Enerflex reports adjusted EBITDA of $137 million for first quarter
The company achieved a record return on capital employed of 17.3% during the three months ended March 31, 2026
Enerflex Ltd. (EFXT), a provider of modular natural gas, power technology and treated water solutions, reported revenue of $584 million for the first quarter of 2026, up from $552 million in the same period last year,. The company said the increase was driven by high operational activity in its Engineered Systems (ES) product line and higher Energy Infrastructure (EI) revenue from the Bisat-C Expansion and increased contracted horsepower in North America,.
Adjusted EBITDA rose to $137 million from $113 million in the prior-year quarter,. Gross margin before depreciation and amortization increased to $179 million, or 31% of revenue, compared to $161 million, or 29% of revenue in the first quarter of 2025. The EI and After-Market Services (AMS) product lines generated 65% of that consolidated gross margin.
Commercial momentum in the ES business was marked by bookings of $483 million, compared to $205 million in the first quarter of 2025. The ES book-to-bill ratio reached 1.5x, and the ES backlog stood at $1.265 billion as of March 31, 2026,. The company said the majority of this backlog is expected to convert into revenue over the next 12 months.
Financial flexibility improved as the bank-adjusted net debt-to-EBITDA ratio fell to 0.9x from 1.3x in the prior-year period,. Net debt decreased to $505 million from $564 million in the first quarter of 2025. Since the start of 2023, the company has repaid approximately $550 million of long-term debt.
Cash provided by operating activities was $32 million, which included a net working capital investment of $63 million. This followed a first-quarter 2025 figure of $96 million. Free cash flow for the period was $15 million, compared to $85 million in the same quarter last year.
Enerflex targets organic capital expenditures between $175 million and $195 million for 2026,. This includes $90 million to $100 million for organic growth, primarily to expand the contract compression fleet in the U.S.,. The company also allocated $70 million to $80 million for maintenance and approximately $15 million for infrastructure to support the ES business and electric power generation,.
In the Middle East, the company said its operations in Bahrain and Oman have operated uninterrupted despite regional conflict. The company is also advancing opportunities in emerging power generation markets, including data center projects, with a current scope of opportunities exceeding five gigawatts,.
Following the results, the Board of Directors declared a quarterly dividend of CAD $0.0425 per share, payable on June 3, 2026,.