KBR (KBR) Status Update summary

Strategic Realignment and Organizational Changes

• Completed a major segment realignment, renaming Government Solutions to Mission Technology Solutions and integrating international operations into Mission Tech and Sustainable Tech, streamlining into two main segments.

• Realignment aimed to better align capabilities and talent with customer needs, increase cross-business connectivity, and achieve cost savings and synergies.

• Legacy GS International business unit eliminated; its elements integrated into MTS and STS.

• Realignment effective fiscal year 2025, with pro forma financials for prior quarters to be posted for investor reference.

• Realignment enables better customer alignment, increased agility, and more seamless program execution.

Executive Leadership Updates

• Leadership changes include the retirement of the Board Chair in May 2025, appointment of the CEO as new Chair, and naming Byron Bright as COO to drive operational performance.

• The COO will oversee both Mission Tech and Sustainable Tech, enhancing operational focus and execution.

• An Independent Lead Director will be appointed following the Chair's retirement.

Financial Targets and Cost Management

• Reiterated 2027 long-term financial targets: $11.5B+ revenue, $1.15B+ adjusted EBITDA, 10-11% margin, and $700M+ operating cash flow.

• Mission Tech and Sustainable Tech both targeting 11-15% revenue CAGR, with respective EBITDA margins of 9-10% and ~20%.

• Realignment and cost actions, including zero-based budgeting and management consolidation, are expected to generate $30M in annualized savings, fully realized in 2025.

• Savings will enhance competitiveness, support growth investment, and improve cost structure.

• Supplemental pro forma financial information available for investors.