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GlobeNewswire·

Enerflex Ltd. Announces Fourth Quarter 2025 Financial and Operational Results, Agreement to Divest Non-Core Business and Provides Preliminary Outlook for 2026

EFXT
  • Enerflex reported Q4/25 adjusted EBITDA of $123 million & record free cash flow of $141 million.
  • Net debt decreased to $501 million, representing approximately 1.0x trailing twelve-month adjusted EBITDA.
  • Revenue for Q4/25 reached $627 million, driven by strong operational activity in the Engineered Systems (ES) product line.
  • The company signed an agreement to divest the majority of its Asia Pacific operations to INNIO Group, expected to close in the second half of 2026.
  • ES & EI backlogs stood at $1.1 billion & $1.3 billion respectively, providing strong visibility into future revenue.
  • 2026 capital expenditure is targeted at $175 million to $195 million, including $90 million to $100 million for growth opportunities.
  • Net earnings for Q4/25 were a loss of $57 million due to $81 million in expenses related to the redemption of 2027 senior secured notes.
  • On a normalized basis, Q4/25 net income was $24 million or $0.20 per share.
  • The Board increased the quarterly dividend by 13% to CAD$0.0425 per share, with the next payment scheduled for March 25, 2026.
  • Enerflex repurchased 102,800 common shares during Q4/25 at an average price of CAD$15.10 per share.
  • The company refinanced $563 million in senior secured notes due 2027 with new senior unsecured notes due 2031 to reduce interest costs.
  • Return on capital employed (ROCE) improved to 16.9% in Q4/25 from 10.3% in the prior year period.
  • U.S. contract compression fleet utilization remained stable at 94% across approximately 483,000 horsepower.
  • Enerflex secured orders for power generation units for a large U.S. data center project with deliveries scheduled into 2027.
  • SG&A expenses were $83 million in Q4/25, down $9 million from the prior year due to cost-saving initiatives & lower amortization.