Infrastructure and Energy Alternatives Inc

Infrastructure and Energy Alternatives — Q1 2022 Earnings Presentation

23 slides from Infrastructure and Energy Alternatives's earnings presentation, May 9, 2022

  1. Slide 1: Investor Presentation May 2022

    © 2022. IEA. All Rights Reserved. INVESTOR PRESENTATION MAY 2022

  2. Slide 2: Forward-looking statements

    © 2022. IEA. All Rights Reserved. 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking st

  3. Slide 3: A Market Leader in the Renewable Energy Transition

    3 © 2022. IEA. All Rights Reserved. A MARKET LEADER IN THE RENEWABLE ENERGY TRANSITION Atlas Clean Energy Index Select ESG Index Memberships Infrastructure and Energy Alternatives (“IEA”) is a leading provider of renewable energy services and transportation construction solutions in the United State

  4. Slide 4: Leadership Positions Expanding Leadership in Key Renewable Markets

    4 © 2022. IEA. All Rights Reserved. LEADERSHIP POSITIONS EXPANDING LEADERSHIP IN KEY RENEWABLE MARKETS IEA ranks on the 2021 Engineering News-Record Top 400 Contractors and Sourcebook List #2 WIND #8 SOLAR #4 POWER #17 RAIL #5 MINING #18 HIGHWAYS #39 TRANSPORTATION #48 TOP 400

  5. Slide 5: Renewable Energy Development: How IEA Adds Value to the Process

    5 © 2022. IEA. All Rights Reserved. RENEWABLE ENERGY DEVELOPMENT HOW IEA ADDS VALUE TO THE PROCESS Customers Renewable EPC Construction Services Illustrative EPC Services Engineering Procurement / Construction • Geotechnical • Preliminary & Detail • Engineering Management • Surveying & Permitting •

  6. Slide 6: Constructed over 24.4 GW of wind and solar projects

    6 © 2022. IEA. All Rights Reserved. Constructed over 24.4 GW of wind and solar projects that annually offset 7.3 MILLION HOMES POWERED ANNUALLY 7.1 MILLION VEHICLE EMISSIONS CUT ANNUALLY CO2 – 32.8 million MT | NOx – 17.9 MT | SO2 – 19.5 MT | PM2.5 – 2.2 MT 1) Homes powered per year based on the GW

  7. Slide 7: IEA Segment Profiles

    7 © 2022. IEA. All Rights Reserved. REPORTING SEGMENTS IEA SEGMENT PROFILES RENEWABLES SPECIALTY CIVIL Wind Solar Power Delivery LTM Financial Performance (Q1-2022) $1.52 Total Revenue billion $130.8 Gross Margin $ million Long-Term Target Gross Margin % 10-12% 8.6% Gross Margin % Heavy Civil Rail E

  8. Slide 8: Focused Renewable Exposure

    © 2022. IEA. All Rights Reserved. 8 Focused Renewable Exposure 70%+ of IEA’s business comes directly from Wind and Solar construction and services. LTM Revenue from renewables totals over $1.5 billion. Renewables Cost Less than Traditional Power Sources Renewables are the lowest cost form of new gen

  9. Slide 9: U.S. electricity generation from selected fuels

    9 © 2022. IEA. All Rights Reserved. U.S. electricity generation from selected fuels AEO 2022 reference case Billion kilowatthours 0 1,000 2,000 3,000 4,000 5,000 6,000 2010 2020 2030 2040 2050 2021 history projections natural gas renewables nuclear coal 40% 21% 19% 19% 36% 42% 11% 11% Source: US Ene

  10. Slide 10: Civil Outlook: Once-in-a-Generation Investment in Infrastructure

    10 © 2022. IEA. All Rights Reserved. CIVIL OUTLOOK “ONCE-IN-A-GENERATION” INVESTMENT IN INFRASTRUCTURE (1) ARTBA “Market Forecast 2021” 2021 (2) United States Environmental Protection Agency Fiscal Year 2020 Justification of Appropriation - Estimates for the Committee on Appropriations (3) Whitehous

  11. Slide 11: Civil Outlook: Largest Increase in Funding Since 1956

    11 © 2022. IEA. All Rights Reserved. CIVIL OUTLOOK LARGEST INCREASE IN FUNDING SINCE THE FEDERAL- AID HIGHWAY ACT OF 1956 (1) Source: ARTBA “$1 Trillion Infrastructure Bill Passes House, Heads to President for Enactment” Nov 5 2021 Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs A

  12. Slide 12: Coal Ash Remediation Outlook

    12 © 2022. IEA. All Rights Reserved. COAL ASH REMEDIATION OUTLOOK LARGE OPPORTUNITY WITH LONG-TERM CONTRACTS There are more than 1,000 coal ash impoundments and surface landfills (1) that require EPA-Mandated closure or remediation Coal ash remediation opportunity could be as much as $50 billion to

  13. Slide 13: Q1 2022 Financial Performance

    © 2022. IEA. All Rights Reserved. 13 Q1 2022 FINANCIAL PERFORMANCE

  14. Slide 14: Business Highlights – Q1 2022

    © 2022. IEA. All Rights Reserved. 14 Record Revenue A record for first quarter with quarterly total revenue of $360 million, up 30% year-over-year, with record LTM total revenue of $2.2 billion Continued Strength in 2022 2022 forecasted to be another record year, Revenue expected to grow 15% and Adj

  15. Slide 15: Strong Backlog – Q1 2022

    © 2022. IEA. All Rights Reserved. 15 STRONG BACKLOG –Q1 2022 EXCELLENT VISIBILITY FOR THE REMAINDER OF 2022 Next Twelve-Month Backlog ($mm) Total Backlog ($mm) ▪ Strong backlog in Q1-2022 of $2.9 billion • YoY increase of $0.3 billion (or +10%) ▪ Renewables Segment backlog of $2,085 million • YoY in

  16. Slide 16: Revenue, Adjusted EBITDA, SG&A and Gross Margin

    © 2022. IEA. All Rights Reserved. 16 SG&A Expense ($mm) Revenues ($mm) Adjusted EBITDA ($mm)(1) $3 -$17 1Q21 1Q22 $25 $35 1Q21 1Q22 Key Themes ▪ Record first quarter revenue of $360 million • Strong start to 2022 with increased full year revenue guidance ▪ Solid next-twelve-month backlog of $2.1 bil

  17. Slide 17: Segment Results – Q1 2022

    © 2022. IEA. All Rights Reserved. 17 Key Takeaways ▪ Wind revenues in line with management expectations (down $29 million YoY, or 20%) ▪ Solar revenues up significantly YoY ($126 million vs $34 million the same period last year) • Fastest growing renewable business going forward ▪ Gross Margin % dow

  18. Slide 18: Capital Structure Key Figures Post Refinancing

    © 2022. IEA. All Rights Reserved. 18 CAPITAL STRUCTURE KEY FIGURES POST REFINANCING • IEA successfully restructured our capital structure in Q3 2021 • Key activities included: • Equity Offering • Series A Preferred Conversion • Series B Preferred Payoff • High Yield Offering • Expanded Revolver • To

  19. Slide 19: 2022 Guidance as of May 9, 2022

    © 2022. IEA. All Rights Reserved. 19 2022 GUIDANCE AS OF MAY 9, 2022 ($ in Millions) Low High Revenue $2,300 $2,500 Net Income 45.0 51.0 Interest Expense, Net 25.0 26.0 Depreciation & Amortization 47.0 48.0 Expense for Income Taxes 18.0 19.0 EBITDA $135.0 $144.0 Non-Cash Stock Compensation Expense 5

  20. Slide 20: Appendix

    © 2022. IEA. All Rights Reserved. 20 APPENDIX

  21. Slide 21: Adjusted EBITDA Reconciliation

    © 2022. IEA. All Rights Reserved. 21 Dollars in thousands Last- Twelve- Month (LTM) 3-31-2022 Quarter Ended 3-31-2022 Quarter Ended 12-31-2021 Quarter Ended 9-30-2021 Quarter Ended 6-30-2021 Quarter Ended 3-31-2021 Net income (loss) $(90,366) $ (27,071) $ 31,655 $(99,649) $ 4,699 $(20,434) Interest

  22. Slide 22: Share Reconciliation

    © 2022. IEA. All Rights Reserved. 22 Common shares in thousands Quarter Ended 3-31-2022 Shares outstanding 48,323 Prefunded warrants 4,327 Employee performance awards and others 2,597 Potential shares 55,247 SPAC warrants 2,981 Anti dilution warrants 907 After SPAC warrants exercise 59,135 SHARE REC

  23. Slide 23: Thank You / IR Contact

    © 2022. IEA. All Rights Reserved. 23 THANK YOU I R C O N T A C T Aaron Reddington CFA VP of Investor Relations investors@iea.net 765.828.2653

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