Strong Q1 2024 PerformanceAdjusted EBITDA2 Growth with Margin Expansion HOUSTON, April 30, 2024 /PRNewswire/ -- KBR, Inc. (NYSE:KBR) today announced its first quarter fiscal 2024 financial results. "KBR's extraordinary team has yet again surpassed expectations, delivering outstanding first-quarter results," said Stuart Bradie, KBR's President and CEO. "Our team's unwavering commitment to our customers has led to year-over-year increases across all key financial metrics, particularly in Adjusted EBITDA2 and operating cash flow. Bookings during the quarter were well-aligned with our end markets across energy security, national defense, human performance, and sustainability." New Business AwardsBacklog and options as of March 29, 2024 totaled $20.8 billion. Delivered 1.1x trailing-twelve-months (TTM) book-to-bill1 as of March 29, 2024. Awarded $1.9 billion of bookings and options in the quarter. Sustainable Technology Solutions (STS) delivered 0.9x TTM book-to-bill1 as of March 29, 2024, including awards and achievements in the quarter as follows: KBR's Purifier™ ammonia technology selected by Wuhuan Engineering Co. Ltd. for the expansion of El Nasr Company for Intermediate Chemicals' 1,200 metric tonnes per day ammonia plant in Egypt. Selected by First State Hydrogen, Inc. to provide engineering services to study the feasibility of developing a clean hydrogen production facility through electrolysis powered by renewable energy. The study is part of First State Hydrogen's vision to provide clean hydrogen for Delaware and the U.S. mid-Atlantic and help the region meet its sustainability goals. Signed an alliance agreement with GeoLith SAS to offer its advanced Direct Lithium Extraction technology, Li-Capt®. This technology enables zero-emission lithium extraction from untapped sources like geothermal and oil well brines. Awarded a project management contract by Sonangol for the design and construction oversight of a new 200,000 barrels per day refinery in Lobito, Angola - one of the most significant and sustainable energy infrastructure projects in the region. Secured a five-year asset condition monitoring program contract from Rabigh Refining & Petrochemical Company to deploy predictive maintenance services at its plant in Rabigh, Saudi Arabia. Government Solutions (GS) delivered 1.2x TTM book-to-bill1 as of March 29, 2024, including awards and achievements in the quarter as follows: Awarded new contracts estimated at more than $450 million to provide systems engineering, acquisition support, phenomenology expertise and data science, as well as applied research, communications security   infrastructure, operations and maintenance support to the U.S. Government. Awarded a new subcontract with Bering Straits Information Technologies in support of the U.S. Air Force Air Combat Command to provide human performance optimization services at various military bases around the world. This contract expands upon KBR's more than 50 years of commitment to the wider health and human performance market within NASA and the Department of Defense. Won a new one-year task order with three one-year options on the Seaport NxG IDIQ contract to assist with project execution for the Naval Information Warfare Center Atlantic, supporting the  Defense Health Agency's cybersecurity services and risk management framework initiatives. Selected to provide specialized IT services that will equip the Royal Australian Navy with a more modern and cyber worthy Fleet Information Environment. Awarded a three-year contract, with a two year-option period, to deliver Heavy Equipment Transporter (HET) capability on behalf of the British Army.  Awarded option years for LOGCAP V to support activity in NORTHCOM and EUCOM. Summarized First Quarter 2024 Financial Results Three Months Ended March 29, March 31, Dollars in millions, except share data 2024 2023 Revenues 1,818 1,703 Operating income 166 144 Net income attributable to KBR 93 86 Adjusted EBITDA2 207 182 Operating income margin % 9.1 % 8.5 % Adjusted EBITDA2 margin % 11.4 % 10.7 % Earnings per share:   Diluted earnings per share 0.69 0.56   Adjusted earnings per share2 0.77 0.67 Cash flows:   Operating cash flows 91 35   Adjusted operating cash flows2 91 35   Adjusted free cash flows2 66 16 Financial Highlights for the Three Months Ended March 29, 2024 Revenue of $1.8 billion, up 7% on a year-over-year-basis  Net income attributable to KBR of $93 million; Adjusted EBITDA2 of $207 million, up 14%  on a year-over-year basis (11.4% Adjusted EBITDA2 margin) Diluted EPS of $0.69; Adjusted EPS2 of $0.77,  up 15% on a year-over-year basis Operating cash flows of $91 million Bookings and options of $1.9 billion during the quarter with 1.1x TTM book-to-bill1  Commentary on the Three Months Ended March 29, 2024Revenues were $1.8 billion, up 7% compared to 1Q'23, primarily due to growth across Sustainable Technology Solutions; and within Government Solutions, new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays. Net income attributable to KBR was $93 million, up $7 million compared to 1Q'23, due to higher gross profit, equity in earnings of unconsolidated affiliates and gain on disposition of assets and investments, partially offset by higher interest expense and other non-operating expense. Adjusted EBITDA2 was $207 million, up 14% compared to 1Q'23, with Adjusted EBITDA2 margins of 11.4%, up 70 bps year-over-year. Diluted earnings per share was $0.69, up 23% compared to 1Q'23, due to the increase in Net income attributable to KBR noted above and the decrease in diluted weighted average common shares outstanding. Adjusted earnings per share2 was $0.77, up 15% compared to 1Q'23, due to the increase in Net income attributable to KBR noted above and the decrease in adjusted weighted average common shares outstanding. Operating cash flows were $91 million, up 160% compared to 1Q'23, primarily due to strong collections across the business. Capital returned to shareholders totaled $79 million during the quarter, consisting of $61 million in share repurchases, inclusive of $50 million of open market repurchases and $11 million of repurchases to satisfy requirements of equity compensation plans, and $18 million in regular dividends. Reaffirms Fiscal 2024 GuidanceThe table below summarizes FY24 guidance and represents our views as of April 30, 2024. Fiscal 2024 Guidance Revenue $7.4B - $7.7B Adjusted EBITDA $810M - $850M Diluted EPS* $2.88 - $3.08 Adjusted EPS* $3.10 - $3.30 Operating cash flows $450M - $480M * Fiscal 2024 Diluted and Adjusted EPS guidance is calculated using a share count of approximately 135 million. The company does not provide a reconciliation of Adjusted 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. Conference Call DetailsThe company will host a conference call to discuss its first quarter financial results on Tuesday, April 30, 2024, at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR's website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR's website or by telephone at +1.866.813.9403, passcode: 154682. About KBRWe deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 35,000 people worldwide with customers in more than 80 countries and operations in over 30 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver. Visit www.kbr.com Forward-Looking StatementsThe statements in this press release 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, and our plans for raising and deploying capital and paying dividends, 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; 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. 1 As used throughout this release and consistent with our practice, book-to-bill excludes long-term UK PFIs.    2 As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Adjusted operating cash flows, and Adjusted free cash flows are non-GAAP financial measures.  See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.   KBR, Inc. Condensed Consolidated Statements of Operations (In millions, except for per share data) (Unaudited) Three Months Ended March 29, March 31, 2024 2023 Revenues: Government Solutions $          1,386 $          1,328 Sustainable Technology Solutions 432 375 Total revenues 1,818 1,703 Gross profit 248 245 Equity in earnings of unconsolidated affiliates 30 23 Selling, general and administrative expenses (121) (124) Gain on disposition of assets and investments 6 — Other 3 — Operating income (loss): Government Solutions