CEO MESSAGE

Once again, we came together to support each other in ways that were truly inspiring.

My Fellow Shareholders, 2021 was a testimony to the strength and perseverance of our team. Contrary to what we had hoped, we continued to face a number of pandemic-related challenges throughout the year. And once again, we came together to support each other in ways that were truly inspiring. Financially, 2021 was a strong year for POWER Engineers, including our secondhighest ever income from operations (IFO, aka profit). We earned $87M of IFO on fee revenue of $490M last year compared to $106M IFO on fees of $471M for 2020. Our profit margin of 17.8% was, once again, much better than the 15.3% average for employee-owned companies in our industry. Regarding the drop in profitability, we must remember that conditions in 2020 were very different from conditions in 2021. For example, in 2020, historically few of our team members took vacation. With thousands of hours of additional billable time, we achieved record profitability. In 2021, this trend reversed, which was great and necessary—our team members needed to recharge. They deserved it. But it had the unintended consequence of negatively impacting our performance relative to 2020. In addition, there were other expenses that returned to our income statement in 2021, including travel to clients, training and conferences/tradeshows as well as operating costs associated with our partial return to office (RTO) effort. Significant market factors at play in 2021 included an incoming administration that delayed spending millions of dollars on Government Services projects. Bad winter weather in the Southeast was responsible for some project delays in Environmental, and Generation continued to be negatively impacted by the market contraction for large fossil-fuel power plants. These challenges aside, 2021 was a solid “year-after-a-record year.” This is a common trend at POWER. Our record-breaking years are typically followed by a period of settling in—a transition year. During this time, we rebuild backlog and prepare for another record year. And that is exactly what we saw as we ended 2021—a record backlog heading into 2022. This success did not come without continued sacrifice. After 21 months of working from home, some team members were showing signs of strain. Not being able to return to the office and see colleagues and collaborate in-person, even occasionally, was a disappointment to many. In response, there was a great outpouring of support at all levels of the organization. People reached out in creative ways to listen, offer help and share ideas. Despite our physical separation, these shared struggles brought us together. I urge you to read accounts of these efforts in this report’s division and business unit stories. 2021 also brought the unexpected resignation of Bret Moffett, our former CEO. Thankfully, the board’s Succession Committee

In honor of Heidi Kelly 1973 – 2022

had approved a plan years ago for just such an event, and I stepped into the role. We are very fortunate to have an outstanding management team and board of directors that help guide and support me in this new position and I wish to convey my sincere gratitude to them. Executive leadership transitions are generally few and far between at POWER, and we saw this as a tremendous opportunity to step back and reflect on where we had been, and more importantly, where we wanted to go. As longtime consultant to POWER, Ray Kogan, once said, “We didn’t come this far just to come this far.” There was a consensus among our most senior leaders that, in many ways, our success had allowed us to grow a bit complacent. We risked not leaving something great for future generations. We agreed we needed a new vision and values that would stoke the same ambition that drove our predecessors. We are stronger together, and it is time to see ourselves as one team of multiple, complementary capabilities—not multiple businesses operating semi-autonomously. We need to focus on a One POWER Team. We started developing our new vision by asking some fundamental questions—what does our whole team have in common? Where are we headed? What do we aspire to achieve? If we all clearly understand and believe in the answers to these important questions, then we will be better aligned to pursue our goals as one team. And we’ll increase our odds of achieving them. It is this idea of a One POWER Team that drove the decision to create our Chief Operating Officer and Chief Strategy Officer positions. We want to unify our businesses under senior leaders that are focused on the whole company, finding common strategies, surfacing common goals, and making sure we are ALL aligned toward achieving them. The good news is that we have recently won some great One POWER projects like Greenlink Nevada, Raven SR and Turlock Irrigation District. You can read more about them in this report. Our hope is that we will soon leave this pandemic behind us. We have an exciting future ahead, the absolute best team in this business, and a shared vision to light the way. Finally, I want to thank all of you—my fellow partners—for never forgetting that our purpose is, and always has been, to Do Good, Have Fun, and Build Success.

Jim Haynes