KBR(KBR) - 2025 Q3 - Earnings Call Presentation

Financial Performance - Revenue remained flat year-over-year at $1.9 billion[9], attributed to challenges in converting pipeline opportunities due to delays and protests[12] - Adjusted EBITDA increased by 10% to $240 million[10], with an adjusted EBITDA margin expansion of 112 bps year-over-year, reaching 12.4%[11] - Year-to-date operating cash flow (OCF) increased by 24%[31], with a conversion rate of 133% due to reductions in Days Sales Outstanding (DSO) in both segments[32] - The company is guiding for full-year 2025 revenues of $7.75 billion to $7.85 billion, adjusted EBITDA of $960 million to $980 million, and adjusted EPS of $3.78 to $3.88[41] Strategic Initiatives and Backlog - The company achieved a QTD book-to-bill ratio of 1.4x and a TTM book-to-bill ratio of 1.0x[16] - Total backlog and options stand at $23.4 billion[16] - Mission Tech QTD book-to-bill is 1.4x with a backlog and options of $19.7 billion[21] - Sustainable Tech QTD book-to-bill is 1.2x with a backlog of $3.7 billion[21] Spin-Off - The spin-off is progressing well and is expected to close in mid-to-late 2026[13, 43] - Post-spin-off, New KBR (comprising STS) TTM Q3'25 Revenues is $2.2 billion with Adj EBITDA margin of 22.3% and backlog of $3.7B[44, 45] - Post-spin-off, SpinCo (comprising MTS) TTM Q3'25 Revenues is $5.8 billion with Adj EBITDA margin of 9.9% and backlog & options of $19.7B[44, 45]