EFXT

Interested in Enerflex Ltd.? Here are five stocks we like better. Second-quarter revenue fell to $582 million from $615 million a year earlier, while net earnings declined to $30 million, or $0.25 per share, from $60 million. Adjusted EBIT was relatively stable at $128 million. Engineered Systems bookings reached a record $488 million, producing a 1.6x book-to-bill ratio and raising forward revenue visibility to $1.5 billion. The company said booking momentum is expected to continue into the third quarter. Cash generation and leverage improved significantly: operating cash flow rose to $89 million, free cash flow reached $32 million, and net debt fell to $455 million. Enerflex raised its 2026 organic growth-capital guidance to $185 million–$195 million, primarily to expand its U.S. contract-compression fleet. 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. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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. 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 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. 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 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enerflex Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, August 6, 2026 at 10 a.m. ET President and Chief Executive Officer - Paul E. Mahoney Senior Vice President and Chief Financial Officer - Preet Dhindsa Vice President of Corporate Development and Capital Markets - Jeffrey Eric Fetterly Controller - Ben Park Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the Enerflex Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jeffrey Eric Fetterly, Vice President of Corporate Development and Capital Markets. Please go ahead. Jeffrey Eric Fetterly: Thank you, Shannon, and good morning, everyone. With me today are Paul E. Mahoney, Enerflex's President and CEO Preet Dhindsa, Senior Vice President and Chief Financial Officer and Ben Park, Enerflex Controller. Before I turn it over to Paul, I will remind everyone that today's discussion will include non-IFRS and other financial measures as well as forward looking statements regarding Enerflex' expectations for future performance and business prospects, Forward looking information involves risks and uncertainties and the stated expectations could differ materially from actual results or performance. For more information, refer to the advisory statements within our news release MD&A and other regulatory filings all available on our website and under our SEDAR plus EDGAR profiles. As part of our prepared remarks, we will be referring to slides in our updated investor presentation which is available through a link on this webcast and on our website under the Investor Relations section. I will now turn it over to Paul. Paul E. Mahoney: Thanks, Jeffrey, and thank you all for joining us on this morning's call. During the second quarter, Enerflex delivered solid operational performance, reflecting disciplined execution, and our focus on operational excellence. Results continue to be underpinned by our energy infrastructure and aftermarket services business lines. While the engineered systems business maintained strong commercial momentum. As we highlighted during our investor update in May, Enerflex is focused on competing intentionally in the markets where we can win. Improving relentlessly through operational excellence, and delivering disciplined growth for our shareholders. We are moving with urgency to execute on these priorities including initiatives to enhance collaboration, leverage our scale improve operational efficiency and strengthen our capabilities across the business. Let me speak in more detail about near term performance. Starting with Engineered Systems, bookings remain very strong during the quarter at $488 million compared to a trailing 8-quarter average of $3.63. The year is off to a strong start with first half bookings approaching $1 billion or approximately 75% of our full year bookings during 2025. Strong bookings has translated into increasing visibility for our ES business. With a book-to-bill ratio of 1.5x during the first half of 26 and our forward visibility for ES revenue increasing to $1.5 billion the highest level in Enerflex's history. ES bookings during the second quarter reflect a broad mix of end markets, including cryogenic gas processing, refrigeration for LNG exports, large compression stations, and power generation. The outlook for our Engineered Systems business remains strong. Supported by healthy demand for compression and processing equipment across our key markets. Together with increasing natural gas associated liquids, and electric power generation activity. Interest in Distributed Power Solutions also continues to build. With our pipeline of opportunities now exceeding 7 gigawatts, across data center and other power generation applications. Turning to aftermarket services. Results improved during the second quarter after a slower start to the year in North America. Performance reflected steady customer maintenance spending, particularly in regions where we also operate energy infrastructure assets. Highlighting the strength of our integrated platform, and competitive positioning across our core markets. As highlighted during our investor update, our core priorities for the AMS business include: 1. growing profitable services notably in our retrofit segment. 2. optimizing costs through base and focus and pooling of resources across AMS and contract compression business lines. And 3. capturing opportunities for installation and O&M services associated with power generation. The energy infrastructure business continues to deliver solid performance supported by approximately $1.2 billion of contracted revenue over the remaining terms of our customer contracts. Within this segment, Enerflex's U. S. Contract compression business continues to perform well, led by increasing natural gas production in the Permian Basin. Utilization was strong at 93% across a fleet of approximately 496 thousand horsepower. Additional operating KPIs for the business are available on Slides 33 and 34 of our investor presentation. We continue to target customer supported fleet growth of 10% to 15% during 2026, with the majority of additions in the second half of the year. We are also securing long lead time components to support fleet growth in 2027, 2028 and 2029. Turning to our international energy infrastructure operations, which are outlined on Slides 31 and 36. This portfolio continues to be supported by a strong contract position with a weighted average remaining term of approximately 5 years providing durable and predictable cash flows that we expect will continue to support Enerflex's financial performance for years to come. I would also like to touch briefly on our operations in The Middle East. While we continue to closely monitor the situation in the region, our operations have remained uninterrupted to date. The safety of our people remains our highest priority, and our local teams continue to execute established response processes and contingency plans while maintaining reliable operations, for our customers. Today, Enerflex's operations in Bahrain and Oman comprise of 17 projects supported by an installed fleet of approximately 350 thousand horsepower across compression and power generation applications. We remain focused on supporting our customers while continuing to execute safely and reliably across the region. Let me now speak about progress. We are making on the strategic priorities outlined during our investor update in May. We continue to advance a disciplined enterprise wide approach to operational excellence. We are also progressing the professionalization of our $1.9 billion per year enterprise wide supply chain. Driving productivity improvements and modernizing IT and automation systems. We expect each of these initiatives to be meaningful contributors in achieving our financial objectives. Preet will provide additional detail on the financial impact and targets associated with these priorities during his prepared remarks. We have developed 5 specific work streams. With meaningful projects underway in each region and across key partner functions. 1. 1 example is the recent alignment of our Canadian and US operations under a unified North American framework. This change is designed to unlock greater collaboration, leverage our scale, drive standardization, improve operational efficiency and strengthen customer service. Enerflex reached several important ReliCore milestones in the quarter. Advancing the company's digitally connected service ecosystem. We launched our Houston based remote operations center. Leveraging smart dispatch technology to connect customer assets with technical expertise and intelligent workflows. as well as developed and deploying Enerflex's first ReliCore Edge devices. Together, these capabilities extend service coverage, accelerate issue resolution, and build the foundation for advanced analytics and predictive maintenance capabilities that are expected to improve asset performance, reduce downtime, and create long term economic value for both Enerflex and our client partners. Let me conclude by reiterating that our priorities remain clear. As a company, we are focused on improving productivity across our global operations. Pursuing the highest value growth opportunities in markets where Enerflex can win and allocating capital in a disciplined manner to drive long term value creation. We are encouraged by early progress and we remain focused on building momentum as we execute against these initiatives. We look forward to providing updates on our progress over the coming quarters. With that, I will turn the call over to Preet to speak to the financial highlights. Preet Dhindsa: Thanks, Paul, and good morning, everyone. Start with highlights from the second quarter. We generated revenue of $582 million compared to $615 million in Q2 25 and $584 million in Q1 2026. Lower revenue compared with prior year was primarily driven by project sequencing and resource allocation for expansion of Enerflex's U. S. Contract compression fleet, within the engineered systems product line. ES book-to-bill ratio calculated as bookings divided by revenue was 1.6x during Q2 2026, and 1.5x during the first half of the year. This translated into our backlog increasing to a record $1.5 billion at the end of Q2. Gross margin before depreciation and amortization was $173 million or 30% of revenue. Compared to $175 million or 29% of revenue in Q2 25 and $179 million or 31% of revenue during Q1 2026. Energy infrastructure and AMS product lines generated 69% of consolidated gross margin before depreciation and amortization. During the quarter. ES gross margin before depreciation and amortization of 18% in Q2 26 compared to 18% in Q2 2025 and 19% in Q1 26 with a sequential decrease related primarily to revenue mix and project sequencing. SG&A was $81 million for 3 months ended June 30, 2026. Up $20 million from the prior year period due to higher stock based compensation expense and investments to support growth and operational improvements. Core SG&A was $58 million for the 3 months ended June 30, 2026. Compared to $52 million in Q2 2025, and $55 million during the first quarter of 26. Adjusted EBITDA of $128 million compared to $130 million in Q2 25 $137 million in Q1 2026. Cash provided by operating activities before changes in working capital or FFO of $87 million in Q2 26 compared to $89 million in Q2 25 and $95 million in Q1 26. A function of lower adjusted EBITDA. Cash provided by operating activities, or CFO was $89 million which included net working capital recovery of $2 million This compares to cash used in operating activities of $4 million in Q2 25 and cash provided by operating activities of 32 million in Q1 26. Free cash flow increased to $32 million in Q2 2026 compared to a use of cash of $39 million during Q2 25 and a source of cash of $15 million during Q1 26. The increase in free cash flow compared to prior year and prior period reflected higher CFO, being partially offset by higher capital spending. Return on capital employed was 15.4% in Q2 26 compared to 16.4% in Q2 2025 and 17.3% during Q1 2026. Lower ROCE primarily reflects the decrease in trailing 12-month EBIT, which is impacted by unrealized gains on redemption options related to the senior secured notes recognized in prior periods, partially offset by lower average capital employed primarily due to decline in net debt. Net earnings of $30 million or $0.25 per share in Q2 26 compared to $60 million or $0.49 per share in Q2 2025 and $43 million or $0.35 per share in Q1 2026. Compared to Q2 25, profitability benefited from lower net finance costs. However, it was offset by higher share based compensation expense and an unrealized gain of $15 million related to the redemption options of his senior secured notes recognized in the prior year. Enerflex exited Q2 2026 with net debt of $455 million which included $74 million of cash and cash equivalents, reduction of $153 million compared to Q2 25 and $46 million since the beginning of 2026. Enerflex's bank adjusted net to EBITDA ratio is approximately 0.8x at the end of Q2 26, down from 1.3x at the end of Q2 2025 and 0.9x at the end of Q1 2026. On June 24, Enerflex entered into an amended and restated credit agreement with respect to our syndicated secured revolving credit facility. The maturity date of the RCF has been extended to June 30, 2029, and availability is unchanged at $800 million The limit under the RCF may be increased by up to $200 million at the request of the company subject to lenders' consent, compared to $50 million previously. Enerflex also continues to maintain a $70 million unsecured LC facility with 1 of its lenders and its RCF syndicates. Let me now shift to capital allocation. We invested $53 million in the business during the second quarter, comprised of $35 million for growth, primarily allocated to expand the company's contract compression fleet in The U. S. And $18 million for maintenance and PP&E. Enerflex is refining its capital expenditure range for 2026 now targeting organic growth capital expenditures of $185 million to $195 million compared to prior guidance of $175 million to $195 million The updated guidance includes organic growth capital expenditures of approximately $100 million prior guidance of $90 million to $100 million maintenance capital expenditures of $70 million to $80 million unchanged from original guidance and PP&E and infrastructure investments of approximately $15 million to support the company's ES business and activity in adjacent markets including electric power generation. Enerflex continues to evaluate selective, disciplined bolt on acquisition opportunities. Inorganic growth will be focused on enhancing capabilities and accelerating scale in the company's core North American markets. All opportunities will be balanced with Enerflex's focus on maintaining a strong financial position and opportunities to provide direct shareholder returns. Lastly, I would like to touch on the value creation drivers connected to our strategic objectives. These were highlighted during our Investor Day in May and are summarized on Slide 16. Our objectives on a full cycle basis are to grow our business ahead of underlying markets, increase profitability, and prioritize disciplined capital allocation. Specifically, we are focused on increasing adjusted EBITDA margin by 200-plus basis points improving cash conversion ratio by 200-plus basis points and driving return on capital employed 200-plus basis points higher. As highlighted by the steady improvement in adjusted EBITDA margin shown on Slide 9, we are encouraged by early progress and look forward to providing further updates. With that, I will turn the call back over to Paul for closing remarks. Paul E. Mahoney: As we have discussed today, we continue to make meaningful progress executing our strategy while maintaining a disciplined focus on operational excellence, profitable growth and capital allocation. We believe the fundamentals across our core markets remain attractive and Enerflex is well positioned to capitalize on those opportunities through our integrated platform global footprint, and long standing customer relationships. While there is still work ahead, I am confident in our team's ability to create long term value for our shareholders. I would like to thank our employees around the world for their continued dedication and I would also like to thank our client partners suppliers, and stakeholders for their ongoing support. I will now turn the call back to the operator for questions. Operator: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Please stand by. Our first question comes from Keith MacKey from RBC Capital Markets. Please go ahead. Keith MacKey: Hey, good morning, and thanks for taking my questions. Just firstly on the capital investment raise or refinement, can you just kind of run through the priorities for that spend? What gives you the confidence in the returns that you will generate from it, and, you know, is this-- is it-- is the increase based on inflationary factors or is it an increase in the amount of work you are actually able to put out? Paul E. Mahoney: Yeah. Good question, Keith. Yeah. As you know, it is primarily our contract compression business. And so the refinement on the upper range is really a confidence in our ability to contract a business. We do have our 26 log filled. We do have portions of our 2027 log filled, and so it is more of increasing than it is an inflationary related item. Keith MacKey: Got it. Appreciate the color there, Paul. Maybe just to follow-up on the bookings. Certainly, very strong this quarter. Can you comment on the mix of those bookings? Was there any data center activity in those? And ultimately, you know, do you expect the $400 million to $500 million range to be the new normal for Enerflex over the next 12 months? Or was this an exceptional quarter? Exceptional first half, I should say. Paul E. Mahoney: Yeah. Great question, Keith. And along our commitments in our Investor Day regarding growing above market This is yet another quarter in a row of increasing bookings and Q2 is watermark for us. It does not include any bookings for data center in there. there is cryogenic gas processing, there is refrigeration processing for LNG export. Large compression, and some industrial related power in that. So this has been a multi-quarter expression of bookings, and we see this continuing here into Q3. And just to reiterate, Q2 does not have data center elements in it. Keith MacKey: Okay. Thanks very much. Operator: Thank you. Our next question comes from Tim Monachello from ATB Cormark Capital Markets. Please go ahead. Tim Monachello: Thanks for taking my questions. The EI backlog continues to sort of trend lower. The revenue throughput seems to be pretty consistent, and obviously those projects are long in duration. I am just curious if you are expecting to see that revenue profile decline or if there is some perhaps contract renewals in the foreseeable future that will start to boost that backlog? Paul E. Mahoney: Yeah. Look, Tim, great question. I would say that what you are seeing and witnessing is the result of optimizing our footprint. it is not as much about contract rollover if you will, on the large BOOM contracts. it is more about optimizing our footprint mainly in our Latin American region. So just to put some color behind what you are seeing, Okay. Tim Monachello: that is helpful. And then a lot of players in the U.S. contract compression market have been talking about extending lead times, even further now. For engine components up to almost 4 years now. Can you talk a little bit about your strategy to be able to fulfill new orders given that extending lead time for components, if there is anything we can do outside of normal supply chain channels to procure engines, within the market. Paul E. Mahoney: Yes, and the company has purchase obligations over the next 4 years from 2026 through 2029 significant, right? We have $521 in 2026, dollars $350 some-odd million in 2027, and $191 million in 2028, and $53 million in 2029. So I would say we are in an interesting position having an advanced SNOP process. While the lead times have gone out. And, yes, do we need to look for some alternative items outside of engines and things like that? We constantly are seeking and working that. But this is an area that I think our team has done a remarkable job putting in the purchase obligations. We have clear line of sight, 2026 and 2027, and we are working from that type of framework on the engine. So again, I think it is a unique strength being in the compression business. At large, both contracts and the purchase side. and a normal standard SNLP process that is been extending over the last 12-plus months. Tim Monachello: Okay. Got it. And then last 1 for me just on the power gen opportunity set that continues to grow. Can you talk a little bit more about the strategy and the go-to-market and if you are finding any partners in the hyperscaler space or any other partners that may be showing a little bit of momentum and could point to some medium term more tangible results in terms of bookings in that space? Paul E. Mahoney: Yes, great question, Tim. I would tell you that we have reported many quarters now about our growing C in the market, which is at 7 gigawatts. We have reported out on that. I would tell you that our commercial operations and our organization has been intensely focused on probably the top 2 gigawatts. And as we continue to drive that intensity, what we are seeing is an advancement in our sales funnel on that level of activity. So our engagement is with hyperscalers, and our engagement is with prime power providers. The partners come and go, but I would say that the stable connectivity that Enerflex has been able to achieve with the hyperscalers has been consistent now for a few quarters. Tim Monachello: Alright. I appreciate it. I will turn it back. Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back over to Paul E. Mahoney for closing remarks. Paul E. Mahoney: Well, thank you, everyone, for joining us today and for your continued interest in Enerflex. We appreciate your time and look forward to providing further updates on our strategic progress with third quarter results at the end of October. Thank you. Operator: Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Enerflex, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enerflex wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Enerflex. The Motley Fool has a disclosure policy. Enerflex (EFXT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

ADJUSTED EBITDA OF $128 MILLION, FREE CASH FLOW OF $32 MILLION AND RETURN ON CAPITAL EMPLOYED OF 15.4% STRONG OPERATIONAL VISIBILITY WITH ES BACKLOG INCREASING TO $1.5 BILLION AT THE END OF Q2/26 ORGANIC GROWTH CAPEX FORECASTED AT TOP END OF GUIDANCE RANGE FOR 2026; ON TRACK TO EXPAND U.S. CONTRACT COMPRESSION FLEET BY 10-15% YEAR-OVER-YEAR CALGARY, Alberta, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today reported its financial and operational results for the three months ended June 30, 2026. All amounts presented are in U.S. Dollars unless otherwise stated. MANAGEMENT COMMENTARY Paul Mahoney, Enerflex's President and Chief Executive Officer stated: "Enerflex delivered another quarter of solid operational performance, reflecting disciplined execution and our focus on operational excellence. Results continue to be underpinned by our Energy Infrastructure and After-Market Services business lines, and the Engineered Systems business maintained strong commercial momentum. Strong bookings has translated into increasing visibility for our ES business, with a book to bill ratio of 1.5 times during the first half of 2026 and our forward visibility for ES revenue increasing to $1.5 billion, the highest level in Enerflex’s history. As highlighted during our May 27th investor update, Enerflex’s focus is on competing intentionally in the markets where we can win, improving relentlessly through operational excellence, and delivering disciplined value adding growth for our shareholders. This is reflected in our value creation objectives, which include improving the underlying profitability and returns of our business, and growing revenue ahead of our underlying markets. We are moving with urgency to execute on these priorities, including initiatives to enhance collaboration, leverage scale, improve operational efficiency and solidify our capabilities. I would like to thank our global team for embracing the challenge and look forward to updating our stakeholders as we progress." Preet Dhindsa, Enerflex’s Senior Vice President and Chief Financial Officer, added: “Enerflex delivered another quarter of strong financial performance, supported by disciplined execution and strong cash generation. During the quarter, we extended the maturity of our revolving credit facility to 2029 while increasing the accordion feature to $200 million, solidifying the Company’s financial flexibility as we execute our strategy. With a strong balance sheet and ample available liquidity, we remain focused on disciplined capital allocation, investing in profitable growth opportunities, and long-term value creation for shareholders.” SUMMARY RESULTS 1 EBITDA is defined as earnings before net finance costs, income taxes, depreciation and amortization. EBIT is defined as earnings before net finance costs and income taxes. 2 Net debt is defined as total long-term debt less cash and cash equivalents, as presented in the Financial Statements. 3 Refer to the “ES Backlog and Bookings” section of the MD&A for further details.4 Refer to the “EI Contract Backlog” section of the MD&A for further details.5 Refer to the “Gross Margin before D&A by Product Line and Recurring Gross Margin before D&A” section of the MD&A for further details.6 Refer to the “Adjusted EBITDA” section of the MD&A for further details. 7 Refer to the “Non-IFRS Measures” section of the MD&A for further details.8 Determined by using the trailing 12-month period. Enerflex’s consolidated financial statements and notes (the “Financial Statements”) and Management’s Discussion and Analysis (“MD&A”) as at June 30, 2026, can be accessed on the Company’s website at www.enerflex.com and under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Q2/26 FINANCIAL OVERVIEW Generated revenue of $582 million compared to $615 million in Q2/25 and $584 million in Q1/26 Recorded gross margin before depreciation and amortization of $173 million, or 30% of revenue, compared to $175 million, or 29% of revenue in Q2/25 and $179 million, or 31% of revenue during Q1/26 SG&A was $81 million for the three months ended June 30, 2026, up $20 million from the prior year period, due to higher stock-based compensation and investments to support growth and operational improvements. Core SG&A1 was $58 million for the three months ended June 30, 2026 compared to $52 million in Q2/25 and $55 million during the first quarter of 2026 Adjusted earnings before finance costs, income taxes, depreciation, and amortization (“adjusted EBITDA”) of $128 million compared to $130 million in Q2/25 and $137 million in Q1/26 Cash provided by operating activities before changes in working capital (“FFO”) of $87 million in Q2/26 compared to $89 million in Q2/25 and $95 million in Q1/26, a function of lower adjusted EBITDA. Cash provided by operating activities (“CFO”) was $89 million, which included net working capital recovery of $2 million. This compares to cash used in operating activities of $4 million in Q2/25 and cash provided by operating activities of $32 million in Q1/26 Free cash flow increased to $32 million in Q2/26 compared to the use of cash of $39 million during Q2/25 and source of cash of $15 million during Q1/26. The increase in FCF compared to prior year and prior period reflected higher CFO, being partially offset by higher capital spending Return on capital employed (“ROCE”)2 was 15.4% in Q2/26, compared to 16.4% in Q2/25 and 17.3% during Q1/26. Lower ROCE primarily reflects the decrease in trailing 12-month EBIT, which was impacted by unrealized gains on redemption options related to the senior secured notes recognized in prior periods, partially offset by lower average capital employed, predominantly due to a decline in net debt Net earnings of $30 million or $0.25 per share in Q2/26 compared to $60 million or $0.49 per share in Q2/25 and $43 million or $0.35 per share in Q1/26. Compared to Q2/25, profitability benefited from lower net finance costs, however was offset by higher share-based compensation expense and an unrealized gain of $15 million related to the redemption options of its senior secured notes recognized in the prior year Invested $53 million in the business, comprised of $35 million for growth, primarily allocated to expand the Company’s contract compression fleet in the U.S., and $18 million for maintenance and PP&E STRATEGIC AND OPERATIONAL HIGHLIGHTS ES backlog as at June 30, 2026 of $1.5 billion provides strong visibility into future revenue generation and business activity levels. Bookings of $488 million during Q2/26 compared to $365 million in Q2/25, $483 million in Q1/26 and a trailing eight quarter average of $363 million. ES bookings included a broad mix of end markets, including cryogenic gas processing, refrigeration for LNG export, large compression stations and power generation. ES book-to-bill ratio (calculated as bookings divided by revenue), was 1.6x during Q2/26 and 1.1x on a trailing eight quarter average, highlighting the Company is consistently replenishing its backlog in line with project execution Enerflex’s U.S. contract compression business continues to perform well, led by increasing natural gas production in the Permian. Utilization remained relatively consistent at 93% across a fleet size of 496,000 horsepower. Enerflex continues to target customer supported contract compression fleet growth of 10-15% during 2026, with the majority of additions expected to be deployed during the second half of the year. Enerflex is also securing long-lead time components to support further growth in 2027, 2028 and 2029 Enerflex is closely monitoring the conflict in the Middle East, and to-date, the Company’s operations in the region have operated uninterrupted. Local teams have established response processes and contingency planning, ensuring continued safety of our people and reliability of the Company’s operations. Enerflex’s operations in the Middle East, which are principally in Bahrain and Oman comprise 17 distinct natural gas and produced water projects, and an installed compression and power generation fleet of approximately 350,000 horsepower Aligned the Company's Canadian and U.S. operations under a unified North American framework to enhance collaboration, leverage scale, improve operational efficiency, and strengthen customer service across the region On February 25, 2026, Enerflex announced a definitive agreement to divest the majority of its operations in the Asia Pacific (“APAC”) region to INNIO Group. Completion of the transaction is subject to standard closing conditions and regulatory approvals and remains on track to close during the second half of 2026 Enerflex has secured a commitment for gas compression stations in the Vaca Muerta unconventional play in Argentina. The equipment is supported by a long-term EI and AMS contract with a strategic client partner Enerflex reached several important ReliaCore™ milestones, advancing the Company's digitally connected service ecosystem. We launched our Houston-based Remote Operations Center, are leveraging SMART dispatch technology to connect customer assets with technical expertise and intelligent workflows and deployed Enerflex’s first ReliaCore EDGE devices. Together, these capabilities extend service coverage, accelerate issue resolution, and build a foundation for advanced analytics and predictive maintenance capabilities that are expected to improve asset performance, reduce downtime, and create long-term economic value for both Enerflex and our client partners BALANCE SHEET AND LIQUIDITY Enerflex exited Q2/26 with net debt of $455 million, which included $74 million of cash and cash equivalents, a reduction of $153 million compared to Q2/25. Enerflex’s bank-adjusted net debt-to-EBITDA ratio was approximately 0.8x at the end of Q2/26, down from 1.3x at the end of Q2/25 and 0.9x at the end of Q1/26 On June 24, 2026, Enerflex entered into an amended and restated credit agreement with respect to its syndicated secured revolving credit facility (the “RCF”). The maturity date of the RCF has been extended by three years to June 30, 2029, and availability is unchanged at $800 million. The Company’s limit under the RCF may be increased by up to $200 million at the request of the Company, subject to lenders’ consent, compared to $50 million previously. The Company also continues to maintain a $70 million unsecured credit facility (the “LC Facility”) with one of the lenders in its RCF syndicate OUTLOOK We continue to see favorable multi-year fundamentals across our core markets, driven by increasing natural gas and liquids production. Operating results are expected to be underpinned by the highly contracted EI product line and the recurring nature of AMS. The EI product line is supported by customer contracts expected to generate approximately $1.2 billion of revenue over their remaining terms. Performance for Enerflex's ES product line is expected to benefit from healthy demand for compression and processing equipment across our key markets and a backlog of approximately $1.5 billion as at June 30, 2026, the majority of which is expected to convert into revenue over the next 12 months. Interest in distributed power solutions also continues to build, with our pipeline of opportunities now exceeding seven gigawatts across data center and other power generation applications. Enerflex's strategic priorities include: Capital Allocation Enerflex is refining its capital expenditure guidance for 2026, with the Company now targeting organic capital expenditures of $185 million to $195 million (prior guidance of $175 million to $195 million). This includes: (1) organic growth capital expenditures of approximately $100 million (prior guidance of $90 million to $100 million); (2) maintenance capital expenditures of $70 million to $80 million; and (3) PP&E and infrastructure investments of approximately $15 million to support the Company’s ES business and activity in adjacent markets, including electric power generation. Organic growth capital spending will continue to focus on customer supported opportunities and primarily allocated to expand the Company’s contract compression fleet in the U.S. Notably, the fundamentals for contract compression in the U.S. remain strong, led by expected increases in natural gas production and capital spending discipline from market participants. Enerflex continues to evaluate selective, disciplined bolt-on acquisition opportunities. Inorganic growth will be focused on enhancing capabilities and accelerating scale in the Company’s core North American markets. All opportunities will be balanced with Enerflex’s focus on maintaining a strong financial position and opportunities to provide direct shareholder returns. DIVIDEND DECLARATION Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of CAD $0.0425 per share, payable on September 2, 2026 to shareholders of record on August 19, 2026. CONFERENCE CALL AND WEBCAST DETAILS Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, August 6, 2026 at 8:00 a.m. (MDT), where members of senior management will discuss the Company’s results. A question-and-answer period will follow. To participate, register at https://register-conf.media-server.com/register/BIebea8b6833b642bbbff6b1c892d4954a. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com under the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/jgxueet4/. NON-IFRS MEASURES Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio, ES backlog and bookings, EI contract backlog, free cash flow, GM before depreciation and amortization, and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex’s performance. For information which is incorporated by reference into this news release, refer to “Non-IFRS Measures” in Enerflex’s MD&A for the three months ended June 30, 2026, which can be accessed on Enerflex’s website at www.enerflex.com and under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Adjusted EBITDA 1The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.2Net finance costs are considered corporate expenditure and have therefore not been allocated to reporting segments.3EBIT includes $1 million unrealized gain on redemption options associated with the USD denominated senior unsecured notes (the "2031 Notes"). Debt is managed within Corporate and is not allocated to reporting segments. 1The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT.2Net finance costs are considered corporate expenditure and have therefore not been allocated to reporting segments.3EBIT includes $15 million unrealized gain on redemption options associated with the 9.0% senior secured notes (the "2027 Notes"). Debt is managed within Corporate and is not allocated to reporting segments. FREE CASH FLOW The Company defines free cash flow as cash provided by (used in) operating activities, less total capital expenditures (growth and maintenance) for EI assets - operating leases and PP&E, mandatory debt repayments, and lease payments, while proceeds on disposals of PP&E and EI assets - operating leases are added back. Free cash flow may not be comparable to similar measures presented by other companies as it does not have a standardized meaning under IFRS. Management uses this non-IFRS measure to assess the level of free cash generated to fund other non-operating activities. These activities could include dividend payments, share repurchases, and non-mandatory debt repayments. Free cash flow is also used in calculating the dividend payout ratio. 1Enerflex also refers to cash provided by operating activities before net change in working capital and other as “Funds from Operations” or “FFO”.2Enerflex also refers to cash provided by (used in) operating activities as “Cash flow from Operations” or “CFO”. BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO Enerflex defines bank-adjusted net debt to EBITDA as borrowings under the RCF and senior secured notes less cash and cash equivalents, divided by EBITDA for the trailing 12-months, as defined by the Company’s lenders. In assessing the Company's compliance with financial covenants related to its debt, certain adjustments are made to EBITDA to determine Enerflex's bank-adjusted net debt to EBITDA ratio. These adjustments, and Enerflex's bank-adjusted net debt to EBITDA ratio, are calculated in accordance with, and derived from, the Company's financing agreements. ADVISORY REGARDING FORWARD-LOOKING INFORMATION This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words “anticipate”, “believe”, “could”, “expect”, “future”, “may”, “potential”, “should”, “will” and similar expressions, (including negatives thereof) are intended to identify FLI. In particular, this news release includes (without limitation) FLI pertaining to: Enerflex’s ability to deliver on its strategic priorities and value creation objectives, and the time associated therewith, if at all; anticipated business activity levels based on the ES backlog and that such backlog will drive future revenue generation, and the timing associated therewith, if at all; targeted contract compression fleet growth of 10-15% during 2026 and expectations that the majority of additions will be deployed during the second half of the year; Enerflex’s ability to secure long-lead time components to support further growth through 2029, and the timing associated therewith, if at all; the ability of the Company to realize and capitalize on opportunities within its electric power generation business, including opportunities associated with data centers and other power generation applications, and the timing associated therewith, if at all; the anticipated completion of the divestiture of a majority of the Company’s operations in the APAC region (the “APAC Divestiture”), and the timing thereof, if at all; the conversion of a secured commitment for gas compression stations in the Vaca Muerta unconventional play in Argentina into a definitive binding agreement and the timing associated therewith, if at all; expectations that the deployment of ReliaCore capabilities will improve asset performance, reduce downtime, and create long-term economic value for both Enerflex and its client partners, and the timing associated therewith, if at all; disclosures under the heading “Outlook” including: the ability of Enerflex to continue to pay a sustainable quarterly cash dividend; and the availability of free cash generated and that such cash may be used to fund non-operating activities including dividend payments, share repurchases, and other non-mandatory debt repayments, if any. FLI reflect Management's current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex's products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex’s expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including but not limited to: expectations that acquisition opportunities will be available to the Company, the Company can evaluate and execute on such opportunities, and that adequate financial capacity and liquidity will remain available, all required regulatory, contractual and third-party approvals will be received, and any acquisitions can be successfully integrated; that all conditions to completion of the APAC Divestiture will be satisfied or waived in a timely manner, that all regulatory and other approvals required for completion of the APAC Divestiture will be obtained and obtained in a timely manner, that the transaction to effect the APAC Divestiture will be completed on the agreed terms, and that the expected benefits of the APAC Divestiture will be realized within the expected timeframes; potential impacts of the evolving situation in the Middle East on Enerflex’s operations in Bahrain and Oman and the broader region; the ability of the Company to proactively manage the ES business line in response to near-term risks and uncertainties, including tariffs and commodity price volatility; natural gas and associated liquids and produced water volumes across Enerflex’s global footprint will increase in line with expectations; market conditions, customer activity, and industry fundamentals will support stable demand across Enerflex’s product lines and geographic regions throughout 2026; the high level of contractual commitments within the EI product line and the predictable, recurring revenue from AMS will continue; existing and strong commercial relationships with customers will continue; existing customer contracts within the EI product line will remain in effect and with no material cancellations or renegotiations over their remaining terms; risks related to lawsuits, arbitrations or other legal proceedings; the execution of projects within the ES product line will proceed as scheduled and the conversion to revenue will proceed without significant delays or cancellations; the Company’s backlog providing strong visibility into future revenue generation and business activity levels; no significant unforeseen cost overruns or project delays; the fulfillment by our customers of the terms of their contracts; the Company will successfully execute operational excellence initiatives and realize anticipated productivity improvements across its global operations; Enerflex will maintain sufficient cash flow, profitability, and financial flexibility to support the ongoing payment of a sustainable quarterly cash dividend, subject to market conditions, operational performance, and board approval; Enerflex will maintain sufficient financial flexibility to execute on its capital allocation priorities; and other factors, many of which are beyond the control of Enerflex. As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading "Risk Factors" in: (i) Enerflex's Annual Information Form for the year ended December 31, 2025, dated February 25, 2026; (ii) the Company’s MD&A as at June 30, 2026; and (iii) in other filings with Canadian securities regulators and the SEC, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Other unpredictable or unknown factors not discussed in this news release could have material adverse effects on the actual results, performance, or achievements of Enerflex expressed in, or implied by, the FLI. The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice. The outlook provided in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. The outlook is based on the same assumptions and risk factors set forth above and is based on the Company's historical results of operations. The outlook set forth in this news release was approved by Management and the Board of Directors. Management believes that the prospective financial information set forth in this news release has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents the Company's expected course of action in developing and executing its business strategy relating to its business operations. The prospective financial information set forth in this news release should not be relied on as necessarily indicative of future results. Actual results may vary, and such variance may be material. ABOUT ENERFLEX Enerflex is a leading provider of modular natural gas, power technology and treated water solutions, delivering value through disciplined execution and a deliberate approach to where we compete. Our customer focused delivery model supports operational excellence, innovation, and scalability across our global footprint with a focus on creating long-term shareholder value. With approximately 4,400 engineers, manufacturers, technicians, professionals, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the world’s energy needs. Enerflex’s common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT”. For more information about Enerflex, visit www.enerflex.com. For investor and media enquiries, contact: Paul MahoneyPresident and Chief Executive OfficerE-mail: [email protected] Preet S. DhindsaSenior Vice President and Chief Financial OfficerE-mail: [email protected] Jeff FetterlyVice President, Corporate Development and Capital MarketsE-mail: [email protected] ______________________________________1) Core SG&A is primarily comprised of compensation, third-party services, and information technology expenses.2) ROCE is calculated by taking EBIT for the 12-month trailing period divided by capital employed. Capital employed is average debt and Shareholders’ equity less average cash for the trailing four quarters.

All amounts presented in this release are in U.S. Dollar (“USD”) unless otherwise stated. CALGARY, Alberta, June 24, 2026 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) is pleased to announce that the Company has entered into an amended and restated credit agreement dated June 24, 2026 with respect to its syndicated secured revolving credit facility (the “RCF”). The maturity date of the RCF has been extended by three years to June 30, 2029 and availability is unchanged at $800 million. The Company's limit under the RCF may be increased by up to $200 million at the request of the Company, subject to lenders’ consent, compared to $50 million previously. As at March 31, 2026, the Company had drawn $162 million on its RCF. Led by the Royal Bank of Canada as agent, Enerflex received renewed lending commitments from all current syndicate members. The Company also continues to maintain a $70 million unsecured credit facility (the “LC Facility”) with one of the lenders in its RCF syndicate. The LC Facility is supported by performance security guarantees provided by Export Development Canada. Preet Dhindsa, Enerflex’s Senior Vice President and Chief Financial Officer, commented, “We appreciate the continued support of our lending syndicate. The extension of our revolving credit facility solidifies Enerflex’s financial flexibility as we execute our strategy. With a strong balance sheet and ample available liquidity, we remain focused on disciplined capital allocation and delivering long-term value for shareholders.” Q2 Earnings Release Enerflex plans to release its financial results and operating highlights for the three and six months ended June 30, 2026, on Thursday, August 6, 2026 prior to market open. Results will be communicated by news release and will be available on the Company's website at www.enerflex.com and under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, August 6, 2026 at 8:00 a.m. (MT), where members of senior management will discuss the Company's results. A question-and-answer period will follow. To participate, register at https://register-conf.media-server.com/register/BIebea8b6833b642bbbff6b1c892d4954a. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com under the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/jgxueet4. ADVISORY REGARDING FORWARD-LOOKING INFORMATION This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words “plan”, “will”, and similar expressions, are intended to identify FLI. In particular, this news release includes (without limitation) FLI pertaining to the Company’s expectation to release its financial results and operating highlights for the three and six months ended June 30, 2026, prior to the markets opening on Thursday, August 6, 2026 along with the news release, conference call and audio webcast associated therewith. The FLI included in this news release is made as of the date of this news release and is based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice. ABOUT ENERFLEXEnerflex is a leading provider of modular natural gas, power, and treated water technology solutions, delivering value through disciplined execution and a deliberate approach to where we compete. Our customer focused delivery model supports operational excellence, innovation, and scalability across our global footprint with a focus on creating long-term shareholder value. With approximately 4,400 engineers, manufacturers, technicians, professionals, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the world’s energy needs. Enerflex’s common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT”. For more information about Enerflex, visit www.enerflex.com. For investor and media enquiries, contact: Paul MahoneyPresident and Chief Executive OfficerE-mail: [email protected] Preet S. DhindsaSenior Vice President and Chief Financial Officer E-mail: [email protected] Jeff Fetterly Vice President, Corporate Development and Capital Markets E-mail: [email protected]

Enerflex Ltd.'s (TSE:EFX) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To properly understand Enerflex's profit results, we need to consider the US$61m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Enerflex doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Enerflex's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Enerflex's statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 14% in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of Enerflex. Today we've zoomed in on a single data point to better understand the nature of Enerflex's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Enerflex Ltd.? Here are five stocks we like better. Enerflex posted stronger Q1 2026 results, with revenue rising to CAD 584 million from CAD 552 million a year earlier and net earnings increasing to CAD 43 million, or CAD 0.35 per share. Adjusted EBITDA and gross margin also improved, and return on capital employed hit a record 17.3%. Engineered Systems momentum remained strong, with bookings of CAD 483 million and a 1.5x book-to-bill ratio, supported by healthy backlog and demand tied to natural gas and electric power generation. Management said the company’s opportunity pipeline now exceeds 5 gigawatts, including data center and island power projects. The balance sheet stayed solid while capital spending focused on growth, as Enerflex ended the quarter with net debt of CAD 505 million and a bank-adjusted net debt-to-EBITDA ratio of about 0.9x. The company also reiterated 2026 organic capex plans of CAD 175 million to CAD 195 million, with spending aimed at expanding contract compression and supporting power-generation opportunities. Enerflex (NYSE:EFXT) reported higher first-quarter 2026 revenue, improved profitability and continued momentum across its Engineered Systems, Energy Infrastructure and After-Market Services businesses, while management highlighted growing opportunities tied to natural gas demand and electric power generation. On the company’s earnings call, President and CEO Paul Mahoney said Enerflex delivered “another strong quarter of operational and financial performance,” citing disciplined execution across its global footprint and continued efforts to optimize and streamline the business. Mahoney said Energy Infrastructure and After-Market Services accounted for 65% of adjusted gross margin before depreciation and amortization during the quarter. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Senior Vice President and CFO Preet Dhindsa said Enerflex generated revenue of CAD 584 million in the first quarter, up from CAD 552 million in the same period of 2025 but down from CAD 627 million in the fourth quarter of 2025. The year-over-year increase reflected strong execution and elevated activity in the Engineered Systems product line, while the sequential decline was primarily tied to lower parts sales and service utilization in After-Market Services. Gross margin before depreciation and amortization was CAD 179 million, or 31% of revenue, compared with CAD 161 million, or 29% of revenue, in the prior-year quarter. Adjusted EBITDA rose to CAD 137 million from CAD 113 million a year earlier and CAD 123 million in the fourth quarter. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Net earnings were CAD 43 million, or CAD 0.35 per share, compared with CAD 24 million, or CAD 0.19 per share, in the first quarter of 2025. Enerflex reported a loss of CAD 57 million, or CAD 0.47 per share, in the fourth quarter of 2025. Dhindsa said profitability benefited from higher gross margin and lower net finance costs, partially offset by higher selling, general and administrative expense. Return on capital employed reached 17.3%, which Dhindsa described as a new company record, compared with 14.2% in the prior-year quarter and 16.9% in the fourth quarter. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Mahoney said the Engineered Systems business continued to show “strong execution and commercial momentum,” supported by healthy backlog levels and active bidding in key markets, particularly North America. Engineered Systems bookings totaled CAD 483 million in the quarter, compared with a trailing eight-quarter average of CAD 344 million. The book-to-bill ratio was 1.5 times in the quarter and one times on a trailing eight-quarter basis. Management said the outlook for Engineered Systems remains attractive due to expected growth in natural gas, associated liquids and electric power generation across Enerflex’s core operating countries. During the quarter, Enerflex was awarded a behind-the-meter power generation project for a data center using reciprocating engine generator sets and secured additional projects supporting island power applications. Mahoney said Enerflex’s current scope of opportunities now exceeds 5 gigawatts, including opportunities for After-Market Services support. In response to an analyst question, he said the power generation opportunity remains early-stage and is evolving quickly, adding that Enerflex is prepared to participate as opportunities close. Enerflex’s Energy Infrastructure business continued to perform solidly, supported by approximately CAD 1.3 billion of contracted revenue. Mahoney said the company’s U.S. contract compression business is performing well, driven by rising natural gas production in the Permian Basin. Fleet utilization remained stable at 94% across 486,000 horsepower. Enerflex expanded its U.S. contract compression market fleet by 13% in 2025, and Mahoney said the company continues to expect growth capital expenditures to deliver growth at a similar pace or greater in 2026. He also said Enerflex is securing long-lead-time components to support further growth in 2027. The international Energy Infrastructure portfolio has a weighted average remaining contract term of approximately five years, which management said provides durable and predictable cash flow. Mahoney opened the call by acknowledging Enerflex’s employees, client partners and stakeholders in the Middle East amid the ongoing conflict. He said Enerflex is closely monitoring the situation and that the company’s operations in the region have continued uninterrupted to date. Enerflex operates 17 natural gas and produced water projects in Bahrain and Oman. Mahoney said local teams are using established response processes and contingency planning to support employee safety and operational reliability. Once the conflict is resolved, Mahoney said Enerflex sees potential opportunities across its business lines, including aftermarket services to support operational recovery, engineered systems for replacement and debottlenecking, and capital deployment toward rebuilding energy infrastructure. Enerflex ended the quarter with net debt of CAD 505 million, including CAD 47 million in cash and cash equivalents. Dhindsa said net debt was down CAD 59 million from the prior-year quarter, and the company has repaid approximately CAD 550 million of long-term debt since the beginning of 2023. Enerflex’s bank-adjusted net debt-to-EBITDA ratio was approximately 0.9 times at quarter-end. The company invested CAD 16 million in the business during the quarter, including CAD 7 million for growth, primarily to expand the U.S. contract compression fleet, and CAD 9 million for maintenance and property, plant and equipment. Despite a slower start to the year, Enerflex continues to target organic capital expenditures of CAD 175 million to CAD 195 million in 2026. Dhindsa said the 2026 capital plan includes: CAD 90 million to CAD 100 million for growth capital; CAD 70 million to CAD 80 million for maintenance capital; Approximately CAD 15 million for property, plant, equipment and infrastructure investments supporting Engineered Systems and adjacent markets, including electric power generation. Enerflex returned CAD 4 million to shareholders through dividends during the quarter and made no repurchases under its normal course issuer bid. Mahoney also discussed the company’s enterprise-wide productivity system, which he said is focused on leveraging Enerflex’s scale, lean and continuous improvement, structural cost competitiveness, faster execution, and modernization of IT and automation. He said the company has already seen early wins and expects to provide further updates. Enerflex plans to share more detail on its strategy, capabilities and market opportunities at a virtual investor update scheduled for May 27. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enerflex Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

CONTINUED STRONG OPERATIONAL EXECUTION REFLECTED IN ADJUSTED EBITDA OF $137 MILLION AND RECORD RETURN ON CAPITAL EMPLOYED OF 17.3% MANAGING FINANCIAL FLEXIBILITY; BANK ADJUSTED NET DEBT-TO-EBITDA RATIO TO 0.9x AT THE END OF Q1/26 SOLID OPERATIONAL VISIBILITY WITH ES BOOK-TO-BILL RATIO OF 1.5X, ES AND EI BACKLOGS OF $1.3 BILLION CALGARY, Alberta, May 07, 2026 (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, 2026. All amounts presented are in U.S. Dollars unless otherwise stated. Q1/26 FINANCIAL OVERVIEW Generated revenue of $584 million compared to $552 million in Q1/25 and $627 million in Q4/25 Higher revenue compared with prior year reflects strong execution and a high level of operational activity in the Engineered Systems (“ES”) product line. The sequential decline relates primarily to lower parts sales and service utilization in the After-Market Services (“AMS”) product line Recorded gross margin before depreciation and amortization of $179 million, or 31% of revenue, compared to $161 million, or 29% of revenue in Q1/25 and $177 million, or 28% of revenue during Q4/25 Energy Infrastructure (“EI”) and AMS product lines generated 65% of consolidated gross margin before depreciation and amortization during Q1/26 ES gross margin before depreciation and amortization increased to 19% in Q1/26 compared to 18% in Q1/25, and 18% in Q4/25 primarily related to product mix SG&A was $79 million for the three months ended March 31, 2026, up $22 million from the prior year period, due to higher stock-based compensation. On a sequential basis, SG&A decreased from $83 million, primarily due to lower core SG&A from cost-saving initiatives, partially offset by higher stock-based compensation Adjusted earnings before finance costs, income taxes, depreciation, and amortization (“adjusted EBITDA”) of $137 million compared to $113 million in Q1/25 and $123 million in Q4/25 Cash provided by operating activities before changes in working capital (“FFO”) increased to $95 million in Q1/26 compared to $60 million in Q4/25 and $62 million in Q1/25, a function of higher adjusted EBITDA and lower net finance costs. Cash provided by operating activities was $32 million, which included net working capital investment of $63 million. This compares to $96 million in Q1/25 and $179 million in Q4/25 Free cash flow decreased to $15 million in Q1/26 compared to $85 million during Q1/25 and $141 million during Q4/25, with higher FFO offset by investments in net working capital Return on capital employed (“ROCE”)1 was 17.3% in Q1/26, a new record for the Company, compared to 14.2% in Q1/25 and 16.9% during Q4/25. Higher ROCE is a function of the increase in trailing 12-month EBIT and lower average capital employed, predominantly due to a decline in net debt Net earnings (loss) of $43 million or $0.35 per share in Q1/26 compared to $24 million or $0.19 per share in Q1/25 and ($57) million or ($0.47) per share in Q4/25. Compared to Q1/25, profitability benefited from higher gross margin, and lower net finance costs partially offset by higher SG&A expense Invested $16 million in the business, comprised of $7 million for growth, primarily allocated to expand the Company’s contract compression fleet in the U.S., and $9 million for maintenance and PP&E ______________________ 1 ROCE is calculated by taking EBIT for the 12-month trailing period divided by capital employed. Capital employed is average debt and Shareholders’ equity less average cash for the trailing four quarters. STRATEGIC AND OPERATIONAL HIGHLIGHTS ES backlog as at March 31, 2026 of $1.3 billion provides strong visibility into future revenue generation and business activity levels. Bookings of $483 million during Q1/26 compared to $205 million in Q1/25, $377 million in Q4/25 and a trailing eight quarter average of $344 million. ES book-to-bill ratio (calculated as bookings divided by revenue), was 1.5x during Q1/26 and 1.0x on a trailing eight quarter average, highlighting that the Company is consistently replenishing its backlog in line with project execution Enerflex is advancing its electric power generation business, including opportunities associated with data centers. During the quarter, the Company was awarded a behind-the-meter power generation project for a data center utilizing reciprocating engine generator sets and secured additional projects supporting island power applications. Enerflex continues to see strong demand across its Engineered Systems business line and emerging opportunities for After-Market Services support Enerflex’s U.S. contract compression business continues to perform well, led by increasing natural gas production in the Permian. Utilization remained stable at 94% across a fleet size of 486,000 horsepower. Enerflex increased its marketed fleet by 13% over the course of 2025 and continues to expect growth capital expenditures will deliver growth at a similar pace or greater during 2026. Enerflex is also securing long-lead time components to support further growth in 2027 Enerflex is closely monitoring the conflict in the Middle East, and to date, the Company’s operations in the region have operated uninterrupted. Local teams are actively managing with established response processes and contingency planning, ensuring continued safety of our people and reliability of the Company’s operations. Enerflex’s operations which are principally in Bahrain and Oman comprise 17 distinct natural gas and produced water projects, and an installed compression and power generation fleet of approximately 350,000 horsepower BALANCE SHEET AND LIQUIDITY Enerflex exited Q1/26 with net debt of $505 million, which included $47 million of cash and cash equivalents, a reduction of $59 million compared to Q1/25. Since the beginning of 2023, Enerflex has repaid approximately $550 million of long-term debt through Q1/26 Enerflex’s bank-adjusted net debt-to-EBITDA ratio was approximately 0.9x at the end of Q1/26, down from 1.3x at the end of Q1/25 and 1.0x at the end of Q4/25 MANAGEMENT COMMENTARY Paul Mahoney, Enerflex’s President and Chief Executive Officer stated: “Enerflex delivered solid operational performance in the first quarter of 2026, reflecting continued disciplined execution across our global footprint as well as ongoing efforts to optimize and streamline our business. Results continue to be underpinned by the Energy Infrastructure and After-Market Services business lines, which generated 65% of adjusted gross margin before depreciation and amortization in the quarter. The Engineered Systems business is demonstrating strong execution and commercial momentum, supported by healthy backlog levels and ongoing bidding activity across key markets, particularly in North America. We continue to see steady demand in our core markets, underpinned by increasing natural gas and liquids production volumes. We are also advancing strategic opportunities in emerging power generation markets, including data center-related projects and other distributed power applications, with our current scope of opportunities now exceeding five gigawatts. In the Middle East, our focus remains on ensuring the safety of our people and reliability of the Company’s operations. Enerflex owned infrastructure is integral to the reliable operation of regional energy systems and we continue to work closely with our client partners to navigate a dynamic situation.” Preet Dhindsa, Enerflex’s Senior Vice President and Chief Financial Officer, added: “Enerflex generated solid financial results in the first quarter, which included improvement in both gross margin and cash conversion. We are on track with our 2026 capital plan and continue to allocate capital in a balanced manner across growth investments, shareholder returns and managing our financial position. The Company’s focus remains on enhancing profitability in our core operations, executing on our Engineered Systems backlog, and maintaining a strong and flexible balance sheet to support long-term value creation.” SUMMARY RESULTS 1 EBITDA is defined as earnings before net finance costs, income taxes, depreciation and amortization. EBIT is defined as earnings before net finance costs and income taxes. 2 Net debt is defined as total long-term debt, less cash and cash equivalents as presented in the Financial Statements. 3 Refer to the “ES Backlog and Bookings” section of the MD&A for further details. 4 Refer to the “EI Contract Backlog” section of the MD&A for further details. 5 Refer to the “Gross Margin before D&A by Product Line and Recurring Gross Margin before D&A” section of the MD&A for further details. 6 Refer to the “Adjusted EBITDA” section of the MD&A for further details. 7 Refer to the “Non-IFRS Measures” section of the MD&A for further details. 8Determined by using the trailing 12-month ("TTM") period. Enerflex’s consolidated financial statements and notes (the “Financial Statements”) and Management’s Discussion and Analysis (“MD&A”) as at March 31, 2026, can be accessed on the Company’s website at www.enerflex.com and under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. OUTLOOK Enerflex’s outlook for 2026 reflects steady demand across its business lines and geographic regions. Operating results will continue to be underpinned by the highly contracted Energy Infrastructure (“EI”) product line and the recurring nature of After Market Services (“AMS”). The EI product line is supported by customer contracts expected to generate approximately $1.3 billion of revenue over their remaining terms. Performance for Enerflex's ES product line is expected to remain steady, supported by a backlog of approximately $1.3 billion as at March 31, 2026, the majority of which is expected to convert into revenue over the next 12 months. The medium-term outlook for ES products and services continues to be attractive, driven by expected increases in natural gas and electric power generation across Enerflex’s core operating countries. Enerflex’s priorities in 2026 include: Capital Allocation Enerflex continues to target organic capital expenditures of $175 million to $195 million during 2026. This includes: (1) organic growth capital expenditures of $90 million to $100 million; (2) maintenance capital expenditures of $70 million to $80 million; and (3) PP&E and infrastructure investments of approximately $15 million to support the Company’s ES business and activity in adjacent markets, including electric power generation. Organic growth capital spending will continue to focus on customer supported opportunities and primarily allocated to expand the Company’s contract compression fleet in the U.S. Notably, the fundamentals for contract compression in the U.S. remain strong, led by expected increases in natural gas production and capital spending discipline from market participants. Virtual Investor Update Enerflex will host a virtual Investor Update on Wednesday, May 27, 2026 at 8:00 am MT (10:00am ET). Enerflex’s President and CEO, Paul Mahoney, will highlight the company’s outlook and strategic priorities with a Q&A period to follow. Registration for the Investor Day can be made using the following link: https://edge.media-server.com/mmc/p/eyz29mbq. Participants can join by webcast to follow along with the presentation. The presentation will be made available on Enerflex’s website prior to the start. Questions can be submitted via the webcast or asked on the dial-in. Dial-in numbers: https://register-conf.media-server.com/register/BI8e02cded3fae4a3dbb8d89234ae4be38 Shortly after the live webcast, an archived version will be available. DIVIDEND DECLARATION Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of CAD $0.0425 per share, payable on June 3, 2026 to shareholders of record on May 20, 2026. CONFERENCE CALL AND WEBCAST DETAILS Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, May 7, 2026 at 8:00 a.m. (MDT), where members of senior management will discuss the Company’s results. A question-and-answer period will follow. To participate, register at https://register-conf.media-server.com/register/BI6515d65feedd4a68be887d88f452621e. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com under the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/jpr3iwfx/. NON-IFRS MEASURES Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio, ES backlog and bookings, EI contract backlog, free cash flow, GM before depreciation and amortization and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex’s performance. Refer to “Non-IFRS Measures” of Enerflex’s MD&A for the three months ended March 31, 2026, for information which is incorporated by reference into this news release and can be accessed on Enerflex’s website at www.enerflex.com and under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Adjusted EBITDA 1The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT. 2Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments. 3EBIT includes $5 million unrealized gain on redemption options associated with the 2031 Notes. Debt is managed within Corporate and is not allocated to reporting segments. 1The Company included net earnings, income taxes, and net finance costs on a consolidated basis to reconcile to EBIT. 2Net finance costs are considered corporate expenditure and therefore have not been allocated to reporting segments. 3EBIT includes $3 million unrealized loss on redemption options associated with the 2027 Notes. Debt is managed within Corporate and is not allocated to reporting segments. FREE CASH FLOW The Company defines free cash flow as cash provided by (used in) operating activities, less total capital expenditures (growth and maintenance) for EI assets - operating leases and PP&E, mandatory debt repayments, and lease payments, while proceeds on disposals of PP&E and EI assets - operating leases are added back. Free cash flow may not be comparable to similar measures presented by other companies as it does not have a standardized meaning under IFRS. Management uses this non-IFRS measure to assess the level of free cash generated to fund other non-operating activities. These activities could include dividend payments, share repurchases, and non-mandatory debt repayments. Free cash flow is also used in calculating the dividend payout ratio. 1Enerflex also refers to cash provided by operating activities before net change in working capital and other as “Funds from Operations” or “FFO”. 2Enerflex also refers to cash provided by operating activities as “Cash flow from Operations” or “CFO”. BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO Enerflex defines bank-adjusted net debt to EBITDA as borrowings under the Revolving Credit Facility (“RCF”) and Notes less cash and cash equivalents, divided by EBITDA for the trailing 12-months, as defined by the Company’s lenders. In assessing the Company's compliance with financial covenants related to its debt, certain adjustments are made to EBITDA to determine Enerflex's bank-adjusted net debt to EBITDA ratio. These adjustments, and Enerflex's bank-adjusted net debt to EBITDA ratio, are calculated in accordance with, and derived from, the Company's financing agreements. ADVISORY REGARDING FORWARD-LOOKING INFORMATION This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words “anticipate”, “believe”, “could”, “expect”, “future”, “may”, “potential”, “should”, “will” and similar expressions, (including negatives thereof) are intended to identify FLI. In particular, this news release includes (without limitation) FLI pertaining to: anticipated business activity levels based on the ES backlog and that such backlog will drive future revenue generation, the timing associated therewith, if at all; expectations that growth capital expenditures will deliver growth of at least 13% during 2026 and the ability of Enerflex to secure long-lead time components, if at all, to support such growth; Enerflex’s ongoing efforts to optimize and streamline its business and the timing associated there with; the ability of the Company to capitalize on opportunities within its electric power generation business, including opportunities associated with data centers; Enerflex’s ability to enhance the profitability of its core operations, execute on its ES backlog, and maintain a strong and flexible balance sheet to support long-term value creation, and the time required in connection therewith, if at all; disclosures under the heading “Outlook” including: expectations for continued steady demand across our business lines and geographic regions; the highly contracted EI product line and the recurring nature of AMS will continue to underpin operating results; customer contracts within Enerflex’s EI product line will generate approximately $1.3 billion of revenue over their remaining terms; expectations that performance of Enerflex’s ES product line will remain steady, with the majority of the backlog of approximately $1.3 billion as at March 31, 2026, expected to convert into revenue over the next 12 months; expected increases in natural gas and electric power generation across Enerflex’s core operating countries will drive an attractive medium-term outlook for ES products and services; Enerflex’s ability to deliver on its priorities in 2026 and the time required in connection therewith, if at all; targeted organic capital expenditures during 2026 of $175 million to $195 million, including (i) organic growth capital expenditures of $90 million to $100 million; (2) maintenance capital expenditures of $70 million to $80 million; and (3) PP&E and infrastructure investments of approximately $15 million; selective customer supported growth investments continuing to be made in the US contract compression business; continued strength in the fundamentals for contract compression in the U.S., led by expected increases in natural gas production and capital spending discipline from market participants; and the Company's expectation to hold a virtual investor update, the date and time of such update, and the content of such update and when such content will be made available, if at all; the availability of free cash generated and that such cash may be used to fund non-operating activities including dividend payments, share repurchases, and other non-mandatory debt repayments, if any. FLI reflect Management's current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex's products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex’s expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including but not limited to: potential impacts of the situation in the Middle East on Enerflex’s operations in Bahrain and Oman and the broader region; the ability of the Company to proactively manage the ES business line in response to near-term risks and uncertainties, including tariffs and commodity price volatility; natural gas and associated liquids and produced water volumes across Enerflex’s global footprint will increase in line with expectations; market conditions, customer activity, and industry fundamentals will support stable demand across Enerflex’s product lines and geographic regions throughout 2026; the high level of contractual commitments within the EI product line and the predictable, recurring revenue from AMS will continue; existing customer contracts within the EI product line will remain in effect and with no material cancellations or renegotiations over their remaining terms; risks related to lawsuits, arbitrations or other legal proceedings; the execution of projects within the ES product line will proceed as scheduled and the conversion to revenue will proceed without significant delays or cancellations; the Company’s backlog providing strong visibility into future revenue generation and business activity levels; no significant unforeseen cost overruns or project delays; Enerflex will maintain sufficient cash flow, profitability, and financial flexibility to support the ongoing payment of a sustainable quarterly cash dividend, subject to market conditions, operational performance, and board approval. As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading "Risk Factors" in: (i) Enerflex's Annual Information Form for the year ended December 31, 2025, dated February 25, 2026; and (ii) in other filings with Canadian securities regulators and the SEC, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively. Other unpredictable or unknown factors not discussed in this news release could have material adverse effects on the actual results, performance, or achievements of Enerflex expressed in, or implied by, the FLI. The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice. The outlook provided in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. The outlook is based on the same assumptions and risk factors set forth above and is based on the Company's historical results of operations. The outlook set forth in this news release was approved by Management and the Board of Directors. Management believes that the prospective financial information set forth in this news release has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents the Company's expected course of action in developing and executing its business strategy relating to its business operations. The prospective financial information set forth in this news release should not be relied on as necessarily indicative of future results. Actual results may vary, and such variance may be material. ABOUT ENERFLEX Enerflex is a leading provider of modular natural gas, power technology and treated water solutions, delivering value through disciplined execution and a deliberate approach to where we compete. Our customer focused delivery model supports operational excellence, innovation, and scalability across our global footprint with a focus on creating long-term shareholder value. With approximately 4,400 engineers, manufacturers, technicians, professionals, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the world’s energy needs. Enerflex’s common shares trade on the Toronto Stock Exchange under the symbol “EFX” and on the New York Stock Exchange under the symbol “EFXT”. For more information about Enerflex, visit www.enerflex.com. For investor and media enquiries, contact: Paul Mahoney President and Chief Executive Officer E-mail: [email protected] Preet S. Dhindsa Senior Vice President and Chief Financial Officer E-mail: [email protected] Jeff Fetterly Vice President, Corporate Development and Capital Markets E-mail: [email protected]