Enerflex reports record engineered systems backlog of $1.5 billion
The company generated $582 million in revenue for the second quarter of 2026
Enerflex Ltd. (EFXT), a provider of energy infrastructure and engineered systems, reported second-quarter 2026 adjusted EBITDA of $128 million and free cash flow of $32 million. The company generated revenue of $582 million, a decrease from the $615 million reported in the second quarter of 2025.
Revenue declines were primarily driven by project sequencing and resource allocation related to the expansion of the company's U.S. contract compression fleet within its Engineered Systems (ES) product line. Despite the quarterly revenue dip, the ES business maintained commercial momentum, with a book-to-bill ratio of 1.6 times during the quarter. The ES backlog reached $1.5 billion by June 30, 2026, which the company described as the highest level in its history,. The majority of this backlog is expected to convert into revenue over the next 12 months.
Profitability remained stable as the company recorded gross margin before depreciation and amortization of $173 million, or 30% of revenue, compared to $175 million, or 29% of revenue, in the prior-year period. The Energy Infrastructure (EI) and After-Market Services (AMS) lines provided 69% of that consolidated gross margin. The EI product line is supported by customer contracts that the company expects will generate approximately $1.2 billion of revenue over their remaining terms.
Operating expenses rose as SG&A reached $81 million for the quarter, an increase of $20 million over the prior year. The company attributed this rise to higher stock-based compensation and investments intended to support growth and operational improvements.
To support its growth strategy, Enerflex extended the maturity of its revolving credit facility to 2029 and increased the accordion feature to $200 million. The company is on track to expand its U.S. contract compression fleet by 10% to 15% year-over-year and has forecasted organic growth capital expenditures at the top end of its 2026 guidance range.
Enerflex declared a quarterly dividend of CAD $0.0425 per share, payable on September 2, 2026.