Enerflex (NYSE: EFXT) has released its preliminary outlook for 2025, highlighting three key priorities: enhancing core operations profitability, leveraging its position to capitalize on natural gas and produced water volumes growth, and maximizing free cash flow. The company expects its Energy Infrastructure and After-Market Services to generate approximately 65% of gross margin before depreciation and amortization.
The Energy Infrastructure product line has contracts expected to generate $1.5 billion in revenue during their current terms. The Engineered Systems division carries a backlog of approximately $1.3 billion as of December 31, 2024, with most revenue conversion expected within 12 months. The company plans capital expenditures of $110-130 million for 2025, including $70 million for maintenance and PP&E.
Enerflex (NYSE: EFXT) ha presentato le sue previsioni preliminari per il 2025, evidenziando tre priorità chiave: migliorare la redditività delle operazioni core, sfruttare la propria posizione per capitalizzare la crescita dei volumi di gas naturale e acqua prodotta, e massimizzare il flusso di cassa libero. L’azienda prevede che il suo Settore delle Infrastrutture Energetiche e Servizi Post-Vendita genererà circa il 65% del margine lordo prima delle svalutazioni e degli ammortamenti.
La linea di prodotti Infrastruttura Energetica ha contratti che si prevede genereranno 1,5 miliardi di dollari di ricavi durante i loro attuali termini. La divisione Sistemi Ingegnerizzati presenta un portafoglio di lavori di circa 1,3 miliardi di dollari a partire dal 31 dicembre 2024, con la maggior parte della conversione dei ricavi prevista entro 12 mesi. L’azienda prevede spese in conto capitale di 110-130 milioni di dollari per il 2025, di cui 70 milioni per manutenzione e PP&E.
Enerflex (NYSE: EFXT) ha publicado su perspectiva preliminar para 2025, destacando tres prioridades clave: mejorar la rentabilidad de las operaciones principales, aprovechar su posición para capitalizar el crecimiento de los volúmenes de gas natural y agua producida, y maximizar el flujo de efectivo libre. Se espera que su Infraestructura Energética y Servicios Post-Venta generen aproximadamente el 65% del margen bruto antes de depreciación y amortización.
La línea de productos de Infraestructura Energética tiene contratos que se espera generen 1.5 mil millones de dólares en ingresos durante sus términos actuales. La división de Sistemas Ingenierizados tiene un masivo de aproximadamente 1.3 mil millones de dólares a partir del 31 de diciembre de 2024, con la mayoría de la conversión de ingresos esperada dentro de 12 meses. La empresa planea gastos de capital de 110-130 millones de dólares para 2025, incluidos 70 millones para mantenimiento y PP&E.
Enerflex (NYSE: EFXT)는 2025년 예상 개요를 발표하며 세 가지 주요 우선 사항을 강조했습니다: 핵심 운영 수익성 향상, 자연 가스와 생산된 물의 증가하는 물량을 활용한 기회 포착, 그리고 자산의 자유 현금 흐름 극대화. 회사는 에너지 인프라 및 애프터마켓 서비스가 감가상각 및 상각 전 총 마진의 약 65%를 차지할 것으로 예상합니다.
에너지 인프라 제품 라인은 현재 조건에서 15억 달러의 수익을 창출할 것으로 예상되는 계약을 보유하고 있습니다. 엔지니어링 시스템 부문은 2024년 12월 31일 기준으로 약 13억 달러의 누적 주문량을 갖고 있으며, 대부분의 수익 전환은 12개월 이내에 예상됩니다. 회사는 2025년을 위해 1억 1천만 – 1억 3천만 달러의 자본 지출을 계획하고 있으며, 이 중 7천만 달러는 유지보수 및 PP&E를 위한 것입니다.
Enerflex (NYSE: EFXT) a publié ses prévisions préliminaires pour 2025, mettant en évidence trois priorités clés : améliorer la rentabilité des opérations de base, tirer parti de sa position pour capitaliser sur la croissance des volumes de gaz naturel et d’eau produite, et maximiser le flux de trésorerie disponible. La société s’attend à ce que son infrastructure énergétique et ses services après-vente génèrent environ 65 % de la marge brute avant amortissements et dépréciations.
La gamme de produits d’infrastructure énergétique a des contrats qui devraient générer 1,5 milliard de dollars de revenus durant leurs termes actuels. La division des systèmes d’ingénierie présente un carnet de commandes d’environ 1,3 milliard de dollars à compter du 31 décembre 2024, avec la plupart des revenus devant être convertis dans un délai de 12 mois. L’entreprise prévoit des dépenses d’investissement de 110 à 130 millions de dollars pour 2025, dont 70 millions pour l’entretien et l’immobilisation.
Enerflex (NYSE: EFXT) hat seinen vorläufigen Ausblick für 2025 veröffentlicht und drei zentrale Prioritäten hervorgehoben: die Rentabilität der Kernoperationen zu steigern, seine Position zu nutzen, um vom Wachstum der Volumina von Erdgas und produziertem Wasser zu profitieren, und den freien Cashflow zu maximieren. Das Unternehmen erwartet, dass sein Energieinfrastruktur- und After-Market-Services etwa 65% der Bruttomarge vor Abschreibungen und Amortisation generieren wird.
Die Produktlinie Energieinfrastruktur hat Verträge, von denen erwartet wird, dass sie 1,5 Milliarden Dollar an Einnahmen während ihrer aktuellen Laufzeiten generieren. Die Abteilung für ingenieurgemäßige Systeme hat ein Auftragsvolumen von etwa 1,3 Milliarden Dollar zum 31. Dezember 2024, wobei die meisten Einnahmen innerhalb von 12 Monaten erwartet werden. Das Unternehmen plant Investitionen in Höhe von 110-130 Millionen Dollar für 2025, darunter 70 Millionen Dollar für Wartung und PP&E.
Positive
- Energy Infrastructure contracts expected to generate $1.5 billion in revenue
- Strong Engineered Systems backlog of $1.3 billion
- 65% of gross margin expected from recurring revenue streams
- Strong fundamentals for contract compression in U.S. market
Insights
The preliminary 2025 outlook reveals strong fundamental positioning with 65% of gross margin expected from highly contracted and recurring revenue streams – a important stability factor. The $1.5 billion contracted revenue in Energy Infrastructure and $1.3 billion Engineered Systems backlog provide excellent revenue visibility for the next 12-24 months.
The capital expenditure guidance of
The combination of contracted revenues, significant backlog and disciplined capital spending positions Enerflex well for steady operational performance and potential deleveraging in 2025. For retail investors, this presents a relatively lower-risk exposure to natural gas infrastructure growth, particularly in the robust U.S. market.
The outlook aligns perfectly with broader industry trends in natural gas infrastructure. The focus on produced water handling and natural gas compression services in the Permian Basin is particularly strategic, as this region is projected to drive significant U.S. natural gas production growth through 2025-2026.
The company’s geographic diversification between U.S. and Middle East operations provides exposure to two of the most resilient energy markets globally. The high proportion of contracted revenues offers downside protection against potential market volatility, while maintaining upside exposure to growing natural gas demand.
Key competitive advantages emerge from Enerflex’s established market position and ability to secure long-term contracts, evidenced by the substantial $1.5 billion contracted revenue base. This positions the company favorably against peers who may lack similar scale or contract security.
CALGARY, Alberta, Jan. 13, 2025 (GLOBE NEWSWIRE) — Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) is pleased to provide its preliminary outlook for 2025.
All amounts presented are in U.S. Dollars (“USD”) unless otherwise stated.
Outlook
During 2025, Enerflex’s priorities include: (1) enhancing the profitability of core operations; (2) leveraging the Company’s leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes; and (3) maximizing free cash flow to strengthen Enerflex’s financial position, provide direct shareholder returns, and invest in selective customer supported growth opportunities.
Enerflex’s preliminary outlook for 2025 reflects steady demand across its business lines and geographic regions. Operating results will be underpinned by the highly contracted Energy Infrastructure (“EI”) product line and the recurring nature of After-Market Services, which together are expected to account for approximately
Complementing Enerflex’s recurring revenue businesses is the Engineered Systems (“ES”) product line, which carried a backlog of approximately
Enerflex is targeting a disciplined capital program in 2025, with total capital expenditures of
Fourth Quarter Results
Enerflex plans to release its financial results and operating highlights for the year ended December 31, 2024, prior to market open on Thursday, February 27, 2025. 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, February 27, 2025 at 8:00 a.m. (MST), where members of senior management will discuss the Company’s results. A question-and-answer period will follow.
To participate, register at https://register.vevent.com/register/BI3947144f36ac4488be4e38db59385a7f. 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/dvksnz6g/.
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”, “forward-looking information and statements”) 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 forward-looking information and statements. The use of any of the words “future”, “continue”, “estimate”, “expect”, “may”, “will”, “could”, “believe”, “predict”, “potential”, “objective”, and similar expressions, are intended to identify forward-looking information and statements. In particular, this news release includes (without limitation) forward-looking information and statements pertaining to: expected increases in natural gas and produced water volumes in Enerflex’s core operating regions; Enerflex’s 2025 preliminary outlook including expectations: (i) for steady demand across business lines and geographic regions; (ii) that the Energy Infrastructure product line and the recurring nature of After-Market Services will, together, account for approximately
All forward-looking information and statements in this news release are subject to important risks, uncertainties, and assumptions, which may affect Enerflex’s operations, including, without limitation: the impact of economic conditions; the markets in which Enerflex’s products and services are used; general industry conditions; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; insufficient funds to support capital investments; availability of qualified personnel or management; political unrest and geopolitical conditions; 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, these statements, including but not limited to: the ability of Enerflex to realize the anticipated benefits of, and synergies from, the acquisition of Exterran Corporation and the timing and quantum thereof; the interpretation and treatment of the transaction to acquire Exterran Corporation by applicable tax authorities; the ability to maintain desirable financial ratios; the ability to access various sources of debt and equity capital, generally, and on acceptable terms, if at all; the ability to utilize tax losses in the future; the ability to maintain relationships with partners; risks associated with technology and equipment, including potential cyberattacks; the occurrence and continuation of unexpected events such as pandemics, severe weather events, war, terrorist threats, and the instability resulting therefrom; risks associated with existing and potential future lawsuits, shareholder proposals, and regulatory actions; and those factors referred to under the heading “Risk Factors” in: (i) Enerflex’s Annual Information Form for the year ended December 31, 2023, (ii) Enerflex’s management’s discussion and analysis for the year ended December 31, 2023, and (iii) Enerflex’s Management Information Circular dated March 15, 2024, each of the foregoing documents being accessible under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively.
Readers are cautioned that the foregoing list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information and statements 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 forward-looking information and statements, 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 ENERFLEX
Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, deploying natural gas, low-carbon, and treated water solutions – from individual, modularized products and services to integrated custom solutions. With over 4,600 engineers, manufacturers, technicians, 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 energy transition and growing decarbonization efforts.
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:
Marc Rossiter
President and Chief Executive Officer
E-mail: MRossiter@enerflex.com
Preet S. Dhindsa
Senior Vice President and Chief Financial Officer
E-mail: PDhindsa@enerflex.com
Jeff Fetterly
Vice President, Corporate Development and Investor Relations
E-mail: JFetterly@enerflex.com
FAQ
What is Enerflex’s (EFXT) projected capital expenditure for 2025?
Enerflex is targeting capital expenditures of $110-130 million for 2025, including approximately $70 million for maintenance and PP&E capital expenditures.
How much revenue is expected from Enerflex’s (EFXT) Energy Infrastructure contracts?
Enerflex’s Energy Infrastructure product line contracts are expected to generate approximately $1.5 billion of revenue during their current terms.
What is Enerflex’s (EFXT) current Engineered Systems backlog value?
Enerflex’s Engineered Systems product line carried a backlog of approximately $1.3 billion as of December 31, 2024.
When will Enerflex (EFXT) release its Q4 2024 financial results?
Enerflex will release its financial results for the year ended December 31, 2024, on Thursday, February 27, 2025, before market open.
What percentage of Enerflex’s (EFXT) gross margin is expected from recurring revenue in 2025?
Energy Infrastructure and After-Market Services together are expected to account for approximately 65% of gross margin before depreciation and amortization.