KBR Announces First Quarter Fiscal 2024 Financial Results
London, 30 April 2024, (Oilandgaspress): – Backlog and options as of March 29, 2024 totaled $20.8 billion. Delivered 1.1x trailing-twelve-months (TTM) book-to-bill1 as of March 29, 2024. Awarded $1.9 billion of bookings and options in the quarter.
Sustainable Technology Solutions (STS) delivered 0.9x TTM book-to-bill1 as of March 29, 2024, including awards and achievements in the quarter as follows:
- KBR’s Purifier™ ammonia technology selected by Wuhuan Engineering Co. Ltd. for the expansion of El Nasr Company for Intermediate Chemicals’ 1,200 metric tonnes per day ammonia plant in Egypt.
- Selected by First State Hydrogen, Inc. to provide engineering services to study the feasibility of developing a clean hydrogen production facility through electrolysis powered by renewable energy. The study is part of First State Hydrogen’s vision to provide clean hydrogen for Delaware and the U.S. mid-Atlantic and help the region meet its sustainability goals.
- Signed an alliance agreement with GeoLith SAS to offer its advanced Direct Lithium Extraction technology, Li-Capt®. This technology enables zero-emission lithium extraction from untapped sources like geothermal and oil well brines.
- Awarded a project management contract by Sonangol for the design and construction oversight of a new 200,000 barrels per day refinery in Lobito, Angola – one of the most significant and sustainable energy infrastructure projects in the region.
- Secured a five-year asset condition monitoring program contract from Rabigh Refining & Petrochemical Company to deploy predictive maintenance services at its plant in Rabigh, Saudi Arabia.
Government Solutions (GS) delivered 1.2x TTM book-to-bill1 as of March 29, 2024, including awards and achievements in the quarter as follows:
- Awarded new contracts estimated at more than $450 million to provide systems engineering, acquisition support, phenomenology expertise and data science, as well as applied research, communications security infrastructure, operations and maintenance support to the U.S. Government.
- Awarded a new subcontract with Bering Straits Information Technologies in support of the U.S. Air Force Air Combat Command to provide human performance optimization services at various military bases around the world. This contract expands upon KBR’s more than 50 years of commitment to the wider health and human performance market within NASA and the Department of Defense.
- Won a new one-year task order with three one-year options on the Seaport NxG IDIQ contract to assist with project execution for the Naval Information Warfare Center Atlantic, supporting the Defense Health Agency’s cybersecurity services and risk management framework initiatives.
- Selected to provide specialized IT services that will equip the Royal Australian Navy with a more modern and cyber worthy Fleet Information Environment.
- Awarded a three-year contract, with a two year-option period, to deliver Heavy Equipment Transporter (HET) capability on behalf of the British Army.
- Awarded option years for LOGCAP V to support activity in NORTHCOM and EUCOM.
Summarized First Quarter 2024 Financial Results
| Three Months Ended | |||
| March 29, | March 31, | ||
| Dollars in millions, except share data | 2024 | 2023 | |
| Revenues | 1,818 | 1,703 | |
| Operating income | 166 | 144 | |
| Net income attributable to KBR | 93 | 86 | |
| Adjusted EBITDA2 | 207 | 182 | |
| Operating income margin % | 9.1 % | 8.5 % | |
| Adjusted EBITDA2 margin % | 11.4 % | 10.7 % | |
| Earnings per share: | |||
| Diluted earnings per share | 0.69 | 0.56 | |
| Adjusted earnings per share2 | 0.77 | 0.67 | |
| Cash flows: | |||
| Operating cash flows | 91 | 35 | |
| Adjusted operating cash flows2 | 91 | 35 | |
| Adjusted free cash flows2 | 66 | 16 | |
Financial Highlights for the Three Months Ended March 29, 2024
- Revenue of $1.8 billion, up 7% on a year-over-year-basis
- Net income attributable to KBR of $93 million; Adjusted EBITDA2 of $207 million, up 14% on a year-over-year basis (11.4% Adjusted EBITDA2 margin)
- Diluted EPS of $0.69; Adjusted EPS2 of $0.77, up 15% on a year-over-year basis
- Operating cash flows of $91 million
- Bookings and options of $1.9 billion during the quarter with 1.1x TTM book-to-bill1
Commentary on the Three Months Ended March 29, 2024
Revenues were $1.8 billion, up 7% compared to 1Q’23, primarily due to growth across Sustainable Technology Solutions; and within Government Solutions, new and on-contract growth across International, Defense & Intel, and Science and Space, partially offset by contraction in Readiness & Sustainment due to Ukraine funding delays.
Net income attributable to KBR was $93 million, up $7 million compared to 1Q’23, due to higher gross profit, equity in earnings of unconsolidated affiliates and gain on disposition of assets and investments, partially offset by higher interest expense and other non-operating expense.
Adjusted EBITDA2 was $207 million, up 14% compared to 1Q’23, with Adjusted EBITDA2 margins of 11.4%, up 70 bps year-over-year.
Diluted earnings per share was $0.69, up 23% compared to 1Q’23, due to the increase in Net income attributable to KBR noted above and the decrease in diluted weighted average common shares outstanding. Adjusted earnings per share2 was $0.77, up 15% compared to 1Q’23, due to the increase in Net income attributable to KBR noted above and the decrease in adjusted weighted average common shares outstanding.
Operating cash flows were $91 million, up 160% compared to 1Q’23, primarily due to strong collections across the business.
Capital returned to shareholders totaled $79 million during the quarter, consisting of $61 million in share repurchases, inclusive of $50 million of open market repurchases and $11 million of repurchases to satisfy requirements of equity compensation plans, and $18 million in regular dividends.
Reaffirms Fiscal 2024 Guidance
The table below summarizes FY24 guidance and represents our views as of April 30, 2024.
| Fiscal 2024 Guidance | |
| Revenue | $7.4B – $7.7B |
| Adjusted EBITDA | $810M – $850M |
| Diluted EPS* | $2.88 – $3.08 |
| Adjusted EPS* | $3.10 – $3.30 |
| Operating cash flows | $450M – $480M |
| * Fiscal 2024 Diluted and Adjusted EPS guidance is calculated using a share count of approximately 135 million. |
The company does not provide a reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure 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.
Conference Call Details
The company will host a conference call to discuss its first quarter financial results on Tuesday, April 30, 2024, at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR’s website or by telephone at +1.866.813.9403, passcode: 154682.
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