to 12.4% [8][18] - Adjusted EPS rose by 21% to $1.02, driven by improved adjusted EBITDA performance and share buybacks [8][18] - Operating cash flow for the year-to-date reached $506 million, a 24% increase from the prior year, with a conversion rate exceeding 130% [8][18] Business Line Data and Key Metrics Changes - Mission Technologies (MTS) revenues were flat at $1.4 billion, with Defense and Intelligence growing by 14%, while Readiness and Sustainment declined by 22% [20][22] - Sustainable Technology Solutions (STS) revenues decreased by 1% to $525 million, but adjusted EBITDA increased by 13% to $123 million, with margins at 23.5% [22][24] - The book-to-bill ratio for MTS was 1.4x, while STS delivered a 1.2x book-to-bill excluding LNG [16][22] Market Data and Key Metrics Changes - KBR's backlog plus options increased to over $23 billion, a 13% rise from the previous year, marking the highest backlog in the company's history [13][36] - The company has $18 billion in bids pending award, with over 75% representing new business opportunities [13][15] - The U.S. funded backlog was $2 billion at the end of Q3, providing over five months of revenue run rate [26] Company Strategy and Development Direction - KBR is pursuing a spin-off of its Mission Technologies segment, aiming for completion by mid to late 2026, which is expected to enhance strategic focus and operational independence [31][33] - The company is focusing on geographical expansion and strategic partnerships, particularly in the Middle East and energy sectors [7][12] - KBR aims to increase exposure to recurring revenue streams, particularly in the OPEX side of the STS business [18] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the STS business despite headwinds from government shutdowns and project delays, with expectations for improved revenue in Q4 [7][26] - The company anticipates continued momentum in both segments heading into 2026, supported by a strong pipeline of opportunities [8][42] - Management expressed confidence in navigating the challenges posed by the government shutdown, with minimal impact on revenue expected [26][36] Other Important Information - KBR returned over $120 million in capital to shareholders during the quarter while managing leverage responsibly [9][24] - The company has received a top AAA rating from MSCI for sustainability efforts and allocated $2.9 billion towards sustainability initiatives in fiscal 2024 [5][6] Q&A Session Summary Question: Outlook for STS in 2026 - Management indicated good visibility for continued momentum in STS, aligned with growth targets of 11-15% for 2026, despite needing to replace energy transition projects [40][42] Question: MTS performance and growth - Management highlighted strong growth in Defense and Intelligence, with confidence in achieving growth targets despite pressures in other areas like NASA [44][46] Question: NASA exposure and budget cuts - Management noted minimal impact from NASA budget cuts for the remainder of the year, with expectations for increased investment in human space performance [54][56] Question: LNG opportunities - Management confirmed active discussions and ongoing projects in LNG, with positive expectations for future contributions from various LNG projects [58][60] Question: STS margins and backlog - Management explained that current margins are affected by timing and proprietary equipment sales, with expectations for mid-teens margins to be sustainable [100][102] Question: International opportunities in Australia and the UK - Management reported strong performance and brand recognition in Australia, with a robust pipeline of opportunities in both Australia and the UK [113]

Core Viewpoint - A class-action lawsuit has been filed against KBR, Inc. alleging misleading statements made by the company prior to the cancellation of a significant military contract, which adversely affected its business outlook [1][2]. Group 1: Lawsuit Details - The lawsuit targets KBR investors who acquired securities between May 6, 2025, and June 19, 2025, and seeks to represent those who suffered substantial losses [2]. - The legal action claims that KBR executives provided an overly optimistic outlook on a crucial partnership just before its collapse [2]. Group 2: Contract Cancellation Impact - The lawsuit arises from the U.S. Department of Defense's cancellation of its global household goods contract with HomeSafe Alliance LLC, a joint venture led by KBR, announced on June 20, 2025 [3]. - Following the contract termination, KBR shares dropped over 7% due to the loss of a contract valued at up to $20 billion over a potential nine-year term [3]. Group 3: Misrepresentation Allegations - On May 6, 2025, during its Q1 earnings call, KBR assured investors that the HomeSafe partnership was "strong" and projected a mid-point revenue contribution of about $400 million for 2025 [4]. - Just weeks later, on June 19, 2025, HomeSafe disclosed the termination of the contract for cause, attributed to operational issues, which KBR allegedly knew about but did not disclose to investors [5]. Group 4: Financial Revisions - After the contract termination, KBR revised its low-end 2025 revenue guidance downward by approximately $900 million (-9%) during its Q2 2025 financial results announcement on July 31, 2025 [6]. - KBR management acknowledged operational challenges during the earnings call, raising questions about whether the company intentionally misled investors regarding the contract's status [6].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of KBR, Inc. regarding a class action lawsuit due to allegations of misleading statements related to the company's partnership with the U.S. Department of Defense's Transportation Command [1]. Summary by Sections Allegations - The complaint alleges that KBR's management made materially false and misleading statements about the partnership with HomeSafe, despite being aware of concerns regarding HomeSafe's ability to fulfill a global household goods contract [1]. - It is claimed that KBR's statements about its business operations and future prospects lacked a reasonable basis during the class period from May 6, 2025, to June 19, 2025 [1]. Class Action Details - Shareholders who purchased KBR shares during the specified class period are encouraged to register for the class action, with a deadline set for November 18, 2025 [2]. - Participants will be enrolled in a portfolio monitoring system to receive updates on the case's progress [2]. Law Firm's Mission - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices, seeking recovery for losses incurred due to false or misleading statements [3].

分组1 - KBR Inc. reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and up from $0.84 per share a year ago, representing an earnings surprise of +7.37% [1][2] - The company posted revenues of $1.93 billion for the quarter ended September 2025, which was 2.29% below the Zacks Consensus Estimate and a decrease from $1.95 billion year-over-year [2] - KBR has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] 分组2 - KBR shares have declined approximately 26% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4][6] - The current consensus EPS estimate for the next quarter is $1.02 on revenues of $2.06 billion, and for the current fiscal year, it is $3.77 on revenues of $8.03 billion [7] 分组3 - The Engineering - R and D Services industry, to which KBR belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

October 30, 2025 Stuart Bradie, President and CEO Mark Sopp, EVP and CFO Jamie DuBray, VP of Investor Relations Forward-Looking Statements 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, business opportunities, interest expense, our plans for raising and deploying capital ...

Core Insights - KBR, Inc. reported third quarter fiscal 2025 results, showing resilience despite revenue headwinds, with a year-on-year double-digit growth in Adjusted EBITDA and strong cash conversion [2][6][8] Financial Performance - Revenues for the third quarter were $1.931 billion, a slight decrease of 0% or $6 million compared to the previous year [5][8] - Operating income increased by 10% to $191 million, driven by strong project execution on an LNG project [9][12] - Net income attributable to KBR was $115 million, up 15% from the previous year, reflecting improved operating income [9][10] - Adjusted EBITDA reached $240 million, a 10% increase, with an Adjusted EBITDA margin of 12.4% [6][12] - Diluted earnings per share attributable to KBR were $0.90, up 20% from the previous year [11][34] Segment Performance - Mission Technology Solutions (MTS) revenues were flat at $1.406 billion, with operating income remaining stable at $114 million [16] - Sustainable Technology Solutions (STS) revenues decreased by 1% to $525 million, but operating income increased by 13% to $118 million [18][20] - Backlog and options totaled $23.4 billion, with a book-to-bill ratio of 1.4x for the quarter [13][20] Capital Management - Operating cash flows from continuing operations were $198 million, a 29% increase, with an operating cash conversion rate of 152% [21] - KBR returned $122 million to shareholders, including $100 million in share repurchases and $22 million in dividends [21] - As of October 3, 2025, liquidity totaled approximately $1.1 billion, with a net leverage ratio of 2.2x [20] Guidance and Strategic Initiatives - KBR revised its fiscal year 2025 guidance, projecting revenues between $7.75 billion and $7.85 billion, down from the previous range [22][23] - The company announced plans to spin off its Mission Technology Solutions segment into a separate publicly-traded company, targeting completion by mid-to-late 2026 [24]

Financial Performance - Revenues for Q3 FY 2025 were $1.9 billion, a decrease of 0% or $6 million compared to Q3 FY 2024[7] - Adjusted EBITDA was $240 million, up 10% or $21 million, with an Adjusted EBITDA margin of 12.4%[12] - Net income attributable to KBR was $115 million, an increase of 15% or $15 million compared to the previous year[8] - Adjusted earnings per share were $1.02, up 21% or $0.18 compared to the previous year[12] - Total revenues for the three months ended October 3, 2025, were $1.931 billion, slightly down from $1.937 billion for the same period in 2024[31] - Net income attributable to KBR for the three months ended October 3, 2025, was $115 million, compared to $100 million for the same period in 2024, representing a 15% increase[31] - Adjusted EBITDA for the three months ended October 3, 2025, was $240 million, up from $219 million in the same period last year, indicating a growth of approximately 9.6%[31] - Net income from continuing operations for the nine months ended October 3, 2025, was $345 million, compared to $302 million for the same period in 2024, representing a 14.2% increase[35] - Adjusted EBITDA for the nine months ended October 3, 2025, was $730 million, up from $642 million in the same period of 2024, reflecting an increase of 13.7%[39] - Adjusted EPS for the nine months ended October 3, 2025, was $2.93, compared to $2.44 for the same period in 2024, marking a 20.1% increase[41] - The company’s diluted EPS from continuing operations for the three months ended October 3, 2025, was $0.91, compared to $0.75 for the same period in 2024, representing a 21.3% increase[41] Cash Flow and Capital Management - Operating cash flows from continuing operations were $198 million, up 29% or $45 million, with an operating cash conversion of 152%[18] - Cash and equivalents increased to $539 million as of October 3, 2025, compared to $342 million at the beginning of the fiscal year[33] - Operating cash flows from continuing operations for the nine months ended October 3, 2025, totaled $506 million, compared to $409 million for the same period in 2024, indicating a 23.8% increase[43] - Cash and cash equivalents at the end of the period for continuing operations increased to $539 million from $446 million year-over-year[35] - Total cash flows provided by operating activities from continuing operations for the nine months ended October 3, 2025, were $506 million, compared to $409 million in the prior year, a 23.8% increase[35] - Total cash flows provided by investing activities for continuing operations were $47 million for the nine months ended October 3, 2025, compared to a cash outflow of $733 million in the same period of 2024[35] - KBR returned $122 million in capital to shareholders, including $100 million in share repurchases and $22 million in dividends[18] Contracts and Backlog - Bookings and options totaled $4.2 billion with a book-to-bill ratio of 1.4x for the quarter[5] - Backlog and options as of the quarter end totaled $23.4 billion[12] - KBR secured a $2.5 billion NASA contract to support astronaut health and research for future human spaceflight missions[20] Guidance and Future Outlook - The company is revising its FY 2025 guidance due to the pace of awards and unresolved bids during the U.S. Government shutdown[22] - The company projects revenues for fiscal year 2025 to be between $7.75 billion and $7.85 billion, a decrease from the prior guidance of $7.9 billion to $8.1 billion[23] - Adjusted EBITDA for fiscal year 2025 is expected to remain stable at $960 million to $980 million, consistent with the previous year's guidance[23] - Adjusted EPS is forecasted to be between $3.78 and $3.88, unchanged from the prior fiscal year guidance[23] Corporate Developments - The company announced plans to spin off its Mission Technology Solutions segment into a separate publicly-traded company, targeting completion by mid-to-late 2026[24] - The company will host a conference call on October 30, 2025, to discuss its third quarter fiscal year 2025 results[25] Assets - Total assets as of October 3, 2025, were $6.649 billion, a slight decrease from $6.663 billion at the beginning of the fiscal year[33]