Enerflex NYSE: EFXT reported second-quarter 2026 revenue of $582 million, down from $615 million a year earlier and broadly in line with $584 million in the first quarter, as project sequencing and resource allocation toward expanding its U.S. contract-compression fleet affected Engineered Systems revenue.
Net earnings were $30 million, or $0.25 per share, compared with $60 million, or $0.49 per share, in the prior-year period. The company said lower net finance costs benefited profitability, but the comparison was affected by higher share-based compensation expense and a $15 million unrealized gain on senior secured note redemption options recorded in the second quarter of 2025.
Adjusted EBIT was $128 million, compared with $130 million a year ago and $137 million in the first quarter. Gross margin before depreciation and amortization was $173 million, or 30% of revenue, versus $175 million, or 29% of revenue, in the prior-year quarter.
Engineered Systems bookings reach record visibility
President and CEO Paul Mahoney said the quarter reflected solid operational performance, supported by the company’s Energy Infrastructure and After-Market Services businesses, while Engineered Systems maintained strong commercial momentum.
Engineered Systems bookings totaled $488 million during the quarter, compared with an $363 million trailing eight-quarter average. First-half bookings approached $1 billion, or about 75% of Enerflex’s full-year 2025 bookings, according to Mahoney.
The Engineered Systems book-to-bill ratio was 1.6 times in the second quarter and 1.5 times for the first half. As a result, forward revenue visibility for the business rose to a record $1.5 billion at quarter-end.
Mahoney said quarterly bookings represented a mix of cryogenic gas processing, refrigeration for LNG exports, large compression stations and power-generation projects. During the question-and-answer session, he said the quarter’s bookings did not include data-center business.
“Q2 is a watermark for us,” Mahoney said, adding that the company expected booking momentum to continue into the third quarter.
The company said its pipeline for distributed power opportunities exceeded 7 gigawatts across data-center and other power-generation applications. Mahoney said commercial teams have been concentrating on what he described as the top 2 gigawatts of opportunities and have maintained engagement with hyperscalers and prime power providers.
Energy Infrastructure supported by contracted revenue
Enerflex said its Energy Infrastructure segment continued to generate solid results, backed by approximately $1.2 billion of contracted revenue over the remaining terms of customer agreements. Its international Energy Infrastructure portfolio had a weighted average remaining contract term of about five years.
In U.S. Contract Compression, utilization stood at 93% across a fleet of approximately 496,000 horsepower, supported by growing natural-gas production in the Permian Basin. Enerflex continues to target customer-supported fleet growth of 10% to 15% in 2026, with most additions expected in the second half of the year.
The company is also securing long-lead-time components to support fleet expansion through 2029. Mahoney said Enerflex had purchase obligations spanning 2026 through 2029 and cited approximately $521 million in obligations for 2026, more than $350 million for 2027, $191 million for 2028 and $53 million for 2029.
Mahoney said the company has visibility into its 2026 and 2027 equipment needs and continues to evaluate alternative sources for certain components as engine lead times extend.
Enerflex’s Bahrain and Oman operations remained uninterrupted during the quarter, Mahoney said. The company operates 17 projects in those countries, supported by an installed fleet of about 350,000 horsepower across compression and power-generation applications.
Cash flow improves and capital-spending outlook rises
Cash from operating activities was $89 million in the second quarter, compared with cash used in operating activities of $4 million in the year-earlier period. Free cash flow increased to $32 million from a $39 million use of cash a year earlier.
Enerflex ended the quarter with net debt of $455 million, including $74 million of cash and cash equivalents. Net debt declined $153 million from the second quarter of 2025 and $46 million from the start of 2026. Bank-adjusted net debt to EBITDA was approximately 0.8 times, down from 1.3 times a year earlier.
On June 24, the company amended and restated its syndicated secured revolving credit facility, extending its maturity to June 30, 2029. Available capacity remained $800 million, while the potential accordion feature increased to as much as $200 million, subject to lender consent.
Enerflex invested $53 million during the quarter, including $35 million in growth spending, primarily for U.S. contract-compression fleet expansion, and $18 million in maintenance capital expenditures.
- Organic growth capital expenditure guidance was revised to $185 million to $195 million for 2026, from $175 million to $195 million previously.
- Growth capital expenditure is expected to be about $100 million, compared with previous guidance of $90 million to $100 million.
- Maintenance capital expenditure guidance remained $70 million to $80 million.
- The company also expects about $15 million in property, plant and equipment and infrastructure investments supporting Engineered Systems and adjacent electric-power-generation markets.
Operational initiatives and financial objectives
Mahoney said Enerflex is advancing operational initiatives including the professionalization of its $1.9 billion annual supply chain, productivity improvements, and modernization of IT and automation systems. The company recently aligned its Canadian and U.S. operations within a unified North American framework.
Enerflex also launched a Houston-based remote operations center as part of its ReliaCore digitally connected service ecosystem and began deploying ReliaCore EDGE devices. Mahoney said the tools are intended to expand service coverage, speed issue resolution and support predictive maintenance capabilities.
Chief Financial Officer Preet Dhindsa reiterated the company’s full-cycle objectives of increasing adjusted EBITDA margin by more than 200 basis points, improving cash conversion by more than 200 basis points and raising return on capital employed by more than 200 basis points.
Return on capital employed was 15.4% in the second quarter, compared with 16.4% a year earlier and 17.3% in the first quarter. Dhindsa attributed the decline primarily to lower trailing 12-month EBIT, partly offset by lower average capital employed as net debt decreased.
About Enerflex (NYSE:EFXT)
Enerflex Ltd is a Calgary‐headquartered energy infrastructure company specializing in the design, fabrication, installation and aftermarket support of natural gas compression, processing, refrigeration and treatment equipment. Its product portfolio includes reciprocating and centrifugal compression systems, gas treating and refrigeration packages, fuel gas conditioning and liquid separation solutions. In addition to equipment sales, Enerflex delivers field services such as commissioning, maintenance, monitoring and parts supply to optimize asset performance throughout the lifecycle.
The company supports upstream, midstream and downstream energy customers through an integrated offering that spans engineering, procurement and construction (EPC) as well as modular fabrication.
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