Evolution PowerX (E) Status Update summary

Business overview and strategic direction

• Focused on site infrastructure and low-emission electrification for energy, mining, and industrial sectors, with industry-leading margins and strong cash flow.

• Significant management and insider ownership, with active share buybacks and a healthy balance sheet supporting growth.

• Positioned as a sole provider of short- and long-term low-emission site electrification systems in Canada, serving top-tier clients.

• Benefiting from favorable energy market trends and bipartisan support for LNG expansion in Canada.

• Rapid expansion trajectory, with plans to diversify beyond oil and gas into broader power solutions.

Flex Canada acquisition and market impact

• Acquired FlexEnergy Power and Service (Flex Canada) for $20 million, fully funded by cash and a new $40 million credit facility.

• Acquisition expanded fleet by 17 turbine generators, all under long-term contracts, and broadened exclusivity for FlexEnergy turbines across Canada.

• Transaction is highly accretive, enhances recurring revenue, and reduces earnings volatility.

• Flex turbines are uniquely suited for harsh Canadian climates and can operate on unrefined natural gas, providing a competitive edge.

• Rebranded Flex Canada as Evolution Power Solutions, strengthening market position and synergies.

Financial and operational highlights

• Q2 was seasonally slow due to spring breakup, but activity increased in Q3 and is expected to remain strong into Q4.

• New $40 million credit facility with Bank of Montreal lowers borrowing costs and supports growth.

• Close to 60 natural gas power systems now deployable post-acquisition.

• All units are rented under various terms, with long-term maintenance agreements for owned units.

• Typical payback period for new equipment is between two and three years.