Business
Enerflex Ltd. Announces First Quarter 2025 Financial and Operational Results
ADJUSTED EBITDA OF $113 MILLION AND FREE CASH FLOW OF $85 MILLION EI CONTRACT BACKLOG...
About this update from Enerflex Ltd.
[{"type":"text","content":"Enerflex Ltd. Announces First Quarter 2025 Financial and Operational Results\n\n\n\n\n ADJUSTED EBITDA OF $113 MILLION AND FREE CASH FLOW OF\n \n\n $85 MILLION\n \n\n\n\n EI CONTRACT BACKLOG AND ES BACKLOG OF\n \n\n $1.5 BILLION AND\n \n\n $1.2 BILLION,\n \n\n RESPECTIVELY, PROVIDING SOLID OPERATIONAL VISIBILITY\n \n\n\n\n REDUCED BANK ADJUSTED NET DEBT-TO-EBITDA RATIO TO 1.3x\n \n 1\n \n\n\n AT THE END OF Q1/25\n \n\n\n CALGARY, Alberta, May 08, 2025 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today reported its financial and operational results for the three months ended March 31, 2025.\n \n\n All amounts presented are in U.S. Dollars unless otherwise stated.\n \n\n\n Q1/25 FINANCIAL AND OPERATIONAL OVERVIEW\n \n\n\n\n Generated revenue of $552 million compared to $638 million in Q1/24 and $561 million in Q4/24.\n \n\n Lower revenue compared with the prior year is primarily attributed to upfront revenue recognized in the Energy Infrastructure (\"EI\") product line in Q1/24 on the extension and modification of an existing EI contract previously accounted for as an operating lease in the Eastern Hemisphere (\"EH\") region.\n \n\n\n\n Recorded gross margin before depreciation and amortization of $161 million, or 29% of revenue, compared to $119 million, or 19% of revenue in Q1/24 and $174 million, or 31% of revenue during Q4/24.\n \n\n EI and After-Market Services (“AMS”) product lines generated 70% of consolidated gross margin before depreciation and amortization during Q1/25.\n \n\n Engineered Systems (“ES”) gross margin before depreciation and amortization increased to 18% in Q1/25 compared to 5% in Q1/24 primarily due to costs recognized in Q1/24 related to an international ES project. ES gross margin before depreciation and amortization decreased compared to Q4/24 due to product mix.\n \n\n\n\n Adjusted earnings before finance costs, income taxes, depreciation, and amortization (“adjusted EBITDA”) of $113 million compared to $69 million in Q1/24 and $121 million during Q4/24. The year-over-year increase in adjusted EBITDA was primarily due to costs recognized related to an international ES project in Q1/24.\n \n\n SG&A was $57 million for the three months ended Mar...