KBR (KBR) 26 Oct 222022 Q3 Earnings call transcript

Hello everyone welcome to KBR, Inc.’s Third Quarter 2022 Earnings Conference Call. My name is Charlie and I will be coordinating the call today. [Operator Instructions] I will now hand over to your host Jamie Kubiak, Jamie please go ahead.

Good morning and welcome to KBR Third Quarter 2022 earnings call.

First, I’d like to introduce myself. business. new from of a Alison in sustainable the KBR Relations leadership Kubiak, our over taking who’s technology Jamie Vice Investor President for role I’m moved into the I’m opportunity excited here to and to you. be serve for

the results Chief highlights metrics website. of Joining and of recent that is includes well company end non-GAAP to views X. questions. Officer and measure performance at on from discussion the and President available our Today’s Chief the significantly section forward-looking discussed involve as differ President believes at call cause and Stuart to KBR’s be statements, turn will is our open actual website Vice included as Financial the on These Executive nearest quarter Executive Officer. most me call Sopp, Mark This Bradie, investors non-GAAP are and reflecting their in presentation measures these about the includes for investors. to discussion Slide our Stuart earnings as now matters the on measures over This reconciliation could from available presentation. for GAAP and outlined I on these kbr.com. your Mark to forward-looking our as will that also events our Stuart. potential then provide financial statements impact XX-K of uncertainties Form A useful risks future

better have years, will I the KBR. a I’d course joining for over things opportunity within us you’re to in Thank and KBR on And the remiss all And And us if you, last know. team. for you this thank job And as few morning. also and terrific and bigger Jamie. all goes of she the Alison, KBR. take welcome to done interested didn’t thank be you experienced to she’s

to So now Slide X. on

our the underlying pillars are culture. to behaviors zero slide of harm several people, integral the for program and sustainability up our course, XX make XX pillars now. and important across an and and really program, part this seen ESG and you’ve very are successful, has years these make Now of our which depicts the the our that slide And it values spectrum. really,

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us is Slide This and website. takes which year’s has our available nicely So report on to recently been on X. published,

this and are But as the slide. self on wouldn’t from strong focus highlights full environment, ESG read the is I strong a key report diversity company report. on and them and highlights. unwavering. just some shown all key that with takeaway after year’s work, our is explanatory. the being live inclusion Some not out commitment performance key But our the and Obviously pretty communities responsible looking socially people, is governance And evident. we where to a our

performance double terrific, one. resulting in give cash was solid again X, which and a think shareholder But strong will conversion quick be all And that think highlights. slide nicely I once aligned me and clear in presentation QX well delivering We this leads was Mark moment. was differentiator. free value details digits the revenue a was Execution growth will I work quarter. short, while our above our growth. the that do we ex-OEW you is onto as clean a through quarter Today’s earnings in in will margin do with relatively

So performance. STS a book-to-bill Trailing months XX again really, strong But for was X.X the group. once really whole outpacing.

of And we and the above transformation. in in $XX UK we is closed deployment the capabilities year-to-date. enhancing the quarterly XXX That’s VIMA million balanced million our the capital in about acquisition, our with shares quarter. We on over dividend our repurchased digital continued about strategy which

in may over-performed recall, guidance. QX you we raise and As

in more and QX. exceeded in and that EPS and again today cash in both on We thus QX raising later. we in also Both guidance will again be

to already STS at governments important high and X.X tailwinds conditions and I’ll our incentivizes that energy X.X, pipeline introducing and market And outlook there The more the areas X.X QX the QX has in the is was I recap strength Slide projects, in several security, like and in continue to decarbonisation believe book-to-bill like for legislation robust. with and book-to-bill. strong, of especially the involved hydrogen earnings XX market Woodside here wholeheartedly yes, that globally. themes presentation, was with reality. to term sustainable that are it forefront U.S. development which was X. companies The of And it. of I security activity X.X think you’re with U.S. X.X. months, QX our area under aware in a the the on affordability in continues of demonstrates be just and and for which like Now very very performance reflected energy much just really gives in the trilemma the position the And market trailing be prices energy QX The and amazing STS in Energy same this long within is already. the

and move and how However, demand we green ammonia growing themes, Korea, decarbonisation KBR. translating for these in in the carbon carbon backlog into with the are realm technology associated neutrality quarter, plastics to U.S., the this and in Norway into capture. recycling Blue decided and highlight ammonia

and momentum our exciting. EBITDA contract work earnings into year very under Our is the solid very, for ‘XX beyond is and and

too all and areas ongoing And [GSR] funding this to AI like both space and security, committed the areas you’re are are modernization, has mission; all much and prioritization focus quarter. is KBR to and The directed that key as science, innovation in requests very strong well support of Emerging aware. continuing the positive. again, with the U.S. National defense well-positioned very superiority the changed slide Budget cyber energy Ukraine, thematic. in commitments increase KBR. additional cyber in X. not backdrop and UK loop last in on Now for of technologies conflict

Our strong, very are is QX which This war albeit in in X.X U.S. quite QX. particularly overall predict, is pipeline reflected the X.X in in timings and book-to-bill to remains our actually difficult very,

you So terms see of awards. quite lumpy in of timing

with Frazer-Nash the really is which a budget much really, to priorities I XX And all think be continue UK U.S. continues portfolio. Similar increases. across resolution material trailing is this given bookings international execution one to performance a given ‘XX have and or on the and under to level focus bedrock months for year. beyond better STS, of to expected continuing high not International The impact strongly perform of differentiation contract stands aligned positioning on is work business GS. the with for well. of our business and an and guide,

it and for I’m a open competed analog with outlook some particularly excelled from win I and the as on again A which be differentiation. [Indiscernible] new aircraft. successful and required market comments, key under words the modernize highlighted technical quarter, believe under systems, the caveat this enhanced solution [Indiscernible] digitize one structure, capabilities and modular about system to hotly vertical sizeable excited today. reflect the have We demonstrates the agility was architecture to lift

enable guidance. space a have Axiom key capability the to much and intelligence will five take we and at moon The Additional for and as Intelligence hardware, quarter suit and now software Air hunting license incredible of of and systems hand I to to with that in return and -- went who Mark? scientific do really course, selection through R&D somatic matter. our highlights team people the technology with over with the very And across resonates Mark who Absolutely Center. all include National digitalization, UK we aligned and are detail, exciting a in when of Space one the this cyber now this to more things numbers new of member as of KBR. you prime. will a really, technical a programs the

to a welcome well job think And to She Stuart know and Jamie. on. a really thanks as And done. start. you off said also to Alison for a Thanks that. special all great I

pick financial the So up really on QX with slide performance. this transition. I’ll pleased XX for

quarter, was performance this said, clean well. that Stuart As tracking really a

it’s I Europe, to important across exchange, war parts of all rising back business. and high interest headwinds, highlight that think in inflation, rates, despite the outstanding results global instability, foreign stepping Just delivered KBR

term We that solutions somatic have mentioned enhanced incredibly long resilient, an that afford somatic near, by moment term growth and portfolio long ago. term vehicles, Stuart long a by just attractive important the technologies and opportunities underpinned mid contract

XX% our from in Margins on last numbers, QX growth basis, Frazer-Nash, foreign segments, acquisitions. and I’ll under Ex-OEW the In over cover were VIMA both mix. non-operating next So favorable rates. strong reflecting notable the which an check, a really were on given is revenues interest recent exchange organic were and and the new items of excellent contribution and in up conditions the in and execution year well more slide. that market

diversified strengthening segment. in Specifically, to government in against reducing we it volatility U.S. footprint, British business that a also dollars, headwind the roughly of It’s global million note the FX dollar. generates about overcame of Aussie P&L STS from and X while revenue in segment dollar from in Pounds that the benefits its the significantly XX% our important

activity, finally, re growth our activity equity teens. excellent intellectual was less top the our better EBITDA ahead growing Starting was of flow with emphasize and lowering dollars, the XX%, even target levels we about on a adjusted flow But mix financial revenues Together this property ratio of economic joint of indicative ex-OEW made representing comments capital year-to-date flow details perspective free to up achieving increased this focused of earnings totaling progression last sale conversion, contributions strong but quarter the of proceeds XX% an Onto we are mid roughly More an with QX buybacks. XX. organic, healthy from cash of below in year the a line cost flow I’d of this for of portfolio half From X strong our portfolio being becoming cash to favorable and And XX% XX heavy low at more new As reduction well earnings. a KBR. of significant profit million like cash with basis. M&A, on as well. of million all uptick $X.XX at and million. and interest, did in by XXX%. This we XX% was deployable expense cash year-to-date for our over this earlier quarter of rates. conversion X.X fixed XXX totals by debt billion for a enabling XX% at contained EPS on off debt, and predictability. with on growth moment settlement in business growth, Operating over STS asset venture than segment on across slide debt leverage and terrific contributed debt revenues XXX of licensed are was XX%

licensing the STS points of can change reiterate expected one target would our per improvement year. margin mix remains mid annual I quarter-to-quarter teens two percentage As to with

plan, that to business proving out vis-à-vis market risk unique global Government EBITDA However, the deliver call, growth many its profitability suggested of continues capital. there and There adaptability, no in are is showing conditions million ahead we excellent is XXX consume last by to are XXXX. IP steady. and This attributes. tracking as targeted resiliency are and and and not our robust working offerings low continues our these our our diversified be out businesses

U.S.- V of government is own profit our our part in seeing U.S. ongoing here did for all this on reflecting we spending not were XX% Certainly due very in LOGCAP revenue European this but supporting proud mission this and outlays appropriations offerings of focus some of in Ukraine, to to reported we’re Margins strong are good efforts for and While program the markets Again, particularly strong government market impact foreign did the segment, drag command on and impact assist the margins. performance. under segment, at up exchange are levels

XX. the On slide

leverage used deployment acquisition is returned flow we to the to cash quarter. not of a deployment capital prudent. via change balanced options, We did XX from approach last and dividends As VIMA, Stuart XX our million for buybacks shareholders over most million is strong and believe and earlier, almost mentioned and of ratio driving cash continue

While rates. against bumped interest up to not our protect swaps shown here, rate rising we

These much fixed Our with through float interest fixed very through and of fixed XXXX XX% borrowings valuable circa agreements. ratio X%. proactive quite at attractive swap achieved that to a rate keep our now now of endure is under rate agreements and

QX increased our increase We buyback once that million our to to representing market cap. million real think and out approved to to I X% an in a XX again. deserves with X% that, to of stock board XXX treasury authorization our shout repurchases team our

XX. slide onto Finally, guidance

We’re strong QX. with ahead of into visibility pace overall through QX business

to narrowing are billion line top year. X.X X.X We the for revenue to our range billion for

We’re expected strong upping and quarter. R&D $X.XX tax credits to year-to-date tax The R&D to $X.XX by in headwinds range adjusted and in rate the our offset than reducing credits, more expected operational guide the increase guidance narrowing and expected of our EPS EPS fourth plus the result FX with which X% from together performance, is the interest.

to and the we’re unchanged. XXX flow Lastly, guidance million increasing million, cash being with narrowing operating margins to adjusted XXX

thank back it closing So remarks. turn to you. I’ll for Stuart

slide And of our onto Mark. slide you, final Thank today’s XX.

solutions and remains or I technologies. think very term all that our really thematic see well-positioned KBR opposite favor our long we can that

and term this earnings over market and It a overall KBR has and margin quarter business Our backlog given long tailwinds. performance increase and near, proportion its has and of increasing third continues to STS outpace EBITDA medium exciting growth. just

market business government and increased of is things portfolio. clear with backlog matter well importance is reflected global in in and attractive very End pipeline. of international areas momentum a differentiation focus that Our positioned predictable funding doing that’s term a long areas substantial strong and and and

recognizing have demonstrate trading We and strategically and enhancing deployment portfolio a discipline will balance value and price. capital also we continue current our to in around

differentiator multiyear volatility, Our strong KBR. FX. a world does and backlog, remain and XXXX intact, rate visibility of a very of sheet clear targets increases, for helps, regardless as our market the balance And interest

Thank has will I’ll exemplary. call now this our increase outlook And to who again, to allowed guidance. for the it And amazing execution this, the would I open people. combined hand has once questions. with thank like our you, Our been operator market our back for us, full and to year

is question open. first Stiefel. proceed. Our from Please Instructions] now [Operator Subin you. line Bert Bert of Thank comes your

quarter. Congrats I my question. first on the for guess

prepared Your I why year through that’s remarks say the pretty would but expectation? guidance tailwind your through implies like just guys earnings Stuart at us you Can decline quarter-over-quarter solid despite the sound end. walk

I mean, it’s pretty standard.

are you is that’s seasonality, If of QX you’ve _ sorts got back, That’s rightly coming but there. you’ve got well the I sinister. driver aware the as got There is Thanksgiving, the history, guess out, Christmas, And I our really main the of nothing you just that. is about and it’s all But it. point look mean, factors in. There bad you you’re business tailwinds nothing it. strong, seasonal. of

here So of raw and that this, the year. course, is year-over-year not this That’s a major delta numbers.

on looking Yes, there the headwind assumed didn’t FX just off talking Mark, I as XQ some was there to hedges seasonality. quarter that’s guess I of that’s if if your quarter of XQ was roll an or I a typical in know

is interest guide probably I outperformed reasonably to head the year. And off, seasonality. think sized and XX Just is think I XX business million an considerably for FX the headwinds guess, I million to full quite rate

managed has and outperform. overcome performance the all managed business we’ve to headwinds So those

has really amazing performance. it been an So

any guys you something days? uncertainty should October the know toward timeline on have that we can despite still HomeSafe? started And for an think expectation extending? potential the in decision. working you meantime, the as was there? just is fact you just my the Do the there’s follow update that Or provide in And few next up, transition, hear then I

as October. out thought state timing expectation. expectation, something the same. but the an And that And but I feels I guarantee that’s mean, and of runs is you week, customer hear the process Yes, that, is the hopefully at we’ll you can’t end the there I think this of so know, expectation the the the

place transition, the is there has once a to the award. when something resources nine transition period in quite next you’ll to get development and we really the to process a that get And obviously of the through this we’ve systems but delay, few quickly. going of know days. in up the allowed month do, And I do this the we’ll still set think of terms ready, about and lot So getting the terms said period, and de-risk us backbone in work hear before in

So, again summer. next obviously be go used the the to news, going it’s of will terms as that the in is end of material, not year. There into month period peak nine in but be at we in some the

go million, few So ramp be guess, XXX we’ll to mean, a there comes timing. don’t have on into I just But that will we I I as the up know, clarify ‘XX. obviously,

aspirations term and next assuming our much that So supports will when long few growth come terrific positively through days. very the

If would were favorable the clarification a then we a month it that you just at decision this Stuart, in, sort nine that on came find week date. to of starts out clock that. question be think

I think that’s right.

sit and that. they’ll and just been, obviously I I after I kick the few And that after made keen key of through. we’ve towards be think whatever off And aware risk week days to advances plan a we’ve start some down in working guess areas. to a made that

keen very So that. understand I to think

think I So should should be That absolutely, it time. be. right the

Perfect. Thank you.

question is next Jamie, of open. proceed. Please from your comes Credit Suisse. line Jamie Our Cook

deal Hi, doesn’t and question to seems that your guess more, significant have in about And calibrate guess three M&A up XXXX. good it morning. last One, earnings I a but is your Plaquemines understand the second powder trying we about base earnings on dry run looks front, you. like but where street with potentially kick in comment year, right, acquisition half a the then of in missing three I trying ramp. a with following is the my I larger is I how Nice looking. opportunistic front. made any news of just for guys And that until HomeSafe being I’m quarter on kicking from HomeSafe is next because positive that I keeping the if the second there’s or there like XXXX but unfair question you just XXX. something award. quarter, year. more guess five or later just it’s we’re sort in we for if four, to XXXX know, think on Stuart questions. Thank pipeline two if pretty just

and one second do the maybe the first do I’ll and one. Mark,

I if really not into does time, from of you’d Jamie, I activity. last still as a expected, bit come still the not any I M&A like. you think quarter, are But quickly, much the front multiples markets a of capital have view down think quite on mean, have there’s changed quite the bit take coming don’t terrific. and the it

And don’t so never I for the quarter. you exactly with And described year end run looking know, the that And the as same think next at as into don’t, that year, think, probably I the into philosophy but us months. we we’ll mean, change of will be last opportunities I very come the I think few but them. we’ll the certainly carefully will, I over

So really no change there.

Jamie Mark here.

to about forward should has and the and clear client the end hopefully the I’m is week, participate the start prevail says, we will move that subject court that not really everything been we say season ‘XX moves of we toward moves this in to the While the of year. what will very busy in

activity were that And not so be ‘XX. that, in with would much

there. prevail was activity that get after all what should to should could and court it has But we that’s that said once of more that of But know that because QX more be the are client to there not next we the involved So we street that I and but some ramp think think we’ll then the in client up you’ve we we’ll so see the sooner. decision warrants start and referenced, what be numbers year, says cautious assuming changed.

rate contribution. follow just Plaquemines. that answer up much just know like starting it how think on Plaquemines on in And the any or I commentary margins helps you the run I don’t STS to XXXX improve. how know is the or didn’t to about

its we’re project I think and mean, about Jamie. contribution specifically don’t to I going talk one

on growing growth. think sequential I that XXX We’ve expected by to do QX. that to we’ve book-to-bill is terms about said seen a publicly outpacing support they’re we require pace way of that we’re next I obviously and year more come gains, uncoil STS to will ahead EBITDA that and in that double continued say And it’s when and performance XXXX, of we out think the little that. I that

talent very, the to positive So upbeat I with the the talent the business seeing that we’re that winning, and great momentum ability and quite hydrogen bit time or explain work and very market whole focus the the doing. performance real and business what point the our the mean, this into And we’re to on we as that in that, that decarbonisation about we’re actually things of a well. and sort spend future we’re that’s of and a like the magnet attract

performance the that perhaps all while I but know, business think the STS certainly I than ‘XX strong I pretty the in override think assumptions, I going into assumptions, area. other people and So, the, HomeSafe of don’t about underwriting think bears that we’re some the feeling maybe

you. Thank

comes next Sommer your open, Tobey Securities. of Truist Our is line proceed. Tobey, question please from

I Federal portfolio to was outlook civil, as for and could the growth intelligence. with your the maybe whole. defense unit the a across space you you, And juxtapose hoping for that Thank outlook speak growth

into Tobey the year. needle our is commercial modest a space, really But think growth next business for it guess I outlook quite probably material going I as in that’s not is not we it’s part is So move move growing. still of the us, to

into to funding of NTG advantage pretty think digit is lot in into a take and that the really flowing strong that. think about I of that arena. certainly in our up into double And terms expecting certainly we’re next growth year excitement which very well year. positioning that’s I our is of next space, military arena, businesses positioned going And there’s there

been budgets slow, you’re the aware. side, NASA side, obviously, what’s the are civil happening in the up. of The In as award terms well of has the timing

really have look digits, can some expectation. through we come the that growth, And, probably we’ll modest a single a in get And change into basis. our awards of year, that’s course, next timely they’re we’ll of if I on on some dime, think but these so as and

So I we when ‘XX earnings a, the that’s in an end QX to able color, of be give end again, early year. talk think, but the full we about and meet really, February, more I that you suspect or indication, when year it’s we’ll next with

that’s So that sit, makes kind of we sense. where if

our percent From or the big either tax does. federal with total It overall perspective, company? how it or is of

a mean, quite and I about business bit and billion a a defense space as science intelligence. it’s unit, of we do of course, in space middle

Fed So really it’s kind pretty And particular, and prospects and out. together, the come or were done I there’s cutting team, big we compete space, [Indiscernible] courses a procurements overall. the increasing of competent, how copier of in But the with with as club well to contribution, we will chunk NASA have that a of space business, said no GS exciting there only growth the the edge.

bit, X.X combine you a X.X outside do probably billion total. U.S. little plus to maybe all areas, we three billion as a If that good is the in

mix? you You’ve metric been was incentive contemplate that or behaviors could talked share drive kind as if in ventures of importance measure business emergence us compensation, wondering made your any this forward isn’t growth revenue joint to the and new quite about of of in success. order have I with the that of because an to you either going how changes important

terms and they’re and short incentives, in by of all mean, sustainability. I cash driven term profitability our so Yes,

and to driving associated cash needs flow. completely driving aligned our they’re So

That’s case been some the for time.

said is redefined just of profitability, earnings that, we Yes. hasn’t what several on focused really measure, that I on years. as and be we’ve and focus I a and is changed the when a true very think KBR mean, that that, that been as of delivering Mark quality consequence, we cash which would for

with the I the at comment change of just through the on work driving coming growth. joint think, always you way for doesn’t line it way that performance line people winning EBITDA look account compensating been really, ventures or we we’ve the bottom because really

comes Steven, question ahead. Steven is of UBS. next open. from line Our Please Fisher your go

Great, thanks. Good morning.

to So contextualize the growth, trying organic X% I’m that.

what compare that into concept be organic we So focused I to is that about you for is QX how do organic how does there embedded an year? have the be XXXX guidance going assumption quarter? given here change in guess and next what organic growth EBITDA growth should your the the picture And on to relevant you’ve bigger Is been expectations in going terms metric, just be of about thinking equity to and for growth talking EBITDA? going in income your

I think of X%, our as area that asked level. think that we growth I X% your overall have part of the long range HomeSafe, Steve, obviously. of in of to guide, company given Then for

current market that bit obviously, now, frankly. we’ll QX X% performance already day, of number doing guide. to given conditions that of of line. to CAGR X% context But current ultimately, EBITDA and things have that, We’ll STS and to we’ve across these So right and at off the that the a reflect look the acceleration, end some at dusting the of in the we’re at an is be investor obviously, goes at

again, XXXX, tidy. so, think, over very And I

line. everything’s in think I so And

And what in embedded QX something you that’s similar? have

I what QX of we that we’ve little earlier mean, I discussed comes call. seasonality is Yes, think bit said off because in a the

And more then segments. just on focusing the government

You talked up bit. in and picked about some a outlays maybe is little that of they’ve understanding the dragging my U.S. overall the

start four if government factors of within your on government curious all point. I’m of at And the to how XXXX do determining of segment some should segments you year? have there? whether growing good that’s flowing a going And So some sense kind organically think next be do you about the into are what

looking the back exactly come this I there’s like and demonstrate tried that’s and think lumpiness mean that Yes. bit quarter, previous of I that book-to-bill was a quarter, through. what to we things Steve in on

that of pipeline. the next is expectation think, very the over quality would of quarters. And I course to start overall, sort through with pleased the we’re the the couple of

it’s terms going outlook perform continues GSI clear well, been the that has the strong really I various great margins, think we’ve of segments, and to backlog, In across very guns. terrific

that So And no at difference of a clear hopefully, recognize real KBR. there sort people all. with issues there’s

think of military I’ve I the And cyberspace, I on through In intelligent already I’ve go on also as space. the terms touched there. I touched guess the, and space, others, think And I through well.

absolutely has like I business, and does vehicles, recurring systems highlighted themes And we many of quarters. going those to that which showcase momentum strong really think defense reported the our this contract and that, and to procure in the really, And again, quarter. we’ve for the some picked it’s around of continues that’s I think modernization quick some in type digital we’re clear. in these looking seeing that good, quarter-on-quarter And actually and we they’re at things arenas. awards -- engineering solutions,

So next business. really readiness have EUCOM of to sustainment the really changes us course obviously, enduring, of more think today. And our addition segment brings the expectation in will mission we And be that HomeSafe particular that I year. into the certainly with and more visibility is considerably. quite the That’s

of of by really and and and good on pace sustainment think So feeling we’re about be each driven HomeSafe. growth those readiness segments will pretty the I

bit market we’ll hopefully week, this more will be obviously no We to fulsomely. later explain come and more similar and able that quite a of to that

please question comes from go Instructions] of next Thank you. Kaplowitz Andy Andrew open, is Citigroup. your line Our ahead. [Operator

into those see the acquisitions UK How Stuart your any on VIMA. slowing from UK, exposure can Last businesses? impact Frazer-Nash, there. color to us you obviously, year, expect in give this increased your and maybe you doing more you are do recently little seeing a year you’re what

integration the particularly as UK, level some think we’ve of increasing. interest in and by well the the the in it’s quarter brand and VIMA of into and we’re that And recognized. obviously, a for weight in that well. So seasoned doorstep Kahn, committing, team as be Frazer-Nash we’ve complexity Australian the got war Brexit, of in we to the very government our bringing Ukraine. is I either Government driving will arena questions. the last good got defense is funding UK course, UK on that And, And had really, into that executive announced we strong and very harmonic of Paul executive And added our us

a And number well very little time and that’s the interesting as while. least a the Downing resolved, as XX bit in for got at door it’s we’ve at hopefully next So revolving of Street, UK. a

a conservative consequence and the political are those So is with defense clear as I is little the I think really the a going think well. I stability digital work scene, well. exceedingly around businesses bit government, going from defense, of commitment in

the just We’re the the doing the expect programmatic we the at secondly, of set. general And I’m flowing into moment. announce of work that skill we’re test very quite arms type from pleased forefront one people to that in Navy I in business. are a which digit. the of I move actually the numbers government Frazer-Nash military growth people digital at at into and the and well other of because I And asset is clip, in so think then double transformation significantly that mean, growing up in to mean, growth they’re is well digitalizing

I do aligned they’re model be that and with on great, also. going they great businesses values those people. think are well that really that is I strong. so I So They culture perfectly lived absolutely think that much this And the that can , pleased very think very alignment feel more those, we think

to still it go could used a this if than continues see? so into to is Stuart. know then legacy global economy positive ‘XX, in as you’ve that, in STS, do sense call But of X.X, even exposure? slow? question book-to-bill there. kind that for it very I you your Thanks the very still I global if book-to-bill expectations obviously, you this strong similar energy anymore. around said, And it’s STS And different year you still business the a economy, this have be some much you slowing maybe had Or don’t

think I Yes, so.

think as of right the I energy drivers of I I at identity security mean, I got said, obvious can’t list this those And we’ve in markets. terms see the in changing for the reasons. top is that trilemma.

things and It’s like have stuff. And pretty scary of some that. blackouts talking in about been Europe parts people certain

the right say a the got whole of And the you’ve invested segment so been And in got under top of And then you’ve fact agenda. diversification couple climate the the that of years. change is has the supply at agenda. for the

demand the of with the piece are coming Russia, out reductions supply obviously, and obvious. So etc.

quite capacity about oil of they’ve a you got and around and they that future that And of and commitments then that think so And national the guess, companies and into you’ve financial produce resource got have pricing. I chemical a the lot recent you’ve given hydrogen I if economy decarbonizing energy. got oil their, way the and companies got, companies think piece next that is

of at I very how our slowing you our performance. see solutions play we’re you’ve would really because is certainly high that and down got and think the and about the this have in and And but heard say I these is all capability output. are our aligned actually, I cannot reflected in factors our end that with regardless, I think book-to-bill talking it’s, that the so think technology and so hugely proof to many I technical well-positioned the And will people reflect pudding that --

I think it’s reflected in our briefings.

Thank you, Andy.

Partners. of question open. Michael line Our from Please your go is next Research Michael, Dudas comes ahead. Vertical

Mark, First, competes and us left you you’re the this are for that of year looking fiscal any XXXX? Stuart remind can read as at

None year. for this

time think ‘XX. NASA _ it into of I next in think our on And we’re be year, ones actually they’re, that us. got one all procurement think will will big behind but the that we’ve processes be I I

I think it’ll be compete next year.

but proposals falls activity the Yes in the following of all door risk years. to actual of get that, have the really out into we some and terms

and a then already, quite bit cover really start continue year. there’s book-to-bill we’ll to of grow So until ‘XX for the we

work early have backstopped we’ll So well contract. by, under as ‘XX guidance the

Mark attractive the And you following on a pretty rates you’ve of through the have Thank call, some M&A with near term. a you. we’ve guys bit And done the talked talked hedging debt about environment. pipeline great job some happening current up, during

look to few next quarters know balanced, there’s So allocate is we I you to as it’s anticipate is cash repurchases. share towards capital but free continuing allocation

a right good side the on of buy the mentioned in think value represents we million buybacks Stuart XX that the with earlier price very quarter. that as Yes, now. And demonstrated we

you levels, increase that’s an saw the the So as well. from authorization in uptick historical and

at strategy supportive But do the our board to always we’ll about attractive And look year. the that dividend of well. So dividend. of talk at we as our is pay we very of in We’ll beginning course, a February. have an this

capital going more interest good of So time being to to prefer there’s the then we’ll the there, just shakeout see pay and to cautious in there. And to back attention things dealt the this cards that environment, Despite the and exposure still in be our really with we that equal, be with had we’ve would rate success that. I’m to hedging last area. at portend light caller all that say M&A and

this So comments been interest as we’ll very valuation we’ve very, very unknown the as selective, earlier, market, rate made in always selective Stuart the well direction. be given

next KeyBanc your Markets. line Our question open. Please is Capital from comes Sean, Sean proceed. of Eastman

how the one near me if over of me months. swing out revenue swings say, taking over Thanks the to so want shout be just just in big my run-rate team. try come what us It tracking? NASA bookings momentum like the maybe of the revenue is much help to definitely the the I factors next think around piece from flash to I’m next I XX over quarters? run revenue And business out where wanted Thanks yes, What we there. Correct there? to pipeline the to to update around here. seems here deserves and Hi, should the And XX you the the discussion. for couple GS NGS to term Alison time, what’s goes years. number rate are But a past the about swings. all of for questions. and the the back the perhaps wrong bigger just of on

when are pretty Not business. if there, the I they the in lag consistent of which a NASA/ship steady vehicles that’s to been past see expect is volatility I’d chunky, that’s D&I got say with a modest pretty you and and space growth in that’s our lot IDIQ look state beneficiary procurements has First, outlays the we what see more of to it’s money appropriated. in October pretty a starting September and the there. the is you there at the area spend to while trending. consumer more in so and capability need those pace forth. so about seems in know be and for that so, They there, those spend to things then particularly pretty that going growing we’re good suites and see deliver and integration space and in world of happening maybe – there’s

I think And that in has light. one so that opportunity

happening condition great because in and Gap]. earlier said [Audio result subject there. and what’s royal – GSI a stable to but the story a as we in pretty Regarding are of situation NEWCOM Take as of

Sean. you, Thank

comes ahead. question Sachs. Goldman of from is next go open, Jerry, your Our line Jerry Revich please

slide Expand orders discussion X, look on of have And technology. really carbon ammonia, the heritage I had folks a tech. capture you as at green number

at they’re seen we’ve of bookings feels for recycling today are a for the look like tech areas? about Because what over green can we As technology the that coming proportion past bookings the business other disproportionate in like and it year. of plastic you legacy these heritage the talk portion

And portfolio. we’re also everyone think think the I morning it’s emphasis is about, that. we about over time so talked for understands this, suspect terms around we’re standalone actually makes of And about hydrogen. too green that That’s U.S., new come. really more the of but certainly sure. I them developments technology in doing talked And really hydrogen rates developments much profitable for on return far not That’s bill And the certainly of [Indiscernible] we’ve in a more yours to example I more

an Jerry going from that ultimately, there’s security are but increasing move challenge. you’re to portfolio energy that green think still see of amount an sales I as forward, we So

investments still solutions is and all doing traditional very doing also well. there’s things I what business so petrochemical call and well more And is licensing and

energy in with of aspects terms come etc. all the use, green and and efficiency more they So decarbonisation

market it’s terrific, think but one just seeing range, So you rather well, which a very, timing ultimately, if is very than two we’re I across actually of holds, or technologies, a the these predict because can never awards. selling portfolio

_ the seeing. and so and you _ more And the that’s what predictable we’re in the have growth more fire is, the

are time, think pack. the do at I to going top are with you, technologies we aligned agree be So progress the in economy as much aligned hydrogen do to the circular that I of but very going be certainly technologies over

that just a talk these that on book-to-bill you up sub look when you’ve within north the burn heritage been you’ve in X.X feels tech just see of past ramp for big had, of and in year, awards? the running execution whether the And duration the a at qualitatively, ‘XX? course we you over it what’s bookings like revenue segment. Can about Or project

a, that money I a are actually mean to arena I lot to think and awards security rides quite value as huge an at that realign active energy the whatever overall as of you of we typically, obviously, is as it’s think tech paced. quite fast tried usually an business QX and on think period for customers that is goes And people budgets spend that there know everything in an QX business. heritage overall chain. look value it’s like, than offering or or part STS the rather that across I just, to delivers, But

overall so growth to book-to-bill and at And about and the look market the that we talked We That’s about it. across it. way margins that’s way talked the business. the we the

market seeing So opposite a years about think that And doubt paying dividends in we’re well-positioned. today. arena, we realigned actually of more activity the ago, green the we our I that’s and very business of no And it. are couple whole historical

on Super term and of targets. long terms note in lastly that Stuart

you’re at for tech margins segment. XX% I think sustainable

today this How out called number XX% we expand to the near lumpy items? at You’re quarter. rate items? any run XX% as on of what’s that want sustainable just stand a is term, I you review

above Yes, bit think. run a so rate is I the Yes pace.

we’re one at So think I running we out and think when some in were last said, offs of I X% year, terms you year, over when XX% teams and last I upper per look the took blended you lower at the we some of year. out we at when X% the we margin, the annum. teams, I think took grow so to And it things think

for across But won’t we whole Mark pace, due actually and put that that healthy of as licensing sure. quarter at year, that think I delivered to XX% mix. we the but be is So the when ahead said, this XX% you that’s we’re

in I that performance. that the highest that’s be level, terrific again, got it said, we’ve we’ll a statement. teens mean to And context. think put I positive hugely I but upper in the

We that three hitting targets. there in four initiated And next the we’re or years, the now. we talked when about initially

in So seeing projects an great from we well. markets. are acceleration as great kicking Other next

achievable of on ahead made XXX the being comments said a as we’re the pace and the we on game, we So all along, that’s million why EBITDA as faster well.

Thank you, Jerry.

is question ahead. next line of from please comes your Cowen. Our Gautam go open, Gautam, Khanna

[Indiscernible] provide Thank commentary Thanks is you. for qualification taking XXXX on This Gautam. or and for sort of in any European maybe sales you Could XXXX? around the Command question.

Yes, ebbs we continue it’s that. I that around year. into mean, I bit, flows about a I mean, think next we’re probably around but to little and constant to it expect And quarter. pretty XX XX a

you. Thank

open. question next from Our Please Karimi go your is Zane, comes line D.A. ahead. Davidson. Zane of

to is and is or for plateauing? and Davidson. give in Thielman, up Good to in want color D.A. some Europe that I LOGCAP Brent half, anticipate Hi, Karimi whether second we you start to ramp this morning. continue activity the if related should Zane

I I mean covered that. guess think, I just we

at the next can stable think year. XX the it’s and this give think probably that’s into that you I at juncture, I visibility as moment between we XX. And we move

hopefully, the and it able But, earning. but at into probably number of moment. update we’ll guess I and year about be mission next February the the we terms that and commitments that quarters good to And a to that’s depending some on we And of things get as does in happening uptick in into demands, understand end model year think what’s way etc.

provide to XXXX? comment you, and could Are on under color Thank you contract government work solutions? you for more on able

very under unique but contract, we’ve not ‘XX a I just mean, substantial for very, I that. have that ‘XX And amount and we a been yet. Not work do about think beyond. position, in and we’re through Zane clear and of

targets. I nominal under achieve compete we to high about contract not our got whenever we’ve then a today probably our keep XX such overall rate, and we and Assuming mean, work numbers, XX% of

that obviously get you ‘XX goes we to work. when so And as we up because

not tell you what for also to quite I’ve guidance contract but it’s of long we’ll so with ‘XX amount bedrock going a book-to-bill levels and kinds work So said we’ve of substantial what contract the of be just the terms STS a set term, yet, well. difficult as given but under the in of in obviously business,

work think But strong underlying I yet. February in we’ll giving contract. be a the guidance number and don’t So know I is in what under going with

questions. further At have no this time, we

remarks. So over to back Stuart closing I’ll Bradie for hand any

very in guidance of your just and the much, Again, taking you I early out and for for you the to your for would increasing much all thank only saw an of outpaced interest reiterate, can million to that time FX tried Thank the the from operational questions. KBR to some that Charlie. be call typical that and and million are very I XX coming reports and that We this headwinds performance we’ve in lay further truth. out with had tax perspective to offset XX to more. and interest we’ve from like

be are a of robust and we That I I businesses was the So in in couldn’t our terrific. prouder think showing the absolutely resiliency delivering was through actually in our numbers, of not these volatile markets finger times it’s a the just that the it. the reflection I I performance of them. think And people can’t and just air, think of we’re exemplary be

all calls Thank again talking and to we time soon. look follow you for you. to So and thank your forward you up

this gentlemen and today’s concludes Thank you joining. Ladies for call.

you your can disconnect Now lines.