Enerflex Ltd Reports Record Q2 EBITDA, Strategic Growth Initiatives

Enerflex Ltd reported record Q2 2025 EBITDA of $130 million, a 7% increase from Q2 2024. Revenue reached $615 million, gross margin before depreciation and amortization was $175 million, and the net debt-to-EBITDA ratio decreased to 1.3x. The company maintained a $1.2 billion Engineered Systems backlog and a healthy US contract compression business with utilization above 90% for 14 quarters.

Enerflex Ltd. (NYSE: EFXT) reported a record Q2 2025 EBITDA of $130 million, a 7% increase from Q2 2024. The company's revenue reached $615 million, with a gross margin before depreciation and amortization of $175 million. The net debt-to-EBITDA ratio decreased to 1.3x, indicating a healthier balance sheet. The company maintained a $1.2 billion Engineered Systems backlog and a robust US contract compression business, with utilization above 90% for 14 consecutive quarters.

The company's operational efficiency is evident in its Q2 2025 performance, driven by cost-saving initiatives and strong backlog utilization. The Engineered Systems backlog of $1.2 billion and the Energy Infrastructure contract backlog of $1.5 billion provided stable revenue visibility. The U.S. contract compression business, a key component of Enerflex's energy transition strategy, delivered $38 million in revenue with a 74% gross margin, fueled by increased natural gas production in the Permian Basin.

Enerflex's deleveraging efforts have strengthened its balance sheet, with a net debt-to-EBITDA ratio of 1.3x, down from 2.2x in Q2 2024. This financial flexibility allows the company to allocate capital strategically. $60 million of its $120 million 2025 capex budget is earmarked for growth, particularly in U.S. contract compression. The company also returned $18 million to shareholders in Q2 2025 via dividends and buybacks, including a $0.0375/share dividend.

Enerflex's focus on natural gas infrastructure and low-carbon technologies positions it as a leader in the energy transition era. The company's strategic balance of gas infrastructure expansion and emerging decarbonization solutions aligns with long-term demand trends and decarbonization goals. However, Enerflex's reliance on natural gas exposes it to regulatory shifts and renewable competition, and its energy transition initiatives are still nascent, requiring further investment to scale.

References:

[1] https://finance.yahoo.com/news/enerflex-ltd-efxt-q2-2025-072432428.html

[2] https://www.ainvest.com/news/unlocking-sustainable-growth-enerflex-q2-2025-earnings-signal-energy-transition-resilience-2508/