Mr. Rob Blackadar reports

BADGER INFRASTRUCTURE SOLUTIONS LTD. ANNOUNCES RECORD 2023 FULL YEAR REVENUE AND ADJUSTED EBITDA AND A 4.3% DIVIDEND INCREASE

Badger Infrastructure Solutions Ltd. has released fourth quarter and 2023 annual results. All results are presented in U.S. dollars unless otherwise stated.

2023 Fourth Quarter and Annual Financial and Operational Highlights

• The Company achieved record revenue of $173.1 million for the quarter and $683.8 million for the year, up 16% and 20%, respectively, from 2022.
• Gross profit margin improved to 26.2% for the quarter and 27.9% for the year, up from 25.3% and 24.4%, respectively, in 2022.
• Adjusted EBITDA( 1) improved to $34.5 million for the quarter and $150.3 million for the year, up 23% and 50%, respectively, from 2022.
• Adjusted EBITDA margin( 1) rose to 19.9% for the quarter and 22.0% for the year, up from 18.8% and 17.5%, respectively, from 2022. Included in Adjusted EBITDA is a $2.7 million write-down of manufacturing inventory, a $2.1 million true up of our short-term incentive plan accrual and the accrual of $0.9 million related to unresolved tax audits.
• Consolidated revenue per truck per month ("RPT") for the quarter was $41,924 and $43,505 for the year, in line with the fourth quarter of 2022 and up 10% for the year.
• Earnings per share improved to $0.14 per share for the quarter and $1.21 per share for the year, up 17% and 128%, respectively, from 2022.
• The board of directors has approved a 4.3% increase to the quarterly cash dividend of CAD$0.1725 per common share to CAD$0.18 per common share effective with the dividend for the first fiscal quarter of 2024, with payment to be made on or about April 15, 2024, to all shareholders of record at the close of business on March 31, 2024.

"We finished the year strong, achieving another quarter of double-digit revenue growth and solid Adjusted EBITDA margins. In 2023, the team set new revenue records and continued our journey of improving utilization, operating efficiencies and margin accretion, driven by our focus on pricing and continued delivery of our commercial strategy. We are pleased to see our strategic investments in the Sales and Marketing functions paying off, setting the stage for another strong year in 2024. Alongside record revenues and activity levels, the Badger Team also achieved strong safety results for the year, showing the Company's continued commitment to our employees and customers during a period of high growth." said Rob Blackadar, President & Chief Executive Officer.

"We are excited for another year of growth in non-destructive excavation services across our end markets. In 2024, we plan to build between 190 to 220 units and to retire between 70 to 90 units, growing our fleet by 7% to 10% while continuing to drive strong utilization and pricing. We are also pleased to announce the Board has approved a 4.3% increase to the quarterly dividend as we remain committed to delivering shareholder returns while continuing to execute our long term organic growth strategy." concluded Mr. Blackadar.

2024 Business Outlook

In 2024, we expect to continue seeing strong and growing demand in our end markets, including infrastructure, utilities, and non-residential construction across all of our U.S. regions. We expect Canada to return to growth in 2024, but at a lower rate than the U.S. The Company will continue to focus on increasing revenue through our sales and national accounts commercial strategy to drive higher activity levels, capture pricing opportunities and to maintain strong utilization rates throughout our branch operations network. Badger's growing customer base and national accounts program is expected to continue to contribute to year over year growth in 2024. We also remain focused on both operational, functional and administrative scalability to drive operating leverage and continue growing Adjusted EBITDA margins and net earnings at a higher rate than revenue growth.

Badger continues to focus on fleet management and utilization to support its organic growth requirements and will continue to leverage its vertically integrated manufacturing capabilities. We plan to grow our fleet by 7% to 10% in 2024 and are well positioned to take advantage of market demand in all our regions. The Company is providing the following outlook for 2024:

About Badger Infrastructure Solutions Ltd.

Badger Infrastructure Solutions Ltd. (TSX:BDGI) is North America's largest provider of non-destructive excavating services. Badger works for contractors and facility owners in a broad range of infrastructure industries and in general commercial construction. Badger's customers typically operate near high concentrations of underground power, communication, water, gas and sewer lines, where safety and economic risks are high and where non-destructive excavation provides a safe alternative for certain customer excavation requirements.

The Company's key technology is the Badger Hydrovac(TM), which is used primarily for safe excavation around critical infrastructure and in congested underground conditions. The Badger Hydrovac uses a pressurized water stream to liquify the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. Badger is unique in the non-destructive excavation industry because it designs and manufactures all of its hydrovac units at its plant in Red Deer Alberta, which has an annual production capacity of more than 350 hydrovac units. To complement the Badger Hydrovac, the Company has a select number of specialty units, mainly Airvacs, combo trucks and sewer and flusher units.

2023 Fourth Quarter and Annual Results Conference Call

A conference call and webcast for investors, analysts, brokers and media representatives to discuss the 2023 fourth quarter and annual results is scheduled for 9:00 a.m. ET on Friday, March 1, 2024. To join the call and ask a question during the live questions and answers session: https://register.vevent.com/register/BI8efa242cb7274cac980417d280f91f92. To join the call with audio only: https://edge.media-server.com/mmc/p/rs22umry.

2023 Fourth Quarter and Annual Disclosure Documents

Badger's 2023 Annual Management's Discussion and Analysis ("MD&A") and 2023 Audited Consolidated Financial Statements, along with all previous public filings of Badger Infrastructure Solutions Ltd. may be found on SEDAR+ at www.sedarplus.ca.

2024 Investor Day

Badger will be hosting an Investor Day on Wednesday, March 20, 2024, at the Shangri-la Hotel in Toronto, Ontario. Badger's executive and operational leadership team will be in attendance. Registration and breakfast will be available starting at 8:30 a.m. ET. The formal presentation will commence at 9:30 a.m. ET, followed by a light lunch. To confirm your attendance, please RSVP by emailing your contact information to ir@badgerinc.com. The presentation will be webcasted live and also available on demand after the presentation. The webcast link will be posted to ir.badgerinc.com.

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