KBR - Earnings call transcript Q1 2020

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Operator

Good day, and welcome to the KBR Inc., Fourth Quarter 2020 Earnings Conference Call. This call is being recorded. [Operator Instructions].

For opening remarks and introductions, I would like to turn the call over to the VP of Investor Relations, Ms. Alison Vasquez. ahead. go Please

Alison Vasquez

Good First Molly. thank for you Thank XXXX morning, Earnings KBR's Quarter Call. attending you, and

on Joining us Chief today Officer; are highlights an Stuart Bradie, our website President the call will and Sopp, earnings Today's for and and will discuss After the section remarks, our updated available of Vice Investors the operational kbr.com. Stuart update quarter, outlook and we and these at Executive questions. presentation guidance. market President Officer. will and Financial the is open from Mark provide Mark Chief Executive

I operations this outlined KBR's as would forward-looking potential like views to actual and may cause our available reflecting our performance risks remind impact and website. in are on from significantly on the Slide their XX-K could audience statements, results differ and impact discussion that X. statements. most results about our These forward-looking risks on our These events future discussed involve include matters financial that uncertainties Form to recent and

will over to now Stuart. call turn I the

Stuart Bradie

we that across work. been impact to we situation, change. to there program has climate and on X. we And is on helped many the one Slide If today. And KBR. small anything, world will takes seen our have how to us continue I thanks then, Sustainability our allowed of out can joining believe advance is the contribute response positive. agenda. COVID-XX And way, X. have for today's on we rolled the Allison, reimagine a have we you sustainability positive introduced The have since post-COVID-XX, earnings, start it Platform. been we deliver all Slide Last benefit sure incredibly you, KBR's us has in across if Thank I'm which

proven and that truly achievable. all is greater actually greater working can productivity. managed, flexibility the customer be intimacy lead interpersonal to and remotely relationships We can That have

enhancing office Slide diversity. On typical less energy our also is greater a face-to-face flexibility meeting use improves upside a satisfaction forward. need obvious, with in sustainability certainly consumption, industries path this course, advantages need The definite less some of and interaction, industries. still, enables compelling. great And waste, high-value to to of less the but opportunity X. and, cost for workforce, global obvious costs. ability greater for it facilitates it our less why and absenteeism, productivity job with well-proven There travel is But believe less leap truly It cetera. course, space, centers, but reduced we increases a There's like to et of commuting, less is course, are, for there is own the

we not really that will I So And accelerate plans firmly know buys. of our we've reimagining endeavor, has go COVID-XX got good were be you I some path. to we we alone in but wanted deliver. allowed this on really this know to how us

substantial under workforce our and like it hindsight, early, But On didn't COVID-XX and, customers. test plans, days from focus smoothly, a course, workout things we Korea X. up to to key we safety early transitioned our trial COVID-XX continue We deliver to infrastructure, At we started that operations and not IT but were plans as working some in messages stood I I took test upfront. our a team liquidity. for crisis very and of We global business home, want resilience whole, it our South was the on our and perfect, stress time, we key seriously, in China broke. had lucky start with was. think the in and to right threat took it Slide we and as comms

delivering reinforced predictable a that and results really KBR is we will today see transformation present resilient our guidance business The and that you forward model. of QX the

and really last and has been a time, talk later. the us our on historical the Mark rating earlier strong, year in refinancing focus week talk Our that by and in the has which we put recognized actually all will agencies, cash, it strong about about persistent liquidity position,

earnings market. You may which promising. QX. in presentation very our included transparent in activity outlook this also recall the in to guidance at prudent. our slowdown And we bookings are But seeing it's on also were We our again technology is on last a energy proved noting be China, worth

customers is the out ahead quickly. of And the soft quickly. to moved in our We in teams and LNG a a this to XXXX point and take today when downward across to greater acted from quickly, the that get deteriorated had market general. further CapEx market in the situation very action But an to of were is our course, already at factored pressure we us want at all-time actual have costs plan already This and energy enabled exposure in has, low primed time and I curve.

to pulled have including business, consideration that's to the implement levers unnecessary space, brands, the allowed give and into goodwill reductions. upside cost We working assess us retire up taking flexible the simplify

As is at in you we performance a of from beyond quarter first very But in all we underlying More later. have timely. the this on Mark seen nonrecurring the look charge QX. believe as KBR and reset mostly this noncash, this has resulted operational

approach very forward-leaning to Energy XXXX proving taken a believe for our investors we we and To times. that majority on guide, as is it so have give conservative so. is a done confidence these More I this of And later. and relates Solutions. mouth guidance portfolio put give it significant level consequence of we've greater this as we a resilient in volatile is, continue to where money important our KBR's guess our in The to

helped today, Our the market KBR. is some energy objective the and and extent, transformation to truly to of demonstrate COVID-XX disruption us have

bids especially U.S. We the move in has government quarter But Slide very that our not safety the cadence the our ensure across mission. flexible On and but work our interrupted. the in response to been X I in on-time our This from payments about to excellent. ensuring X. we're general, say the of the of on quickly clearly let's extremely continuity to helped support world people really want possible of was were talk and first. focused flowed stay customers and that ongoing and customers employment ensured and people,

Our Government bookings in Solutions were QX strong. in

been record recompetes touchwood, or business level because book-to-bill a of track we've of XXXX our of above. in book-to-bill and all low, units XXXX, actually, recompetes and is Our achieved recompete Solutions worth continued that the X.X Government of for winning noting and especially XXXX. Government already it's largest pleasing of our in awarded Solutions is X.X unusually within

a nice balance. So nice,

we in as naval Navy, and be actually platforms us the training organically the Forces Solutions assets To program in training business Australian to ahead. operation. of fastest-growing into is high-end demand full the our ramps highly a particular, steam a in our acquisition with is as Our and of the new modernization The Armed technical come up business completed really defense of KBR positions This to number built position a of moving platforms, continue SMA. especially as but is new for enhance Government in provider Australia. and Australia, well acquisition strategic modest these

again. a our clients of nice performance these safety couple Overall, line challenging who expectation perspective, EPS in And harm expectations we in more quarter. from resulting and to our give times, now key top in results with quintile of endured, a has from zero actually, and in detail. more recognitions Overall a bit QX will culture above our I cash. underlying Mark, yet were the even will in received you importantly, Mark? safety adjusted over in safety hand

Mark Sopp

pick Stuart. Slide Great, XX. the up I highlights. it on quarter financial will X

results where and show and As cash balanced performance growth top you line year. ongoing can flow as see in overall here the earnings last over appropriate, adjusted financial

top really obvious that As we pleased our our were reimbursable was results driving see the deal Stuart had last in EPC or which with else Revenue just quarter, evolve we XX% Energy to said, wins this reflecting to in growth expectations, year-over-year, line several year. mix with to continued everyone contribution quarter. the has disruptions and of line cost significant Solutions, given up with core ES, the were the

different project working effectively was including execution up and for line healthy cover Technology solid execution new cost in per and been EBITDA of a diluted that. were interest. bit. X%, Cash managing was albeit a performances Solutions, revenues last continued margins also year margins a For hard Government I'll EBITDA bit $XX targets, year-over-year here EBITDA really strong from was or mix. in with in TS, Consolidated on year-over-year were were We've reflecting mix. Solutions, with GS X% and at Earnings mix, the reflecting pass-through overall which higher growth reasons, on our TS, on both working lower capital. flat million, ES light good the work flow reflecting ES quite and up GS little really EPCs. on good some and from share teamwork benefiting reimbursable from a

the Overall strong in of here quarter only GS had associated performance Development a on strong not bit. work like wins the more QX besides by the the engineering book-to-bill unexpectedly large some COVID deployment NASA recompete, was a the contracts. new X systems And in impacts X.Xx, Given IDIQ debt regular dramatic and also refinancing supporting with X.Xx. the I'll situation, to made Research We the bookings and ES due conditions. cover for deployment of in nice QX capital and on TS the was at seats in the reduction technologies dividend GS early with Ames lower the market and February. really next-gen NAVAIR

market X our catalyst landed light While has certainly this in pleased were was bookings referencing earlier. indication an really we an that China, begun up, In Stuart as from segments. sale to team important were the March, back technology open other

I'll just proposal timing on and to this some top P&L, and higher XX, additional quarter, on spending our first also business to primarily on particularly items. higher here. and Now in and was ERP corporate bid GS Slide move SG&A quarter items, some the costs comments implementation bottom

$XX noncontrolling about to the year. the just quarter total lines turndown. charges above Goodwill rest million, SG&A The restructuring $XXX and encompass charge normalize was of impairment to a $XXX and expect to the the We charge million energy per after-tax million related special $XX notch interest. of million and these to for X pretax

this more points Just charge. few on a

liquidity reduce the our charge will of million it $XX any EBITDA total none of of covenant the about effect compliance. this charge capacity but and, amended effect. borrowing minimal credit is thus agreement, Under noncash, not impact. our No have all First therefore, or on definitions will

a and from restructuring from in excess the the charge of energy-focused cost stems reduce reflects our and ES joint and carry capacity reduced element also goodwill, in associated certain The estate reduction of The cost valuation outlook to outlook real overhead impairments with stemming estate. excess of investments real are ventures. the

Stuart position said, and actions in future. these swift to deliberate order were As better the for ES

should the the our and did restructuring in interest back the This As reflected the included by refinancing as this a The this was special some lower GAAP which was again, items. impacted charge in we in in was $X.XX transaction for to items more of right rate, decrease noncash. charge, nondeductible mostly includes of early of lower EPS debt $X.XX. continue energy, only QX Taxes and driven impairment little are benefit tax improve this that loss with by year. in to year. later expense, EPS XX%, February adjusted our distorted QX and partial from Diluted guidance in EPS the charge a quarters line however, on rate, due

just and guidance. charge original back. our at the the add million $X.XX other GAAP with $XX operating in $XX Aspire deductions, and add with Excluding burn million was adjusted implied over expectations in cash came adjusted cash line of flow EPS flow in backs and after

Now on some the segments. XX X to Slide for on remarks

now. slightly business $XXX Base in a revenues due earnings a EBITDA performance of the to Annualized Year-over-year Tyndall right GS had the levels size the about from to As can of the as half of first you consistency from contributed quarter. business. Air the significantly revenues stability And bar is year. the the now discussed were just scale GS which overall, million. episodic charts speak the of this this down there EBITDA contract, of Maybe Force see, we here, in really for for strong last volumes

from were year-over-year revenues X% again XX%, the this total QX EBITDA in X%. margins were from represents revenues. see dynamic Tyndall effect, portion, benefiting that which quarter. of margins X/X about next We'll strong GS QX, Excluding international up

slightly year. for also QX, on healthy project from this It a We benefited COVID bookings is difficult. lower QX environment in this margins mix. execution earnings planned team extent licensed a performance closeout volume, fueled Revenues more amidst heavy with access last quite margin up to quarter, improved plan was GS. great lesser year notable favorable last stayed indeed as content by but was and year TS attendant were track from mix, where client on the its and whereas had also last that equipment down,

performance of margin ES generally reimbursable Our core effect. unexpected cost also ramp-up was taking higher contracts lower volume, with EPC

those current relative environment, volume of face are a uncertainty variable the projects may some reimbursable executed While they to are workforce. with in and largely

We have risks in-house, in of which type no contracts additional market. lump would impose sum this otherwise

position being is taking the overhead strategy and in all undertake Our selective and business as to in the we highly future. assertive and also intended keep which being projects restructuring the we for out costs profitable

and Slide to on capital I'm liquidity structure to Now shift going XX. over

structure We the capital We're improvement current the cash practices. are capital working capital us our free recently actions sound well that generating in and environment. model flow, made low - intensity capital positioned business and capital pleased working reflecting positive has

With X, and X the the staggered X credit all years this market before nicely. year and earlier extension maturities disruptions, debt completed our are out, amendment

We conservative don't tapped did the Our And of And it last foresee posture. did by million the of I in of to the has we been going it. need years. has in with against other million cash the said we expecting dividend, a given $XX we of deploy debt credit a touched regular nor funds the $XXX as are COVID, We took not $XXX we not reduced have outside when million forward. use been letters revolver And about flow advent the a X revolver about amendment. earlier, we quarter. just

unchanged. will of but is a for priorities We capital set our keep monitoring general deployment while, conditions

pointed a BaX, in this, two our key the not of which too dividend around sticking last level. several years to rating senior scale elevating bidding for all from days, Our Moody's as we as cash debt pleased increased per sector, With to $X.XX flow where from XX% agency plenty the to ago. government of of The well regular the rating visibility notches us couple comfort credit up years of new up the certainly gives past previous these drivers upgrade secured of were our to a receive the discipline our as going many was started our contracting quarter, those from week, over competitive demonstrated upgrade. we

market Stuart? Now I'll Solutions. hand and it back to Energy Stuart to regarding more cover outlook the details

Stuart Bradie

I'm there'll Thanks, of Mark. a giving quick overview to XX. serve. markets questions, And on Slide we be detailed worth it's the more sure but

this up, I So on touched first and government. earlier. federal

of our customers Our with and supportive, government challenges. on have ongoing programs very, We, plan. been continue pace course, have very

base folks some now home are have overseas travel or to we example, from leave. For deployed that off unable return

et issues alignment cetera. are being in after look supplies, our of critical actually day-to-day chain supply in need dropped for them our levels. work levels are level not robust. work these with carefully. The pipeline remains Activity and But and pre-COVID customers. areas to focus has at our bid we managed also of we've So the strategic had hard to And operational

deployed more LOGCAP with as It's process and is planning continues, DynCorp's in example, not our yet of of we times. programs, low an still but protests NASA into environment expect in do as ongoing. our by year have that always And really in you're advisable. that in. very XXXX, are their notable to impact the a out what as we've long and the that planning normal, current the reiterate through this levels. moving to execution. is that space underpinned people astronauts But we're factors transition Fluor targets we to station and this given withdrawn longer-range appeal. risk And likely and you mission-critical, legal is open and would outlook were people have the a going is guidance the we international concluded in and changing conservative doing not we Much also trip our we recompete give about lockdown, come believe to during XXXX And truth, up assume and I supported multiple back is to circumstances number successfully. a things even talked now move we and XXXX But V the get aware. duration in where that in

solutions overall, feeling outlook. good So about pretty the government we're

on Now to technology.

This for as our, guess, last and earnings, been COVID this is as impact market low technology. China into been we a our disruptive we expected. new As are market critical developing seeing has increasing. guidance. signaled we to And with portfolio expected you're prudent China technology factored our we QX bookings I Today, proven however, in or a initial and activity have aware, the

customers our course. proper from Beijing work, said, back distancing in able office March. and for first We catalysts we've and have worn, And once China Mark order received to visit as to our PPE social being of more

Although are has, is the the activity mean, of that paused, in petrochemicals fertilizer market downside. which we much increasing, offsetting market activity the in seeing

And typically the ammonia fertilizer larger deals are at scale.

have East in Russia. opportunities in a Middle of the number We active and

year a the performance But XXXX good QX Our expect guidance. we as bookings a bookings our and us do in seen into this, the again, in in been factored results. quarter, late start in with positioned strong have first you've a later for XXXX, in has slow the different revised

well and that from you will portfolio ammonia, environmental cost recall to our positioned addition is an In technology perspective.

remains has for this past. And be business the in resilient our long-term technology all unchanged. up, proven really to So outlook

energy. on to Now

is at risk reiterating in market of It have First, also of have a zero its large component portfolio it worth to is our we be KBR's and our we activity transitioned worth exposure to turnkey that projects, facing. OpEx lowest saying is energy lump-sum the level. again

off. our it's but pressure I board, turn are relationships, cut longer-term we're our strategic with delays, which their of is under increased the is customers. and aware, customers encouraging. have slowdowns we and priorities. to been being seeing projects all engagement less with we with OpEx and prospects. also there harder, a reevaluating believe, review, bit think is and because have under We're those cancellations across CapEx Especially own whom

Middle the ongoing and awards continues be a positive And with East activity continuing. to

particularly any impacted, quite been to course. has consulting of of in business busy, as area But energy Our Mark actually ahead very of Solutions is our renewables. transition taken measures well, the business Energy outlined, the doing is and And proactive and we've curve. reduce - costs

are us we What allows market important can allows up. confident us it it there demands, is We is the flex is is to but very limited and clarity. scale because as market manage down costs clear only and not this also to

And speed flexibility success so of change and important are factors.

On Solutions Energy XX, the to Slide resetting business.

believe given reset I already hopefully, This the have few first remain covered. competitive remain base you we And our we've us on slide, that and some profitable. bullets help business. The cost confidence this simplified we've will and

energy and across activities look With the examine their our us priorities. is energy the our upon it to uncertainty in market, incumbent attractiveness long-term against

next they cash et leverage with continuing We're synergies customer little into the have while. we behaviors a Technology this can what example, going true new in across going future be disciplined competitors look our market, fair, fit hurdles, Solutions, conversion is will this will and For to cetera. be at the to be return Government do that can we in remain attractive, world, meet our criteria, the risk commercially our differentiated are

and as confident market can we flex profitable. are demands We remain the

the the taken and have out from I XXXX gives It markets outlook for from for now, settle. zero us and manage remainder interest of energy allows contribution the some in that decisions term, money believe, further decision conservative, solutions to short gives guidance. prudent some may cushion to This made it and be cost uncertainty. we to However, longer-term our but time to

will to in knee-jerk to And the Mark? that reset allows guidance give to the short, hand focus. we of us have this given and I not reset ourselves time our it make over XXXX for to approach We Mark do other will But our any that. and priorities upside just decisions. is

Mark Sopp

Okay. changing on Stuart, the the a guidance modestly basis of I'll we pick little spend are you here to XX. really a because up elements. bit We'll it all and Slide understand of just time on want little more bit

produces Our streams. heavy and Government mix business predictable quite revenue, cash flow profit of and Technology

performance X from about our over said, recent and this. comprised of our areas These remarks, exposure over contribution Tech think demonstrates business Stuart XX% Demonstrating forecasted XXXX. an Government terms to as all-time low, segment I our at originally contribution in in being of for Energy profits plan. profit our well our XX% XXXX earlier

been today, As our have COVID the situation. here we mentioned particularly accommodating Government have during customers

situations some not however, are, There where possible. is continuity

Defender canceled purely the provide these in XXXX example, are For to by for been identified logistical caused year. exercises due fairly and exercises military And the have we planning for were reasons have support considerable and Europe to forecast. summer. the updated been COVID, this modest removed over from our like Situations

the IV original transition forecast flat levels. have from assumed we our this, QX For GS forecast XXXX and LOGCAP will the all activity current down With to plan. protracted slightly just and our is of have held be V,

earnings into our in For and concerns outlook. reduction COVID recall XXXX factored call cited Technology, you their some original we our may on February

been We engagement and customer has risk believe timing there's as project Our deferrals, view of which we additional picking would a item. in up. good order Asia activity

orders are cash-generative factored in excellent market We very remains With the new in our positioning although forecast Tech profitable, to business challenging performing have second and down track in in well an that, reflect expecting uptick we market a conditions. half. record this, a with

As Technology unchanged. our Stuart is said, long-term outlook

year as quarter, remain result the do market conditions the this taken believe the business remain And for a but Energy, first we actions should Energy in our of profitable unpredictable.

our and management been no now To the team segment, lowered, across both contribution KBR. of prudent. reductions we this profit taken including Board, conservative updated pay believe our and outlook result, which a As Stuart from costs these corporate have by assumes offset is effects,

this remain there for for stressed energy And the will year. update slow return normal assumption to of guidance the coming out of the rest a will workplace new is the markets overall be COVID. Our

many expecting EPS all and of degree to a of success. a $X.XX midpoint of range KBR midpoint customers this backlog with background, reduction used to with with about earnings are to over from continue a work our significant today being with are as With as We are across we a of we teleworking in XX% here guide. to $X.XX adjusted is for today. sitting to by of our XX% that original guidance updating covered Well

KBR The actual new strength our our adjusted contributed midpoint the under EPS achieved we toward energy underscores is just This XXXX $X.XX and overall EPS about government businesses the segment performance, through perspective, of technology in where results. with year. the the a resilience the and several run results QX to current half be consolidated activity in the of transformation our From line years. back with rate, QX over generally for expect in pickup past a we phasing the

typically is had For low quarter perspective. which QX, results seasonal a from in flow, strong we operating a cash

and across We seeing costs flows conversion We're all cash the reflect updating the expected including our segments, energy. guidance nonrecurring and level are overhead profit to good flow with cash lower associated cash also reductions. payment the

guidance $XXX $XXX to million updated operating flow of for adjusted cash Our million.

XXXX I'll expect cash strong million remain that translating to for to $XX increase free we ongoing cash this point operating XXXX. which defer benefits GAAP will amount. that social in employer us of Act, conversion. CARES to by allows million flow year our to reported to see from range to We out the flow This XXXX expect taxes cash the $XX results CapEx million the and continue for about security year, $XX also U.S. flow to

deployable our don't have cash from must returned adjusted it government. as it these we view to funds guidance as flow be So operating the we excluded given

Now back up. it to to wrap Stuart

Stuart Bradie

job. Mark. Thanks, Good

to aptly slide So on Resilience. our and is of named final presentation, today's slide the

created model attractive. transformation has past few both business the is and we Our over that resilient a years believe

consistent and been We our on commercial strategic discipline. have

our future Our considerably. risk longer stable This of business of and focus performance. helped lower reshaped far us more markets intrinsic has book a in with portfolio the on business has a higher become attractive term, an of end culture

We obviously this have liquidity been improve maintain to our on our on businesses and rating being our focused fundamentals, and credit allowed with to strong increase true dividend. and us commitments has

extent confidence guidance the it's our $X.XX, Solutions, range I which have revised without and performance guidance of demonstrates company for well adjusted transformation. will XXXX questions. Energy who will EPS the contribution, within call back in with and whole again the very zeroing XXXX emphasizing much, is Solutions our out worth hand you. Thank that of you We up Energy our now open Molly, our was which Thank you to

Operator

[Operator Instructions].

first Jerry We will question now take Goldman from our of Revich Sachs.

Jerry Revich

recent I'm can expect business state cadence, wondering can those you talk particular, could jumps caring good for contract, But based you contracts? So terms can the your when any your rate had talk about if to in do on customers. you out. for of department against talk of orders awards on about drive meaningful contracts, win current expect the when as those task quarters, over orders we in the what Solutions, Government you're we in you couple a in release, about - IDIQ out update pointed really the past you

Mark Sopp

since Mark. testing this okay, Can Gary, is Q&A? we I'm reverting me are you just hear to

Jerry Revich

can. Yes. Yes, we

Mark Sopp

the Thanks Okay. I correctly. for question. it If heard

First, with rate categories north year-to-date all side. the but a I'd of win great a basis out XX%. balanced else, rate XX% across say now eclipsed with GS on our recompetes, we're on to everything pleased all on It win

the decisions that team in to government Kudos does bit. you we and making as within like front. up there. and more hopefully, pace on But funds of pipeline pipeline intact. government, their keep get and held it's award to continues to place as probably some business their be on The have And I decisions normalize pumped appropriations development out government get the QX do expect decisions the into and know, make to contain to things as strong QX, our So really the them think been has year delays obligated the which fair fiscal very sizable. we've a to we little there say

to And think a that money And do the given. motivation been I spend that. they've so there's

pretty that And our fair so see we're we're decisions, optimistic share. we'll pretty win and optimistic we'll

Jerry Revich

terms in potential is Government from any the Services, in And Okay. there projects margin of impact slower. outlook moving

You year mentioned of anything along in keep those payments impact should also course mind? there like project over to awards, lines that but delays, we milestone due an on the this be could

Stuart Bradie

we're commercial ourselves forward actually people the I to government opposite. customers extent, we're think ahead So very paying seeing they're time. customers mean, understanding I important, leaning the and is I - seeing think, for really Jerry, and particularly liquidity like mean, us I the the of that some and

So I to mean, because particularly clear focused that customers - think in elements call government key that through like think out prepared really the us I - and remarks liquidity. transition on in the helped was really, have I quite this I the

be So, to we a factor don't no, expect that all. at

In fact, it's probably the opposite.

Jerry Revich

you ability in up take of have for level of of in obviously, year-end decline the the to here? the Solutions, an dramatic current outstanding margins. level and job How confidence to business Okay. customer cost of next consistent be the of lastly, Energy it maintain rightsizing What's given, layer your margins, earnings out? done putting in that folks And lift big will a

Stuart Bradie

the out we primed were to in Yes. and and prudent earlier, think that that done zeroed the going I of QX. year. conservative, returns profitable cost the mean in as business we've were we've business, of year. we that terms costs is as actually out that from you the that the take needed do actions to know, I we We through of rest for ensure to and reset business said be profitable that But base

And it gives to understand confidence the And guidance time, how going that cushion that same move a to it's is going So where to gives move. of give market us to. we've that at bit the given. us to the

think I And I it's expect - message to there. key out money. we messages an kind a zero approach business couple contribution there are make to from think of a the of what a unusual But

deal is thing and the And it we of still the And EPS gives where on underlines decisions. that The first cushion there's KBR, of performance was and that market. it strong given that year today our us to really make $X.XX in are uncertainty Government uncertainty again, last key transformation with and second the Technology. of just

we and But the we mute. look with us as will have margin be now from hard probably review zeroing a I'm rest that for markets and margin we the we'll of that we that out out historically confident set sure focus right and at out margins settle as down or So again. the business that the talking return making prioritize going come the right of the profile year said, in business, areas. we business that through is about

Operator

[Operator Instructions].

will of our take from Suisse. Crédit next Cook question Jamie We

Jamie Cook

in I quarter. Nice XXXX questions. no back the assuming guess the of Stuart, guidance. a business couple Energy your Solutions from contribution to

your understand, I trying of Just the on If business. customers business. you told on more that any still to mean, of your they're that you backlog spend in have O&M deferring side

my could just in And second conservative? and you So business anything if understand I seeing Solutions CapEx environment, feel do the given else question, sort you just besides $XX guess customers being then question, changes to there EPS have guys G&A your to about just the how Energy guess there's million trying the longer-term what are would corporate are you assumed And targets? million your last some or of the I that so versus more given the I about, my so. restructuring come guys down of $XX talking

just could you on that. comment if So

Stuart Bradie

questions Thanks, Okay. Three in Jamie. one.

true form, do You're to like it. I

on or now, mean, deferrals in particularly spend the I the That's business kind people cycle. really the out cetera. what question - I I been, there longer over a so would et think, ongoing of projects more in the So deferring think Energy Permian, seeing we're at say, looking projects what spreading have the I first really and slowdown,

they lot So think per resilient support brought continue of be side We're clearly, business. less produce. on seeing to no a far more some pressure se. there, will to pressure cancellations but ongoing it's I to the OpEx CapEx. mean, that bear There assets as to. continues than got And you've I our

really about facing of So we're feeling our side business. the I good guess, the, OpEx

mean One attractive clearly that future. doesn't market it. In a market LNG the broader could is in I terms lot of outlook, see depends, the an

and will and transition will like gas, industrial and gas obvious climate again, output back - their China, is world up, will for increase change-driven energy the one that probably come start as a the as fill in fuel to for cetera, would demand goes particularly a places expect. void, et demand It

But And think contractor been the hungry. environment a as were far and silly, situation months competitors the though, only about to - think, I've conversations need as suggest behavior, risks, competitive risk our hopefully, tightens. but things couple of we're the has onto and our competitors ago, trying one a for our do watch, we and of is we're would the feeling base. now clearly, both I having customer that cycle I was more market with in but our that on the a we're this that's do get And it hopefully, very pass good very balanced very, they probably mean, look anything changed won't customers. clear we somewhat. behavior competitor competitive I history and the and more that and

So until there's attractive doesn't that Even into an traits. Because behavioral it's we see if down. demand, the that mean those of increased an settles market market future.

that until to have judgment on I reserve would starts cognizant that. review probably we this up get again. bit those demand to of be and we industry through think areas I and a open the base And So changes

our Solutions. we corporate terms zeroing are out quite carrying right. In At our Energy by costs, moment, of you're the

be. carrying ensuring - sensible, these what is Our us to should business room to the this is profit we'll in there. will conservatism opposite there's corporate contribution, as our say than in next arena. into overhead bit move in proportionally, more presentation. a a costs because we're bit probably and that little over normalize bidding would And Mark's while do that government numbers that of QX, the remarks than of on particularly well as probably G&A down But the in little be volatile little - presented is it the that that But the And Mark times. gives review guide in the the was more that higher again, future. it the of part whatever side, I corporate working we piece scale in through we more

it is another So we lever pull. can

quite So right. you're

Operator

next from We will question Sommer our SunTrust. Tobey of

Tobey Sommer

come offensive the extra in about liquidity business? can to out business fashion sheet further an energy. the you of and aggressive As utilize in fashion, reimagining you How reshape and think the balance ample

Stuart Bradie

love the I fact Tobey, the using our deliver. way you're Firstly, we reimagining

that's good think caught on already. that's I that

that's good. I think

job Our there. good did marketing people a

we to And positioned mean, think give zeroed economy into to our we is in that the and think I strong. the on and hydrogen hydrogen portfolio, out South there's us give Japan think, of you're we've XXXX, we I ourselves out as we countries are think things discussions which by are we're ammonia, energy have us forefront - way transportation guidance. opportunity. green in a the committed that fuel I I moving I that's like ammonia arena. contribution and like looking we using time So essentially us, of the do from - at way our for in Energy of as think for - how fast terms come a a because Korea I can at to reshape to do you

we're opposite in we But strong that technical think is do gas that a think we a repositioning transition we role on as is energy I think So I review that transition. a forward. do consulting do And more their play and very there think certainly, the fuel. We transition the transition a through that move can to in we're progresses. skill coming our economies I business particular, into engaged governments, new where key today, future. in early But we've look sets, think seeing with as they as got

Tobey Sommer

more new with into continue you to going amplify customers? to mission exposures there Is to your new and markets to for alignments be capital government deploy an opportunity

Stuart Bradie

Yes, we that. expansion and capital there's trading of mean, sort people not opportunities that of out terms that. capital don't sim get a no and we down settle of of let of deployment the things I mean, some week is did as we first need a course. within before warning see there I what or bit certainly, markets like think I to limit we in But passes early to government. assets in

So very we just have considered. to be

to very strategic. that us something and us accretive We true from to be be It has today, has have what's has made day it to we don't It X. into to taking to be today. be successful is do

limited overlap. So there's

to those but we greater about modernization about that people are performance certainly, government. piece this X defense people within space to the aren't So X. clear opportunities very there. being that exciting X our aspects tomorrow, human been of exciting plus is on vectors are We've that are and worrying happening health But whole than feel from their jobs the

in bit to But think So I the think just we good that U.S. before do and got do opportunities we've the have internationally that. that. do a capital both I about settle to down markets think

Operator

next question Fisher from Our come of UBS. will Steven

Steven Fisher

Great.

sense of Stuart, government quarter talked us how opportunities. Can give of about a second kind of I some just areas around terms contracts, for opportunities and there? confidence many some you the in they you U.S. you third is on those. And think, Just the new you types Just have you? these contracts? the for of landscape competitive what And are have color needle-moving

Stuart Bradie

Yes.

XXXX a and reiterate Steven, try which Mark largest this XXXX Ames couple this And quarter, we as around we got think actually very I we've in is low recompete XXXX. won recompetes. fact, times, explained, our to in of that NASA

in logistics, the we've our rate. but that to broadening you all that the cover looking didn't well So the about sector back $XXX before at are presentation, all They're we're needle-moving NASA numbers because recompete across all cadence, - low the look and additive. et of and are within there cetera, so talked that new pretty IDIQs presentation, opportunities There engineering business government in And number million. same. much above the if year-end we the are this

across. within the fact all And quarter, thing was our before, multiple said book-to-bill the of government in the I across as our, opportunities solutions. business was nice got it I So we've lines about guess, our

So very balanced.

as competitive above said, say but good the as win competitive Mark landscape about So nothing fact not pretty business we're was in really opportunities, landscape that growth is new pretty our activity easy, That's of rate the sort fields. organic it's chosen there's feeling and seeing we're feeling it remains XX% We're lots about opportunities to changed before. of significantly where, moment. has therefore, and focused our in the good at

Steven Fisher

changed. Okay. And economic growth impact cyclical the digest how to reliance the the of versus of just longer-term I these But business separating on and impact a think virus guess, more the Energy believe China from The like in have related impact side, the chemicals, in then China. type of obviously, to the the just because slower curious sounds economies It outlook there you you long-term bookings out aren't you about of growth. business. and as is that targets Technology really, need globally, economic

conclusion growth. So on to you just and thinking when then economic in curious just the of ability how you're reach ramp-up of about kind profitability the of plan slower can also And that technology Energy if you Solutions what's of face a strategy? just the to the timing

Stuart Bradie

Okay.

And the quite - activity of production in guess, Middle the the the those in ammonia fertilizer more I order. bit in East. food you're we business that of than your to quite - type And are typical Technology. in try to Russia of my be of the activity, is is moving and on terms again little - we and, I sense question quite side, larger this a the technology the the good levels seeing busy remarks of in So a prepared petrochemical side bit particularly cover scale right guess, and

to we So we at environmental introduce call would great the disruptive years cleanup the with we've explain and lands what course that. feel and things compliance couple on limiting there. change helping actually of believe, environmental secondly, to get good of I and the and the momentum technologies of pressure, at over in like the of years new And or there's with forefront regulations or forefront past refiners through chemical still and gone that And months proceeding impact. try there's climate to

along to So cost at are very proven that. piece. do well lower we're base that believe move technologies with sort see we positioned execution our the do of We

we technologies. in are green only of so not and what cost at these new competitive And we're highly environmentally of we're the forefront some we're offering,

think our just that strong some balance with that there longer-term things our very business - of time. outlook parts of So will movements with portfolio. certain energy see do because in the technology do over in normative be we will of and We that breadth

Operator

take will from next Markets. We Sean our Eastman question of Capital KeyBanc

Sean Eastman

out with ES okay. talked the just piece start about to business, out the It East OpEx help on better, as business maybe get holding consulting to more the those I holding on margin the think better, about to stands you today a in out normalized revenue out it mix be wanted color guys of elements? on are holding the Middle just would subsegments that little And those great profile holding how kind some more better? just

Stuart Bradie

questions relate sort Okay. I of let to answer breakdowns? those they Mark maybe as

Mark Sopp

this morning. joining Sean, us Yes, for thanks sure.

mostly So stellar pretty we in about by XX%, revenue driven the EPCs. saw this quarter, reimbursable growth ES

some top up. terms with of line services recurring picking seeing projects to we're just shift and versus in relative projects So

why reductions. and market our Now been of our and the those cautious by in cost aggressive in that's conditions, pace altered be outlook very the projects could we've

of up good ramp end-of-life where few quite but projects had see will as write-ups them and we indicative of the enter cost cycle project don't were being in execution, stated, new from low-risk a early clearly margins that into we we helpful necessarily As you cycle, down cycle. years recent very come reimbursable that and project

a hold to for while. your cards got You

mid-single slightly the of a with EPCs the conditions. market are of overhead QX, expecting that in of cost that with bit just digits for shift. we're overall isn't little the ramp-up the south And with and the that ES targets we're quite matched So business

at targeted Longer evaluate review. answering our the mix come cautious all in So kind that's holding on work I for guidance of that when term, long our role why there that this out first, we're would energy in piece But check and and the we think margins consulting to been as question we there. start year margins side that something attractive, has ES I Stuart our the quite midpoint second of in are quite through and and terms reasons. consulting give for your overheads will our changes with OpEx about. called we any are margins obvious will our the in that keep say being the environment as transition we excited we

we on In to as project than terms mix, that unfolds we're see was side, this year. greater of decisions make versus that OpEx happy CapEx the overall said a little how OpEx XX-XX and clients

anything, our conditions facilities clients production will, think going I OpEx, CapEx. increase keep and if on But defer as dependency given the that

term, long-winded here evaluate come will a probably answer, side, our more of the but so in OpEx we think the volume see we'll that decision-making and through I And sorry the we process on quarters. Stuart? shorter project couple next when

Stuart Bradie

Yes.

pile I lot OpEx to - a guess, EP profit revenue we've distorts guess, & reimbursable revenue, I bit margin, lower coming - there. a on just of I consulting. JV some our got, Brown We the little higher because our EPCs And coming of Root think through. is and actually from and,

another think probably it. that's way about about to So

Sean Eastman

Helpful. Okay.

there? KBR is Is there's on for Just Next entitled kind next we one me. any any look out to should there the timeline? at change all claim what there? of update expectations wondering And whether been settlement in what Ichthys on

Stuart Bradie

So no first up, entitlement. whatsoever on our change

it I think as our legal position was. is

at all. there So no change

particularly things happening round the what's because if have late hearings many it this year guess, news I timing, guess, and going that's first progress, - like of in course, are they don't September of I and the ahead that. And in with exactly customer, can keen very good hearings In virtually, as particularly do scheduled. is the those terms they we of on, witnesses to and claims as the I against guess, progressing legal, involve planned

So that's good.

CCPP, In claims August. year. October, with from station those our next power terms for into the the November have happening moved to what's of And of element, beginning

in face-to-face you there's expect would they're a So because more a witnesses there required bit has more those, been and court. in as delay complex the

prefer So in conditions, would rather than a under they that these do on that basis virtually. to face-to-face

short the it. So that's the and long of

but discussed so or bit say, on along So view at change claims the of station. with But the terms our opposite the cadence power a historically, customer whatsoever entitlement. in we X the months delay, in little of moving a no

Sean Eastman

half up to the the there, Got customer on And saying power wrap of in side, I just correct total it. claim half on kind the am side? station that is that

Stuart Bradie

Yes.

the Ichthys just claims whatsoever. customer, factors to - the We're our none input And audience, the it's look it's broader saying, booked, on the just higher about if the we mean, that quantum. like yes, just I on or guess, given, I of that. but remember in XX-XX, said, in timing, are that something unclear accounts, that So at the guidance probably of as worth we've you we've any against either EPS cash from way

obviously, but it's that the positive we'll cash factored positive results it out mind positive if course. got due So or due call we'll to mean, it's be please - it event results. but out it forecasting, that negative, will And out. to that hoping a we And in in cash And again, do will our I take positive. be keep in with we're course, Ichthys. nothing underlying have

Operator

will Michael of Vertical Dudas Research. next from Our question come

Michael Dudas

Yes, just questions. two quick

your the such. have movement of of going on given COVID of business, of delayed in, any the staffing question, I or some projects of access ramp-up Government versa, vice get delayed to side, levels look your assume there you're there's you a at in this. internal. First probably for folks say, recruitment being disruption Services need the plans any would And XXXX, as that the types because might to less and bit certain and of retention that thoughts you Are that

play to sense try little a labor normalization. out may back as to some sort Just of and here how of this get we

Stuart Bradie

Mike, what the of elongation most impact, doing really to we're and that the relates projects thinking the I the of into the of the that's already. on of so much mean, in about doesn't it way in the we're us been future That's of Government really is Yes. on side the house, side house. Tech which side, that impact - nor more terms factored energy

on once get it's we in burn, the can accordingly. So we procurement. now et right we Methanex construction actually a engineering line I very and construction project, but cetera, playing of you have And then on reschedule arrive, will stopped think continue with equipment things sight your slow

of there's So terms don't I major for issue us, a disruption. think there in

new experts this to actually teleworking than think, is I more access, across and people of giving us technical had. terms people norm the ever access In world probably of we've

to any seen, of input technical we've we're to don't it perspective. all the relates restart from a with around our issue that. thinking really conservative construction I see as So taken Energy there a you've business to and sort approach about specialist or way the deal very And any of uncertainty

think I I the So you covered and more put as becomes it, progresses we're year on that think new and more apparent. the as norms,

Michael Dudas

from? point. infrastructure some industry that where the that good And the Do that's flexibility KBR, could you business the question or good can out forth? maybe estate what some you on rely industry. on from in even you've success reported your given the more having Is source talent having real that is, you at this the more less My guys put and reimagining of you as systems longer home or a and spread follow-up in work - offices term, changes you're and anticipate a

Stuart Bradie

Yes. right, exactly Mike. That's

we I trying to say. a at think the kind actually of we But do of beginning. particularly what try job that's sort were portray it good didn't to

we work. we up, how about thinking First are could execute differently

We the those are back teleworking And we office. has how thinking success differently of thoughts. accelerated support the

looking can dedicated culturally workplace. at we and would create flexibility We that more team the have just a in do how how we

slow is extent, to down success client has so the broken that how internal I been this some And with industry to the the and far. our around barriers have adopt think that. I worked think of

transform great as a greater space really usage, commuting as less energy on our things less - with goals and advance less opportunity people less great a to there's well. commuting, and safety opportunity So for around to industry and sustainability

space. workforce to truly of is does a fulsome I high-value to through that, create, lot new, what but a ability use but centers global there's doing to of travel. The It and kind on It clearly in execution. a nothing is costs looking we're us call working save it that's would So more on of save benefits allow introduction will them our on costs us meetings. the now. and us, in cost But way of will on at save us right it front things us will

with we, aware slow amazing industry, that probably an And I opportunity get I'm as consequence our for groundbreaking do our think the more of think bring competitive and to mostly it But and I for the on other SG&A party. us flexibility, drive of there just creates increasing we're think very far male-dominated, don't that. we're This alone and isn't change us there. workforce. is our can be diversity to and being more industry greater we And outlook. flexibility greater can as dynamics benefit around global that down KBR. do some and of globalizing I really a an and you drive the the could diversity

positives lot that of there's think path. here, we're on a So and certainly, I

Operator

from come Our from Andy Citi. Lee next question will

Andrew Lee

quarter, the on color. congrats the So and all appreciate I

most asked. the been of think I questions have

question So an been roughly I weeks of acquisition see our in down think just steadily. has ago. I M&A's down done potential And progressing terms I have leverage that the X X road. we've

So of how the you And in? you anything there in pipeline? is M&A's given environment are of thinking terms potential your forward, about highlight that to type going we're that want

Stuart Bradie

I around do a I makes in organically it only also, do whether we're But always if to we'll about got clear We do and this about strategic think strategic we'll of alluded environment, again, confidence if be the have very to move and those earlier, towards we're and only we do makes way if we'll we've be to looking it that. fit. do terms it in objectives, M&A's, only a we faster perfect But from acquisitively, it it lot cognizant have, perspective In sense. very very considered goals. of thinking or cultural of liquidity today's We'll have environment liquidity sense. as

to be There's the that. The to rating capital doubt and think about a with I raising considered. So bit even today have our for that down. no think markets we've settle I do like credit do got more things - debt improved thing. that's realize time, there we Scottish, But This disruption term. And probably would carefully then comes not you'll a disruption, be be in with more a expensive. being me sure, and will is opportunity. good are looking very moment I'm longer there

So dry, keeping of future. has ourselves really like powder the out projects on advantage to our things us and positioned silly in getting that, of taking into opportunity take our not well any and I think front

as part good So of but I so, under future? right before. be the talked circumstances, would M&A be got I our to a about hope it's

very trying I terms and alluded that across There's the In pursuits. we that real we're balanced really, robust the But out is do. the fact to to is concentration And there's what no opportunities. pipeline, of specific of think risk avoid we've well a pipeline number calling either. there

particularly we as one So the point around market, two as And pretty things. cadence is I them. Government here to Mark think is, moving they is release key Number those along, bidding. said, win we'll I well and think the in obviously come

of Our actually is our win win and rate recompete upwards rates above are XX%. XX%,

our strong recompete no not organically we're very all as share. very additive the a rate win before, got as we opportunity. of said low, machine, We've and being there's with And bidding we fair well. - it's bereft very doing we're So

to that place a that's So I that. think stop probably good

Operator

Michael Feniger will Our of from America. of question come next Bank

Michael Feniger

Okay.

for one back first do it assuming and the guidance where contract for recompetes is appreciate expect giving half? or in year? do the you how been QX expect wins flows me, in point of big in because bag, low I Or any a QX? you I'm the And this end have a Just top With your backlog through, environment. most just of this the you curious, just

Stuart Bradie

the half may, probably do of first his right track cadence. - QX last year be than terms I on So I of of in in think of with expect to QX was Mark first, be remarks, kind the and then higher and the I'll second the is year the if we question half the to phasing,

I piece over the the terms prepared it, in think was in we of Mark say going deliver covered that the with guidance that to with need we we're revised did other remarks, secured. of guidance what that In XX%

to a that Energy ensure And achieving so very guidance. conservative confidence actually taken there's - on Solutions we've absolute in and position

So a our if do better we that if of we our those little little you Energy Solutions, little actually fair can bit bit than a can win into we if better do than take share, bit consideration, guidance. then clearly, you midpoint more see than the a

And the so our is really in or positive right disruption energy managing market about work Energy all achieving the way end and winning get Solutions the the way. through then top a -

that, ever, today I as volatility, deliver of that to think be away cycles in quarters. is to over think hold having the transformation suggest And as for from at to a guidance, in given. the we've do our tried these we our very of XX from times. to number lump-sum And gone KBR through portray met to coaster true I I which a times prudent of bag we've XX% in year. guidance the So to roller number business, even exceeded transparency today extent base upped try history well guidance - a tried of of think We've very we've of guidance the the away significant strong as would or we've we've

being all good So we're a Energy we're And today there a work profitable. we're about We've - conservative we not of guidance good conservative We're a guidance. extent course, basis, if can are feeling better? do Solutions the and we'll I sensible on low prudent. going to be a additive feeling greater win that let be is. word, pretty rate. Of and guidance Government in of we the do And win are? better, there giving is you And the know. taken and saying manage given we that we'll to an to all Solutions opportunity that course, we that to pretty basis, because happens compete blow will out think sort the not really But We've very and of timely if position. in

Michael Feniger

of Are contract a that on the the you adjust IT focus Act and might to wake request the DoD really to of on anything just side? side, secure the CARES the budgetary hearing anything for I terms the of workforce, then COVID? you in and measures And funding, for liquidity And on maintenance, increased Perfect. services other manufacturing the DoD are in funding the XXXX the of and hearing understand lot suppliers, support particularly have financial side. health government maybe and and

Stuart Bradie

want chip I mean, No. to but in, anything not think seeing you - really, I we're we're anything that think terms don't in there. of XXXX, Mike not would not today, I may seeing

CARES the and, we'd going $XX being guess, million guess, of I excluded to have said we've the guidance. support actually the our reason about eventually. And of like. terms we're In if it think that to Act completely support, Mark financial back that I give cash, But I you from have

deployable it's not cash. So

have there benefit basically will something a transparent something we've we in been very, with that the else. I So it not saying, over replace and spend think it's while. to But we've if money, got next little again we very -

it we guide. our So include in best don't

our that. again, we we're prudent, it's be. stall on delivering and hopefully, a And to that's think, transparent set what out approach, I So

And So through. XXXX. see of the we budgets into don't in going much terms today - but disruption in had fact, gone

associated with going the there's year. next think I tailwinds some into still spend

Operator

will Our next come Bill Newby question of from Davidson. D.A.

William Newby

quick follow-up one labor. on the Just Stuart.

guys rates the about that I further what energy any you of advance KBR business? here. seeing other do win within the the and for slowdown guess, to past, high-growth capital pretty become parts I of internal can talked the that if think at I'm reallocate I in does work a the labor opportunities business? engineering guess, across in in source government. you the there you meaningful human to wondering

Stuart Bradie

Yes.

about NORTHCOM management, - synergy they the might the the be in the I mean, across. while, the past, V I energy new can be and a think to question. the they where labor we've being proceeds very people LOGCAP there construction U.S. little if that's is our in a from businesses - something talked you that project sector opportunity, good into in portfolio certainly next true it's today. is situation we synergy management, that an whether across between with bring whatever contracts particularly environment, could envisage folks, And the it's

I In less but terms probably movement, truth. - it's of in is there that's engineering, think so some

the specialization I think both and in in camps, there's Government a lot in of both the Energy side side.

I opportunity. of time, and But really situations. incumbent and Forces opportunity and for world employ haven't really a an Bill, which things really that what way them that those in about us interesting, governments this from talked COVID. I together difficult that is to impacted in we and gives to ourselves across across and engineering to doing try the looking the companies and like by take been to on governments the same is on the ours airlines world, What upside we seeing we're think And it's negatively amount at have staff work meaningful like industries into can Air are give people maximize

within well So which can I a is actually, as part that happening and we think uplifting, dynamic, we governments play that. are that seeing a as very that

Operator

Our last Gautam question today of Khanna will come Cowen. from

Gautam Khanna

call Sorry, late. I the joined

be energy technology free make in it apologize. segment So guidance, be Or flow - this the But just I sure if much? I positive if is you answered this, and understood revised wanted to negative? expected cash going to I of how to is the the And year? some so,

Stuart Bradie

record. we've Well, guide $XXX million, given to the that of $XXX million in somewhere

Gautam Khanna

Right.

So the overall...

Stuart Bradie

entirely. to $XXX - think enterprise. was Yes, profit the million if you sort back, course, I of at that's of our I takes, the million. And Energy cash - $XXX mass Solutions against and the the profit overall that then Gautam the you want math, how reduced There's out math We've free level. up guide really and original flow And for look mean you if taken lines if but puts contribution works.

Mark Sopp

expected But I I remarks. been to in my ES collections than strong, that bit, said little be the Gautam. candid. a stronger [indiscernible] have But really,

probably of TS always they've pure from so and and they those cash better be still side, result this cash very And worse attendant profitable if any guidance, think X, flow is attractive they're don't a to their on a perspective. And produce that in profits. converted and I contribution is in will will healthy, the flow very reduced

generative, yes, together, case cash times. recent So been as has in the

Gautam Khanna

the I sure Because guidance. stay positive? but addressed And Do this and want plus 'XX you a trying people I'm in you think in have Tech - well, seems you've pricing longer-term 'XX? outlook, The the would obviously, it's just given about how Energy and dynamic, the of free Mark. And Okay. you cash parts, as think do may sum to correctly. understanding just like are make I'm to negative, it it but aggregate just just math to flow

Mark Sopp

We it correctly. adjust and we think Well, ensure them I criteria be understanding to you're cash-generative businesses achieve that a operate we our as to result.

TS. so change no to And

XXXX, of flow the particularly as it, which given degree, clearly a top to beginning for cycles. deferral capital think profitable we should completion a and definition of phase, I be as we throughout business And with will. the and we exited in of well the to a general, that, cash have if of we've cash-generative previous that, we've a projects so by into criteria today, on were cash-generative which across cash-generative we expect we projects. go front. OpEx result each phase, result very it on is ES side in On seen through that cycle, 'XX XXXX But clear seen. those And and our you disruptions enter plan, we some that as attractive longer-term a as the in in that, very will new manage every into mode be produces the

Operator

That will hand for conference remarks. now back conclude will I Stuart the final today's session. question-and-answer to

Stuart Bradie

on of team Focus, a to for on that. underneath Thank as in run more really hope And Molly. engineering - international that a Government that, and will be on time run true I we key event following KBR that XX. But announce businesses the Thank and that transformation. virtual going these well. times the KBR you in difficult from the and bring demonstrated the sending taking in you, I' today. across have of that their our our transformation has I'd out like logistics Alison kind reinforce pieces we're to m leadership we'll space Solutions June business and

the the get what excited money see in and I you knowledgeable you'll of about a bit and we businesses, how bit more Government little a hopefully, more the the little doing outlooks those guess to sub-market Solutions So talk we're get and make leadership. We can strength segment. about in

that's June So on XX.

worthwhile. Apologies, given time. the think again you taking for I thank well little longer the the it circumstances, a than was bit was But So presentation normal.

I'm talk Thank soon. all So sure you. again we'll

Operator

conference conclude you today's will participation. This Thank for your all call.

now may You disconnect.

KBR (KBR) 29 Apr 202020 Q1 Earnings call transcript