KBR - Earnings call transcript Q1 2024

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Operator

Good morning, everyone, and welcome to the KBR Inc.

First Quarter 2024 Earnings Conference Call. My name is Drew, and I'll be the operator on today's call. [Operator Instructions].

At this time, I would like to turn the conference over to Jamie DuBray, Vice President of Investor Relations. ahead. go Please

Jamie DuBray

morning, XXXX Good to First KBR's Thank Call. and Fiscal Earnings Quarter you. welcome

Joining Bradie, President are highlights call as Officer. me for Stuart and from Mark as Executive Stuart then Sopp, well the Officer; your quarter Executive open will questions. Vice Mark and and Financial President Chief provide and the Chief

future potential forward-looking section significantly at kbr.com. website on includes earnings is statements most KBR's outlined Form X. these Today's reflecting the our on in presentation our statements their that to GAAP earnings that available presentation. on useful risks non-GAAP company These the of discussed on cause believes events views forward-looking included as to also performance to matters of differ for about measures XX-K discussion actual measure of these financial results recent reconciliation as impact is investors. A at and the includes be and could measures Investors Slide from This our our uncertainties nearest available the metrics non-GAAP discussion website. This end involve

will the now to over I call Stuart. turn

Stuart Bradie

start learning Jamie. our course, Today, all a We on to empower the creating to absolutely full and we dedicated solve who that's know, place culture reach all they And they the careers. wanted of our They to X ones have Thank I of to to success. why people. and, people are the just talk deliver who make drive on are at customers, great want and KBR our few ones an they potential innovation them people, KBR. to developing take for about fulfilling And complex are to our you as you, I their employees. growth moments a work. value our will our Slide challenges because are to key

to programs, has talent development for spanning globe the opportunities Jenny to expanded and And year, recognized our rating every recognition. X-star say all recent been hires exceptional actually greatly from human development this rating, milestone are Officer, by development I'm where of years, has Chief received pleased and there People new MSCI, that a the capital our top level. an Miles, In actually parts leadership, we've this in senior recently

important, time we've Now examples see, we and highlighted I skills too of mentoring this, future. slide, and won't global is recognized from of really can mobility development positioning spend to programs particular, the as get much front a in but have around the of few you internal and And these area an in communities we're career that interest importantly, is to on of.

Nurturing and future people a across is our this but key businesses quite no it risk, And will talent at world focus we've the today. for all challenge facing about that an are of topped future, the our doubt. a often, ongoing to part actually, while, KBR for almost mitigate be help

short, our to with recognizing heart and me unwavering driver and all skills that levels all the and frankly, enablers are people our commitment rewarding brightest shareholder is the people our conclude, the you for at say KBR do, as hiring at before, developing future talent of and key value, term. and all true longer medium and the organization we a So best of to the heard values-driven

pleasing a very quarter. holidays as post clean seriously. organization a on performance. Today, be now first by X, the actually presentation is our with task great perspective, well, we a the reinvigorating start cover will take been short. It's and consolidated started I'll From to is the year Slide our So which safety to the quite a we year always

International. of and at slowness reflecting All ahead our Now the delays was the readiness and GS or EUCOM and year business in funding expectations, started above pace, in expected We businesses at Congress. financial and delivered sustainment well continued, in performance. absolutely STS looking which especially great, in

Consolidated actually of high all-time revenues XXXX our exclude OAW up in you increase XX% the transformation year-on-year XX Adjusted margins peaks bumping year-on-year outpaced was with an with when X% since and in billion, EBITDA was bps. $X.X XXXX. a up expectations

metrics very result. million. quarter, the slowest with certainly bit QX The very quarters and above positions following all Cash pleasing. guidance. us $XX pleased strong well So typically given to was performance at also this our very the expectation a we're And across is key deliver 'XX derisks

deliver guide. circa work contract XX% As under that of have we to QX,

Now and awards. some on key Slide to X

the For of STS, we've couple in key happened high, Primer we that milestones wins the webinar STS in levels covered QX. remain And as a and highlighted opposite activity energy Trilemma to recently.

these security the energy decarbonization, Now again. quarter, so won't all remains them can energy during I and see announced read have you collectively, the key But drivers. that ammonia, been transition

last budget increase was in defense government U.S. quarter government As the side approved forward. award one in everyone from change but was the the the activity aware, going is should the key

include performance and Combat our forces that special also with of. franchise health the We human Command, U.S. ongoing in NASA Force expanded work addition Air to and to you're our aware

provide quarter, contract I Another in award one being management excellent the aligned to with GSI, had Agency. note the Health securing said Defense the the effectively growing for as a This earlier, a cybersecurity so multiyear an GSI, quarter X-year services in and post nice great a IDIQ was the to transport expectations standout. PFI the for heavy of award equipment with mid-teens and margins is outcome. contract year-on-year risk

successfully announce to HomeSafe I'm This milestone. the moves significant have a we first also pleased is Alliance. very completed under that our

were X.Xx in all up basis. LNG months. ramp both very the the the burn in-state were on you and similar the STS. will slowly in project these coming moves When very, Bookings on planned, XX-month volume trailing As actually segments a large in exclude at

X.X burn the in strength pipeline. but to quarter. the with rest the STS' especially strong, to is QX we bookings large with Historically, see slide, and quarter performance was that a delivering of As on X.Xx the you'll the are pleased trailing continues book-to-bill the XX-month STS of slow book-to-bill a results, due be

So in short, with quiet, of very the year is was normal Outside pleasing. of to the which quarter great a business positive this very course start momentum.

And now numbers take you a through bit to will who on Mark, more the hand I'll Mark? in detail.

Mark Sopp

Thank Fantastic. up everyone. X. you, Stuart. I'll on pick Slide Hello,

Stuart's remarks this strong at and reiterating improved EBITDA is So to XX% revenue great team off growth adjusted with in ongoing substantially for bit, the up particularly growth a little year X% the on start quarter, margins. a

of see really Core profitability from to pleased that, of course. key a has been We're element quarter-to-quarter. that's our consistent strategy,

things here year, bumping profit some in forward adjusted about the a the EBITDA in consolidated hit STS to from planned We I'll later the in pull moment. chart in X.X%. had segment's that up also margin

the good also and team. by over $XX the our year of we've and $X.XX, count, million intensity from refinancing consistent EPS for the low by the nonrecurring Below charge EBITDA been model of central the million, earnings enabled at was job headwind a buybacks growth. vitally quite past by transactions making flow great to January. was up quality demonstrates, offset important, complete terrific Adjusted bit, a our with primarily were our $X course, This the in the line strategy. capital lower to XX%, expenses share a cost up cash was That registering

to I'll XX results. for the segment Slide move on

about continuing line XX% We'll in adjusted continues targeted is build the drive the that left, attraction growth. the and with EBITDA tap bit and with strategy trilemma. to to demand quite driven Customer a STS great talk STS' by to Day. top On retention IR momentum global energy

enduring offer for We a margin than with world believe area to years expected. blue-chip to business The the being trust around will and benefits come. adjusted registered EBITDA little the this to XX% was higher customers of KBR

year, a we by the segment planned percentage left. spread Always the happy had where over to favorable that to points. margins which We in is QX, that so that closeout shifted about have benefit happen. X had full Here benefited

Government and growth to the X% drivers margins. quarter X.X% adjusted top D&I chart, side modestly EBITDA attributed to with with can Defense a business the the Solutions on was higher-margin be Over international units, mix up about as on in This right and higher the stronger up space Defense line as said progress European tied Command R&S the Ukraine. Stuart X%. lack science theater and the to Intelligence. in growth. soft which have at of activities Intel on double-digit and is to & support about And International XX%. S&S this given earlier, contracted had of funding was been

our XX QX beyond. previous to did I'll of in sets move Slide year in capital we well us beginning and refinancing matters the this on for capital up covered and over XXXX call matters, the at

a sheet have We balance options. of plenty capital deployment with terrific

being quarter in a flow, team starters, said for I cash cash. generated despite the earlier, QX For low seasonally that of $XX million terrific

this quarter XX% upped recall $XX the in also You'll about buybacks. million dividend we and completed

the quite leverage important we ratio with had interest environment exited QX stickier that, as high X.X, the than expected. market rate With a of seems

You saying themselves expect it's the might for absent moderately so true. longer M&A we and so higher remain far that for us recall lever and the up rate opportunities priorities interest We environment buybacks Deployment accretive expect that management. can same. should present stays and that debt

good work up on QX reaffirming measures. We're with our such, I'll And quarters. year under to a Slide really in guidance off the all coverage start as remaining for excellent finish on the contract XX. we're for

so table to at here, our Day the Finally, happen. forward rest May around as for X, you IR folks can't I wait with the on to of that the we're seeing looking

With that, it Stuart. to I'll turn back over

Stuart Bradie

takeaways. finish Mark, with Slide XX up key Thanks, concise. very some and on I'll

Firstly, metrics, year key pleasing. strong a our all the so across start to really

to delays presentation. as with markets due a our momentum Continued in in exception key times funding of we've Ukraine of R&S, course, covered the this few

so 'XX work typically plus area. Solid And derisk contract is that well-positioned QX bookings XX% a again what year guidance. circa really backlog strong of future in good quarters, a we're and our in to the quarter, full start deliver a slow under and

milestone successfully quarter. completed moves HomeSafe First, another in great the

Investor you Mark, like on in May forward for York all seeing to our New X Day. look I So

operator And call with up for open questions. say to listening, I'll and will that, back I'll hand the who you for now Thanks. the thank

Operator

from Instructions] from [Operator Our Andy question comes first Kaplowitz today Citigroup.

Andrew Kaplowitz

tend EBITDA you does little bookings in on level you're QX end you business? X.Xx point be said in think the regarding burn. continued opportunities to STS in across could But elaborate And delays seasonally Stuart you the a double-digit I any any of pipeline mentioned seeing growth the confidence this terms markets of and what's STS? of and lighter Mark, your LNG at that

Stuart Bradie

I VG, clear, growth. which the in book-to-bill X.X. STS the ex in Yes. XX% call of, Andy, think X.X, underpins guess, was the is And for sort quarter stand-alone XX months I I that quite mean we're really

activity. bid ammonia in and discussed the trilemma we've seeing So markets momentum Primer and really market. seeing levels our continuing high levels that we're opportunities, market, of in energy the olefins the activity are We're the truth, of in pipeline unabated good the in this

bit the a going see of So And continued growth very that that's the ROIC associated for the that Investor case about confident the you and more STS that we're around continued ammonia -- been and forward. particularly on story, the we'll in some talk on we'll continuing and around and Primer, particularly the performance we build STS. Day more give with while, business. And

positive it's I very for business. a So that outlook think

Andrew Kaplowitz

color Very to as more maybe of our forward. how as businesses Ukraine in second side, the other more clear. And it QX? beginning And the growth in half? positively then momentum supplementals those GS. moving revenue thinking you early businesses maybe you're Do breakdown about on Is GS see the affect mass into

Stuart Bradie

at have too of impact kind Andy, call some will I more this consequence give level, the down the activity that it there European activity we're theater to modest we'll through quarters that to point, would the but the on there'll we'll clear. increased in year, funding a Ukraine But in was R&S, be high some -- increase in early We guess performance think can't to logic Yes. due which least color delayed of move a QX XX% in would detect we had It's funding I very be think at -- I that as as see. at at levels of impacted that. Investor Day, level of And Ukraine, those be that. clear Again, high year-on-year. we

I HomeSafe with segment. But moves I cautious there's ramp expected, to good that but again. across think think good a R&S portfolio there's We're just a being slower balance the starting balance there overall with now quite in

in R&S GSI. that's we're seeing at similar high-margin but think in said, a and level a -- I nutshell, these areas. in growth seeing are So Mark as high double-digit in We're D&I,

in that's pleasing. S&S, growing modestly digits. single bit So as we'll that's we really a before, said talk more, little kind of but

performing and is year you'll the of into R&S but And ex I the up, coming puts see progresses. more we as said X% between I takes, think to all portfolio so balance think and that kind HomeSafe X% there's the

Operator

Our next Tobey question Truist. from Sommer comes from

Tobey Sommer

on HomeSafe a I what customer, of conviction relationship vendor transition. your if customer was and sort wondering enthusiasm the in could customer of comment long you and has sort a for there, been long

Stuart Bradie

I they're through cautious their been I Well, they're resonated phased doing has terrific. time. has from relationship and up has think with the the why moves TRANSCOM And approach we've and I And -- all guess representation well. the the in commitment program, over with have the of to to program more Congress first in been the this scale positive. mean, that themselves, the hugely got folks feedback moved but personnel to Congress we've gone

very through being commitment the we're supportive has really so unwavering. up terrific, really been although are and just organization It is how so on good. they our ramping far, And And The program now theirs. it's do effectively relationship and TRANSCOM considered time. from has zippered this way that. in started, about so think and I think up that, focused is the actually over that all of they But I rightfully,

Tobey Sommer

could I pipeline in speak future? also of the the parties the for was process if comment on update on out licensed that maybe and efficacy sales company us interested and the watching plants Mura you wondering potential in of plants the to

Stuart Bradie

Yes.

on that really QX sit contractor They covered side. mean delay today. I of up material Wilton resources little early still think bit to this due that as earlier commissioned quarter. think the I then next first as we this into they'll as looking will the capacity availability It's and head plant likely we continued on. site I head produce full in we late get at we QX, into a

is where in modularize year in started an a that behind impressively solution, think up facility mind I the for later get is we that's U.K. one before faster. there the the actually I so facility moving opportunity coming far all and and But think it Korean And actually to probably in the

in Mitsubishi the in the year in behind then And facility, is again, So later Japan. is the summertime. which it

that the progresses, we'll before think those as I So that -- year producing. see facilities

pipeline once I the guess new the technology as facility future. up move as the first you. we've and think, ahead into the think the free They done, for enthusiasm up sold, I technology. be And the far, is that licenses the and tech around think to quite with I and see towards market will running. we X want a considerably this that going actually I licenses so that's which ever strong bottleneck with and opportunity quite everyone's will actually, we looking X, But it's

opportunity technology way that our the pipeline through and later who guess, thing bring year. KBR into you the personnel and guess, think the and commercialize important then, terrific. is sales globalize us for I in next year at And and when into the look and are I we other I develop that global

terrific. ROIC and as back cases other And test and related returns technologies to again, we'll highlight are Mura Again, around some move we the that forward.

and Day, that to very we technology its on Investor -- fact, in key value Day of good make Investor more and brings points good a in we KBR one So a commercialize how want it about very lead in the to at actually the to but shareholders.

Operator

Bert question Our from comes next Stifel. from Subin

Bert Subin

performance I like year. guess, a little just guidance. EBITDA got first, process better. the a to the just on start wanted to I off ask, to good was of It sort you about thought seems Core

sounds business, And you the and pretty book-to-bill like drive some got shares. started improvement good feel you the You've in should the across R&S. repurchasing it about incremental which supplemental,

guess, about, to like ago, under a think, was of as as seems exact think we unfold that I the is it So to, approach just relative sort days XX I year. your taking is it essentially contract cautious work same last it because

quarters were relative about you thinking X next ago? curious thinking the how months about So you're how I'm few them just to

Stuart Bradie

can quarter. going, messages associated get and Scottish landed mean and we Investor Day how to what I where now to into we done We question mean for cetera. a we debated, supplemental and time. look first that I for -- think our a we ramp the with just sorry through flow the see with I successfully just et to some think decided again, But I bit to those wanted that, program imagine, little resonate is through as would get Yes. but HomeSafe it's next conservatism, clearer the just internally start just get We've clarity. more move, you

although the now our year, which XX, we're come think something, early I our midpoint originally you if see in now more ahead $X.XX, is you said second And is So below if XX, in half. had think pace, first I that in too percentages guide. later terms of annualize, obviously in you I half, annualize we think still of balance and or

We're in really and I thought do, over where week. So in that's start I what's QX last while head the we Investor and rightly explaining actually at be we and future on a not I given of better so fantastic look gone year is of our should but it actually as can certainly truth the too energy think the business business next or And guidance what the was up ahead will year. Day pace all just and but The we this the years. focus in balance, QX, into early and this little has business happening we changing performing terrific. whether to or book-to-bills maintaining is of think all reviewing think

Bert Subin

it. Got

guess, you sort being about I call first Middle sort half STS, -- more guess of this a on as And the East growth plus the maybe On of next I focusing talked XX% the fiber. Stuart. the over Primer, helps, decade. That question, is Okay. follow-up

on if we've any transition a and your the sort business And over I negative, think wondering that update of whether of been is to or if update Saudi this awards I as there. on NEOM little there's that of about significant think some neutral bit Arabia. some that? pertains predicated a in was there's in seen any we that's positive,

Mark Sopp

case you'll the Bert, grow continues been That's going see filed shortly, some Q an to Mark, forward. we relative expected said, East fantastic, is the And as and That Stuart to large yes, East performance by the really year-over-year. our well time. but for Middle case leader up as question, HomeSafe, there the Ibrahim, his Middle are in led not relationships only zippered have, earlier the team. Jay in our

Relative to new awards.

are but we some on We requirements customer some, some others. -- announced subject are we've to

And that big the well-positioned us, come. pace I'll expect ones, are are those transition is energy some in and some developments it world security say of I many think of we And part so energy very part with and in years accordingly. that for of They that the we be market, customers. those for to happen about as pertains the talked all to trust to

Stuart Bradie

on companies from we're multiple of engineering that think a Iraq is isn't flaring we're in capital in there's think and for efforts like think the with terrific. But as UAE established well, activity over which large with there their only significant supporting our years, perspective sustainability we'll Day. are vision. energy that also in workforce, and got in Middle been capability for, Saudi a We in an now now Iraq country. over themselves. well-positioned a on And that percentage right got that huge XXXX ADNOC I I people I the of there to Saudi very the now a lot so, of program stop market We've Saudi very good X,XXX there focus East, that capital expand certainly, well a And large as aligned a but at the a and like just spend given their the Investor story I security and UAE. balance and gender mission things support and layer have on, lot now, that, relationships to including rightfully presence and think, spend and we've XX And

strong sort terrific. very got We smart didn't the our got well announced X-year Saudi years East starting take globally, presence wins spend in it's our I do. So contract A lot of of market establishing as our ability We've but a I those and profile. there. ago, We think I build to again, think we wait. around a across trends. Middle trend positioning, of We've operate rightfully to say, I We're maintenance a allows Qatar to the history a across in now to advantage just as now there solutions capital East the Middle goes the so, X very, up so. our and and have us presence uniquely that's think, more attention

Operator

Our comes Bank America. Perez from next Mora from Mariana question of

Mariana Perez Mora

growth was in stemming if I dig seen from. D&I that's and kind you wondering the could into of where

Mark Sopp

this Mariana, Mark Thanks is today. for calling here.

we've electronic times, the space, D&I, as control, technology, is said many is higher and et cetera. part GS modernization, So command of warfare, advanced that

leadership to and primarily Space addition other of some the Force, the Force parts technical Air agencies. and Navy presence In Intel and across

generating vehicle to a for IAC strong We have a in that defense a of We a a which budget and seen IDIQ leader we're we've particularly often on used that number rightfully we've long given by out bit -- is vehicle RDT&E the That MAC, time. increase and agencies funds, facing. of so, for threats business times, said very the been portfolio. quite

the turn, customer portfolio been so strong recipient. D&I, our of there And the in the IDIQ by tapping has and

So awards. the government in bigger it's for when process the particularly struggles single effective procurement

helps put And team together quickly. and that more customer so the is agile way, missions it the

the acquisition couple of the Space of of driver a our hallmark pretty technical for the ago. amplified grow there, of relative commercial that to And certainly prior with common ability we of by is the combination acquisition, superiority IDIQ acumen capabilities the Centauri a so Centauri capabilities and that's expertise portfolio. but to tapping a business years really had the to

is So that quite strong. capability

Stuart Bradie

pleasingly when it happens the budget is you Intelligence look a but think of that like similar out they looks budgets what inside in CR what Force face not Space I us. like, flat But it's on And a recently dynamic as at come it, disclosed bit And the with sort behind like is quite is it's can Navy do which have Air co-mingled the imagine. now so Force, interesting I readers the side, is a guess, of in of budget a budget, there. the you things lot that's openly

think think -- on Force So I levels things there's the face but like that the budget activity of actually it, really flat, within might are Space high you environment. is

think again, a of in but where activity -- So that I positioned and those realm. driving dynamics we're are lot

Operator

comes KeyBanc. next Our question from Jain Sangita from

Sangita Jain

So to could feel the cadence you the quarter? rest your of experience you I Any what to about possibly just internal moves of the initial change learnings wanted year versus with HomeSafe. ask us that for guided last

Stuart Bradie

Yes, question. good

moves that load in I X X there's always learnings, you all as I sure think I moves, happened and system if and actual to to things start it for it's being think and there's packed making tweaks in shifted if houses day next going days do flexibility a be large moves certainly, small day. real think think, multiple of versus in and enough happens to small we day the up

and flexibility and agility there's environment. various elements sure making actually just system we can operationally, different within scale these for that the So

both actually well. X between And very aligned is the that. to So make TRANSCOM and very, working are systems I the learning ourselves on we sure are interface think

is very I and that online expected, you the happen. and digitally learning think got bit we quite what happy boom-boom has like, to we've for happened in that's person very quickly a good really We're obviously and the it quicker which registered enabled really, fact, this if to is that been and working system, has but sign. and digitally enabled service there's person service probably of gone for nice than see, so and all there, a well

to we that make and were they But to sure help in and person, over do to desk the bot servicemen continue worked the got other formed we're something a basically that that tech-savvy well is than do scale to a not what phone we've up, and rather this women piece able actually digitally. not the real to needed talk who the

both been enabling well, sides has a as part the that equation so key we'll and that learning And of keep going. of

as we think I I up, to we So scale learn. think continue

of our as right processes team got can openness imagine, very does the various and first control and as to today who that. quality new few does focus do in of people services they system, there We've the positive. had new level back you operational capability, think a quite themselves, provider, TRANSCOM as new I are moves coming those the the involved reports

as thing. don't think forward I learn to -- mean, So we and -- of want scale yes, sure. I'm going to go overplay lots I learnings but still we this for it's that. sure there's to lots be

Sangita Jain

And potentially the come on what year. be U.S. of now that be seeing LNG know backfill may review? up with Plaquemines X on online could coming your sometime what we you the can how out On that thoughts on and this follow if I LNG Great. can landscape backlog you may later

Stuart Bradie

Yes.

I million X.X Plaquemines like X. we million I -- trains. put across just tonne think remember, -- in and tonnes to think these context, Phase Phase this I are of It's is XX LNG

another So after after the LNG later it's quite fall, produce while another, through the to a although after future 'XX. we'll another, X for in into train

I So in want that put just context. to

looking look the future of inside a I the way the or think quite will it will sequestration LNG, go context, a themselves that, forward or footprint levels, at terms COX of DOE forward, in seeing I whatever go bit guess, think lesser we're In activity within but that carbon I electric of LNG decarbonized with drives activity a the U.S. from recognizes like perspective. everyone ultimately it using might

ammonia we projects And will very one reconfigured needs be are We've levels, into the upbeat monetized in future, country, themselves through continue of and LNG be about attractive activity of way hydrogen ambitious activities, there the but if gas that but So be it's will in or for I some will or or to market an VG be think not sure it U.S. future with going plans. be the through have itself, and LNG I'm us to other. the cheap the will this the some other LNG, got opportunities

as opportunity, of part a I'm there's there's as others how reconfiguration that LNG, plans around these of are that for sure clear be while. we'll of think, for year. to this we'll in there's noise next to certainly And and as plays that going long waiting the the But the But do that just the some There's see of go good see end active the in out sort well, before be the the plays market in forward. I softening of very market out. towards we guess, end landscape we those how the ahead We'll that. little I of But even year. head some

Operator

Our Goldman comes Jerry next Sachs. from question Revich from

Adam Bubes

investment compared This on year? for ammonia How you How final just to is reach many your this do prospect expect Adam you to XXXX? Jerry does decision Can list? plants that us today. update on

Stuart Bradie

in Day. going mean we depth some And ammonia the to Investor in I Yes. positive. trend are cover story is obviously the

not the to is when us license and the into sources like to engineering and look of future, project involved forward opportunity demand initiated, of but very basic I relates that. very, remember, going KBR as things -- the for the part the contribution only is is ammonia fee think fertilizers, we and it on as in EBITDA get the cost estimation and with energy terms attractive given we only actually FID hydrogen of journey

very it's for So us FID that in even to be market. pre attractive

It's the license sold project to we've for good very starts FID got even so move our the piece some forward, portfolio. when pre-FID, us. and in isn't the really actually And is returns

do of to be its ammonia and impact if the level into story per modest the what in pleased to ammonia, I market we're cover you'll So don't number next a KBR surprised the our very EBITDA. and increase pleasantly plants year does And to week. think high think you I going mind, attractive, extremely a ammonia remains to way quite this I say dive deeper and is that

Adam Bubes

forward active the government just to that. And on side M&A is right the could on Look So some provide Understood. technology solutions pipeline? the how now? pipeline versus you color

Stuart Bradie

technology us in last year and technology did -- acquire of market, we a difficult acquire because to it to but ready. we the be doesn't technologies, new Yes. open always I it's Primer, as for number to got smart mean we're to disclosed we you've is those and come launched

more you it's I likely, if say, changes think, to like, although things -- opportunistic strategic and of look is technologies something more at, pipeline we know global come being it's to market, in I would are we or white same a more them that if and those coats, I for to saw newer who them that like commercialize think us, people Mura kind we're the what technologies way. we way work identified in the unless develop So the SAF developed, try enhance and with and

think, lot where going focus our of is We've tech got area kind forward. that of I that's existing in headroom technologies So a the we've business. got

the I source best think So is don't of often funds. acquisition

and time, about that talk next internal think we'll spend and and place that development to of IP I is more week also. a in our realm good money protection

I In activity rates terms the interest think down. -- over GS, said, and as stability that belief there's will of Mark long longer, a time levels now higher for little come I think down

I starting desk coming things more GS you're in there's we're world. that think, And to the So across at. see certainly, looking more the activity,

balance speed going to well. an election But through compelling, to year able we're But if growth. there's then is think head be state, as in accretive market we've real our got pass. the use be organic particularly something is reiterate, of to values, important, And and I as growth to best good I'll to that's funds sheet fits we a organic strategic support the

So I It's and to synergy that's mean cetera, going in think going be the think margin be opportunities. -- activity our focus digitally enabled, space, compelling. tech, yes, so us to but in is and unless I us more take organic short, more accretion, et it's give upmarket, good And terrific, us sense. make it's got in to GS it's growth the But opportunistic. I outlook for

Operator

question Michael Vertical next Research. Our comes from from Dudas

Michael Dudas

you more phone tell. a than a can digital I'm of as guy, guy

flow Primer -- EBITDA EBITDA where last that pipeline discussed can of strong book-to-bill So you how being you phases this just how how the that indicated flow are and had we this X in of the kind the the and about STS and is the on as front, margins growing year, that the that month stands how the into impact growth and regarding next? maybe in on context the in revenues and good the year, that

Stuart Bradie

Yes.

just little up yes, Yes. mean sorry, I bit. break it think, I'm sorry, a Mike, I --

and the what through those that we execution phases get the whatever, We'll we'll engaged then or can sell phases. really Jay when the next week, asking or design and X cycle I cover So a -- we I in in think you're and technology, do guess, across that bit life to get project PMC basic then the himself. was obviously,

technology services in that's But I in for do business do cycle? catalyst that the we the more and where are we in particularly what the core think that well. we as

opportunity in X demonstrate the in Phase continuing week. to our longer-term that, again, I is out giving think hard business. starting that work attractive trend of really QX that, And and pretty nature going I to would and books this we're next bookings think And York of build X New that us to business the becomes. X, noncyclical bigger suggest and

in technology the we the is greater particularly of where So the think I globe the described of as really into Phase X, this trending for called shaping we course, opportunity as the Primer. is of And in at I I predicted. more new think market it's Global that it's sell, is South, we moment, the -- all but course, not and seeing up mean, the a X across move which North Hemisphere perfect, economic the outpacing is and Southern Hemisphere. growth lot term what we're the Phase the

Operator

next audio Gautam Gautam. Our TD currently from getting from from We're Khanna Instructions] no at question [Operator Cowen. comes

further no have questions queue. We the in

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

Stuart Bradie

Drew. Thanks, you. Thank

to coming start shorter up strong just fairly out so week. next Day to a Clean quarter, close And the call given, we've year. very got Investor

momentum key strong I the STS, performance in think across margin businesses. continued takeaways

strong the HomeSafe move with supplemental of performance year. I of looking terms also in obviously, positive government milestones in moves. the funding And first think outside successful into R&S, Ukrainian as really the latter of we parts in

year, to on to seeing us you New So start to I that look build really really in think York. a Investor up sets the strong nicely Day, we forward in and

will we very that, call, thank and close with much. So you the

Operator

That concludes today's call.

now lines. disconnect your may You

KBR (KBR) 30 Apr 242024 Q1 Earnings call transcript