Mr. Robert Blackadar reports

BADGER INFRASTRUCTURE SOLUTIONS LTD. ANNOUNCES RECORD 2024 FIRST QUARTER REVENUE AND ADJUSTED EBITDA

Badger Infrastructure Solutions Ltd. released its first quarter results today. All results are presented in U.S. dollars unless otherwise stated.

2024 first quarter operational highlights:

• The company achieved revenue of $161.6-million, up 13 per cent from 2023.
• Gross profit margin improved to 24.8 per cent, up from 22.9 per cent in 2023.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)) improved to $29.2-million, up 22 per cent from 2023.
• Adjusted EBITDA margin rose to 18.1 per cent, up from 16.7 per cent in 2023.
• Consolidated revenue per truck per month (RPT) for the quarter was $36,904, down from $38,231 in 2023.
• Adjusted earnings per share were 14 cents per share, up 27 per cent from 2023.

The board of directors has approved the quarterly cash dividend of 18 Canadian cents per common share for the second fiscal quarter of 2024, with payment to be made on or after July 15, 2024, to all shareholders of record on June 30, 2024.

"We are pleased to report record first quarter revenue of $161.6-million, which was 13 per cent higher than the first quarter of 2023, driven by our U.S. end-markets. We've had a strong start to the year with record adjusted EBITDA, 22 per cent higher than last year as we continue to focus on improving our margins and profitability in the seasonally slower months. The execution of our commercial, sales and pricing strategies have set the foundation for Badger to continue its journey as the industry leader in non-destructive excavation in 2024," said Rob Blackadar, president and chief executive officer.

"We are preparing for a busy construction season and another year of growth in non-destructive excavation services across our end-markets. We expect 2024 to be another strong year and we remain on track to grow our fleet by 7 per cent to 10 per cent while continuing to drive strong utilization and pricing," concluded Mr. Blackadar.

Business outlook

In 2024, the company expects to see continued strong and growing demand in its end-markets, including infrastructure, utilities and non-residential construction across all of its U.S. regions. The slowdown it has experienced in Canada is attributed to the delay of several projects, which are currently expected to begin in the back end of 2024 and into early 2025. The company will continue to focus on increasing revenue through its sales and national accounts commercial strategy to drive higher activity levels, capture pricing opportunities and to maintain strong utilization rates throughout its branch operations network. The company also remains 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. The company plans to grow its fleet by 7 per cent to 10 per cent in 2024 and the company is well positioned to capture market demand in its high-growth regions.

The company is maintaining its outlook for its fleet management and capital spend for 2024.

About Badger Infrastructure Solutions Ltd.

Badger 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, which is used primarily for safe excavation around critical infrastructure and in congested underground conditions. 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, Alta., which has an annual production capacity of more than 350 hydrovac units. To complement Badger Hydrovac, the company has a select number of specialty units, mainly Airvacs, combo trucks, and sewer and flusher units.

2024 first quarter conference call

A conference call and webcast for investors, analysts, brokers and media representatives to discuss the 2024 first quarter results is scheduled for 9 a.m. ET on Thursday, May 2, 2024. To join the call and ask a question during the live questions and answers session, register on-line.

2024 annual meeting of shareholders

The company will be holdings its annual meeting of shareholders on Thursday, May 2, 2024, at 12 p.m. ET. The meeting will be held virtually by live audiocast.

2024 first quarter disclosure documents

Badger's first quarter 2024 management's discussion and analysis (MD&A) and interim condensed consolidated financial statements for the three months ended March 31, 2024, along with all previous public filings of Badger, may be found on SEDAR+.

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