Strategies for Sustainable Growth and Resilience slide image

Strategies for Sustainable Growth and Resilience

Overcoming Inflation & EDGE in Action (Cont'd) Our decisive actions have resulted in margins inflecting upward CONTRACTING SERVICES TOTAL BACKLOG ($MM) ā—‰ $778 $665 Q1'21 Q1'22 $959 Q1'23 CONSOLIDATED EBITDA MARGIN1 12.2% 9.5% Q4'20 Q4'21 12.5% Q4'22 Record Backlog in Q1 2023 and has increased by 23% y/y with a 2-year CAGR of 20% Backlog includes execution of our EDGE plan with our new pricing and targeted bid strategy The full impact of additional margin tailwinds from repriced contracting services backlog expected in 2H 2023 - 2024 ā˜ Consolidated EBITDA margins have demonstrated strong upward momentum with Y/Y improvement through 2022-23 Q4 2022 margins were ~30 bps above Q4 2020 levels and ~300 bps higher than Q4 2021 While Q1 is our seasonally low quarter, margins continue to inflect upwards and were ~130 bps higher in Q1 2023 over Q1 2022 Further margin tailwinds from our new EDGE pricing and bid strategy Note: EBITDA, Adj. EBITDA and Cash Flow are non-GAAP measures, see Appendix for reconciliation. 1 As reported EBITDA margins of revenue. KNIFE RIVER 46
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