Third Quarter Fiscal 2026 February 5, 2026 NEIL BRINKER President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, and Investor Relations 2 Forward-Looking Statements ▪ Significant progress evolving our business portfolio by investing in high-growth, high-margin businesses and executing strategic divestitures ▪ Recently announced our plan to spin-off the Performance Technologies segment and combine with Gentherm; with Modi ...

Core Insights - Safe & Green Holdings Corp. has exited the modular home construction sector and is expanding into containerized energy systems, focusing on a vertically integrated model that includes power generation, data centers, bitcoin mining, and modular micro-refineries [1][4][7] Company Strategy - The company has undergone significant restructuring over the past year, enhancing shareholder value and reducing debt while developing a unified strategy to integrate its business units into a cohesive platform [3][4] - The core business of Olenox, the parent company, is energy, primarily generating revenue from oil and gas sales, while also focusing on technologies that lower production costs and carbon footprint [4][6] Business Focus - Containerized construction remains a strong asset for the company, leveraging a license to use recycled shipping containers for new construction, which aligns with its energy-driven mission [5][6] - The integrated strategy emphasizes the synergies between containerized construction and energy applications, such as generator enclosures and modular data centers [5][6] Future Positioning - The company aims to position itself as a fully integrated, technology-enabled energy producer with controlled manufacturing capabilities, focusing on containerized generators, modular data centers, bitcoin mining units, and containerized micro-refineries [7] - By combining in-house and licensed technologies, the company plans to manage the energy value chain effectively, from raw materials to final products [7]

Financial Data and Key Metrics Changes - The company reported a 12% increase in total sales for Q2, driven primarily by the Climate Solutions segment [19] - Adjusted earnings per share (EPS) was $1.06, reflecting a 9% increase compared to the prior year [20] - Free cash flow was negative $31 million, primarily due to higher inventory builds and capital expenditures in Climate Solutions [21][22] Business Line Data and Key Metrics Changes - Climate Solutions segment revenue increased by 24%, with data center sales growing by 42% [13][24] - Performance Technologies segment revenue declined by 4%, but adjusted EBITDA improved by 3% [10][18] - HVAC technologies within Climate Solutions saw a 25% increase, driven by acquisitions, while indoor air quality sales were lower [13] Market Data and Key Metrics Changes - The company anticipates a significant increase in data center sales, projecting over 60% growth for the fiscal year [8][24] - The Performance Technologies segment is expected to see revenue flat to down 7%, improving from a previous range of down 2% to 12% [24] Company Strategy and Development Direction - The company is focusing on expanding its U.S. manufacturing capacity for data center products and has secured additional facilities in Texas and India [5][7] - The strategy includes integrating recent acquisitions to enhance product offerings and improve margins through the application of 80/20 principles [3][11] - The company aims to achieve over $2 billion in revenues from data centers by fiscal 2028, with a strong emphasis on meeting the growing demand for AI applications [8][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming current challenges related to workforce hiring and training, which have temporarily impacted margins [6][10] - The company expects a significant jump in revenue between Q3 and Q4, driven by new capacity coming online [6][20] - Management highlighted the importance of learning from recent product launches to improve efficiency and margins moving forward [43][44] Other Important Information - The company is undergoing a strategic transformation, including potential divestitures in the Performance Technologies segment [11][61] - The balance sheet remains strong with a leverage ratio of 1.2, and the company expects this to decline further by fiscal year-end [23] Q&A Session Summary Question: Can you parse out year-over-year margin contraction on the climate side of the business? - The margin contraction was primarily due to data center expansion costs, accounting for about 225 to 250 basis points, and a negative mix impact from HVAC technologies [30][31] Question: What gives confidence that margins should normalize going into Q4? - Confidence stems from learning and improving efficiency from new product launches and the expectation of higher volume absorption in existing facilities [43][44] Question: How is customer concentration evolving in the data center area? - The company is building strong relationships with hyperscalers and expanding its customer base, which is expected to drive further demand [76] Question: How does the liquid cooling business evolve? - Liquid cooling is seen as a complementary product to air cooling, with ongoing development to differentiate offerings in the market [82]