Badger Infrastructure Solutions Ltd.

ladies and gentlemen thank you for standing by welcome to the badger infrastructure solutions limited fourth quarter 2024 results call during the presentation all participants will be in listen only mode for those that have dialed into the audio portion of this call to ask a question during the live question and answer session please press star 1 to raise your hand Please wait for the operator to say your name and company before asking your question. For those listening through the webcast, attendees will be in listen-only mode. If you need technical assistance, please submit your request under the tech tab in the window on the right-hand side of your computer screen. As a reminder, this event is being recorded today, March 6, 2025, and will be made available in the investor section of Badger's website. I would now like to turn the call over to Anne Plaster, Director of Investor Relations.

Thank you, Debbie. Good morning, everyone, and welcome to our fourth quarter 2024 earnings call. My name is Anne Plaster, Badger's Interim Director of Investor Relations. Joining me on the call this morning are Badger's President and CEO, Rob Blackadar, and our CFO, Rob Dawson. Badger's 2024 fourth quarter earnings release, MD&A, and financial statements were released after market closed yesterday and are available on the Investor Relations section of Badger's website and on CDER+. We are required to note that some of the statements today may contain forward-looking information. In fact, all statements made today which are not statements of historical fact are considered to be forward-looking statements. We make these forward-looking statements based on certain assumptions that we consider to be reasonable. However, forward-looking statements are always subject to certain risks and uncertainties and undue reliance should not be placed on them as actual results may differ materially from those expressed or implied. For more information about material assumptions, risks, and uncertainties that may be relevant to such forward-looking statements, please refer to Badger's 2024 MD&A along with the 2024 AIF. I will now turn the call over to Rob Lacadar.

Thank you, Anne. Good morning, everyone, and thank you for joining our 2024 fourth quarter and full year earnings call. As we always do here at Badger, I want to start off with a safety moment. In 2024, our Make Safety Personal campaign empowered the team to keep the focus on safety, driving record results for the year. This accomplishment reaffirms our safety commitment to our employees, our customers, and our key stakeholders. This achievement is a testament to the hard work and vigilance of every team member. It underscores our belief that a safe work environment is essential for the well-being of our employees and critical to our overall success. As we move forward, we remain committed to maintaining and improving this performance, ensuring that safety continues to be a personal and collective value for all of us. Now on to our annual results. Badger finished the year on a strong note with continued growth in revenue, gross profit, and adjusted EBITDA. Our record top line revenue of $745 million grew 9% over the prior year, reflecting the results of our commercial and pricing strategies and growth in customer demand. We realized 42% flow through on this additional revenue driven by customer pricing and stability in our G&A functions. Accordingly, our full year adjusted EBITDA margin improved to 23.6% up from 22% in 2023. Our U.S. revenue grew 13% compared to last year as we saw consistent growth in activity and pricing gains. The deceleration of growth we experienced in the middle part of 2024 in our U.S. markets stabilized in the fourth quarter. We continued to experience sustained growth broadly in the U.S., both through local, customer, and project-based work. In our Canadian markets, revenue was down 15% compared to 2023. In the first three quarters, we experienced a slowdown in large project work, softness in some of our western provinces, as well as lower activity from our operating partners. Canadian operations began to recover in the fourth quarter, particularly in Ontario. As a reminder, Canada represents only about 10% of the company's revenue overall. Badger ended the year with 1,625 hydrovacs, growing the fleet by 7% overall in 2024, and RPT remained relatively stable. As we head into 2025, we have ample fleet available to support our customer growth initiatives through improved utilization. The Red Deer plant manufactured 190 hydrovacs, refurbished 35, and we retired 90 units during the year, all within our original build and retirement guidance. We continue to plan for stable manufacturing and stable retirement activity. As we look ahead to 2025, our fleet plan includes manufacturing between 180 and 210 hydrovacs, refurbishing between 50 to 60 hydrovacs, and retiring between 90 to 130 units. This allows us to grow our fleet by four to 7% and spend between 95 million to 115 million in capital. Included in this capital range is our Hydrovac production, our refurbishments, ancillary equipment purchases, and other capital projects. In my closing remarks, I will cover our outlook for 2025 and also some comments on the current uncertainty regarding tariffs. I'll now turn the call over to Rob Dawson to discuss our Q4 financial results in more detail. Thanks, Rob.