KBR (KBR) investor relations material

Strategic position and portfolio

• Planned Jan. 4 spinout is on track, with standalone status expected to bring greater focus and flexibility to invest in growth.

• Revenue grew from ~$0.7B in 2016 to $5.1B LTM Q3 2026; backlog was $17.3B, with growth including eight acquisitions.

• Four markets—global mission operations and sustainment, health and human performance, space and intelligence, and defense systems modernization—have FY2026E TAM of $316B.

• LTM revenue mix: global mission operations 33%, defense systems modernization 29%, space and intelligence 30%, and health and human performance 8%.

• LTM revenue was 86% U.S. and 14% U.K. and Australia; 64% came from U.S. DoW and 19% from civilian U.S. government customers. More than 30% of revenue comes from R&D, engineering and systems integration.

Markets and growth priorities

• Global mission operations and support has a $127B addressable market, $1.7B LTM revenue and operations in 30 countries; U.K. programs enable $12B of private finance, with two large programs running to 2041.

• NSF Antarctica program was re-awarded; revenue starts in 4Q2026, seasonal peaks fall in Nov–Feb and full operations are expected by March 2027.

• Health and human performance growth targets NASA’s lunar campaign and commercial systems, military readiness and training, and defense and civilian medical markets.

• Space and intelligence has a $41B addressable market and $1.5B under contract; priorities include civil and commercial space, systems integration, intelligence collection and electromagnetic spectrum operations.

• Defense systems modernization has a $121B addressable market; 2027 contract portfolio growth is expected at 14% with accretive margins, and more than $1B in direct awards is anticipated over 18 months. U.S. Army missile-defense budget is projected to rise 66% to $12B.

Operating strategy

• Sharpen go-to-market focus and direct capital to differentiated, scaled capabilities aligned with customer priorities; optimize integrated acquisitions and pursue adjacent growth.

• Build multi-year pipelines around capability sets rather than mainly near-term bids; prioritize speed, differentiation and profitable growth.

• Streamline workflows, expand enterprise data access and use automation to reduce rework and delays, accelerate decisions, and improve margin optionality and competitiveness.

• AI is viewed mainly as an opportunity to streamline operations and deliver customer capabilities faster; GEMSTONE and FIREFLY are product opportunities, not a shift toward becoming primarily a product business.