February 23, 2018

Stuart Bradie – President and Chief Executive Officer

Mark Sopp – Executive Vice President and Chief Financial Officer

Nelson Rowe – Senior Vice President, Investor Relations

4Q 2017 & Fiscal Year 2017 Financial Results

This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future

financial performance and backlog information and other information that is not historical. When used in this presentation, the

words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs such

as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking

statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and

we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject

to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially

from the forward-looking statements contained in this presentation. Additional information about potential risk factors that could

affect our business and financial results is included in our Form 10-K filed on February 23, 2018.

We caution you not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of

the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new

information or future events or circumstances.

This presentation contains the financial measures “EBITDA” and “Adjusted EPS”, which are not calculated in accordance with U.S.

GAAP. A reconciliation of the non-GAAP financial measures EBITDA and Adjusted EPS to the most directly comparable GAAP

financial measure has been provided in the Appendix to this presentation.

Forward-Looking Statements

Stuart Bradie | Chief Executive Officer

Safety: Moving Towards Zero Harm

IOGP = International Association of Oil & Gas Producers

0.380.36

0.430.42

0.28

0.240.20

0.230.21

0.19 0.180.16 0.16

0.35 0.350.32

0.31

0.24 0.21

0.00

0.10

0.20

0.30

0.40

0.50

2011 2012 2013 2014 2015 2016 2017

KBR IOGP Top Q IOGP Average

Total Recordable Incident Rate (TRIR) Performance: 2011 - 2017

KBR is focused on an

industry-leading commitment

to employee safety

Over the last 36 months, KBR

has achieved a 52% decrease

in TRIR and a 42% increase in

Zero Harm Days

SAFETY

4

Predicted and improved results, solid project

execution, strong cash flow generation

Delivering growth; Government Services Book/Bill

1.2x and Technology & Consulting Book/Bill 1.3x

Delivering or exceeding targeted margins for all

segments

Consistent results each quarter enabled by

disciplined execution

Operating cash flow at top of guidance

Continued progress resolving legacy and legal

matters

2017

HIGHLIGHTS

5

1.5%

7.7%

FY 2016 FY 2017

$61

$193

FY 2016 FY 2017

Revenue ($MM)

Adjusted EPS* ($)

EBITDA* Margin(%)

Operating Cash Flow($MM)

$4,058 $4,133

$210 $38

FY 2016 FY 2017

KBR excluding NSB NSB

$(0.33)

$1.49

FY 2016 FY 2017

*Consolidated EBITDA and Adjusted EPS reconciliations provided in the Appendix

Strong outlook and favorable trends in all key end markets

Increasing in government and defense spending

Growth in key areas across our Space portfolio

Civil, military and commercial

Continued strong outlook for KBR Technologies in gas monetization, refining

and petrochemicals

Positive outlook in Hydrocarbons cycle driven by shale gas, LNG supply-

demand re-balance and oil price recoveries

6

KBR OVERVIEW

6

Confidence for further strategic expansion in GS - Aspire and SGT

MARKET

OUTLOOK

Mark Sopp | Executive Vice President

Improved stability and generation of operating

profits

Superior margins in T&C business

Restored profitability triggered tax benefit

Adjusted EPS and Operating Cash Flow at

the top of previously raised guidance

CONSOLIDATED

RESULTS

* Gross Profit + Equity in Earnings**Consolidated EBITDA and Adjusted EPS reconciliations provided in the Appendix

8

($ in millions, except EPS) 4Q 2016 4Q 2017 FY 2017

Revenues $ 1,190 $ 937 $ 4,171

Gross Profit $ 6 $ 65 $ 342

Equity in Earnings $ 10 $ 8 $ 72

GP + EE* $ 16 $ 73 $ 414

General & Administrative Expenses ($32) ($40) ($147)

Gain on Disposition of Assets/Restructuring ($17) ($6) ($1)

Operating Income ($33) $ 27 $ 266

Benefit (Provision) for Income Taxes ($57) $ 243 $ 193

Net Interest & Noncontrolling Interest, Other $ 3 $ 5 ($25)

Net Income (Loss) Attributable to KBR ($87) $ 275 $ 434

EBITDA** ($20) $ 48 $ 320

EPS (diluted wtd avg) ($0.61) $ 1.94 $ 3.06

Adjusted EPS** ($0.59) $ 0.28 $ 1.49

Diluted weighted average shares 142 140 141

Operating Cash Flow $ 53 ($45) $ 193

9

2017 Segment Profitability Results vs TargetsSEGMENT

RESULTS

All segments meeting/exceeding margin targets

Government Services

Technology & Consulting

Engineering &Construction

Target Actual Target Actual Target Actual

GP + EE MarginsUpper

single digits %9% Low 20s 24%

Upper single digits %

8%

Operating Income Margins

Upper single digits %

8% High teens 23%Mid to upper single digits %

7%

10

2017 Special Tax Items

TAXES

KBR profit & outlook unlocks valuation allowance benefit

Benefit($ millions)

EPS

Benefit

Valuation Allowance Reduction $223 $1.58

KBR profitability restored; confidence in long-term profit generation

2017 U.S. Tax Reform $18 $0.13

Revalued deferred tax liabilities to 21% rate

Repatriation tax offset with unused foreign tax credits (~$60M)

Total Benefit from Tax Items $241 $1.71

11

Cash, Debt, and Leverage PositionCASH

Strong cash flow performance

Balanced 2017 Capital Allocation:

‒ Annual Dividend payments of $45M

‒ Reduced debt by $180M

‒ Repurchased 3.3M shares for $50M

Recapitalization planned for 2018

2016 2017

Ending Cash Balance 536$ 439$

Gross Debt 650$ 470$

Net Debt 114$ 31$

EBITDA 64$ 320$

Gross Debt/EBITDA 10.2 1.5

Net Debt/EBITDA 1.8 0.1

12

Ichthys LNG, Status and Funding Timeline

Re-measurable

Modular Fabrication

(~12% of Project)

Completed

Cost Reimbursable (CR)

Major Site Construction

(~46% of Project)

Complete 2H 2018

Lump Sum (LS)

A) Combined Cycle Power Plant

(~10% of Project)

Complete 1H 2019

B) E&C of Jetty, Tanks, Buildings

(~32% of Project)

Completed

Uses of Funding

Sources of Funding

2020

Commercial Terms & Status Sources and Uses of Joint Venture Funding

ICHTHYS

12

Expecting Client/Subcontractor Recoveries

$600M+

$300M - $400M

Loans to JV for project

completion

20192018

(Funded via

Contemplated Financing)

13

RECAPITALIZATION

Have been targeting long-term refinancing since early 2017

Long-term refinancing to extend tenor and accommodate SGT and Ichthys

Commitment/underwriting in place; execution planned Q1/Q2 2018

Revolver, LOC facility, Term loan, dedicated Ichthys line

Will consider modest equity component

Expected rates and relevant costs incorporated into 2018 guidance

2018

GUIDANCE

14

Mid-point Adjusted EPS growth of 7%

Note: 2018 guidance includes addition of former JV partner’s share of earnings for Aspire Defence; does not yet include SGT acquisition

Adjusted EPS range $1.35 - $1.45, excluding legacy legal fees

– Estimate for legacy legal fees is $10M or $0.07 EPS

Effective Tax Rate: 22% - 24%

Operating Cash Flow range $125M - $175M

2018 Outlook

15

Strong 2018 U.S. Government Budget

‒ Defense spending increase across multiple funding streams,

including Base and OCO Budgets, solidifies LogCAP in 2018/19

‒ Emphasis on technology innovation and Space Based capabilities

across civil, military, and National security programs

U.K. and Australia governments committed to increase

defense spending to 2 % GDP with a focus on intel,

simulation, naval engineering, security and contingency

operations

Expansion opportunities for the U.K. and Australian MoD

leveraging KBRwyle for expanded defense consulting

services

Solid backlog allows focus on new business synergy pursuits

enabling long-term growth

Majority of earnings cost reimbursable or services under PFI contracts

GOVERNMENT

SERVICES

16

Outlook: Strong Growth

Target Gross Profit Margins Including Equity In

Earnings: Upper-Single Digits % To

Lower-Double Digits %

Government Services Outlook: Strong Growth

Record Q4 bookings and margin performance

TECHNOLOGY

&

CONSULTING

17

Outlook: Steady to Growing

Target Gross Profit Margins:

Low-Twenties % On Average

Increased demand for petrochemical technologies in

feedstock advantaged territories (i.e. North America,

Russia & Middle East) and in strong consumer markets

(China & India)

Increasing demand for niche refining technologies with

changing maritime fuel specifications and regulations

Strong demand for consulting services for new & revamp

projects in response to improving market fundamentals

Government Services Outlook: Strong Growth

Strong market fundamentals in petrochemicals in North

America, Russia and Middle East producing increased

opportunities in greenfield and brownfield projects

Mid-term LNG supply / demand rebalancing indicates

recovery in LNG bidding and front end engineering

Continued focus on brownfield expansion and

maintenance services

Growing services offerings globally allowing greater

selectivity on EPC projects

Oil price stability signals possible inflection point

Expected backlog growth in 2018

ENGINEERING &

CONSTRUCTION

18

Outlook: Positioned for CapEx Recovery

Target Gross Profit Margins Including Equity In Earnings:

Mid-to-High Single Digits %

Company Overview

Provides award-winning, high value engineering, mission operations,

scientific, and IT service solutions to a wide array of federal government

agencies

The company innovates in the areas of: Agile development; big data;

GIS/Geospatial Application, Development; Geographic information systems

and Geospatial Data; Modeling, Simulation and Model Based Systems

Engineering (MBSE)

~2,500 employees (~85% of employee base located at client facilities)

19

Key Platforms and Programs

Key Customers Several recent large contract wins; MSOC, Mesonet, RS3, SPARC,

ProTech, REMIS, SESDA, TEAMS, SSIEP

No major recompetes for next 2 years

90% cost plus / T&M/FP growing

10 major contract vehicles (Army RS3, NOAA, ProTech, GSA Alliant)

CMMI Level 5 for both the Development and Services models

NASA

NOAA

Mission IT

Human Exploration and Operations Mission Directorate

Science Mission Directorate

Space Technology Directorate

Aeronautics Mission Directorate

Ocean surface Topography Program

Satellite Mission Operations and Maintenance Support

National Mesonet Program (Meteorological Observation)

USGS – Technical Support Contract (TSSCIV)

Department of Transportation – (SOFITS)

Key Highlights

Goddard Space Flight Center

Ames Research Center

Glenn Research Center

Johnson Space Center

Kennedy Space Center

Langley Research Center

Franchise at NASA

SGT

ACQUISITION

19

Overview

Transaction Rationale

Sapphire Delivers on Key KBRwyle Existing Strategy

Well-established, tightly integrated business with a strong

brand and reputation

Highly complementary opportunity for a well-established,

space-focused provider

Combination creates top tier services contractor at NASA

Multi-year revenue visibility with a robust pipeline (no

recompetes for next 2 years; 90% reimbursable)

Strong cultural alignment, similar business models, and

minimal integration risks

20

Sapphire Overview

1

2

3

4

5

Grow Space Franchise Grow Core Engineering

Civil• Expand NASA franchise across

multiple centers supported by growing congressional budget tailwinds

• Grow NOAA business and reputation for science and space

Army Command• Leverage Army relationships and

RS3 contract to accelerate CECOM growth, Army’s CommunicationsElectronics Command

• Grow TACOM, Tank Automotive Armaments Command

Military• Recapture Air Force Space

Support programs

• Enhances engineering credentials for MDA & DOD

Mission IT• Adds Data Center capability and

CMMI Level 5 development to existing KBRwyle cybersecurity

Sapphire Overview

20

SGT

ACQUISITION

Annualized revenues of ~$500M

Margins in line with GS norms

Low capital intensity, strong free cash flow

Backlog/Options of $3.4B

Revenue synergies of $100M by 2021

21

Sapphire Overview

21

Key Financial Metrics Deal Financials

Purchase price $355M

EBITDA Multiple low 8’s after tax benefits

Cash and GAAP EPS accretive in year one,

excluding transaction costs

Financial Summary

SGT

ACQUISITION

Largest UK Government infrastructure PFI

35 year PFI contract with UK Ministry of Defence

commenced in 2006

$1.5B contract expansion in 2017 in support of the UK

Army Basing Programme

Scope includes base construction, management,

maintenance and life support for 25% of UK Army

Track record of high performance with established

workforce

Stable, predictable earnings and cash flow for 23 more

years

Now entitled to previous JV partner’s share of earnings and

cash flow

ASPIRE

DEFENCE JV

22

Assuming Full Operational Responsibility

60%18%

23%

KBR including Aspire &

SGT

E&C

T&C

Govt Services

IMPROVING

PORTFOLIO

MIX

46%

18%

36%

KBR before acquisitions

E&C

T&C

Govt Services

Share of EBITDA

$13B

$22B

KBR excluding Acquisitions KBR including Aspire & SGT

Backlog + Option Years@ Dec. 31, 2017

23

KBR Pro Forma with SGT and Aspire

>75% of 2018 earnings from low risk/predictable GS

and T&C businesses

Higher proportion of E&C is services and

reimbursable projects

Step-change in backlog/future visibility

2017

2018

2017 Summary:

Met or exceeded guidance every quarter

Margins expectation across all segments met

Strong cash flow performance

Revenue stabilized with backlog/options growth

Excellent project execution

Integration of both Wyle and HTSI

2018 Performance Expectations:

Strong fundamentals in all three segment markets

Projecting targeted growth in earnings

E&C backlog growth expected

Successful SGT and Aspire transitions

Continued strategic and commercial discipline

Complete refinancing

Maintain capital allocation strategy

2017 SUMMARY

&

2018 PRIORITIES

Delivering on Commitments

24

APPENDIX

Significantly Lower Risk Profile

2017

BACKLOG

Backlog by Contract Type

Total KBR Backlog

At 12/31/17:

$13.4B including options

Cost

Reimbursable,

PFI & Services

ContractsFixed Price

Contracts, E&C

77% of earnings for 2018 secured in backlog

Majority of KBR backlog is currently either long-term,

reimbursable, PFI or service contracts with a lower risk

profile and predictable cash flows

GS backlog excludes unexercised options and ID/IQ and

MATOC contract values not yet under task order; work

ultimately realized may be significantly higher

‒ Current estimate $2.8B in additional unrecognized backlog

Fixed Price

Contracts (GS,

T&C) – Low

Risk

26

27

BACKLOG

Aspire & SGT will add $9B+ to Backlog, including Option Years

$7,821 $7,711 $7,891 $8,183 $8,355

$313 $333 $292 $278

$419

$2,769 $2,537 $2,134 $1,874

$1,790

$1,900 $2,195 $2,405

$2,935 $2,835

4Q160.7x

1Q170.7x

2Q170.8x

3Q171.0x

4Q171.2x

$12,838 $12,790 $12,729 $13,277 $13,405

GS

Total Backlog (including Option Years)

T&C

E&C

Option Years (GS)

Consolidated EBITDA Reconciliation

NON-GAAP

RECONCILIATION

Note: EBITDA is defined as earnings before interest income / expense, income taxes, other non-operating

income / expense (including FX, excluding settlement), depreciation and amortization

28

($ in millions) 4Q 2016 4Q 2017 FY 2017

Net Income Attributable To KBR ($87) $ 275 $ 434

Add Back:

Interest Expense, Net $ 5 $ 4 $ 18

Provision (Benefit) for Income Taxes $ 57 ($243) ($193)

Other Non-Operating Expense (Income) ($9) $ 2 $ 13

Depreciation & Amortization $ 14 $ 10 $ 48

Consolidated EBITDA ($20) $ 48 $ 320

Adjusted EPS Reconciliation

NON-GAAP

RECONCILIATION

29

4Q16 4Q 2017 FY 2017

EPS (diluted) ($0.61) $ 1.94 $ 3.06

Add Back:

Legacy Legal Fees $ 0.02 $ 0.02 $ 0.10

Tax Reform Impact $ 0.00 ($0.13) ($0.13)

Tax Valuation Allowance Reduction $ 0.00 ($1.59) ($1.58)

Shareholder Loan Receivable Impairment $ 0.00 $ 0.04 $ 0.04

Adjusted EPS ($0.59) $ 0.28 $ 1.49

PEMEX Settlement Gain $ 0.00 $ 0.00 ($0.18)

2017 Adjusted EPS before PEMEX ($0.59) $ 0.28 $ 1.31