Ladies and gentlemen, we do apologize for that delay, and I will turn the call over now to Alison Vasquez, Vice President of Investor Relations. Please go ahead.

Thank you, Orlando. Good morning, and thank you for attending KBR's Fourth Quarter and Fiscal Year 2021 Earnings Call. Joining me today are Stuart Bradie, President and Chief Executive Officer; and Mark Sopp, Executive Vice President and Chief Financial Officer. Stuart and Mark will provide highlights from the quarter and the year, 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 these forward-looking statements, as discussed in our most recent Form 10-K, also available on our website. I will now turn the call over to Stuart.

Thank you, Alison, and thank you all for joining us and for your interest in KBR. I will start on Slide 4, where you've seen these before. Here are the ESG pillars of our Zero Harm program. I think year-ends are a good time to look back, and I'm pleased to report that we've made good progress across each of the pillars as we move towards our net-zero goal. I highlighted some key data points on Slide 5, which we'll touch on now. These really build on the inclusion of the first three metrics we highlighted last quarter. We're very proud to have achieved carbon neutrality for a second consecutive year on a path towards net-zero carbon by 2030. From a health and safety perspective, we again had a stellar year, and we continue to set the gold standard for Zero Harm days and incident rates. Our people are doing some amazing stuff, really great things across the communities in which we live and work, which is a core part of who KBR is. However, as I've said many times, at KBR, our commitment to sustainability goes beyond and includes leveraging our IP and expertise to help others achieve their sustainability goals, thus creating value for all our stakeholders. This is evidenced in over 30% of our revenue base that is directly linked to sustainability. Our people-centered Zero Harm culture is at the heart of KBR. It's been incredibly rewarding for our people to see many external recognitions of our progress in these important areas, some of which we've included here. I think a key takeaway here is that these unsolicited recognitions are very helpful in both retention and recruitment. These are only a few highlights from our sustainability report, issued in late '21. With ESG increasing in importance across the investment community and indeed the world at large, I would encourage you to read our sustainability report, which illustrates in detail the significance of ESG at KBR and our culture, and showcases that ESG at KBR aligns with shareholder value. So on to Slide 6 for some highlights and key takeaways. I'll start by talking about KBR and some distinct differentiators that have served us very well for many years, again in Q4 and beyond. Firstly, we have a significant baseload of long-term contracts across our portfolio, both domestically and, importantly, internationally. This provides us confidence in long-term targets and helps avoid downside volatility. Our people are integrated in mission-critical activities, doing things that really matter. Secondly, our international footprint provides greater diversity and mitigates downside volatility. Thirdly, our sustainable tech business is a true growth engine, typically margin accretive, as you know, and I think we've proven this in 2021. Finally, our people and culture, in my view, are simply amazing, and our people deliver quarter after quarter. Why do I highlight these differentiators? Because regardless of COVID, CR, labor market, or geopolitical shifts, our significantly derisked business model and our people have consistently demonstrated resilience. In Q4, we performed remarkably. In 2021, we performed across the core business, achieving growth, margin improvement, and stellar cash. There has been much discussion about OAW, and rightly so, but I want to reiterate that our core business performed exceptionally. Our ability to rapidly mobilize and demobilize complex and sizable supply chains in high-pressure environments is a real value add to our customers, the missions we serve, and, of course, our shareholders. So in short, 2021 was a strong year. But as we know, that is now history, and you are more interested in tomorrow. I believe a good indicator of how the business will perform tomorrow is, of course, book-to-bill. Our bookings were strong across government, sustainable technology solutions in general, and especially in heritage tech, which is quite telling. The quality of the work we're winning aligns with our shift to higher-end, differentiated, and margin-accretive work. We are very pleased with this. More details in a moment, but this all lines up to underscore continued momentum into '22 and beyond. With strong cash generation and a healthy balance sheet, capital deployment remains a priority. I believe 2021 was a model for balance across organic growth, M&A, and capital return to shareholders, with expanded dividends and ongoing share repurchases. Regarding M&A, I just spent a week traveling across the U.K., meeting with our new colleagues at Frazer-Nash, which we acquired last October. This business enjoys an exceptional brand with an amazing culture of technical expertise, and a collaborative model that I believe will enhance KBR's capabilities. More on this shortly. We enter 2022 with a significant amount of work under contract, well over 70%, with growth, earnings, and cash all on track with our 2025 targets. Mark will delve into guidance later, but '22 is shaping up to be another excellent year. Now on to Slide 7 and the outlook for Government Solutions. There's truly nothing new. The spending priorities and investment areas remain as stated in the first bullet point, and all for reasons we've discussed recently. We do not anticipate changes soon, especially in light of rising international tensions. While it may seem a bit premature to discuss '23 defense budgets, early indications based on reports from last week suggest a national defense budget could exceed $800 billion, translating to a 4% increase for DoD, which is promising. If spending priorities serve as leading indicators, then the bookings in these areas represent lagging indicators, validating these priorities. In 2021, award value plus options for Government Solutions amounted to $6.7 billion, with a robust Q4 book-to-bill of $1.3 billion. Some highlights from '21 to give you an idea of the type of work we are winning in our defense systems engineering business—contract vehicles that facilitate early entry into critical high-end projects have been significant. IAC-MAC, a great example involving multiple awards, saw us secure over $800 million in 2021, identical to 2020’s performance, with more expected in 2022. Strategically, we progressed upmarket in the U.K. alongside Frazer-Nash during a transformative phase for the U.K. MoD, adapting to Brexit, cyber concerns, and an evolving threat landscape. The pipeline at Frazer-Nash is looking very promising for '22. Our science and space business had an outstanding year, contributing across civil and commercial space, health and human performance, and mission IT, with strong on-contract growth and margin performance. We won a notable multiyear contract for high-end engineering services for space flight and ground systems via a KBR JV, with multiple bids currently in progress as we advance into '22. We could not overlook OAW's context concerning 2021. Nevertheless, the ramp down in 2022 has occurred just as swiftly as the ramp-up, placing families and individuals back into society by the state. Our guidance for 2022 will reflect an OAW tail, but it is not material. The directed energy program has advanced well throughout the year and continues into '22, with more to come as the year unfolds. Moving to Slide 8, regarding the STS market outlook, many aspects remain unchanged here. The market drivers are robust, especially in the ammonia sector, where KBR won all announced greenfield awards we sought in '21, showcasing strong orders across the green, blue, and grey ammonia landscapes. Political will and societal pressure concerning climate change are significant and enduring. As noted in the prior quarter, rising oil and gas prices reveal a supply/demand imbalance, allowing traditional energy firms to regain spending capacity, which we are witnessing. This enables clients to reconnect with capital projects, leading to increased investments aimed at decarbonization, energy efficiency enhancement, product flexibility, and energy transition initiatives—all aligning perfectly with KBR’s technological competencies. With over $1 billion in bookings throughout the year and a Q4 book-to-bill of 1.1 for the STS portfolio, we anticipate double-digit growth in '22, aligning with our targets. Remember that $150 million of low-margin reimbursable EPCs are still being addressed in 2021, enhancing the overall book-to-bill metric. The book-to-bill for heritage tech was a commendable 1.4 in Q4. The activity levels across the portfolio remain consistently high, whether in plastics recycling, olefins, or green refining, where we’ve achieved significant multiyear contracts to date, offering high-end engineering in hydrogen and decarbonization. KBR has undergone a remarkable transformation focused on sustainability, resulting in impressive performance in 2021, a trend we expect to continue. This brings us neatly to Slide 9. Our awards and overall group book-to-bill at 1.2 in Q4 are good short-term indicators. However, to assess longer-term outlooks, we must evaluate the pipeline of opportunities, which you can observe in the slide. The scale, minimal concentration risk, numerous $100 million-plus opportunities, and a considerable number of substantial contracts exceeding $1 billion attest to this. Importantly, our pipeline and booking figures exclude HomeSafe Alliance, which is currently under protest. There's much to anticipate. Our outstanding 2021 performance reflects strong growth and resilience in our core business, a substantial long-term work base, favorable market outlooks for our sectors, a robust book-to-bill ratio, and a solid pipeline, all contributing to our reaffirmation of targets for '25. With that, I will pass it over to Mark for further insights regarding our numbers and capital deployment, along with detailed guidance for 2022. Mark?

Great. Thank you, Stuart. Thanks, everyone, for joining us this morning. I'll pick up on Slide 11, which provides a snapshot of our financial performance for fiscal 2021. As Stuart stated, '21 was truly a commendable year overall, characterized by revenues, profits, and cash flow all exceeding our original plan and also aligning with or surpassing our long-term goals. When you take a step back and observe these charts, recognizing the context is crucial. Just last year, amid the pandemic, we initiated a bold transformation in our business. We undertook the largest acquisition to advance our capabilities within the intelligence community and military space at scale, simultaneously derisking and repositioning our commercial operations amid growing demand for sustainable technologies and solutions. Both alterations were designed to realign KBR towards higher-end, differentiated services that coincide with lucrative expanding markets and boast higher margins and attractive free cash flow. The figures and trends here speak volumes about how our operations and people have made this transition an overwhelming success. Revenue and earnings were bolstered as we rose to meet urgent humanitarian requirements associated with Operation Allies Welcome, which generated revenue and margins consistent with our previously provided guidance. It's worth noting that even with the dilutive effect of OAW on margins—approximately 50 basis points dilutive to operating margin—we still achieved our goal of a 9% EBITDA margin for the year due to excellent performance across both Government Solutions and Sustainable Technology Solutions. Our volume growth and strong margins across KBR resulted in adjusted EBITDA growing by over 30%. Coupled with normative below-the-line items, adjusted EPS grew by 40% for the year, significantly exceeding both our initial guidance and long-term targets. Excluding OAW, adjusted EPS growth remained in the low 20% range. Cash flow exhibited solid growth in alignment with our strategy's expectations. Additionally, our backlog and options increased, reflecting a strong Q4 book-to-bill, providing solid coverage for 2022, which underpins our growth guidance that I will discuss shortly. Slide 12 illustrates our results by segment, which has been a consistent narrative all year. Nothing surprising relative to our forecasts, except for the amplification of Government Solutions (GS) results stemming from OAW, which started to take effect in late Q3 and especially in Q4. We have observed solid growth across GS, with margins at 10% before the impact of OAW, just as we intended. The margins in GS primarily reflect excellent project execution; hats off to our operational heroes who deliver solutions advancing our clients' missions daily, with vital recompete wins this year and outstanding CPAR performance scores—a government methodology for objectively measuring contractor performance—and high award-free scores in challenging technical areas reflecting elevated customer satisfaction. This dedication to delivery will yield strong margins for our base. This encompasses Centauri, whose margins are on track, alongside continued double-digit margins from our international operations, which remain significant within the overall mix, as you're aware. Turning our focus to Sustainable Technology Solutions (STS). This team has accomplished remarkable feats. They skillfully managed the transition from legacy projects exactly as planned, while also clarifying the year-over-year revenue decline and catalyzing substantial revenue growth in much higher-margin areas consistent with our Sustainable Tech Strategy. EBITDA surged by an impressive 72% to nearly $200 million, with margins hitting 16% for the year, supplemented by robust cash flow. As we previously committed, this business boasts low capital intensity, appealing growth prospects, and protected IP that's in strong demand, serving multiple market verticals to quickly adjust across faster-growing sectors as they develop. Additionally, I want to highlight the ongoing positive advancements with Mura and our exclusive partnership regarding their Hydro-PRT plastics recycling technology. In 2021, we secured multiple licensing agreements for new facilities utilizing this technology, exceeding our expectations. We've also won numerous feasibility and initial engineering efforts for major clients worldwide—very important clients, including blue-chip corporations. Mura continues to attract equity investments from some of its esteemed partners, including a recent round that eclipses the valuation of our investment just one year ago. In Q4, we recognized a gain of $3.5 million tied to this valuation appreciation, though we excluded it from adjusted EPS. With STS contributing nearly 30% of consolidated contribution margin and a higher anticipated growth trajectory, it is undeniably more than just a value-add, positioning STS as core to KBR. It is poised to deliver significant economic value creation, which genuinely delights us. Moving to Slide 13, we've enhanced our scale and financial strength while demonstrating a balanced capital deployment strategy. In 2021, we raised our credit rating again, advancing two notches in three years. We capitalized on this development to renegotiate our credit facility, achieving lower pricing, increased capacity, and relaxed investment restrictions—among other beneficial attributes. In the fall, we utilized stranded cash to fund a substantial part of the Frazer-Nash acquisition. As Stuart previously mentioned, we're excited about that team, which effectively mobilized cash in a more accretive manner for us. Synthesizing this, in 2021, we fostered high organic growth. We made over $400 million in acquisitions, executed over $80 million in stock buybacks, and raised our dividends by 10% from the prior year. All the while, we maintained our leverage ratio at approximately 2.5x, underscoring the robust power of our cash flows. In 2021, we delivered results exceeding our long-term projections. I’ll discuss our expectations for continued growth and financial strength in 2022 and beyond shortly. Consistent with our capital deployment strategy— which includes paying an attractive dividend— we are pleased to announce yet another dividend increase for the third consecutive year. Beginning in 2022, our regular quarterly dividend will rise by 9% to $0.12 per quarter, totaling $0.48 for the year, translating to a 50% increase in our regular dividends since 2019. Now, moving to Slide 14 and our initial guidance for '22. Our guidance aligns with our long-term targets set last March and excludes the impacts attributable to HomeSafe Alliance, given its protest status. We anticipate revenues in the range of $6.3 billion to $6.8 billion, representing a 14% increase at the midpoint when omitting the 2021 bump related to OAW, which is naturally a one-off event. We provide adjusted EBITDA margin guidance of 10% of revenues, indicating an improvement from 9% in '21. This 10% overall guidance for '22 is consistent with our long-term targets, with GS expected to remain steady, and STS anticipated to enhance core margins by 1% to 2% yearly through both scale and mix. We foresee stable tax rates in our adjusted EPS guidance, estimating it within the range of $2.45 to $2.60, reflecting a 4% rise from '21 at the midpoint, and a 20% increase excluding the OAW impacts from the nonrecurring event in '21. Combined with the 40% growth in EPS for 2021, we are trending towards the pinnacle of our long-term targeted 2025 EPS CAGR, projected to be between 15% to 20%. Furthermore, we guide adjusted operating cash flow to rise consistently, with a projected range of $350 million to $400 million for '22, aligning with long-term targets and demonstrating continued capital deployment capabilities. This indicates conversion rates above 1x for net income to adjusted operating cash flow and adjusted free cash flow. The only noted adjustment here concerns the repayment of the CARES Act deferred payroll tax item amounting to $30 million, which we maintained outside our adjusted EPS calculations. In summary, we've achieved remarkable financial performance for the year. With enhanced financial strength, opportunities for value creation at KBR continue to expand. We're excited to reward shareholders another uplift in dividends. With net debt standing at 2.5x, along with robust cash flows, capital for M&A and/or buybacks will remain meaningful moving forward. We plan to maintain a balanced approach to capital deployment over the long term. We will remain disciplined in pursuing actions aligned with our growth strategy, risk tolerance, and compelling investment thesis for KBR, which we believe we have substantiated. That concludes my summary for 2021. We're looking forward to an exhilarating 2022. I sincerely hope you'll join us on this journey. Now, I will turn it back to Stuart.

Thank you, Mark, and great job yet again. Now let’s move to Slide 15 to conclude. I'd encourage you to read the words on this slide closely. However, today's prepared remarks emphasize a business that has consistently performed exceptionally and continues to do so, a business strategically positioned in attractive future markets—along with additional facets. Firstly, we possess clear differentiators and a global footprint, a substantial long-term business base, a unique, high-performing technology growth engine as Mark covered, and a low-risk, resilient, cash-generating business model. Secondly, we have a proven track record, consistently meeting or exceeding expectations quarter after quarter, year upon year. We commit to what we promised. Thirdly, we maintain a people-focused culture. While we’re far from perfect, we constantly strive for improvement. Nonetheless, one undeniable reality is that our people are dedicated to the mission and make meaningful contributions every day, which is tremendously encouraging. We have a strong balance sheet, unwavering focus on shareholder value, which provides us options, as you’re aware. Lastly, and increasingly important, we maintain a highly differentiated ESG position directly aligned with shareholder value. We made commitments regarding long-term targets in May '21. Our 2021 performance and the 2022 guidance for our core business, excluding OAW, align with those targets, reinforcing our confidence in reaffirming our '25 targets today. Thank you for taking the time this morning. I’ll now hand things back to the operator, who will initiate the Q&A session. Thank you. Orlando?

Thank you. In your '22 revenue guidance, could you give us some color on the components? So organic growth range or maybe provide the midpoint contribution from acquisitions and the OAW contribution, which, I think, Stuart, you said was immaterial, but just in terms of calculating the organic growth, it would be helpful. Thank you.

Yes. So I think, excluding OAW, if you back it out last year and this year, organic growth is sitting about 7% at the midpoint.

Okay. That's helpful. Could you tell us about any financial impacts the company is anticipating due to the increased activity in Europe and any troop movements? Is this a significant development for you?

I mean, I think, Tobey, that's a question we ask ourselves. It's early in that endeavor. There's a lot of classified things occurring in that arena. I mean, our EUCOM rate, as you know, we run a European Command for LOGCAP V, so we're well positioned there. Our typical run rates are around a couple hundred million dollars in that domain in '21. Yes, you'd expect a little uptick in that area. But it’s too early to provide any real guidance on this. It’s an unfortunate opportunity, I'd describe it. I mean, no one wants that kind of activity in the world. But we are prepared to support the ongoing situation there. I believe more will be revealed later.

Thanks. I know we started late, so that will be it for me, I will get back in the queue.

All right. Next we'll hear from Jamie Cook with Credit Suisse, please go ahead.

Hi, congrats on a nice quarter. Stuart, could you just provide an update on HomeSafe? Just what’s going on there with the protest and when you'll have a resolution on that? Also, if you could quantify what that means to the earnings power over time. My second question would be your confidence in your long-term targets and the potential to exceed those targets with the new awards and better balance sheet as well as acquisitions. When do you expect to see updates there? Thanks.

Yes. So HomeSafe Alliance, I believe the protest is due for conclusion by the third of March. We'll have more clarity then. If the protest resolves favorably for us, we will likely want to conduct a separate call with you to provide further detail about the ramp-up and timing. It’s a significant procurement for Transcom, valued at approximately $20 billion over 9.5 years, and I have no doubt we'll need to adjust our long-term targets if that goes through. As it ramps up, we anticipate a gradual build-out in the first 18 to 24 months, likely not material in '22. We’ll see a small initial kick, but not substantial until later. This will strongly drive organic growth into '23 and beyond, leading to a possible upward revision of our targets at that time. We'll conduct a separate call regarding specifics of the financials and expected returns. As for our current business, Mark mentioned we are tracking toward the high end of our '25 targets, which is a solid indication overall. I believe we have great confidence in our ongoing book of business for such performance. I think the outlook is positive overall; we've had an outstanding '21 and we are heading into '22 with optimism. Our core business continues to grow substantially, providing remarkable cash returns and earning performance. The STS business is performing exceptionally well, and overall, it's a great time to be at KBR, and I fully endorse that sentiment!

Okay, thank you.

Our next question comes from Jerry Revich with Goldman Sachs. Please go ahead.

Yes, hi, good morning everyone.

Good morning, Jerry.

I'm wondering if you could discuss the heritage tech revenue burn outlook for 2022. If I'm correct, it appears that you booked about $600 million of heritage tech orders in '21. How quickly do you project the revenue ramp-up on those awards?

So Jerry, your analysis appears accurate regarding the bookings with our Q4 book-to-bill being a fantastic market indicator of strength. While we won’t disclose specifics on that, it's essential to understand that the overall STS business is improving its margin mix due to heritage tech’s success in growth areas. We are also planning for true organic growth as we move through '22 whilst winding down those reimbursable EPCs. We expect strong revenue growth in those coveted areas, which is positive overall.

Okay, appreciate it. Thank you.

Next question will come from an indiscernible speaker, please go ahead.

Orlando, can we go to the next question? Maybe Gotham can connect back.

We are at the next question. Okay, we'll move on to Michael Dudas with Vertical Research. Please go ahead.

Good morning, gentlemen. Alison.

Hi, Michael.

Hi, Mike.

Morning, Michael.

So since you queued it up earlier, Stuart, can you discuss a bit about 2022 regarding capital allocation and the M&A pipeline in context of your solid cash flow guidance? What type of investment are you considering? Perhaps discuss HomeSafe as you ramp that up throughout the year?

Yes. We've made clear that we have multiple options currently available to us. Our balance sheet strength is evident and our capital deployment remains well-balanced. Along with the dividend increase, we’re working towards share repurchases as we proceed through the year. However, the M&A market remains heated—there's much interest in various assets—which makes pricing discussions challenging. Importantly, we don’t depend on acquisitions to meet the high end of our '25 targets. We can afford to be discerning regarding what we pursue and when. We have clearly defined growth vectors and will not stray from those. Our M&A activity will focus only on strategic positioning and accelerating our growth initiatives. You may see us in the M&A space if suitable, accretive opportunities arise. We've been disciplined in that regard historically, and we intend to maintain this strategy going forward. This overview might sound vague, but it’s a reflection of the confidentiality surrounding the specifics of targets. We remain committed to pursuing acquisitions that fit our model of making KBR a better home for any acquired business.

That's quite helpful. My follow-up would be regarding sustainable tech—highlighting the strong book-to-bill moving forward. Which areas do you anticipate receiving further momentum in the technology pipeline throughout the next few quarters as we head into '23?

As we mentioned during our prepared remarks, the ammonia sector presents continued growth opportunities supported by heightened activity and favorable market trends, especially within the fertilizer domain and the broader hydrogen future. We're also witnessing rapid momentum within the plastics recycling space, exceeding our expectations. Meanwhile, traditional energy companies are amplifying capital deployment into energy efficiency and decarbonizing initiatives; we expect to capture significant opportunities along our K-COT portfolio and within our olefins operations as well. Requests for bids and ongoing activities across our segments are encouraging indicators.

Thank you, Stuart.

I'll add one point regarding HomeSafe. We should cover that detail; as Stuart previously noted, if we acquire favorable outcomes, we can discuss that in relation to our targets and the capital outlook there. We don’t foresee major shifts in capital intensity with that venture. Expect there to be an initial investment, but not a point for concern.

That makes sense. Thanks, Mark.

Up next, we'll take a question from Gautam Khanna with Cowen, please go ahead.

Hey, can you hear me, guys?

We can. Awesome. How are you doing?

Terrific. Sorry about that earlier. Guys, I had two questions. First, what are your thoughts on the bookings outlook in the Government Solutions segment for the coming quarters, especially given the continuing resolution, as I presume Q1 might be lighter? Do you expect any significant catch-up in calendar Q2 or Q3, or how should we view the cadence?

Great question, Gautam. As I indicated last quarter, we had unique opportunities in Q4 that set us apart, and that became evident with a strong book-to-bill entering the new year. We possess several awards and activities lined up as we enter Q1, and those should materialize in Q1 and Q2. If everything unfolds as anticipated, we're in a solid position. If the HomeSafe Alliance award materializes positively by the 3rd of March, this issue could become irrelevant. Our strong positioning within commercial business and international government sectors affords us a robust footing, even with any minor delays due to CR.

My follow-up inquiry is regarding the HomeSafe Alliance; has any information been disclosed about its ownership structure besides its majority interest in the joint venture? Have you revealed ownership percentages or any commercial terms?

We have not disclosed specifics on that, Gautam. As previously mentioned, we’re optimistic about the outcome of the protest and should have clarity shortly. Once we have those details, we can provide the specifics and help clarify how that venture aligns with our targets. It's quite significant overall and aims to revolutionize the industry through digital deployment and supply chain management, aligning perfectly with our operational capabilities.

Thank you very much, guys. Good luck.

Thank you.

All right, next, we’ll hear from Brent Thielman with D.A. Davidson. Please go ahead.

Thank you, Stuart. Regarding STS, I am curious whether the rise in commodity prices has accelerated the pipeline versus six months ago. Are Hydrocarbon clients looking to expedite transitions? Are we seeing increased opportunities now, or are these early discussions?

No, absolutely. We're indeed observing enhanced pipeline opportunities, Brent. I mentioned how developments were emerging back in late '21, proceeding into Q3 and Q4, and those have escalated among our clients who consider their futures more favorably. The STS pipeline is strong, and we’re confident in pursuing continued double-digit growth as a consequence.

Thank you.

Q1 is anticipated to have some reflection from the OAW project, but the majority should materialize in Q2, similar to historical trends. Q1 is typically light due to government seasonal patterns. We can expect strong rebounds in Q2 as well as throughout the year.

Up next, we will take a question from Sean Eastman with KeyBanc Capital Markets. Please go ahead.

Hi, guys, thanks for taking my questions. Stuart, you mentioned you don't need to pursue acquisitions to trend toward the upper end of 2025 target ranges, which is a notable comment. Does that include HomeSafe, and would you still claim that without considering it?

No, that excludes HomeSafe. Once we navigate through the protest period, we anticipate we will need to raise those targets upward on account of HomeSafe.

Understood. HomeSafe does indeed have the potential to elevate GS. How close do you think STS is to a potential breakout? Looking at the recent solid bookings, it seems the fundamentals are firming.

Achieving double-digit growth alongside margin increases is typically what we would call a breakout. Hence, we've set that expectation. We won't overstep our bounds and aim for achievable targets. That said, we're positioned excellent in fundamental terms, and we don’t foresee market changes midterm. There's substantial societal pressure and broad circumstances ensuring strong market conditions for the foreseeable future.

Thank you.

Good morning, everyone. Stuart, could you provide more insights regarding your self-help strategy and its relation to sustainable tech? We know of the long-term targets. What challenges are you encountering in reducing costs amidst inflation and supply chain challenges?

Absolutely, our self-help initiatives became evident through 2021 and well into late '20. We’ve made substantial changes in our cost structure for the future while positioning ourselves adequately in the marketplace. We have a 100-year-old business with complexity matching that length. As we simplify operations, we are seeing efficiencies, which help us counter inflationary pressures. We remain confident in achieving our margin targets despite the odds. The transitions are budget-friendly, and we’re substantially insulated from inflation via our service contracts, as they're generally cost-reimbursable. Our supply chain hasn’t shown pressure either, given our strong partnerships with established providers, making our continuity quite smooth, so everything is on course with minimal concerns.

Thanks for that. As you addressed previously, are clients revisiting energy and chemical projects in response to rising commodity prices? How's the trade-off appearing between accelerating energy transitions versus older economy projects?

Traditional energy companies have honestly acknowledged the necessity for continual investments in conventional projects to generate adequate cash flow, enabling them to decarbonize responsibly and sustainably. We are certainly noticing such initiatives. Important investments are being revisited, fostering emphasis on energy efficiency and adapted product mixes for future demands—that transition is unfolding positively.

Okay. And now, we will conclude with a question from an analyst at UBS. Please go ahead.

Hi guys, good morning.

Good morning. It’s good to think about.

Looking ahead at 2022, could you share which technologies will emerge as the primary drivers of earnings growth? Lastly, which new awards do you anticipate in 2022?

In the sustainable tech sector, we've noted over the first half of 2021, hydrogen and ammonia held great potential. However, much of our growth has also emerged from olefins and green refining capabilities. The momentum continues into 2022. Plastics recycling is an ongoing area of vigorous activity as well, so opportunities will be broad-based without overreliance on any single area, which minimizes concentration risks and distributes performance across our global technology portfolio.

Got it? Thank you.

There are no further questions. I'll turn it back to Stuart Bradie for additional remarks.

Thank you for your interest and inquiries this morning. We are genuinely pleased with our 2021 performance. It was a remarkable year, as highlighted throughout this call. We are very excited about what lies ahead. There's much to be optimistic about; not only in relation to our strategic positioning but also to our guidance and prevailing market dynamics, along with the forthcoming HomeSafe Alliance news by the end of Q1. It's not often that I express such optimism, but I genuinely feel it today for a prosperous year ahead. I hope to see many of you face-to-face soon as we elevate our engagement within the investment community. We consider you all vital strategic stakeholders in KBR and look forward to deeper engagement in 2022. Thank you very much.

Ladies and gentlemen, this concludes today's call. We appreciate your participation. You may now disconnect.