Enterprise Group Announces Results for Second Quarter 2025

Executive Summary

• Enterprise Group, Inc. reported its Q2 and H1 2025 financial results, showing a decline in revenue and profitability compared to the prior year period, attributed to seasonal spring breakup activity and non-recurring acquisition costs.
• The company completed the acquisition of Flex Leasing Power and Service ULC (now Evolution Power Solutions, Inc.) for $20 million, securing exclusive rights to supply, rent, sell, and service FlexEnergy turbines in Canada.
• The company finalized a new consolidated lending facility with The Bank of Montreal, replacing previous debt to achieve lower interest rates and borrowing costs, while generating positive operating cash flow.

Key Details

• Q2 2025 Financials (Three months ended June 30, 2025):
  • Revenue: $6,485,914 (down 16% from $7,707,282 in Q2 2024).
  • Gross Margin: $1,645,511 (25%), down from $3,318,336 (43%) in Q2 2024.
  • Adjusted EBITDA: $799,425 (12%), down from $2,651,694 (34%) in Q2 2024.
  • Net Loss: $(929,022) compared to Net Income of $76,423 in Q2 2024.
  • Basic Loss per Share: $(0.01) compared to $0.00 in Q2 2024.
• H1 2025 Financials (Six months ended June 30, 2025):
  • Revenue: $16,813,999 (down 16% from $20,033,570 in H1 2024).
  • Gross Margin: $6,820,853 (41%), down from $10,214,681 (51%) in H1 2024.
  • Adjusted EBITDA: $5,215,280 (31%), down from $8,989,547 (45%) in H1 2024.
  • Net Income: $2,048,874 compared to $4,067,937 in H1 2024.
  • Basic Income per Share: $0.03 compared to $0.07 in H1 2024.
  • Cash Flow from Operations: $10,126,135 compared to $10,635,184 in H1 2024.
• Acquisition Details:
  • Closed on May 7, 2025: Acquisition of 100% of Flex Leasing Power and Service ULC ("FlexEnergy Canada") for $20 million.
  • Strategic Impact: Enterprise became the exclusive supplier for FlexEnergy turbines in Canada.
  • Assets Acquired: 17 turbines, each with 333 kW capacity, with access to add 2.0 MW units for future growth.
  • Revenue Model: Long-term rental and maintenance contracts create a recurring revenue stream to offset seasonality.
  • Rebranding: FlexEnergy Canada was renamed Evolution Power Solutions, Inc. ("EPS").
• Financing Updates:
  • New Facility: Finalized April 30, 2025, with The Bank of Montreal.
  • Terms: Interest rate up to prime + 2%, secured by a first charge on all company assets, subject to financial covenants.
  • Purpose: Acquisitions, capital expenditures, and working capital.
  • Debt Consolidation: Previous facility paid out on February 28, 2025, with a negotiated settlement discount of $1,500,000, reducing interest expense for H1 2025.
• Capital Expenditures:
  • Acquired $9,010,352 of capital assets during H1 2025 for upgrading existing equipment and meeting specific customer requests.
• Operational Context:
  • Q2 activity reflected traditional spring breakup with lower activity in the Western Canadian Sedimentary Basin.
  • Industry data supports improved activity in the second half of the year, driven by long-term drilling/completions and LNG investments.
  • Customers are increasingly switching from diesel to natural gas for efficiency and emission reduction.