Q2 2024 KBR Inc Earnings Call Transcript
Key Points
- KBR Inc (KBR) reported a 6% year-over-year increase in revenue and a 13% increase in adjusted EBITDA, with margins up 75 basis points.
- The company achieved a year-to-date cash conversion rate of 121%, demonstrating strong cash flow management.
- KBR Inc (KBR) raised its full-year guidance for adjusted EBITDA to a range of $825 million to $850 million and adjusted EPS to $3.15 to $3.30.
- The company secured significant new contracts, including a five-year contract with the Iraqi government and multiple awards under the IAC MAC IDIQ contract vehicle.
- KBR Inc (KBR) announced the acquisition of LinQuest, which is expected to be immediately accretive on a cash basis and aligns well with the company's strategic goals.
- The energy transition projects are moving slower than expected due to affordability issues, impacting the pace of growth in this segment.
- The readiness and sustainment segment experienced a contraction, particularly in EUCOM activity, due to funding delays related to the Ukraine conflict.
- The company faces potential volatility in the U.S. market due to upcoming elections, which could impact future performance.
- The integration of LinQuest, while promising, carries inherent risks and will require careful management to realize expected synergies.
- The book-to-bill ratio for the STS segment, excluding the large LNG project, was 1.1, indicating a potential slowdown in new bookings relative to revenue.
Good morning, everyone. Welcome to KBR's second quarter 2024 earnings conference call. My name is Kiki and I will be your conference operator today. (Operator Instructions) I will now hand you over to your host, Jamie DuBray, Vice President of Investor Relations to begin. Jamie, please go ahead.
Thank you. Good morning, and welcome to KBR's second quarter fiscal 2024 earnings call. Joining me are Stuart Bradie, President and Chief Executive Officer; as well as Mark Sopp, Executive Vice President and Chief Financial Officer. Stuart and Mark will provide highlights from the quarter and then open the call for your questions.
Today's earnings presentation is available on the Investors section of our website at kbr.com. This discussion includes forward-looking statements, reflecting KBR's views about future events and their potential impact on performance as outlined on slide 2.
These matters involve risks and uncertainties that could cause actual results to differ significantly from
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