Expects to Exceed $1.15B Adj. EBITDA1 by
2027
Double digit profit and cash flow
growth
HOUSTON, May 8, 2024 /PRNewswire/ -- KBR, Inc. (NYSE: KBR)
today hosted an Investor Day event at the New York Stock Exchange,
the theme for which was "Safe. Secure. Sustainable." Members of
KBR's leadership team presented the company's attractive market
positioning, differentiated digital and technical offerings,
operating disciplines and confident long-term outlook. They also
announced KBR's new 2027 financial targets.
"We have continued to outperform in terms of impact and
financial results," said KBR President and Chief Executive Officer
Stuart Bradie. "Our people,
strategic positioning, pipeline and high percentage of work under
contract give us confidence that this high level of performance
will continue. Additionally, our values, culture and the important
work we do are enabling us to attract and retain top talent."
"Together, we are driving toward a business that tips
$1.15 billion in Adj.
EBITDA1 by 2027, with leading safety and operational
performance."
KBR's 2027 long term targets include the following:
|
2027 Long Term
Targets
|
Revenues
|
$11.5B+
|
Adj.
EBITDA1
|
$1.15B+
|
Adj. EBITDA
margin1
|
10% - 11%
|
Operating cash
flows
|
$700M+
|
2024-2027 Cumulative
deployable free cash2
|
~$2.0B
|
Targets exclude capital deployment; OCF target reflects 27%
effective tax rate and interest rates consistent with
2023A.
Over the last decade, KBR has transformed to be a global,
diversified tech leader in strong markets, positioning us for
enduring growth.
A replay of the event webcast and accompanying slides are
available under "Events & Presentations" at
investors.KBR.com.
About KBR
We 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 Statements
The statements in this
press release that are not historical statements, including
statements regarding our plans, objectives, goals, strategies,
targets, investments, capital deployment, risk profile, program
activity, backlog information, returns, capital requirements,
future events, future financial performance and future demand
expectations, are forward-looking statements within the meaning of
the federal securities laws. These statements are subject to
numerous risks, uncertainties and assumptions, 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, uncertainties and assumptions include, but
are not limited to, those set forth in 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,
which discuss some of the important risks, uncertainties and
assumptions that the company has identified that may affect its
business, results of operations and financial condition. Due to
such risks, uncertainties and assumptions, you are cautioned not to
place undue reliance on such forward-looking statements, which
speak only as of the date hereof. Except as required by law,
the company undertakes no obligation to revise or update publicly
any forward-looking statements for any reason.
Non-GAAP Financial Information
This press release
includes certain non-GAAP financial measures. Because not all
companies calculate non-GAAP financial measures identically (or at
all), the presentations herein may not be comparable to other
similarly titled measures used by other companies. Further, such
non-GAAP financial information should not be considered superior
to, as a substitute for or as an alternative to the historical
financial information of the company, if any, prepared in
accordance with GAAP.
Adj. EBITDA, Adj. EBITDA Margin and Cumulative Deployable
Free Cash
Adj. EBITDA and Adj. EBITDA margin are considered
non-GAAP financial measures under SEC rules. EBITDA is defined as
Net income attributable to KBR, plus Interest expense; Accretion of
Convertible Notes debt discounts; Other non-operating expense;
Provision for income taxes; and Depreciation and amortization. Adj.
EBITDA excludes certain amounts included in EBITDA. Adj.
EBITDA Margin is calculated as Adj. EBITDA divided by Revenues.
Management believes Adj. EBITDA and Adj. EBITDA margin afford
investors a view of what management considers KBR's core
performance.
The company does not provide a reconciliation of Adj. EBITDA,
Adj. EBITDA margin and cumulative deployable free cash to the most
comparable GAAP financial measures 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, capital expenditures, and acquisition-related expenses
without unreasonable effort, which could be material to the
company's results computed in accordance with GAAP.
1 As used throughout this release, Adj. EBITDA and
Adj. EBITDA margin 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.
2 Cumulative deployable free cash reflects
2024E-2027E cumulative OCF less capital expenditures of 0.5% to
0.75% of annual revenues.
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SOURCE KBR, Inc.