1st Quarter 2019 Financial

Results

May 1, 2019

Stuart Bradie – President and Chief Executive Officer Mark Sopp – Executive Vice President and Chief Financial Officer Alison Vasquez – Vice President, Investor Relations

This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this presentation, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward-looking statements contained in this presentation. Additional information about potential risk factors that could affect our business and financial results is included in our Form 10-K filed on February 26, 2019.

We caution you not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances.

This presentation contains the financial measures “EBITDA”, “Adjusted EBITDA”, “TTM Adjusted EBITDA” and “Adjusted EPS”, which are not calculated in accordance with U.S. GAAP. A reconciliation of the non-GAAP financial measures EBITDA, Adjusted EBITDA, TTM Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP financial measure has been provided in the Appendix to this presentation.

Forward-Looking Statements

2

Stuart Bradie

Chief Executive

Officer

Leading Health, Safety, Security & Environmental Excellence

4

52%

62% 70% 72%

79%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018

Zero Harm Days Achieved Zero Harm Not Achieved

0.42

0.28

0.24 0.22

0.19

0.10

0.00

0.10

0.20

0.30

0.40

0.50

2014 2015 2016 2017 2018 1Q 19

KBR TRIR

76%

Improvement in incident rates since launch of Zero

Harm in 2014

2

Completed months in 2018 with ZERO

recordable injuries globally

Total Recordable Incident Rate (TRIR) Performance: 2012 – 1Q191

1 Includes acquisitions

1Adjusted EBITDA and Adjusted EPS reconciliations provided in the Appendix 2 Excluding the workoff of the long-term PFIs

Highlights | 1st Quarter 2019

5

Revenue, Adjusted EBITDA and Adjusted EPS growth fueled by industry leading organic growth and acquisitions

29% top-line Revenue growth

‐ 44% growth in Government, 22% organic

‐ 48% growth in Technology, all organic

Strong operating cash conversion

Long-term backlog with quality growth opportunities

KBR overall book-to-bill2 of 1.1x

Energy Solutions 2.4x

$ in millions, except EPS

$1,038

$1,340

1Q18 1Q19

Revenues

$84

$97

1Q18 1Q19

Adjusted EBITDA1

8.1% 7.2%

1Q18 1Q19

Adjusted EBITDA1 Margin

$0.34 $0.36

1Q18 1Q19

Adjusted EPS1

$(130)

$48

1Q18 1Q19

Operating Cash Flow

$13,157

$13,602

$2,705 $3,295

1Q18 1Q19

Backlog

Unexercised options

Reported Backlog

Market Outlook

6

Buoyant end markets in both the government and energy industries.

Government Solutions (GS)

Healthy government spending budgets, both domestic and international Full life-cycle capabilities aligned with defense strategy objectives Excellent execution, contract performance and client relationships

Technology Solutions (TS)

Continued strong demand for petrochemical, refining and agricultural technologies Low-priced, plentiful feedstock Regulatory mandates are driving demand for our clean refining solutions (e.g., IMO 2020)

Energy Solutions (ES)

Strong momentum across the services and global maintenance markets Significant LNG supply shortfall beginning in the early 2020’s Increased investment in higher margin chemicals and petrochemicals facilities

LOGCAP V

7

• Won three of seven major contracts • Afghanistan • European command (EUCOM) • Northern command (NORTHCOM)

• LOGCAP IV work will continue through 2019

• No change to 2019 guidance

• LOGCAP V is a strategic expansion towards increased sustainment, training and long-term programs • Expands to O&M funded training and

readiness

LOGCAP V areas awarded to KBR

Major Task Orders ($millions) 2016 2017 2018

LOGCAP IV Iraq $257 $308 $574

LOGCAP IV Kuwait/UAE2 $57 $65 $79

LOGCAP IV EUCOM $24 $164 $144

LOGCAP IV Afghanistan $622 $664 $885

LOGCAP IV NORTHCOM3 n/a $57 $197

Historical view of the last three years of spend by Task Order1

1Data Source: Federal Procurement Data System 2Data does not include Kuwait or Qatar BOS 32018 includes disaster recovery support

Mark Sopp

Chief Financial

Officer

*Gross Profit + Equity in Earnings 1 Adjusted EBITDA and Adjusted EPS reconciliations provided in the Appendix 9

Strong growth in Revenues and Adjusted EBITDA

All segments met/exceeded Adjusted EBITDA targets

EBITDA up 15% over 1Q18 on higher revenues and associated margins

Equity in earnings impacted by investment impairment and Ichthys

Provision for Interest Expense in line with expectations

Tax rate up for the quarter due to discrete items in equity in

earnings

Strong operating cash flow from all segments; overall cash conversion of 120% in the quarter

Reporting changes Classification of SG&A Segment names

Consolidated Results

($ in millions, except EPS) Mar 31, 2018 Mar 31, 2019

Revenues $ 1,038 $ 1,340

Gross Profit $ 115 $ 153

Equity in Earnings $ 23 $ 0

GP + EE* $ 138 $ 153

Selling, General & Administrative Expenses ($69) ($78)

Acquisition & Integration Expenses ($3) ($1)

Gain on Disposition of Assets $ 0 $ 4

Gain on Consolidation of Aspire Entities $ 115 $ 0

Operating Income $ 181 $ 78

Net Interest, Other ($8) ($20)

Income Before Taxes and Noncontrolling Interest $ 173 $ 58

(Provision) for Income Taxes ($34) ($16)

Noncontrolling Interest ($1) ($2)

Net Income Attributable to KBR $ 138 $ 40

Adjusted EBITDA1

$ 84 $ 97

EPS (diluted wtd avg) $ 0.97 $ 0.28

Adjusted EPS1 $ 0.34 $ 0.36

Diluted weighted average shares 140 141

Operating Cash Flow ($130) $ 48

Quarter Ending

G

S Revenues of $975 million, up $298 million or 44% from Q12018 Fifth straight quarter of double-digit organic growth; 13% excluding Tyndall Continued focus on cash collections and DSO

TS

Revenues of $92 million, up $30 million or 48% from Q12018 Growth in revenues driven by PEQ sales across the portfolio Attractive operating cash flows with negative working capital

ES

Revenues of $272 million, down $27 million or 9% from Q12018 12% EBITDA growth in services 2.4x book-to-bill in Q12019; significant, attractive pipeline $0

$250

$500

-$10

$40

$90

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

$0

$50

$100

$0

$25

$50

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

10

KBR Segment Results | GS, TS and ES

Our strategy is producing profitable growth and more predictable earnings.

$0

$500

$1,000

$0

$75

$150

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

Capital Allocation and Liquidity

1Adjusted and TTM Adjusted EBITDA reconciliations provided in the Appendix

11

De-leveraging aligned with growing Adjusted EBITDA

Dec 31, 2018 Mar 31, 2019

Ending Cash Balance 739$ 708$

Gross Debt 1,336$ 1,334$

TTM Adjusted EBITDA1 414$ 427$

Gross Debt/Adjusted EBITDA1 3.2 3.1

Payments of Dividends to Shareholders 11$ 11$

Quarter Ending

12

Reaffirming 2019 Full-Year Guidance

Reaffirming 2019 Guidance

GAAP EPS $1.29 - $1.44

Adjusted EPS1 $1.58 - $1.73

Effective Tax Rate 23% - 25%

Operating Cash Flow $175M - $205M

1 Adjusted EPS reconciliation provided in the Appendix

13

Excellent start to 2019 – strong growth, execution, cash collection and bookings

Quality cash conversion Healthy Energy Solutions BTB and key wins in Q2

supporting our growth outlook and 2019 guidance

LOGCAP V win removes uncertainty and provides growth opportunities for many years to come

Final Thoughts

14

2019 KBR Investor Conference

Friday, May 3

New York Stock Exchange

Investor Presentation | KBR 15

APPENDICES

16

Appendix: Ichthys LNG Project Status

All of the components of the LNG facility, except for CCPP, are complete and turned over to the client

CCPP is on track to export combined cycle power in late Q2/early Q3

CCPP STGs are mechanically complete with commissioning advancing well at almost 80%

Both LNG trains in production

Clear line of sight to completion

Cash commitments are holding at $500M

LNG Train 1 LNG Tank

1

LNG Tank 2

Butane Tank

Propane Tank

Off

site

s &

Uti

litie

s

Operations Complex

Temporary Power Plant

GTG

4

STG

1

STG

2

STG

3

Combined Cycle Power Plant

GTG

5

Complete Handover expected by Q2/Q3 2019

GTG

2 GTG

3

GTG

1

LNG Train 2

1Q ‘17

AEPS $0.28

2Q ‘17

AEPS $0.57

3Q ‘17

AEPS $0.35

4Q ‘17

AEPS $0.28

1Q ‘18

AEPS $0.34

2Q ‘18

AEPS $0.34

3Q ‘18

AEPS $0.46

4Q ‘18

AEPS $0.39

Financial Snapshot | Nine Quarters of Consistent Results Adjusted Earnings Per Share Guidance and Results

17

Note: See Appendix for reconciliation of GAAP EPS to Adjusted EPS (AEPS)

Annual Guidance $1.10 to $1.40

Raised Guidance $1.25 to $1.45

Raised Guidance $1.35 to $1.50

Annual Guidance $1.35 to $1.45

Raised Guidance $1.40 to $1.50

Raised Guidance $1.45 to $1.55

Annual Guidance AEPS $1.58 to $1.73

1Q ’19 AEPS $0.36

Achieved Annual Results $1.48

Achieved Annual Results $1.53

$7,711 $7,891 $8,183 $8,355

$11,133 $10,842 $11,039 $11,005 $10,775

$295 $260 $243

$387

$423 $509 $544 $594

$547

$2,589 $2,173 $1,916 $1,828

$1,601 $2,144 $1,898 $1,898 $2,280

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

$10,324 $10,342 $10,570

$13,157 $13,495 $13,481 $13,497

18

Note: Includes KBR share of unconsolidated JVs; NSB included with Energy Solutions

Majority of KBR backlog is currently associated with long-term, reimbursable, PFI and/or service contracts with a lower risk profile and more predictable cash flows

GS backlog excludes unexercised options and ID/IQ and MATOC contract values not yet under task order

‐ Current estimate of $3.3B in additional potential value as of March 31, 2019

ES backlog – Stability over five consecutive quarters

Energy Solutions

Technology Solutions

Government Solutions

Appendix: Backlog Trend $ in millions

$10,595

$13,602

Non-GAAP Reconciliation: Adjusted EPS, Adjusted EPS Guidance

19

Quarter Ending Quarter Ending Quarter Ending

Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 FY17 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 FY18 Mar 31, 2019

EPS (Diluted) $0.26 $0.54 $0.32 $1.94 $3.06 $0.97 $0.30 $0.41 $0.31 $1.99 $0.28

Add Back:

Legacy Legal Fees $0.02 $0.03 $0.03 $0.02 $0.10 $0.01 $0.02 $0.01 $0.01 $0.06 $0.02

Non-cash imputed interest on conversion option $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.01 $0.01 $0.01

Acquisition & integration related expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.02 $0.00 $0.01 $0.01 $0.04 $0.01

Amortization related to Aspire acquisition $0.00 $0.00 $0.00 $0.00 $0.00 $0.01 $0.02 $0.02 $0.02 $0.06 $0.02

Incremental interest on Ichthys funding $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.02

Aspire (gain) loss on consolidation $0.00 $0.00 $0.00 $0.00 $0.00 ($0.67) $0.00 $0.01 $0.03 ($0.63) $0.00

Non-cash tax benefit for 2017 Tax Reform $0.00 $0.00 $0.00 ($0.13) ($0.13) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Non-cash tax valuation allowance reduction $0.00 $0.00 $0.00 ($1.59) ($1.58) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Impairment of shareholder loan receivable $0.00 $0.00 $0.00 $0.04 $0.04 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Adjusted EPS $0.28 $0.57 $0.35 $0.28 $1.49 $0.34 $0.34 $0.46 $0.39 $1.53 $0.36

2019 Guidance

EPS (Diluted) $1.29 1.44

Add Back:

Legacy Legal Fees 0.06

Non-cash imputed interest on conversion option 0.06

Acquisition & integration related expenses 0.02

Amortization related to Aspire acquisition 0.06

Incremental interest on Ichthys funding 0.09

Adjusted EPS $1.58 $1.73

EBITDA is defined as earnings before interest income / expense, income taxes, other non-

operating income / expense (including FX), depreciation and amortization

Non-GAAP Reconciliation: Consolidated, Adjusted and TTM Adjusted EBITDA

20

Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 Mar 31, 2019EBITDA $ 82 $ 48 $ 193 $ 95 $ 118 $ 98 $ 92

add back

Legacy Legal Fees $ 4 $ 3 $ 3 $ 3 $ 3 $ 2 $ 4

Acquisition & Integration Related Expenses $ 3 $ 1 $ 1 $ 2 $ 1

Aspire Gain on Consolidation ($115) $ 0 $ 2 $ 5 $ 0

Adjusted EBITDA $ 86 $ 51 $ 84 $ 99 $ 124 $ 107 $ 97

June

TTM 2018

Sep

TTM 2018

Dec

TTM 2018

Mar

TTM 2019

TTM EBITDA $ 418 $ 454 $ 504 $ 403

add back

Legacy Legal Fees $ 13 $ 12 $ 11 $ 12

Acquisition & Integration Related Expenses $ 4 $ 5 $ 7 $ 5

Aspire Gain on Consolidation ($115) ($113) ($108) $ 7

TTM Adjusted EBITDA $ 320 $ 358 $ 414 $ 427

($ in millions) Mar 31, 2018 Mar 31, 2019

Net Income Attributable To KBR $ 138 $ 40

Add Back:

Interest expense $ 6 $ 25

Provision (benefit) for income taxes $ 34 $ 16

Other non-operating (income) expense $ 2 ($5)

Depreciation & amortization $ 13 $ 16

Consolidated EBITDA $ 193 $ 92

Add Back:

Legacy Legal Fees $ 3 $ 4

Acquisition & Integration Related Cost $ 3 $ 1

Aspire (gain) loss on consolidation ($115) $ 0

Adjusted EBITDA $ 84 $ 97

Quarter Ending