A Look Back on a Banner Year of
KBR BUSINESS GROWTH
KBR’s stake in the global knowledge economy paid big dividends in 2023. It was an exciting year of growth across our global business. Despite ongoing geopolitical tensions and related market volatility, our people lived our values and continued to deliver on our mission.
That success has meant dozens of repeat and new awards for work in strategic, differentiated areas such as climate change, energy security and transition, national security, space superiority, and more.
In this edition’s feature article, we’re proud to highlight the stellar work of our business development teams from Sustainable Technology Solutions, Government Solutions U.S., and Government Solutions International in building on our strong momentum and priming us for continued growth in 2024.
KBR 2023 Performance at a Glance
$10.5B
OF BOOKING and options in highly strategic areas
ENDING BACKLOG/OPTIONS OF
$21.7B (10% increase from 2022)
WORK UNDER CONTRACT for 2024
ORGANIC REVENUE GROWTH
ADJUSTED OPERATING CASH FLOW CONVERSION
Sustainable Technology Solutions
In 2023, KBR’s Sustainable Technology Solutions (STS) business continued to drive growth due to growing need for our world to proactively manage the energy trilemma – the intersection of energy reliability, affordability and sustainability. Further, an aging energy and industrial asset base is driving demand for KBR’s deep domain expertise and digitally enabled solutions to help our clients address plant modernization, decarbonization, energy efficiency, and smart operations and maintenance.
Among the outstanding results — organic revenue growth of
year on year and
$4.5 billion
in backlog.
STS’ 2023 financial performance is a testament to the resilience and ingenuity of our people,” said Aman Ahmad, senior vice president and global head of STS Sales and Business Development . “We are especially proud of how our leading sustainable technologies and solutions have delivered strong growth in 2023, while helping our clients implement practical strategies to meet their decarbonization and net-zero objectives. Moving forward, we are confident that our commitment to delivering ESG solutions that matter — such as our comprehensive portfolio of hydrogen, ammonia, sustainable aviation fuel and plastics recycling technology — will continue to accelerate growth, while ensuring we maintain our focus to win the right business for KBR.
2023 HIGHLIGHTS
- STS was awarded a front-end engineering design contract by Fidelis New Energy for Project Fyrkat, one of the first onshore liquid CO2 sequestration facilities, located at the Port of Aalborg in Denmark.
- KBR’s Purifier™ ammonia technology was selected by PT Pupuk Sriwidjaja Palembang, a subsidiary of PT Pupuk Indonesia, for a planned ammonia plant — KBR’s 12th plant licensed to the same client.
- KBR’s K-GreeN® technology was selected by an international consortium — including Lotte Chemical, Korea National Oil Corporation and Samsung Engineering — for Lotte’s Hibuscus green ammonia project, which will produce 800 KTA of sustainable green ammonia from hydropower.
- KBR’s market-leading low-carbon blue ammonia technology was selected by Tokyo-based INPEX Corporation and Oklahoma City-based LSB Industries for a 1.1 million tonnes per annum blue ammonia plant on the U.S. Gulf Coast.
- KBR extended its collaboration with ISU Chemical and will provide licensing, proprietary engineering design, proprietary equipment and catalyst for a planned 10 MTPD hydrogen production unit using KBR’s industry-leading ammonia cracking technology, H2ACTSM.
ON THE HORIZON
Moving forward, STS continues to see tremendous growth opportunities across each business unit and more so by integrating our leading sustainable technologies such as Hydro-PRT®, SAF, blue and green ammonia, and petrochemicals with our world-class digitally enabled delivery solutions. Further, by embedding emerging technologies like AI and ML into our designs and smart maintenance solutions, KBR will focus on creating more differentiation for its solutions while delivering greater value to our clients.
Government Solutions U.S.
Government Solutions U.S. (GS US) saw strong growth performance in 2023, continuing a seven-year trajectory of exceeding headcount and book-to-bill targets.
U.S. government budget growth is expected to fuel award activity — including spending toward emerging technology such as cyber-science, AI, directed energy, hypersonics and space superiority. As geopolitical tensions continue to escalate, the U.S., U.K., Australia and allied governments are prioritizing key areas within KBR’s domain expertise, such as national security, cyber and military space superiority.
We secured critical rebids and significant new business supporting high-priority missions,” said Kent Wilcher, senior vice president and growth officer for GS US. “Moreover, with our organic growth engine continuing to perform and our Global Household Goods contract win ramping up, we are positioned for strong growth over the next two years.
2023 HIGHLIGHTS
- GS US recorded a 100% rebid win rate, including recapture of the $1.9 billion Integrated Mission Operations Contract (IMOC) II, through which we will provide spaceflight operations support for NASA’s human spaceflight missions, including critical on-console support of ISS from NASA mission control.
- GS US won multiple U.S. Department of Defense and Intelligence Community contracts valuing over $1 billion, which combine our deep domain knowledge with cutting-edge digital transformation solutions that leverage digital engineering, advanced machine learning, and modern tech stacks and data architecture.
- We kicked of Project Velocity, a multiyear initiative to significantly scale up KBR’s investment in innovative solutions, digital technologies and industry-leading growth talent. This will enable KBR to support an ever-evolving set of customer challenges.
ON THE HORIZON
Project Velocity will sustain high single-digit organic growth that will keep GS US in the top quartile of U.S. government service providers, while increasing KBR’s delivery of digital transformation solutions to address current and future customer challenges.
KBR is also honored by the opportunity to improve the relocation experience for military members, government personnel and their families through HomeSafe. The program will drive significant growth for GS US over the next two years.
Government Solutions International
With five differentiated business units and a diverse client base spanning multiple countries and strategic markets, Government Solutions International’s (GSI) continued delivery of cutting-edge solutions — from sustainable energy, to defense, to digital transformation and much more — resulted in strong growth in 2023, including a book to bill over 1 and strong cash collection.
Our people were firing on all cylinders in 2023 and have devoted themselves to a strategy that is helping us understand our market position and shape a longer-term, five-year future focus,” said Max Baldwin, vice president of Business Development for GSI. “This, supported by multiple business-winning initiatives and our investment into top-tier stakeholder influencing, will allow us to continue delivering capabilities that help nations stay safer, more secure and more sustainable.”
2023 HIGHLIGHTS
- GSI Projects and Programmes continued to win work related to the Kingdom of Saudi Arabia’s Vision 2030 initiative, including across several giga projects and the Diryah Gate Company Ltd opportunity, which will place KBR at the heart of critical national infrastructure improvements.
- KBR’s win of the infrastructure engineering HMAS Stirling Phase 1 in Australia solidifies our position as a strong supporter of the Royal Australian Navy (RAN) and will yield further opportunity in 2024.
- GSI won a contract to sustain the RAN’s amphibious combat ship fleet, which positions us for future long-term contracts related to this and other platforms, including the Northern Patrol, Anzac class vessels, underwater vessels and more.
- Frazer-Nash Consultancy’s ongoing delivery of technical advisory solutions across multiple government departments and business-to-business partners was enhanced by winning digital systems engineering positions for the U.K. Future Combat Air program and supporting BAE Systems with engineering and enterprise architecture solutions, putting KBR at the heart of the future fighter modernization program.
ON THE HORIZON
Leveraging the success of 2023, GSI will focus on key initiatives to continue driving growth, including bolstering the Australian Defence growth team, simplifying Projects and Programmes’ business-winning operating model, and continue to develop a customer-first way of thinking.
Furthermore, GSI will be bringing the might of ONE KBR into customer discussions across our regions, including through our involvement in the historic AUKUS partnership, support of Defence Space Command, and ongoing support to Ukraine, and by strengthening links across our energy and defense offerings, which have resulted in KBR delivering more solutions to customer problems than ever before.
