fiscal 2020 and 4th quarter financial results

The future, designed and delivered.The future, designed and delivered®.Stuart Bradie – President and Chief Executive OfficerMark Sopp – Executive Vice President and Chief Financial Officer Alison Vasquez – Vice President, Investor Relations

Fiscal 2020 and 4th QuarterFinancial ResultsFebruary 22, 2021

©202 KBR Inc. All Rights Reserved.

This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this presentation, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Suchstatements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks,uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward-looking statements contained in this presentation.

These risks and uncertainties include, but are not limited to:

• U.S. government regulatory changes or changes to funding related to our lines of business that could be less favorable. Because we generate a substantial portion of our revenues from contracts with U.S. government agencies, our operating results could be adversely affected by spending caps or changes in budgetary priorities, as well as by delays in the government budget process, program starts or the award of contracts or task orders under contracts. Changes in spending authorizations and budgetary priorities may occur as a result of the shifts in spending priorities from defense-related and other programs as a result of competing demands for federal funds and the number and intensity of military conflicts and other factors;

• operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supplychain disruptions;

• the COVID-19 pandemic has increased the severity and duration of world health events, including volatility in the capital markets, deteriorating financial conditions or bankruptcy, and related economic repercussions resulting from severe disruption in multiple industries, which may negatively impact our clients' ability to meet their payment obligations to us in a timely manner; and

• the level of capital spending and access to capital markets by industrial companies, including significant reductions and potential additional reductions in capital expenditures in response to commodity prices and dramatically reduced demand.

Additional information about potential risk factors that could affect our business and financial results is included in our Form 10-K filed on February 24, 2020 and any subsequent Forms 10-Q and 8-K. We caution you not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof.

We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances. This presentation contains the financial measures “EBITDA,” “Adjusted EBITDA,” “Adjusted EPS” and “Adjusted Operating Cash Flow,” which are not calculated in accordance with U.S. GAAP. A reconciliation of the non-GAAP financial measures EBITDA, Adjusted EBITDA, Adjusted EPS and Adjusted Operating Cash Flow to the most directly comparable GAAP financial measure has been provided in the Appendix to this presentation.

Forward-Looking Statements

President and Chief Executive Officer

Stuart Bradie

Proud history, bright future. 4


KBR’s Road to Net-Zero Carbon Emissions

We commissioned an independent provider to calculate our 2019 scope 1 and 2 emissions and business travel emissions.

We used our footprint to inform our carbon offset program and achieved carbon neutrality in 2019.

Step 1 – Achieving Carbon Neutrality

We will continue reducing scope 1 and 2 emissions across the company and expand scope 3 categories.

We will use science-based targets to establish longer-term climate action and net-zero commitments over the next decade.

Step 2 – Reaching Net Zero by 2030

CL I M AT E CHA N GE

To align compensation to our corporate strategy, we have linked environmental, social and governance goals to executive compensation.


©2020 KBR Inc. All Rights Reserved.©2020 KBR Inc. All Rights Reserved.

FY 2020 | Advancing our Strategy

▪ KBR strategy in action

▪ Completed strategic acquisition of Centauri; integration progressing nicely

▪ Focused Sustainable Technology toward high-growth areas

▪ Opportunistically repurchased shares

▪ Delivered strong fiscal 2020 results

▪ $5.8 billion of revenue, $478 million of Adj. EBITDA, $1.73 Adj. EPS, and $290 million of Adj. Operating Cash Flow

▪ Double-digit revenue growth in Defense & Intel and Science & Space businesses

▪ Book-to-bill1 of 1.2x in Government Solutions and 1.4x in Technology Solutions

▪ Initiating 2021 guidance with over 70% work under contract and 20% embedded Adj. EPS growth

1 Excluding the work-off of the long-term PFIs and other adjustments



Market Outlook | Defense & Intel

MARKET DRIVERS AND OUTLOOK

▪ Shifting threat environment and national security and defense priorities opposite near peer threats

▪ Strong support for investment to advance critical national security interests across military space, intelligence, cyber and missile defense

▪ Investment in next-gen, emerging technology (e.g., AI/ML, autonomous systems, cyber warfare, trusted microelectronics, directed energy and hypersonics)

▪ Elevated global threat environment

RECENT TRENDS AND WINS

▪ Achieved 1.3x overall book-to-bill in the year; increasing average contract value and tenor

▪ Awarded over $900 million in IAC-MAC IDIQ tasks to perform strategic, technical and advanced R&D, prototyping and analysis, balanced nicely across the Army, Air Force and Navy

▪ Awarded R&D and prototyping contract for the U.S. Air Force high energy laser program

▪ Awarded a new 5-year $539 million task order to support rapid prototyping and fielding of systems for the U.S. Air Force to take national space capabilities and apply them at the tactical level to support operational requirements

DEFENSE & INTEL23%REVENUE GROWTH

FY 2020

$4.2BBACKLOG AND

OPTIONS

F o rm er ly D efen s e S ys tem s E n g in eer in g a n d C en ta u r i



Market Outlook | Science & Space


▪ Expanded collaboration across NASA, Department of Defense and intelligence communities in areas such as space domain awareness, launch support, interoperable comms networks and scientific R&D

▪ New administration signaling continued support of the Artemis program and space exploration, albeit on a more conservative program schedule

▪ Greater domestic emphasis on climate change, benefitting agencies like NOAA and USGS

▪ Investment in the space industrial base as a foundation for U.S. space superiority, spanning scientific, military and commercial, and as an engine for broader economic recovery


▪ Progressive engagement and expansion on existing NASA and DOD programs driving consistent growth

▪ Awarded a 5-year, $300 million contract to provide scientific support, advanced data processing and analysis, high-performance computing and networking, and systems engineering support to U.S. Geological Survey Earth Resources Observation and Science Center

SCIENCE & SPACE12%REVENUE GROWTH

FY 2020

$2.5BBACKLOG AND

OPTIONS

F o rm er ly S p a ce & M is s io n S o lu t io n s



Market Outlook | Readiness & Sustainment


▪ Expanding O&M-funded sustaining operations while supporting contingency as needed; reducing proportional OCO mix

▪ Drive toward digitalization, modernization, automation and energy efficiency

▪ New agile supply chains emerging with global reset driven by COVID-19 and China decoupling

▪ Shifting threat environment and national security and defense priorities opposite near-peer threats


▪ Awarded multi-year contract for management of automated fuel systems to plan and perform preventative and corrective maintenance; support documentation maintenance site support for supervisory control and data acquisition systems; and provide site support for equipment and material

▪ Beginning transition on an 8-year $974 million sustaining base operations contract for the U.S. Air Force in Europe

▪ Won numerous contracts to support domestic needs and priorities under Northcom

READINESS & SUSTAINMENT

1.3XBOOK-TO-BILL

FY 2020

$2.3BBACKLOG AND

OPTIONS

F o rm er ly L o g i s t i c s



Market Outlook | International


▪ Australian defense strategy prioritizes fleet modernization, regional security, and advanced and emerging technologies

▪ U.K. MOD integrated review of security, defense, development and foreign policy in progress

▪ Drive toward greater international engagement and cross-domain integration of military capability (sea, land, air and joint)

▪ International commitment to advance defense priorities in critical and emerging areas and modernize aging platforms

▪ Funding constraints in U.K., mitigated by strong backlog and geographic diversification


▪ Awarded project to redesign officer and recruit augmented- / virtual reality and 3-D model-based training programs for the Australian Department of Defence

▪ Expanded services under the Intelligence Surveillance and Reconnaissance, Space, Electronic Warfare program to support equipment acquisition, integration and lifecycle management for the Royal Australian Air Force mobility fleet

▪ Won a prestigious U.K. industry innovation award for a ground-breaking mixed reality training solution, developed in collaboration with Microsoft

INTERNATIONAL60%+GROWTH IN

GS AUSTRALIA

$7.4BBACKLOG

FY 2020



Market Outlook | Sustainable Technology Solutions


▪ Growing number of countries and companies targeting reduction in carbon footprint driving demand for energy transition advisory and sustainable technology

▪ Global population growth and expanding middle class increase demand for fertilizers for food production, non-single-use plastics for commercial development, and other specialty chemicals

▪ Investment to improve product diversification, reduce emissions and improve cost efficiency

▪ Aging industrial asset base driving demand for smarter maintenance


▪ Entered exclusive alliance with Mura Technology to offer Cat-HTRTM, a sustainability-focused, innovative technology that recycles end-of-life, mixed-use plastic, contributing to the growth of the plastics circular economy

▪ Awarded second phase for domestic K-SAAT™ revamp to replace an existing hydrofluoric acid alkylation unit

▪ Awarded numerous hydrogen energy and development studies

▪ Awarded a contract to provide an ammonia technology license, basic engineering design package, PEQ, and catalyst for an innovative, zero-CO2-emission plant

SUSTAINABLE TECHNOLOGY

SOLUTIONS

1.4XBOOK-TO-BILLHERITAGE TS

FY 2020

$2.6BBACKLOG

(TS AND ES)

F o rm er ly T ech n o lo g y a n d E n erg y S o lu t io n s



Market Outlook | In Summary

Lead

Positioning & Pursuit

Proposal & Negotiation

$66B

$51B

$14B

$131 Billion

KBR Pursuit Pipeline

150+ Pursuits > $100M10+ Pursuits > $1B

Pipeline as of December 31, 2020; award announcements expected through December 2024; includes CentauriBacklog; Centauri added $1.4 billion of backlog in the 4th quarter 2020; 9% GS growth in 2020 excluding Centauri.

95%RECOMPETE

WIN RATE IN 2020

20%2020 GROWTH IN GS BACKLOG AND OPTION

22%2020 GROWTH IN

TECHNOLOGY BACKLOG

LOWRECOMPETE RISK

IN 2021

Expanding backlog, strong win rates and attractive pipeline position KBR well for growth into the future!

EVP & Chief Financial Officer

Mark Sopp



1See Appendix for reconciliation of Adjusted EBITDA , Adjusted EPS and Adjusted Operating Cash Flow

13

FY 2020 | Financial Snapshot

REVENUE ADJUSTED EBITDA1ADJUSTED EBITDA MARGIN1

ADJUSTED EPS1 ADJ. OPERATING CASH FLOW1 BACKLOG

OPTIONS

BACKLOG

$ in millions, except EPS and Backlog

$5,639 $5,767

2019 2020

$471 $478

2019 2020

8% 8%

2019 2020

$1.69 $1.73

2019 2020

$256 $290

2019 2020

$15B $15B

$3B$4B

4Q19 4Q20



1See Appendix for reconciliation of Adjusted EBITDA , Adjusted EPS and Adjusted Operating Cash Flow

14

4Q 2020 | Financial Snapshot

REVENUE ADJUSTED EBITDA1ADJUSTED EBITDA MARGIN1

ADJUSTED EPS1 ADJ. OPERATING CASH FLOW1 BACKLOG

OPTIONS

BACKLOG

$ in millions, except EPS and Backlog

$1,452 $1,466

4Q19 4Q20

$117

$135

4Q19 4Q20

8%9%

4Q19 4Q20

$0.46 $0.51

4Q19 4Q20

$57

$21

4Q19 4Q20

$15B $15B

$3B$4B

4Q19 4Q20



FY 2020 | Segment Results

▪ 12% growth in Science & Space▪ 23% growth in Defense & Intel, 7%

organic▪ Growth in sustaining O&M within

Readiness & Sustainment; offset by ~$300M reduction in contingency revenue (Middle East OCO and 2019 Tyndall disaster recovery work)

▪ Increased mix of license revenue in 2020 driving excellent profitability

▪ Strong execution and proactive cost measures taken in 2020 to enhance and preserve profitability

▪ Net negative working capital

▪ Revenue and EBITDA as expected

▪ Cost efficiency initiatives progressing on plan

Note: See Appendix for reconciliation of Adjusted EBITDA

3,925 3,934

404 415

FY19 FY20 FY19 FY20

Government Solutions

10% 11%374

303 94

86

FY19 FY20 FY19 FY20

Technology Solutions

25% 29%

Revenue Adj. EBITDA

1,339

1,526

75

44

FY19 FY20 FY19 FY20

Energy Solutions

6%

3%

Revenue Adj. EBITDARevenue Adj. EBITDA



`

CAPITALDEPLOYMENT PRIORITIES

Fund Organic Growth

Maintain Attractive Dividend

Maintain Responsible Leverage

Strategic M&A or Share Repurchase


Capital Deployment and Liquidity Profile

HEALTHY LIQUIDITY PROFILE

Attractive Dividend

▪ $0.10 per share quarterly dividend▪ 25% increase from 2019

Net Leverage Target

▪ Target net leverage set at 2.5x-3.0x▪ Reflects shift in portfolio toward

sustaining, differentiated, cash-generative portfolio

NETLEVERAGE

TARGET

2.5x to 3.0xTARGET RANGE

NETLEVERAGE

2.4xAS OF DECEMBER 31, 2020

Near-Term Deployable Capital

▪ Deployed $51 million to repurchase shares▪ Healthy balance sheet capacity▪ Attractive free cash flow with low capital

intensity business model

NOTE: Net Leverage represents total debt minus cash divided by adjusted pro forma EBITDA



Initiating FY 2021 Guidance

FY 2021 Guidance

Consolidated Revenue4% growth from 2020 at the midpoint

$5.8 - $6.2 billion

Adjusted EBITDA Margin~70 bps expansion from 2020

~9%

Adjusted EPS1

>20% growth from 2020 at the midpoint$2.00 - $2.20

Effective tax rate 25% - 26%

Adjusted operating cash flow1 $280 - $320 million

(1) See Appendix for reconciliation of Adjusted EPS and Adjusted Operating Cash Flow

KEY TAKEAWAYS

▪ Disciplined strategic execution, excellent resilience, and strong financial performance in 2020

▪ Attractive growth in highly differentiated, technology-enabled businesses, increasing visibility, expanding margins and reducing volatility risk

▪ Strong market fundamentals combined with robust bookings and healthy pipeline support continued momentum

▪ 2021 guidance reflects above-market earnings growth of ~20% and excellent cash conversion

AppendicesDOING THE RIGHT THING FOR THE PLANET, OUR PEOPLE AND OUR COMMUNITIES WHILE PURSUING BUSINESS GROWTH

Appendices



Non-GAAP Reconciliations: Adjusted EPS & Adjusted Cash Flow

Adjusted EPS ReconciliationQuarter Ending

4Q19 4Q20 FY19 FY20

EPS (Diluted) $0.40 $0.13 $1.41 $(0.51)

Add Back:

Restructuring and impairment charges 0.00 0.20 0.00 1.87

Ichthys interest and commercial dispute cost 0.01 0.03 0.07 0.12

Non-cash imputed interest on conversion option 0.02 0.02 0.06 0.06

Amortization related to acquisitions 0.02 0.08 0.08 0.14

Legacy legal fees 0.01 0.01 0.05 0.04

Acquisition and integration cost 0.00 0.04 0.02 0.05

Non-cash gain on legal entity rationalization1 0.00 0.00 0.00 (0.04)

Adjusted EPS $0.46 $0.51 $1.69 $1.73

Adjusted Operating Cash Flow Reconciliation

4Q19 4Q20 FY19 FY20

Cash flows provided by operating activities $57 $122 $256 $367

Adjustments:

Add back: Major project advance work-off 0 17 0 81

Remove: CARES act temporary tax payment relief 0 (18) 0 (58)

Remove: Receivable monetization related to acquisition 0 (100) 0 (100)

Adjusted Cash flows provided by operating activities $57 $21 $256 $290

Adjusted EPS Guidance

2021 Guidance

EPS (Diluted) $1.39 $1.59

Add Back:

Amortization related to acquisitions 0.25

Ichthys interest and commercial dispute cost 0.17

Acquisition, integration and restructuring 0.09

Non-cash imputed interest on conversion option2 0.06

Legacy legal fees 0.04

Non-cash gain on legal entity rationalization1 TBD

Adjusted EPS $2.00 $2.20

Adjusted Operating Cash Flow Guidance

2021 Guidance Lower Upper

Cash flows provided by operating activities $250 $290

Adjustments:

Add back: Major project advance work-off 0

Remove: CARES act temporary tax payment relief 30

Remove: Receivable monetization related to acquisition 0

Adjusted Cash flows provided by operating activities $280 $320

1Gain (loss) on close-out of legal entities will vary based on actual entities closed during the year; 2Conversion hedge will be calculated and adjusted quarterly based on KBR trading price



EBITDA is defined as earnings before interest income / expense, income taxes, other non-operating income / expense (including FX) and depreciation & amortization.

Non-GAAP Reconciliation: Consolidated & Adjusted EBITDA

1Pro Forma EBITDA includes full-year impact of Centauri acquisition and is used for net debt leverage ratio

Adjusted EBITDA ReconciliationMar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 FY 19 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 FY 20

Net Income (Loss) Attributable to KBR $40 $48 $56 $58 $202 ($104) ($39) $52 $19 ($72)

Add Back:

Interest Expense $25 $26 $25 $23 $99 $23 $19 $18 $23 $83

Provision (benefit) for Income Taxes $16 $18 $24 $1 $59 ($1) $6 $19 $2 $26

Other non-operating (income) expense ($5) ($2) ($3) $5 ($5) ($7) $2 $4 $0 ($1)

Depreciation & Amortization $25 $23 $28 $28 $104 $27 $21 $26 $41 $115

Consolidated EBITDA $101 $113 $130 $115 $459 ($62) $9 $119 $85 $151 $0 $0

Add Back:

Restructuring and impairment charge, net of NCI $0 $0 $0 $0 $0 $173 $96 $1 $38 $308

Non-cash gain on legal entity rationalization $0 $0 $0 $0 $0 ($8) $1 $0 $0 ($7)

Ichthys commercial dispute costs $0 $0 $0 $0 $0 $7 ($2) $1 $3 $9

Legacylegal fees $4 $3 $1 $2 $10 $2 $2 $2 $2 $8

Acquisition & integration related expenses $1 $1 $0 $0 $2 $0 $0 $2 $7 $9

Adjusted EBITDA $106 $117 $131 $117 $471 $112 $106 $125 $135 $478

Centauri Pro Forma EBITDA $9 $12 $14 $35

Pro Forma Adjusted EBITDA1 $106 $117 $131 $117 $471 $121 $118 $139 $135 $513

Quarter Ending Quarter Ending



EBITDA is defined as earnings before interest income / expense, income taxes, other non-operating income / expense (including FX) and depreciation & amortization.

Non-GAAP Reconciliation: Segment EBITDA and Segment Adjusted EBITDA

Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 FY19 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 FY20

Net Income Attributable To Government Solutions $ 69 $ 91 $ 87 $ 88 $ 335 $ 92 $ 91 $ 94 $ 69 $ 346

Add Back:

Interest expense $ 1 $ 1 $ 1 $ 0 $ 3 $ 0 $ 0 $ 0 $ 1 $ 1

Other non-operating (income) expense $ 0 ($1) $ 0 ($1) ($2) $ 0 $ 0 ($1) $ 1 $ 0

Depreciation & amortization $ 15 $ 13 $ 17 $ 13 $ 58 $ 12 $ 10 $ 11 $ 25 $ 58- -

EBITDA - GS $ 85 $ 104 $ 105 $ 100 $ 394 $ 104 $ 101 $ 104 $ 96 $ 405

Add Back:

Legacy legal fees $ 4 $ 3 $ 1 $ 2 $ 10 $ 2 $ 2 $ 2 $ 2 $ 8

Restructuring and impairment charge $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2 $ 2

Adjusted EBITDA - GS $ 89 $ 107 $ 106 $ 102 $ 404 $ 106 $ 103 $ 106 $ 100 $ 415

Net Income Attributable To Technology Solutions $ 20 $ 18 $ 24 $ 26 $ 89 $ 22 $ 18 $ 22 $ 17 79

Add Back:


Other non-operating (income) expense ($0) ($0) ($1) $ 1 ($0) $ 0 $ 0 $ 1 ($0) $ 1


EBITDA - TS $ 22 $ 19 $ 24 $ 29 $ 94 $ 23 $ 19 $ 25 $ 19 $ 86

Net Income (Loss) Attributable To Energy Solutions $ 24 $ 16 $ 10 $ 6 $ 56 ($104) ($90) $ 3 $ 15 ($177)

Add Back:


Other non-operating (income) expense ($1) ($0) ($1) $ 1 ($2) $ 1 $ 1 $ 1 ($0) $ 3


EBITDA - ES $ 28 $ 21 $ 13 $ 13 $ 75 ($97) ($83) $ 10 $ 20 ($150)

Add Back:

Ichthys interest and commercial dispute costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 7 ($2) $ 1 $ 3 $ 9

Restructuring and impairment charge, net of NCI $ 0 $ 0 $ 0 $ 0 $ 0 $ 109 $ 88 $ 1 ($6) $ 192

Non-cash gain on legal entity rationalization $ 0 $ 0 $ 0 $ 0 $ 0 ($8) $ 1 $ 0 $ 0 ($7)

Adjusted EBITDA - ES $ 28 $ 21 $ 13 $ 13 $ 75 $ 11 $ 4 $ 12 $ 17 $ 44

Quarter Ending Quarter Ending



Operating Income by Segment

($ in millions, except EPS) GS TS ES NSB Other Total KBR

Revenues $ 3,934 $ 303 $ 1,526 $ 4 $ 0 $ 5,767

Gross Profit $ 483 $ 105 $ 86 ($8) $ 0 $ 666

Equity in Earnings 25 - 5 - - 30

SG&A (158) (23) (65) - (89) (335)

Acquisition & Integration - - - - (9) (9)

Goodwill Impairment - - (99) - - (99)

Restructuring and Impairments (2) - (99) (8) (105) (214)

Gain on Disposition of Assets 1 - 16 - 1 18

Operating Income (Loss) $ 349 $ 81 ($154) ($16) ($203) $ 57

($ in millions, except EPS) GS TS ES NSB Other Total KBR

Revenues $ 3,925 $ 374 $ 1,339 $ 1 $ 0 $ 5,639

Gross Profit $ 430 $ 118 $ 100 $ 5 $ 0 $ 653

Equity in Earnings 29 - 19 (13) - 35

SG&A (134) (28) (63) - (116) (341)

Acquisition & Integration - - - - (2) (2)

Gain on Disposition of Assets 12 - - - 5 17

Operating Income (Loss) $ 337 $ 90 $ 56 ($8) ($113) $ 362

FY 2020

FY 2019

fiscal 2020 and 4th quarter financial results

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