Enerflex Ltd. reported its fourth‑quarter 2025 financial results, posting adjusted EBITDA of $123 million, a 20% year‑over‑year increase, and revenue of $627 million, up 10% from the same period a year earlier.
Revenue growth was driven by the Engineered Systems and Energy Infrastructure segments, which benefited from strong demand for natural‑gas compression equipment and LNG export expansion. The company’s backlog remained robust, with $1.1 billion in Engineered Systems contracts and $1.3 billion in Energy Infrastructure contracts, positioning it for continued growth.
Free cash flow reached a record $141 million, and net debt fell to $501 million, bringing the bank‑adjusted net debt‑to‑EBITDA ratio to roughly 1.0x. The company also completed a refinancing of $563 million of 9.000% senior secured notes due 2027 with $400 million of 6.875% senior unsecured notes due 2031, reducing annual interest costs.
Adjusted EPS of $0.20 fell short of the consensus estimate of $0.22, a miss of $0.02. Revenue, however, beat expectations by $55 million, surpassing the consensus estimate of approximately $572 million. Management reiterated its 2026 guidance, maintaining a focus on disciplined capital allocation, shareholder returns, and expansion of its contract compression fleet.
CFO Preet Dhindsa said, 'Enerflex generated record free cash flow in the fourth quarter, with capital allocation continuing to balance disciplined growth, direct shareholder returns, and enhancements to our financial flexibility. Enerflex's bank adjusted leverage ratio declined to approximately 1.0x at the end of Q4/25 and we further solidified our financial position with a successful refinancing of our high‑yield notes.' CEO Paul Mahoney highlighted the company’s robust performance and strategic successes throughout the year.
The results reinforce Enerflex’s strong financial footing, with debt reduction and cash‑flow generation providing flexibility for future growth. The divestiture of most Asia‑Pacific operations, scheduled to close in the second half of 2026, and the company’s focus on core segments are expected to sharpen its competitive position. Investors viewed the earnings as a positive development, citing the record free‑cash flow, debt deleveraging, and robust backlog as key drivers of confidence.
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