KBR, Inc. Q4 FY2025 earnings call

• Zero-harm moment: 2025 TRIR 0.033, zero harm days 96%. • Strategy execution: Thrive and expand in sustainable and mission tech, deliver innovation, operational excellence, deploy capital effectively. • Spin update: Preparations progress, targeted distribution in second half 2026, moving Fraser Nash and UK civil nuclear to sustainable tech. • Fourth quarter and full year results: Revenues, adjusted EBITDA, margins, cash flow details.

Sustainable Tech: 2025 was challenging with petrochemicals capex decline, but SDS was resilient. Margins held in first half, pivoted to Global South, LNG, ammonia, etc. Backlog ended 2025 at $4.2B, up 5% y/y. Near-term pipeline ~$5B. Mission Tech: Faced challenges but performed well, revenue held, margins improved. Backlog and options ended at $19.1B, up 15% y/y. Bids total $17B, 80% new business.

• 2026 guidance: Revenues $7.9B - $8.36B, adjusted EBITDA $980M - $1.04B, adjusted EPS $3.87 - $4.22, adjusted operating cash flow $560M - $600M. • Transition costs ~$140 - $180M. • STS expected low double-digit growth at 20%+ margins, MTS low single-digit growth at 10%+ margins. • Assumes resolution of protests, material programs in place, modest interest rate improvement, stable forex.

• Risks related to forward-looking statements, potential actual results differing. • Risks associated with spin-off process, including operational clarity and standalone positioning. • Risks related to award timing, protest activities, and market volatility affecting business performance.

Q: Describe pipeline in STS for sizable projects.

A: Book to bill in Q3, Q4 impressive, global opportunity, Mura running well, LNG work ongoing, BRIS performing well.

Q: Drivers of 15% backlog growth in MTS.

A: Wins like HHPC, Chiburi, Space Force and Air Force Awards, international portfolio growth.

Q: Plaquemines contribution and future opportunities.

A: Contribution runs through 2026, focus on organic and inorganic growth in OPEX area.

Q: MTS margin outlook in 2026.

A: Flat sequentially from 2025 run rates, no uplift assumed.

Q: AI impacts on KBR.

A: Disciplined approach to AI use cases, front and back office applications, ERP implementation progress.