Press Release

Wire Release

Strong earnings of $138 million, up 273% versus prior year GAAP EPS of $0.97; Adjusted EPS of $0.34, up 273% and 21% respectively Adjusted EPS Guidance re-affirmed at $1.35-$1.45 Recently Completed (April 2018) the Acquisitions of SGT and Carillion's interest in Aspire Defence

HOUSTON, Texas - April 26, 2018 - KBR, Inc. (NYSE: KBR), a global provider of differentiated, professional services and technologies across the asset and program life cycle within the government services and hydrocarbons industries today announced first quarter 2018 financial results.

"It's an exciting time to be part of the KBR team. End markets are buoyant, backlog and bookings are strong and execution is delivering excellent safety performance and robust margins," said Stuart Bradie, KBR President and CEO.

"We remain committed to building a portfolio of recurring and predictable professional services and technologies businesses and this strategy is delivering stable revenues year on year (excluding non-strategic) and strong EPS growth. We posted excellent organic growth in our government business, increased sustainable margins in technology and are seeing the recovery in our hydrocarbons business with key wins coupled with earnings growth from last quarter. We were also pleased by our execution across KBR including Ichthys which is performing within the estimates provided in February," Bradie continued.

"In addition, in April we completed the planned acquisitions of Stinger Ghaffarian Technologies (SGT) and also Carillion's interest in Aspire Defence. These acquisitions advance our portfolio goals and give us additional long-term, stable backlog as a platform for earnings growth." First Quarter Financial ResultsÊ Three Months Ended March 31,Ê % Change Dollars in millions 2018Ê 2017ÊRevenue$1,038Ê$1,106Ê(6)%Gross Profit$81Ê$82Ê(1)%Equity in earnings of unconsolidated affiliates$23Ê$9Ê156%Gain on consolidation of Aspire entities$115Ê$-ÊN/ANet income attributable to KBR$138Ê$37Ê273%Adjusted EBITDA(1)$84Ê$77Ê9%Diluted EPS$0.97Ê$0.26Ê273%Adjusted EPS(1)$0.34Ê$0.28Ê21%Operating cash flows$(130)Ê$(115)Ê(13)%ÊÊÊÊÊÊ(1)See additional information at the end of this release regarding non-GAAP financial measures

Effective fiscal 2018, we are making the following changes in our reporting: We are changing the name of the Engineering & Construction (E&C) segment to the "Hydrocarbons Services" segment (HS). This change reflects strategic shifts we have made in this business over recent years to evolve to more recurring and reimbursable engineering, consulting and industrial maintenance services, coupled our de-emphasis in engaging in fixed price EPC projects except for those that fit within our commercial discipline.We have moved the Consulting division formerly reported in the Technology and Consulting segment to the Hydrocarbons Services segment. This aligns with our focus on high technology professional services engagements across the full life cycle of projects in Hydrocarbon end markets.

Revenue: The decrease in consolidated revenues was primarily driven by completion or substantial completion of several projects within our HS business segment. The decrease was partially offset by the consolidation of newly acquired entities in the Aspire Defence program and strong organic growth of 11% in our GS business segment.

Gross Profit: The consolidation of the Aspire Defence entities coupled with strong organic growth in our GS business segment and increased gross profits in the Technology segment offset decreases in gross profits from the HS segment caused by completion or substantial completion of several projects.

Equity in earnings: The increase in equity in earnings was driven by progress on the Ichthys project within our HS business segment. In the prior year first quarter, Ichthys was impacted by increases in estimated costs to complete the project, which adversely impacted equity in earnings in Q1 2017.

Gain on consolidation of Aspire entities: The gain was recognized upon consolidation of the Aspire entities as a result of adjusting our investment to fair value as required by U.S. generally accepted accounting principles.

Operating cash flow: The cash used in operations totaled $130 million in the three months ended March 31, 2018 compared to cash used of $115 million in the three months ended March 31, 2017. Operating cash flows were unfavorably impacted by timing delays in billing and collections in the GS segment which are expected to be resolved in Q2 2018.

New Business:
Government ServicesWe were awarded a $42 million contract by the U.K. Ministry of Defence to bring into service a water purification, storage and distribution system to deliver potable water to deployed U.K. forces.We were awarded a $32 million task order to assist the U.S. Air Force in enhancing the operational capability and efficiency of air and space systems.We were awarded a $34 million task order to provide analytical and engineering weapons systems support to assist the U.S. Air Force with air traffic safety and cyber threats.We were awarded a $69 million indefinite-delivery/indefinite-quantity contract to provide engineering and technical services to the Naval Air Warfare Center Aircraft Division.

TechnologyWe were awarded an ammonia plant contract by Toyo Engineering Corporation to provide licensing and basic engineering design services for the HURL project in Gorakhpur, India. We were awarded a license and engineering contract by ENAP Refinerias SA to utilize our ROSE solvent deasphalting technology at their refinery in Chile. We have entered into an agreement with PT Panca Amara Utama to provide our Ammonia InSite technology for their ammonia plant complex in Indonesia.

Hydrocarbons ServicesWe were awarded (April) a significant reimbursable pre FEED and FEED for a major petrochemicals complex in the ME.We were awarded a FEED leading to reimbursable EPC for a refinery expansion for a tier 1 customer in Texas.

KBR backlog increased from $10.6 billion as of December 31, 2017 to $13.2 billion as of March 31, 2018, primarily due to the inclusion of 100% of backlog associated with the consolidated Aspire entities and new awards, partially offset by workoff and other adjustments. Excluding Aspire, GS backlog improved by $150 million. Technology segment backlog improved by $36 million.

Guidance
We are re-affirming the company's full year 2018 fully diluted adjusted earnings per share guidance range of $1.35 to $1.45 per share. Our guidance of earnings per share is on an adjusted EPS basis, which excludes legacy legal costs for U.S. Government contracts, acquisition & integration-related expenses associated with the Aspire and SGT acquisitions, new amortization associated with the Aspire acquisitions and the gain on the Aspire consolidation. The estimated legacy legal costs do not assume any cost reimbursement from the U.S. Government that could occur in the future. A reconciliation of GAAP EPS to adjusted EPS guidance is located at the end of this release.

Our estimated effective tax rate for 2018 is unchanged and estimated to range from 22% to 24%. The operating cash flows are also unchanged and estimated to range from $125 million to $175 million for 2018.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logisticsTechnology, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining and gasificationHydrocarbons Services, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU); program management and consulting services

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results.

At KBR, We Deliver. Visit www.kbr.com

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Nelson Rowe
Senior Vice President, Investor Relations
713-753-5082
[email protected]

Media
Brenna Hapes
External Global Communications
713-753-3800
[email protected]

KBR, Inc.: Consolidated Statements of Operations(In millions, except for per share data)(Unaudited) Three Months Ended March 31, March 31, 2018 2017 Revenues:Government Services$677$515TechnologyÊ62Ê66Hydrocarbons ServicesÊ299Ê499Ê SubtotalÊ1,038Ê1,080Non-strategic BusinessÊ-Ê26 TotalÊrevenuesÊ1,038Ê1,106 Gross profit (loss):Government ServicesÊ52Ê37TechnologyÊ16Ê14Hydrocarbons ServicesÊ15Ê33Ê SubtotalÊ83Ê84Non-strategic BusinessÊ(2)Ê(2) Total gross profitÊ81Ê82 Equity in earnings of unconsolidated affiliates:Government ServicesÊ8Ê9Hydrocarbons ServicesÊ15Ê-Ê SubtotalÊ23Ê9Non-strategic BusinessÊ-Ê- Total equity in earnings of unconsolidated affiliatesÊ23Ê9General and administrative expensesÊ(35)Ê(32)Acquisition and integration related costsÊ(3)Ê-Gain on disposition of assetsÊ-Ê4Gain on consolidation of Aspire entitiesÊ115Ê- Operating incomeÊ181Ê63Interest expenseÊ(6)Ê(5)Other non-operating expenseÊ(2)Ê(7) Income before income taxes and noncontrolling interestsÊ173Ê51Provision for income taxesÊ(34)Ê(13) Net incomeÊ139Ê38NetÊincome attributableÊtoÊnoncontrollingÊinterestsÊ(1)Ê(1) Net income attributable to KBR$138