Enerflex Ltd.

Enerflex reported Q2 2026 revenue of $582 million, down from $615 million in Q2 2025 and $584 million in Q1 2026. Gross margin before depreciation and amortization was $173 million, or 30% of revenue, versus $175 million, or 29%, a year ago. Adjusted EBITDA was $128 million, compared with $130 million in Q2 2025. Net earnings were $30 million, or $0.25 per share, versus $60 million, or $0.49 per share in Q2 2025. Free cash flow was $32 million, and the company exited the quarter with net debt of $455 million, cash and cash equivalents of $74 million, and an adjusted net debt-to-EBITDA ratio of approximately 0.8x. For 2026, Enerflex refined organic growth capex guidance to $185 million-$195 million, with approximately $100 million for organic growth, $70 million-$80 million for maintenance, and about $15 million for PP&E and infrastructure investments.

Paul Mahoney said the quarter reflected disciplined execution and operational excellence, with results supported by energy infrastructure and aftermarket services and strong commercial momentum in Engineered Systems. He emphasized that Enerflex is focusing on markets where it can win, improving efficiency, and pursuing disciplined growth, while building out ReliCore and digital service capabilities. He sounded constructive on the outlook, pointing to strong bookings, a growing power-generation pipeline, and early progress on company-wide transformation initiatives.

Preet Dhindsa highlighted the key financial drivers: revenue of $582 million, gross margin before D&A of $173 million, adjusted EBITDA of $128 million, and free cash flow of $32 million. He said SG&A was $81 million, with core SG&A at $58 million, and that higher stock-based compensation and growth investments lifted costs. He also noted $53 million of Q2 investment spending, the refinancing of the revolving credit facility to June 30, 2029 with $800 million of availability, and the updated 2026 organic growth capex range of $185 million-$195 million.

On capital spending, management said the higher end of the organic growth capex range reflects confidence in filling contract compression demand, not inflation, and that the company already has its 2026 book filled with portions of 2027 also booked. On bookings, Paul Mahoney said Q2 was a “watermark” quarter, that the $488 million of bookings did not include any data center orders, and that he expects continued strength into Q3. He also said the energy infrastructure backlog decline is mainly due to footprint optimization in Latin America, and that the company sees its 7-gigawatt power pipeline increasingly concentrated in hyperscaler and prime power relationships.