Q1 2025 KBR Inc Earnings Call
with a commitment on both sides to make this programme successful.
On Plaquemines, the project is progressing exceptionally well, following first gas and two for LNG exports are either on or ahead of schedule.
The success is due to the excellent execution by a joint venture and strong partnership with a customer venture global. A financial performance this quarter has been strong due to the successful delivery of key project milestones.
I think the takeaway here is that our extensive experience in LNG coupled with the advantageous characteristics of this commercial business model are delivering significant results.
Lossley, Lake Charles, LNG
Our customer, Energy Transfer, has entered into an agreement with Mid-Ocean to jointly develop the project.
Midotian will acquire a 30% equity stake in the project with a 5 million ton off-take. With the Midotian agreement and other off-take agreements that were recently secured, the project is progressing.
Now on to Linquist. Integration is now substantially complete and we're already realising synergies.
As an example, Lincus was able to leverage KBS financial backing and facility footprint in Colorado Springs to compete on when the recent ascend to award with the US Space Force.
A 970 million dollar ceiling-value single-award IDIQ which runs through 2035. Now a sand stands for advanced solutions for collaborative engineering and digital development.
This contact provides for digital interviewing and decision support capabilities, including digital environments and leverages of product, agnostic approaches, a hybrid, integrative, very exciting.
We were pleased to announce a number of new contract wins during the first quarter, a few of which I will highlight First we had several wins with the Department of Defense indicating that the US government continues to award contracts in priority areas [inaudible]
Our new wins include Astro, which I cover in more detail later.
Plus our $85 million procurement as a service contractor for airfield repair kits for the US Air Force and a $229 million contract for US Army cargo helicopter systems.
KBS longstanding and differentiated involvement in aircraft operations with a deep mission expertise provides a strong position from which we and contract wins such as these.
Through our daily work, we know what is required to modernise Army aircraft and this yields unique insights that allow us to best serve a Defence Department customer.
NSDS, we achieve strategic wins through our customer centric initiative.
We executed a global agreement with BP for Engineering, Procurement and Construction Management Services and are currently managing over circa $100 billion of work for BP's projects worldwide.
We also signed a delivery partner agreement with Terrapir, a pioneer and new commercial scale reactor technologies focused on delivering scalable cost-effective energy solutions globally.
In this partnership, KBR contributes its expertise in engineering complex systems and large-scale capital project delivery.
A first small module reactor, SMR, project will be located in Wyoming with plans for further reactor deployments into the 2030s, again very exciting development.
We're into the quarter with a 1.1 times TTM boot to bill and over 20 billion in backlog in options.
On the mission text side, we maintain a high level of bidding activity in Q1. Our pipeline remains consistent with last quarter with roughly $17 billion of bids awaiting award and MTS and $2 billion in protest.
Which we believe will start to move forward as the year progresses in the process.
On the sustainable tech side, we see a growing pipeline of LNG and energy security projects and ammonia demand remains strong.
It is worth noting that a number of our wins this quarter came from the global south.
the United Arab Emirates, Saudi, Iraq, and Indonesia to name but a few. Demonstrating the importance of this part of the world to future energy and KBR's positioning, commitment and strong reputation.
on to slide 7.
As we are focused on executing across all four pillars of our growth strategy, we are providing additional detail today on our first pillar.
How we are thriving and expanding in core markets and new geographies to catch a breakout growth. A recent contract with the Air Force Research Laboratory is an excellent example of winning in one of our core markets.
And successfully building upon a strong existing customer relationship. Thank you.
We are experiencing continued growth in the military space market, marked by a recent $176 million dollar contract win to support advanced space technology, research and optimization.
The Astral Contract represents a significant achievement and enhances our existing support operations at the Moe Space Surveilers Complex in Hawaii.
The Murray facility is focused on moraturing man-made objects in space, a critical national security capability and today's increasingly crowded and competitive space environment.
Inviting for this important 7-year contract, we were able to displace the incumbent, winning with our optical imaging capabilities, space domain awareness expertise, and excellent project execution track record.
Onto Slide 8
In view of the near-term risk we read about on a daily basis, we would like to provide some additional perspective on how KBR is well positioned in today's uncertain environment.
First with regard to Taurus.
KBR as you know is a high-end technology and professional services business and does not import or export products as a significant part of our business.
Furthermore, we do not procure raw materials, nor do any manufacturing in China.
That said, if a client's experience the cost of material increased due to tariffs, capex budgets may be re-evaluated.
As of now, we are not seeing a material change in customer behaviour but of course continue to monitor this situation.
Mustetti, Global Energy Demand, KBR's International Operating Capability positions us to capture any potential geographical shifts in energy markets and I think that's a key point.
Secondly, government efficiency initiatives have also been a key area of focus in recent months.
KBR has not experienced direct impacts from project cancellations [inaudible]
As noted last quarter, KBR has limited exposure to US Federal civilian budgets outside of NASA, which have been the primary focus of the efficiency reductions today.
With a NASA, KBR does not have material exposure to the science efforts which are under scrutiny as you may have read.
KBS Focus is primarily on human space flight missions where our decades of operational experience bring irreplicable capabilities which will continue to be valued and are necessary.
Lastly, although we are not fully immune to an economic slowdown, we do believe we are well positioned due to our diversified global mix of business.
Including our role as a provider of mission critical services to our customers globally, including the US government.
We are well aligned with strong secular growth trends, including global national and energy security, sustainability and digitalisation.
In addition, we are proactively taking actions such as reducing indirect costs and will control what we are able to control through a capital light flexible and largely variable cost structure.
One of KBR's strengths is that our portfolio offers multiple paths to achieving our objectives, allowing us to successfully navigate different macro environments.
In summary, we remain confident in our resiliency and ability to navigate today's challenging and changing conditions and with that I'll turn over to Mark.
Mark: Great. Thank you, Stuart. Good morning everyone. Thanks for joining us
I'll start on slide 10, covering our Q1, financial performance.
Mark: Revenues in the quarter were 2.1 billion, up 13% versus the prior year, driven by growth across both segments, as well as the linked last acquisition we made in the third quarter of last year. Organic growth was 5% in Q1.
Mark: Adjusted Yvda was $243 million, that's up 17% over last year, with margins at 11.8% in increase of 40 basis points against last year. This improvement came from STS performance, and I'll follow that here in a moment.
Adjusted EPS with 98 cents on the quarter, up 27%
Mark: As you can see in the release, the load line items were flat year over year, so an increased operating profit is contributed to EVS growth as well.
Mark: Operating cash flow is 98 million, an increase of 8% versus the prior year.
Mark: As you might know, Q1 is typically a lower cash flow quarter seasonally, so pace should increase going forward and we remain on track to meet our full year guide.
Knight, now on to slide 11 in our segment performance.
Mark: As we previewed in January , our operating segments are now Mission Technology Solutions, or MTS, and Sustainable Technology Solutions, or STS, so I'll use those acronyms going forward.
Mark: Starting with MTS revenues of 1.5 billion, we're up 14% versus the prior year with the Justin Evidah of 145 million, up 11%
Mark: margins were slightly lower at 9.6% and consistent with our expectations due primarily to the ramp up in home safe.
Mark: By Business Unit, Defense and Intelligence generated strong growth of 22%, Readiness and Entertainment was up 10% and Science and Space and International were steady.
Mark: MTSN to the quarter with a 1.0 times book to bill on a trailing 12 basis and a Stuart noted earlier there were no devotee bookings from government efficiency actions.
An STS revenues of 550 million were up 12%
with the Justice Evidda of $124 million, up 20 percent.
Speaker Change: EBITDA margins were 22.5% of 160 basis points over last year, supported by strong performance from the Plaquemines LNG project that Stuart mentioned earlier.
Speaker Change: Also, ongoing strong performance, bligh, our brown and root joint venture and healthy increases in our international portfolio including infrastructure work in Australia and also in the Middle East.
Speaker Change: As for a brown and root joint venture, this is not a project but is an end to end industrial services business in the energy and chemical sector.
Speaker Change: This business continues to grow and approximates 1.4 billion in annualized revenue with consistent profits and cash flow normative for this sector.
Speaker Change: Our 50% ownership continues to be a healthy contributor to STS financial performance so we're really pleased with that.
Speaker Change: On to slide 12 and balance sheet and capital matters. As you can see here in Q1 we were more assertive in returning cast to shareholders.
Speaker Change: In addition to our increased dividend taking effect in March, buybacks exceeded 150 million this past quarter. This is one of the largest amount of buybacks we've ever made in a quarter, reflecting our high confidence and our outlook, and in our intrinsic value.
Speaker Change: That leverage finished Q1 at 2.6 times in line with last quarter.
Our Capitol Allocation Priorities Remain Unchanged.
Speaker Change: First, we are focused on funding organic growth and operating excellence through investment.
Speaker Change: Second, we are targeting a leverage ratio below 2.5 times. Growth in EBITDA should get us here quite soon.
Speaker Change: Our next priority is returning capital to shareholders who buybacks and dividends.
Speaker Change: Our recently approved share repurchased program has approximately 600 million remaining under its authorization.
Speaker Change: And finally we will continue to take a disciplined approach to acquisitions, focusing on bolt-ons that have strong strategic fit within attractive financial profile. Thank you very much.
Speaker Change: So before moving on to guidance, I wanted to call your attention to a change we're making to our supplemental financial disclosure, specifically regarding our disclosure of disaggregated revenues.
Speaker Change: Today we have provided disaggregated revenues by contract type, business unit and geography.
Speaker Change: After evaluating peer disclosures and consulting with third party advisors, we are revising our disclosures to better align with industry standards.
This quarter, we are also providing revenues by customer type.
Speaker Change: We'll continue to provide revenues by business unit for the next three-quarters and we'll phase out the business unit disclosure by the end of 2025.
Speaker Change: We believe this provides our investors and analysts ample time to adjust to the new reporting approach.
Speaker Change: There's a slide in the appendix which outlines the fading of our disclosure change for your reference.
Speaker Change: So with that, let me shift to our outlook for the balance of the year on the slide 13.
We are reaffirming our guidance for fiscal 2025.
We expect revenue of $8.7 billion to $9.1 billion.
Speaker Change: We expect adjusted EBITDA of $950 million to $990 million. We expected adjusted earnings per share of $3.71 to $3.95.
Speaker Change: and lastly for operating cash flows, we expect 500 million to 550 million.
Speaker Change: Regarding revenue as we previously stated, our guide included an estimated revenue range for home safe of three to five hundred million for this year.
Speaker Change: As Stuart mentioned, we expect the pace of move growth to be modest in Q2 with incremental step ups in Q3 and Q4, and will provide an update on the ramp in our next Q2 call in late July .
Speaker Change: Additionally, within the greater macro, one of the areas of uncertainty continues to be the level of troop support in Eastern Europe .
Speaker Change: While we have not observed any significant impacts at this time, we continue to monitor the situation.
Speaker Change: Our guide assumes relative stability and I'll remind you that the run rate for this support is circa 200 to 400 million on an annualized basis.
Speaker Change: As we have stated before, these two programs are not consequential to profit and cash production in 2025 and thus we remain competently positioned to achieve our Adjusted EBITDA, Adjusted EPS and cash flow in accordance with our original guidance.
Speaker Change: All of their assumptions in our guidance are unchanged, including tax rates, capital expenditures, and interest expense.
Speaker Change: And in closing, we are pleased to have capabilities and a global footprint that enables the strong and consistent profit and cashflow production that you come to expect from KVR.
Speaker Change: With that, I'll turn it back to Stuart. Thanks a lot and great job as always. I'm on slide 14 with some key takeaways.
Speaker Change: We delivered strong financial performance in the first quarter with double digit revenue and EBITDA growth.
Are people continue to deliver with excellence?
Speaker Change: We continue to successfully and methodically execute our growth strategy, increasing our bit volumes and winning new contracts.
Speaker Change: We have a balanced and resilient business portfolio offering multiple pathways to growth.
We are preparing proactively amid macro uncertainty.
Speaker Change: We are controlling the controllable, being prudent on cost and remaining agile
Speaker Change: We are maintaining a disciplined approach to capital allocation, actually on a shared buyback authorization and returning capital to shareholders as Mark described earlier.
Speaker Change: Finally, redeeming confident in our Outlook for 2025, and are progressing well towards our 2027 objectives.
Speaker Change: What's that? We're happy to take questions and I'll hand the call back to the operator. Thank you
Speaker Change: Thank you. We will now start today's Q and A session. If you would like to register a question, please press star followed by one on your telephone keypad. And if you would like to withdraw your question, then it is star followed by two. Thank you.
Speaker Change: Our first question today comes from Andy Kaplowitz from City Group. Your line is now open. Please go ahead.
Thanks. Good morning, everyone.
Andy Katsiewicz: Good morning. Good morning. Booktable of 1.1 times, STS was good and I think you sound confident of continuing back-up growth but can you give more color into what you're seeing? It doesn't seem like you're seeing any sort of energy transition type delays but could you comment on that and do you still expect the primary regions of strength in your business to be the Middle East and the US?
Thanks, Andy.
Andy Katsiewicz: I think we have discussed this previously. We are seeing in certain geographies a move away from energy transition or sustainable projects and more into energy security, and that is a thematic I think that is happening globally, predominantly due to affordability issues.
Andy Katsiewicz: But in some regions, Europe in particular, we're still seeing energy transition high on the agenda and we continue to work across both segments, if you like, both markets.
Andy Katsiewicz: So we've got to be agile as we said on the call. We're very global as we said on the call and we have intimate relationship with customers depending on their needs.
Andy Katsiewicz: and depending on what's happening geopolitically in their environment. So yes, we are very confident looking forward with the STS portfolio and I think we've got a very balanced outlook and then we will look at energy transition and energy security. Thank you.
Speaker Change: , , , , , , , , , , , , , .
Speaker Change: Doubles to it, and maybe like kind of a similar question on the MTS side, I know I think you've dialed in like mid-single-digit organic growth for the year, you know, ex-HomeSafe and Lindquist. Given what you see out there, I mean, obviously the new president's budget just came out, emphasizes defense, as you know, you know, maybe de-emphasized masks a little bit.
Speaker Change: So, you know, how confident are you of that mid-symbol digit growth? Are the growth drivers changing it all? Or is it still very much your defense business is going to lead growth? And how do you think about sort of the massive business now?
Speaker Change: So, correct, there is a one trillion defense budget with a 150 billion-reconciliant package in motion as you are well aware.
Speaker Change: Our initial look at this is kind of off the presses, investment priorities look like being things like golden dome for the Missile Defense, agencies, initiatives, shipbuilding, nuclear deterrence.
Speaker Change: Space Dominance, and of course, part of security, many of these areas, of course, are well aligned to what we do today.
Speaker Change: An increase in funding and expected to flow into RDT and EVA were very strong and in procurement.
Speaker Change: And so overall, I believe are very well positioned opposite these budget priorities.
and in terms of Nasrath. [inaudible]
Speaker Change: It appears there's increased funding to human space exploration and whether that's to moon and Mars missions we'll find out later but that's very much aligned to our differentiated capabilities as we talked about many times where a leader in human space flight and that seems to be where the focus is. [inaudible]
Speaker Change: and I think the recommitment to fund the International Space Station through 23 is also a good point.
Speaker Change: and we'll have a role as the transition to commercial replacement. So all that I think it's a very strong alignment with queer KBR sits and where we position the business going forward and we feel confident that we're in the right places.
Speaker Change: On its question comes from Steven Fisher from UBS, your line is now open, please proceed.
Stephen Fisher: Thanks. Good morning. Just wanted to follow up on the mission.
Speaker Change: Technology, Discussion, and sorry if I missed this overlapped in calls before but if you could just give us this status and I think you decided that $2 billion of awards under protest.
Speaker Change: I think that was up from maybe a billion and a half last quarter. You can correct me if I'm wrong. What sort of...
Speaker Change: What's moving in and out of that, what's progressing and what isn't.
Speaker Change: and generally just the potential to see bookings activity pick up in the mission technology segment for the next couple of quarters.
Speaker Change: Thanks, Steve. Unfortunately, it is a trend in government awards that are protested almost on every major award.
Speaker Change: We are flat, quarter to quarter. It would suck 1.8 or so, so 2 billion this quarter. And there is a process that one has to go through. There's a number of days that the government has to respond to these protests.
Speaker Change: and we sat in the prepared remarks to expect me to resolve going into the second half of the year.
Speaker Change: Okay, that's helpful. And then, again, I'm not sure if I missed this, but in terms of home safe.
Speaker Change: How would you characterize the scope of the work that you're going to be capturing during the peak moving season here and how much that could still shift around as the next few months unfold?
Good questions, David, it's seasonal, as you're aware.
Speaker Change: We said in our prepared remarks we expect volumes in Q2 to be kind of similar to Q1 with increases going into Q3 and again into Q4 [inaudible]
Speaker Change: We are very happy with the performance on home safe. Again, we covered that in a prepared remarks. The customer satisfaction rates are up and remember that's the primary objective is to improve the move experience for the service men and women. [inaudible]
Speaker Change: The second objective is to save the taxpayers money and we're achieving that also. So we're very happy with how things are going. The relationship with Transcom is excellent and we look forward to progressing with what is. [inaudible]
Speaker Change: A fantastic transformational program deploying IT at scale, using a lot of digital tools and really transforming an industry to be more efficient and more countable.
Speaker Change: as we go forward. So feeling really good about where Trump will arrive, home safe sits today.
Speaker Change: On its question today comes from Michael Dudas from Vertical Research. Your line is now open. Please proceed.
Morning Jamie, Stuart, Mark.
Good morning, Mike.
Speaker Change: Stuart, well, some positive news certainly from Placumins and certainly on Lake Charles. What's your thoughts on additional capacity for such an incoming
Speaker Change: opportunities for the industry in general. I'm sure KBR in particular of capacity and how you want to structure any additional type contracts and LNG and maybe also the Brown and Root discussion that Mark was shared was pretty interesting. Any kind of.
Speaker Change: Flow, business, activity, insight that you could share that kind of supports where people are thinking about whether in that business or around energy and industrials in the US.
Speaker Change: I will answer the LNG question. The LNG activity has increased over the past couple of quarters, as you would expect.
Speaker Change: I think the performance in placements has been a true demonstration of capability and our delivery excellence in not market but also demonstrates our commercial discipline.
Speaker Change: and we would not be entering into any contract in the future that had any levels of Mumps on EPC or any machinations that were like that. So we'll keep our commercial discipline, but today we have LNG, obviously, in the U.S.
Speaker Change: We've started work on a program in Indonesia, we're working a program in Oman with Project Managing in Abu Dhabi, quite a large LNG development there.
Speaker Change: So that the activity levels are high across the world. It's a very global business, LNG and energy and in general as you're well aware. So we're feeling pretty good about the outlook for that. In terms of the Brown and Root John Venture?
Speaker Change: Mark was quite right. We haven't really talked much about Brian Rich on Venture as it doesn't really impact our revenue line but that business over the past since COVID has really recovered extremely well. It did well during COVID but obviously had activity levels down like most businesses.
Speaker Change: And since then, has really picked up pace. It's got a fantastic reputation, particularly in the southern states [inaudible]
Speaker Change: It's delivering on its promises to customers and winning more work as a consequence and has grown nicely to the 1.31.4 billion dollar revenue that Mark cited with with typical margins for that for that venture and we see
Speaker Change: as new facilities, particularly moving into areas like LNG and into the broader finding chemicals markets. It's quite an exciting area for that business to move into. Thank you so much.
Speaker Change: So it really helps us as well in terms of having a strong footprint in the operational side, so the apex side of the of the spend, and we couldn't be happier with the performance.
Speaker Change: and Leverto Strings of our legacy in this case with fruitful benefits has really been great to see.
Thank you.
Well said, thank you, Jalal [inaudible]
Speaker Change: On its question today comes from Mariana Perez-Mora from Beaufort. Your line is now open. Please go ahead.
Hi, this is Samantha Stiroh on Mariana.
Speaker Change: This morning, I was wondering, I know you talked a little bit about the energy transition and energy security dynamics internationally. I was wondering if you could touch a little more on the international side particularly as it relates to MTS. Thank you very much.
Speaker Change: MTS for KBR is really in two countries in the main, it's in the UK and in Australia.
Speaker Change: The business performance in the UK is underbind by a very, very long-term contract. A spire we've talked about many times, it runs out to 20-41.
Speaker Change: The UK has come through elections recently as you're well aware. They're announcing they're coming out with their defense review on the 8th of May actually.
Speaker Change: And so have more clarity into the strategic spend priorities of the UK government as it moves forward. But what has been public is the increasing spending, opposite GDP up to 2.5%, which I think is a good indicator of the increased spending and the MTS arena internationally in the UK. Thank you very much.
and continues to boot.
Speaker Change: being a little bit less regulated and we continue to perform really well in both the UK and Australia and we're excited about their future.
Speaker Change: Thank you, and then switching gears a little bit. I was wondering if you could discuss the M&A environment and where some of these bolt-on acquisitions, what kind of technologies you're looking at.
Speaker Change: So, we are very clear about our strategic priorities and the strategic vectors that we wish to go into.
Speaker Change: We do not do anything for bulk or anything like that. We acquire to strategically accelerate in the growth factors that we've identified.
Speaker Change: Those strategic factors are expansion internationally in the government arena into more areas where we're probably not as present as we could be in the intelligence community in areas like that would be attractive to us.
Speaker Change: And we're always looking in the SDS portfolio for additional technologies and innovative and entrepreneurial ways to tap into emerging technologies when we've done so with plastics recycling as you're aware with
Speaker Change: with that sustainable aviation fuel and more recently with our pure lithium offering which is taking wastewater and being able to extract lithium which could be a very, very attractive technology of the future, given how much wastewater there is around the world particularly in the energy market.
Speaker Change: So we continue to look for those and trying to be innovative and creative as we can be as we look to what will be in demand in the future as well as what's in demand today.
Great. Thank you.
Operator: On its questions, they come to Jerry Revich from Goldman Sachs. Your line is now open. Please go ahead.
Yes, hi. Good morning, everyone. Good morning.
Speaker Change: Hi, can you just expand on the progress that you folks are making on home safety? You mentioned improving customer satisfaction scores. Can you just quantify how that's trending? And also can you just give us an update, please on vendor signups? How's that going relative to plan and relative to the ultimate?
Target of Moves, on a multiyear basis.
Thank you. Bye.
Speaker Change: The main reason for that is the adoption of the technology. We put a lot of effort into creating drivers and as well as the companies who utilize the technology.
Speaker Change: and as a consequence of that, our adoption by suppliers is increasing.
Speaker Change: The level of staffing and training from our side into that capability and that's proving a real winner with the service men and women. We have not computers or robots that answer the phone but real people that help them with whatever issue they may have.
Speaker Change: Another part to this is that there are always issues in moving anyone who has all moved on this call, I'm sure.
Speaker Change: And there's always issues but we have settled 100% of all of the claims on time as it relates to any disgruntlement or anything that's been damaged etc. by the movie or so themselves so...
Speaker Change: I think all up, I think that was driving the performance and customer satisfaction.
Speaker Change: We put a lot of effort, Jerry into synchronising moves with Transcom, and really making sure that we don't impact service members, making sure we've got the supply chain to actually execute the moves, and our capacity continues to increase.
Speaker Change: And as we head into the peak season or the busy season or summer season or some call it there are different dynamics during that season then we're working daily with transcom to make sure the right decisions are made by this for the service members. That's our priority.
So, I think we are very much locked up with Transcom.
Speaker Change: Transcom went to Congress and the House Armed Service Committee recently and we are from their commitment to the programme.
Speaker Change: and have done so publicly and politically and we are absolutely in lockstep with them in that commitment. And as I said in my other statement, we're very confident in the future of this programme.
Speaker Change: Super, yeah I think Maiva would sign up for 90% test per satisfaction and our personal moves. In terms of on the LNG side, can we just expand on that? Thank you for the update on the off-takes only Charles. When are you expecting final investment?
Speaker Change: At this point and then, you know, any particular timelines on additional potential projects that you folks are bidding on any timelines that you might be able to share with us in terms of other opportunities for sizable LNG work.
Thanks, Jerry.
Speaker Change: It's actually energy transfers earnings day to day so I would point you to that call if you want a real update from I guess on the horses mouth on their thinking and their view of the timing and the progress on the project.
Speaker Change: Rahman, I'll do that for them, I would point you to their earnings, which fortunately is the same as ours today.
Speaker Change: The work in Oman is just completing the front end design so that I'll move into the execute phase later this year.
Speaker Change: They're all at different stages, Jerry, which is a good fact pattern because you get in early and therefore you can move resources and capability where the needs are. Not everything is hitting it once. And so...
Thank you for watching!
Speaker Change: Our next question on today's call comes from Sangita Jain from Keybank. Your line is now open, please proceed.
Sanjita Jain: Hi, good morning. I just have a couple of refollow-ups on home safe. Should we think of the ramp as something that is entirely as you improve your customer satisfaction and does increase moves or does is transcom looking for some kind of metric before they unlock more capacity for you?
Sanjita Jain: I believe we have performed really strongly in terms of the tech and the interface with transcoms tech, we've proven that that works.
Sanjita Jain: We've proven the operation can deliver not just in terms of technology but customer satisfaction and we've proven we can...
Sanjita Jain: Educate and train the supply chain in the way that they need to be adopters of the technology.
Sanjita Jain: All that is a good fact pattern in terms of moving forward with the program and attracting more of the supply chain.
Sanjita Jain: as we move into the rest of this year. There is no real metric that Transcon lay down.
Sanjita Jain: Bart, Customer Satisfaction, is a key area of their Lucat because their mission is to improve the life hours, the moving speeds of the Sabbath men and women.
So that would be the one metric they look at.
Sanjita Jain: I think the level of synchronization we have with Transcon today is really improving our ability to respond, our ability to pick up on time, deliver on time and that all falls down to the customer satisfaction reports of course.
Sanjita Jain: So, there's no real one metric or one key thing, I think it's just proving that we're committed and we're executing and that we're growing the supply chain and as that grows we'll do more moves.
Speaker Change: And just one on Doge, hasn't come up in a while and it doesn't look like that was an impact on your one cue. So just trying to see if that is still an overhang on how things are being done in Washington. Thank you again.
Speaker Change: In our prepared remarks, we're very clear we've not seen any impact to date from government efficiency initiatives.
Speaker Change: That work I'm assuming and Washington is not yet done, so who knows what the future holds, but I think the key part is really looking at where our business is sort of pointed and the areas that are aligned with the skinny budget that's been put forward are very well placed. [inaudible]
So, so far, no real impact from government efficiency [inaudible]
Speaker Change: As a reminder, if you would like to ask a question today, please press the follow by one on your telephone keypad.
Speaker Change: On its question comes from Jean Beliz from DA Davidson, you're lying to my way, please go ahead.
Bye, good morning and thank you for the time.
Jean Valise: For my first question regarding liquids, are we still expecting about a 400 million contribution for 2025?
and I am Mark Sopp.
Jean Valise: I'm sorry I was talking to Jamie for a moment. Jean, could you repeat that question, please? Smart. Yeah, no, no problem. Just regarding the link with...
Gene: I was still expecting somewhat 400 million contribution for this year for 2020-25.
Speaker Change: From an inorganic perspective, yeah, so there was a just short of 200 last year and it's a 600 year rich business, give or take, so you're close.
Speaker Change: That's not the total business, that's just the inorganic piece, that's what you're looking for.
Speaker Change: Thank you. Could you provide some color around the ammonia industry and perhaps what type of projects are you seeing in your pipeline?
currently.
Speaker Change: We stated and I prepared remarks that ammonia market remains strong.
We have a number of proceeds.
Speaker Change: is in our pipeline today, many of which are really driven more to the fatilizer usage, I would say rather than hydrogen usage, usage just given what's changed in the markets recently.
Speaker Change: But there's still a very attractive part of our business going forward.
Perfect, thank you, I appreciate the time.
Speaker Change: Perfect, we have no further questions in the queue at this time so that does conclude today's Q&A session and I'll hand back over to Stuart Bradie for closing remarks.
Stuart Brady: Thank you very much. Thank you all for taking the time to listen in. I know this has been a busy day for earnings on the state, so thank you for your time and your questions and your interest.
Stuart Brady: So really, the key takeaways from me and the investment pieces for KBR really, we're many excited about the powerful KBR in 2025 and beyond.
Stuart Brady: I'm a confident in our ability to continue creating value for our shareholders
Stuart Brady: We have completed a multi-year transformation and you've had a ring seat for that. We've become a leader in providing differentiated innovative upmarket science and technology and engineering solutions with large scale and global reach.
Stuart Brady: We serve diverse attractive end-market, aligned with strong secular Gord trans, as we've presented.
Stuart Brady: And I truly believe we have top talent combining deep-to-main expertise, proprietary technologies and an unwavering focus on execution that really has delivered fantastic results on an enduring basis. Thank you very much.
Stuart Brady: We are excellent partners as Mark said. We're operating in dynamic teams to solve our customers and most complex challenges which has resulted in recurring long-term engagements. We have many long-term contracts to underpin future earnings and over 20.5 billion impact log in options.
Stuart Brady: A diversification, our global footprint, our asset-like model, and discipline-capital allocation generates stable, predictable cash flows, and compelling shareholder returns. We have growth in margin expansion plans in flight.
Stuart Brady: Finally, we remain alert and agile, monitoring the current dynamic environment, as you would expect, and taking precautionary and proactive actions to ensure KBR remains very well positioned to deliver for our employees, our customers, and of course our shareholders.
Stuart Brady: I'd like to extend my sincere thanks to our 38,000 employees all around the world for their hard work and dedication in delivering solutions for our customers each and every day. They do a terrific job. So thank you again for joining today's call and for your interest in KBR and we look forward to updating you again next quarter. Thank you. Thank you for joining today's call.
Batten Blues today's call. You may now disconnect your line.