Enerflex(US:EFXT)2025-11-06 16:14Financial Performance - Revenue for Q3 2025 reached $777 million, a 29.3% increase from $601 million in Q3 2024[3] - Gross margin improved to $172 million, up 21.9% from $141 million year-over-year[3] - Operating income for Q3 2025 was $102 million, compared to $57 million in Q3 2024, reflecting an increase of 78.9%[3] - Net earnings for Q3 2025 were $37 million, a 23.3% increase from $30 million in Q3 2024[3] - Revenue for the nine months ended September 30, 2025, was $1,944 million, up from $1,853 million for the same period in 2024, reflecting a growth of 4.9%[43] - Segment revenue for NAM was $480 million in Q3 2025, up from $418 million in Q3 2024, representing a 14.8% growth[49] - LATAM segment revenue decreased to $88 million in Q3 2025 from $114 million in Q3 2024, a decline of 22.8%[49] - EH segment revenue increased to $225 million in Q3 2025 from $89 million in Q3 2024, a significant rise of 153.9%[49] Assets and Liabilities - Total assets increased to $2,855 million as of September 30, 2025, up from $2,791 million at the end of 2024[1] - Current liabilities decreased slightly to $909 million from $911 million at the end of 2024[1] - Cash and cash equivalents decreased to $64 million from $92 million at the end of 2024[1] - Total shareholders' equity rose to $1,155 million, an increase from $1,049 million at the end of 2024[1] - Total accounts receivable rose to $458 million as of September 30, 2025, compared to $398 million at the end of 2024, marking a 15.1% increase[16] - Long-term debt decreased to $648 million as of September 30, 2025, from $708 million as of December 31, 2024, a reduction of 8.5%[33] Cash Flow and Operating Activities - The company reported a cash provided by operating activities of $74 million for Q3 2025, down from $98 million in Q3 2024[5] - The company incurred a net repayment of the Revolving Credit Facility amounting to $33 million during Q3 2025[5] - The company experienced a net change in working capital of $(41) million for the three months ended September 30, 2025, compared to a positive change of $35 million in Q3 2024[60] Revenue Recognition and Impairments - Unbilled revenue recognized for the nine months ended September 30, 2025, was $566 million, compared to $766 million for the same period in 2024, reflecting a decrease of 26.2%[18] - The Company recognized a $4 million impairment of its investment in associates and joint ventures during the nine months ended September 30, 2025, compared to no impairment in the same period of 2024[31] Expenses and Costs - Core SG&A expenses for the nine months ended September 30, 2025, were $159 million, a decrease of 13.6% from $184 million in the same period of 2024[46] - Net finance costs for the three months ended September 30, 2025, were $20 million, down from $23 million in Q3 2024, a reduction of 13%[53] Shareholder Actions and Dividends - The Company repurchased 2,676,200 common shares during the nine months ended September 30, 2025, at a volume weighted average price of CAD $10.93 per share, totaling $22 million[41] - Enerflex declared a quarterly dividend of CAD $0.0425 per common share, payable on December 1, 2025, to shareholders of record on November 17, 2025[69] - The Company will continue to evaluate dividend payments based on cash flow availability, market conditions, and business needs[69] Legal and Arbitration Matters - The Company is involved in arbitration proceedings related to a project contract termination, with the outcome potentially affecting its financial position and results of operations[68] - Enerflex does not expect any outstanding lawsuits or claims to have a material adverse effect on its consolidated financial position or cash flows[66] - Enerflex has accrued reserves for outstanding lawsuits when it is probable that a liability has been incurred and can be reasonably estimated[66] - The Company disputes claims made by a customer in arbitration, asserting that its actions were in accordance with the project contract[68] - Enerflex intends to vigorously defend itself against the customer's claims while pursuing its own counterclaims[68]