KBR — Jul 31, 2025 release

Revising Fiscal Year 2025 Guidance KBR is revising the previously provided outlook for the HomeSafe Alliance JV contract termination, reductions in EUCOM and logistics, and protest resolution delays. Updated Fiscal Year 2025 Guidance Prior Fiscal Year 2025 Guidance Revenues $7.9B - $8.1B $8.7B - $9.1B Adjusted EBITDA $960M - $980M $950M - $990M Adjusted EPS $3.78 - $3.88 $3.71 - $3.95 Operating cash flows $500M - $550M $500M - $550M The company does not provide reconciliations of Adjusted EBITDA and Adjusted EPS 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, and acquisition-related expenses without unreasonable effort, which could be material to the company’s results computed in accordance with GAAP. Updating Fiscal Year 2027 Financial Targets KBR is updating its long-term financial targets for the HomeSafe Alliance JV contract termination. Updated Fiscal Year 2027 Targets Prior Fiscal Year 2027 Targets Revenues $9.0B+ $11.5B+ MTS Revenues CAGR 5% - 8% 11% - 15% STS Revenue CAGR 11% - 15% 11% - 15% Adjusted EBITDA $1.15B+ $1.15B+ Adjusted EBITDA margin 11%+ 10% - 11% MTS Adjusted EBITDA margin 10%+ 9% - 10% STS Adjusted EBITDA margin 20%+ ~20% Operating cash flows $650M+ $700M+ 2024-2027 Cumulative deployable free cash ~$2.0B ~$2.0B CAGR reflects 2023A-2027E. OCF target reflects 27% effective tax rate and interest rates consistent with 2025. Cumulative deployable free cash reflects 2024A-2027E cumulative OCF less capital expenditures o