Enerflex Ltd. Announces Third Quarter 2025 Financial and Operational Results and Increased Dividend

Executive Summary

• Enerflex reported record Q3 2025 Adjusted EBITDA of $145 M (up 21% YoY) and a new quarterly revenue high of $777 M.
• Free cash flow was $43 M; the Board increased the quarterly dividend by 13% to CAD 0.0425 per share and repurchased 777,000 shares at an average price of CAD 12.98.
• Net debt fell to $584 M, improving the bank‑adjusted net‑debt/EBITDA leverage to ~1.2×; ROCE rose to a record 16.9%.

Key Details

• Revenue: $777 M (Q3 2025) vs. $601 M (Q3 2024).
• Gross Margin before D&A: $206 M (27% of revenue); ES segment contributed $116 M of revenue and $14 M of margin from the Bisat‑C Expansion.
• Adjusted EBITDA: $145 M, a new quarterly record; adjusted EBITDA margin ≈ 18.7% of revenue.
• Free Cash Flow: $43 M (down from $78 M YoY due to higher working‑capital needs).
• Net Debt: $584 M (down $108 M YoY); cash & equivalents $64 M.
• Leverage: Bank‑adjusted net‑debt/EBITDA = 1.2× (down from 1.9× YoY).
• ROCE: 16.9% (record; up from 4.5% YoY).
• Dividends: Quarterly dividend increased 13% to CAD 0.0425/share, payable Dec 1 2025.
• Share Repurchases: 777,000 shares repurchased at CAD 12.98 average price in Q3; total 2,676,200 shares since NCIB start (average CAD 10.93).
• Capital Expenditures: $47 M invested (including $33 M capex, $15 M growth capex, $14 M Bisat‑C Expansion).
• Backlog & Bookings: ES backlog $1.1 B; Q3 bookings $339 M; EI contract backlog $1.37 B.
• Operational Highlights:
• U.S. contract compression fleet utilization 94% (≈470,000 hp); target 485,000 hp by year‑end.
• Awarded a 200 MMscfd cryogenic gas processing & compression contract in the Permian, delivery slated for 2026.
• Completed Bisat‑C Expansion in Oman (447k bpd capacity) ahead of schedule; first crude oil in <18 months.
• Delivered all‑electric compression station in Vaca Muerta, Argentina.
• Received EXIM “Deal of the Year” for a gas‑to‑energy project in Guyana (300 MW).
• Management Commentary: New CEO Paul Mahoney emphasized strategic focus on growth, profitability and shareholder returns; CFO Preet Dhindsa highlighted solid free cash flow supporting dividends and repurchases.
• Outlook & Capital Allocation: 2025 capex target ≈ $120 M (≈$60 M maintenance + $60 M growth). Expect EI to generate ~$1.4 B of revenue over contract terms; ES backlog provides visibility into 2026.

Notable Quotes

• Paul Mahoney, President & CEO: “I am pleased to join Enerflex at an exciting time… I believe the Company is well positioned to take advantage of growing global natural gas demand.”
• Preet S. Dhindsa, CFO: “Enerflex generated solid free cash flow in the third quarter, which supported continued investment … and $11 M of shareholder returns through dividends and share repurchases.”