KBR has delivered accelerated growth and value creation in FY 2021 posting revenue growth of $1.6 billion, or 27%, over 2020, and net income attributable to KBR growth of $90 million and EBITDA improving 31%.

 

The company’s 2022 financial guidance is underpinned by favourable market tailwinds, excellent bookings momentum and work under contract of over 70% to deliver 2022 results. The firm’s FY 2022 guidance is in line with or ahead of pace with its 2025 long-term targets.

 

"KBR had a stellar 2021 delivering significant progress toward its 2025 growth strategy," said Stuart Bradie, President and CEO of KBR. 

 

"Throughout the year, our Team of Teams posted outstanding performance across all key metrics – organic revenue growth, earnings expansion, cash generation, new programme wins, and Zero Harm. We extended our high-end capabilities in attractive, growing end markets across international defense and renewable energy with the acquisition of Frazer-Nash Consultancy, and we formed important alliances to advance ground-breaking technology to close the circular plastics loop and make carbon-free energy a reality. Our business benefits from strong end market momentum in areas of global importance, such as defence modernisation and climate change, and combined with our deep domain expertise and culture of innovation, KBR is well positioned for near-, mid- and long-term growth."

 

"We are proud to have achieved carbon neutrality for a second consecutive year on a path toward net zero carbon by 2030. At KBR, our commitment to sustainability goes beyond and includes leveraging our expertise to help others achieve their sustainability goals, thus creating value for all stakeholders. Our people-centered culture is at the heart of our strategic evolution into a forward-leaning, sustainability-driven, agile business focused on solving our clients' most complex issues and challenges through our IP, deep domain expertise and innovative solutions. I would like to thank the people of KBR for their agility, perseverance and commitment to delivering solutions that matter."

 

In the year ended December 31, 2021, the company won $7.8 billion of awards and options, including the following:

*Over $800 million of task orders under IAC-MAC to provide cutting edge R&D and defense modernisation support;

*Historic humanitarian support contracts to facilitate the rapid development of vital infrastructure at military bases in the US and abroad being used to accommodate thousands of displaced Afghans for the US DOD;

*Contracts to provide our leading ammonia technology for greenfield traditional, blue, and green ammonia projects;

*Multiple licensing awards to provide industry-leading, disruptive Hydro-PRT plastics recycling technology, as well as numerous ongoing studies; and

*Numerous contracts to provide KBR INSITE virtual/remote monitoring and advisory services to help clients digitally diagnose operational problems, determine probable root causes, and recommend corrective actions to meet operational objectives and minimise environmental impact.

 

CAPITAL DEPLOYMENT

KBR continues to employ a balanced approach to capital allocation, which includes investments that facilitate sustainable, long-term growth, and prudent return of capital to shareholders. 

 

During the year, KBR completed the strategic acquisition of Frazer-Nash Consultancy, repurchased $82 million of its common shares, and paid $61 million in shareholder dividends. 

 

KBR announced an increase to its quarterly dividend beginning in 2022 to $0.12 per share, a 9% increase over 2021 levels and a 50% increase since 2019.

 

FY 2022 GUIDANCE

KBR combines deep mission understanding, market-leading expertise and technology, and unwavering operational focus to deliver solutions to solve our clients' most complex issues. 

 

In 2021, KBR continued to shift toward agile, solutions-oriented delivery in differentiated areas that we believe will provide attractive growth, profit, and cash conversion. 

 

KBR guides 2022 financial results as follows:

Consolidated revenue: $6.3 billion to $6.8 billion

Adjusted EBITDA margin1: ~10%

Effective tax rate: 24% to 25%

Earnings per share (EPS): $2.04 to $2.19

Adjusted EPS1: $2.45 to $2.60

Operating Cash Flow (OCF): $320 million to $370 million

Adjusted OCF1: $350 million to $400 million. TradeArabia News Service