- Realigned segments to support continued growth and
profitability; Government Solutions segment renamed Mission
Technology Solutions
- Stuart Bradie, President and
Chief Executive Officer, appointed Chair Elect and Byron Bright, President, Government Solutions
U.S., named Chief Operating Officer, effective May 2025
- Reiterating 2027 financial targets
- Hosting a webcast to discuss these updates on January 8, 2025, at 8:30
a.m. EST
HOUSTON, Jan. 7, 2025
/PRNewswire/ -- KBR (NYSE: KBR) today announced segment reporting
updates and executive appointments focused on advancing the
Company's strategic direction. These updates include changes
previously approved by KBR's Board of Directors and disclosed in a
Form 8-K filed on December 19,
2024.
"As KBR continues to scale and expand capabilities, we are
realigning our portfolio to streamline operations, reduce
complexity, and optimize our processes," said Stuart Bradie, KBR President and CEO. "During
2024, we eliminated substantial costs and moved necessary support
into the segments to enable greater self-sufficiency. We are
already seeing the benefits of these initiatives, which have broken
down historical silos, created cross-team collaboration, and opened
a larger pipeline of opportunities globally. We also effected
leadership changes to facilitate continued strong execution and
greater value creation. These deliberate moves will ensure that our
capabilities and talent are best aligned with our customers, help
us remain cost competitive, and accelerate our progress toward
achieving our strategic objectives, including maximizing
shareholder value."
Segment Realignment
KBR comprises two operating business segments: Government
Solutions (GS) and Sustainable Technology Solutions (STS). As part
of the segment realignment, GS has been renamed Mission Technology
Solutions (MTS), reflecting KBR's leading-edge mission critical
capabilities spanning space, defense, national security, and its
expanding commercial end markets. Sustainable Technology Solutions
retains its name. The legacy GS International business unit has
been eliminated and its elements integrated into both MTS and STS.
Both segments will continue to operate globally, serving government
and commercial customers.
The realigned organization is not effective until fiscal year
2025. For investor convenience, selected proforma financial
information (under the realigned organization) for the prior 11
reported quarters will be posted on the Investor Relations section
of KBR's website at investors.kbr.com. The fourth quarter of fiscal
year 2024 will be added to this supplemental schedule once it is
reported in February 2025. KBR's 2025 Forms 10-Q and Form 10-K
will include comparable historical periods and reflect the
realigned organization.
Executive Appointments
On December 19, 2024, KBR
announced executive appointments in support of advancing its
strategic direction:
- Byron Bright, currently
President, Government Solutions U.S., has been appointed to serve
in KBR's newly created Chief Operating Officer (COO) role,
effective May 2025. As COO, he will
lead both segments with Jay Ibrahim,
President, Sustainable Technology Solutions, reporting to him.
Additional Mission Technology Solutions leadership appointments
will be made in the coming months.
- Bright, 50, joined KBR in 2010 and has served in his current
position since June 2020. Bright
brings extensive operational experience and deep technical
expertise, with prior roles in government services and the U.S. Air
Force.
Bradie commented, "Byron has demonstrated exceptional leadership
in his current role. As COO, he will provide focused operational
oversight to ensure that KBR continues to win the right work and
deliver value as we execute our strategic initiatives. I am
extremely confident in Byron's ability to consistently deliver
results across the enterprise, and I look forward to partnering
with him in his new leadership role."
- KBR Chair, General Lester L.
Lyles, notified the Board of Directors of his decision to
retire from service effective post KBR's 2025 Annual Meeting of
Stockholders. General Lyles has served on the Board since 2007 and
as Chair since 2019.
- The Board appointed Bradie to serve as Chair effective
following the 2025 Annual Meeting.
- An Independent Lead Director will be appointed ahead of the
2025 Annual Meeting.
Bradie commented, "General Lyles has been an invaluable member
of our Board and instrumental in guiding KBR's transformation into
a global, diversified technology solutions leader. We are grateful
for Les's leadership and thank him for his 18 years of dedicated
service. I am honored to take on the role of Chair and thank the
Board for their confidence in me. I look forward to continuing to
work with our Board and leadership team to execute our strategy and
deliver continued stakeholder value."
Financial Targets
KBR is reiterating its 2027 financial targets, introduced at its
May 2024 Investor Day which are based
on 2023 baseline year.
Specifically, the company expects to achieve:
- KBR Consolidated: Revenues of $11.5 billion; Adj. EBITDA of $1.15+ billion;
Adj. EBITDA Margin of 10% - 11%, and Operating Cash Flow of $700+
million
- MTS: Revenue CAGR of 11% - 15% and Adj. EBITDA Margin of
9% - 10%
- STS: Revenue CAGR of 11% - 15% and Adj. EBITDA Margin of
~20%
Bradie concluded, "The outlook for KBR is exciting and we are
well positioned with our unique capabilities and talented teams to
capture outsized demand driven by global megatrends. The structural
changes communicated today provide us greater strategic flexibility
as we continue to build strength and scale across the organization.
We remain focused on leveraging our unique ONE KBR capabilities,
enabled by our digital accelerators, to deliver best-in-class
solutions to our global customers."
Webcast Information
KBR will host a special webcast to discuss the segment
realignment and executive leadership updates on Wednesday, January 8, 2025, at 8:30 a.m. Eastern 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 on our website or by telephone
at +1.866.813.9403, passcode: 639026.
About KBR
We deliver science, technology and engineering solutions to
governments and companies around the world. KBR employs
approximately 37,000 people worldwide with customers in more than
80 countries and operations in over 30 countries.
KBR is proud to work with its customers across the globe to
provide technology, value-added services, and long-term operations
and maintenance services to ensure consistent delivery with
predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward Looking Statements
The statements in this press release that are not historical
statements, including statements regarding our plans, objectives,
goals, strategies, investments, capital deployment, future
financial performance, 2024-2027 financial targets, expected
returns, cost reductions and future events, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to numerous risks, uncertainties and
assumptions, many of which are beyond the company's control, that
could cause actual results to differ materially from the results
expressed or implied by the statements. These risks, uncertainties
and assumptions include, but are not limited to, those set forth in
the company's most recently filed annual Report on Form 10-K, any
subsequent Form 10-Qs and 8-Ks and other U.S. Securities and
Exchange Commission filings, which discuss some of the important
risks, uncertainties and assumptions that the company has
identified that may affect its business, results of operations and
financial condition. Due to such risks, uncertainties and
assumptions, you are cautioned not to place undue reliance on such
forward-looking statements, which speak only as of the date hereof.
Except as required by law, the company undertakes no obligation to
revise or update publicly any forward-looking statements for any
reason.
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SOURCE KBR, Inc.